Thursday, 2 July 2009

Kalahari Minerals reports increase in grade and size of Rossing South Project

It is news that is likely to be well received by investors in Extract Resources (ASX: EXT), and the company's largest shareholders, including Kalahari Minerals (AIM:KAH), who has a 40% equity stake.

Extract has announced a new JORC resource estimate of 145 million pounds of uranium (U308) for Zone 1 Rossing South Project in Namibia.

This is a 34% increase from the previous estimate, 20 per cent of that resources in now in the Indicated category.

Overall resource grade has also increased to 449 ppm u308.

This represents the highest granite-hosted uranium deposit in Namibia. A maident resource for Zone 2 at Rossing South is due in August 2009. Together, on current trends would place Rossing South into the top 1p global uranium deposits by containted metal.

Importantly, both Zone 1 and Zone 2 desposits are still open along strike and down dip, pointing to possibility of additional resources.

Extract’s Managing Director, Peter McIntyre, said “The significance of the recent high grade intersections we have been reporting, are now being reflected in this major deposit. This resource base is expected to support a long life, large scale open pit mining operation and a feasibility study is in progress to quantify this potential.”

Kalahari Chairman Mark Hohnen said, "These results yet again underpin that Rossing South is one of the world's most significant uranium discoveries. The 34% increase in resource for Zone 1 to 145 million lbs of U3O8 is fantastic news and in line with our estimates. Additionally we were hugely excited about the increase in grade which makes Rossing South the highest grade granite hosted uranium deposit in Namibia. We look forward to Extract publishing a maiden resource for Zone 2 in August, which we believe will elevate Rossing South into the world's top ten global uranium deposits in terms of contained metal. Importantly the mineralisation at Zone 1 and 2 remains open along strike and down-dip."

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