Jo-MarÉ Duddy
29 October 2009
EXTRACT Resources has found a new, high grade zone of uranium mineralisation on the western side of their Rössing South project, giving the Australian-quoted miner even more reason to believe that it is sitting on a total resource of 500 million pounds of uranium oxide in the Namib.
Company Chairman Steve Galloway described the drilling results and chemical assays as "spectacular" in a statement on Extract's website.
"We believe a total resource of 500 million Mlbs is achievable from targets already defined," Galloway said.
Independent reports this year have speculated that Rössing South could be one of the largest uranium deposits in the world. According to IBTimes, the new find means that an initial target of 185 million to 285 million pounds of uranium oxide can now be added to the resources already identified.
Galloway said that Extract is well advanced with the feasibility study on Zone 1 and 2 at Rössing South.
"The project is shaping up to be one of the world's largest uranium mines, capable of producing 15 million pounds of uranium oxide per year," he said.
In August, Extract said it will cost about US$704 million, some N$5 billion, to produce 14,8 million pounds of uranium oxide at an operation cost of US$23,60 per pound per year at Rössing South. The mine is envisaged to run for about 20 years.
About three weeks later, the company launched a US$76-million equity raising to accelerate exploration activities by way of a non-renounceable pro-rata offer to eligible shareholders.
Extract also had the market abuzz with indications that Rio Tinto Rössing Uranium is interested in a joint venture agreement to come aboard the Rössing South project. Rio Tinto already owns 15 per cent of Extract, as well as 68,6 per cent in Rössing Uranium.
Earlier this month, Galloway said Extract intends to add further value to Rössing South "through ongoing exploration and resource definition drilling aimed at defining the full potential of the project".
Construction at the mine is scheduled to start next and production is expected to start in 2012.
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