The share market liked the results and the implications are becoming apparent for Extract Resources (ASX/TSX: EXT) as it announced some of the best chemical assay results received from its Rossing South Uranium deposit in Namibia. The wide zones of consistently high grade mineralisation and their location -strategically located within Alaskite Alley, an area that hosts several world class uranium deposits - Rio Tinto's Rossing Uranium Mine and Paladin's Langer Heinrich Mine - are positive for Extract's Husab Project being part of a broader uranium mineral system in Namibia.
Drilling results from Rossing South Zone 1 and Zone 2 drilling results have confirmed and increased the known dimensions of uranium mineralisation with multiple, high grade results.
Zone 1 drilling returned assays including: 114m at 790 parts per million uranium from 361m, 25m at 3650ppm uranium from 211m and 60m at 2752ppm uranium from 241m. Zone 2 drilling returned assay results that included: 39m at 1446ppm uranium from 238m, 14m at 3802ppm uranium from 166m and 64m at 1346ppm uranium from 270m.
Peter McIntyre, Managing Director said that the mining optimization of Zones 1 and 2 promises to be a very interesting exercise. The consistent broad intersections of higher-grade mineralisation, gives the company the flexibility of considering a number of optimization models.
McIntyre said, Every scenario we have been looking at, however, presents Rossing South as being a very large uranium producer.
Extract believes the consistent return of wide zones of strong uranium mineralisation from Rossing South support the Company's view that the 100% owned Husab Uranium Project is part of one of the largest uranium mineral systems in the world.
Zone 1 already has an inferred resource of 115 million tonnes grading 430ppm for 108 million pounds contained uranium at a cut-off grade of 100ppm. A maiden Zone 2 resource is expected by end August 2009.
Extract has six drill rigs dedicated to resource drilling at Rossing South. One RC rig is drilling step out holes at the southern end of Zone 1, to extend mineralisation to the south. One diamond rig is completing resource extension holes. An updated resource estimate for Zone 1 will be completed in the next three months.
Published courtesy of Proactive Investors - www.proactiveinvestors.com.au