Extract Resources - Rossing South Drilling and Exploration Update

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Extract Resources

Jan 12, 2010, 14:36 ET

SOUTH PERTH , Western Australia , Jan. 12 /CNW/ - Extract Resources Ltd (ASX/TSX/NSX: EXT), a uranium exploration and development company with projects in Namibia , today announced updated exploration results from the massive Rossing South mineralised system, part of Extract's world-class Husab Uranium Project.

    
    Highlights:

    -   Infill resource definition drilling continues to return high grade
        intercepts

    -   All zones of uranium mineralisation still open at depth and along
        strike, in at least one direction.

    -   13 drill rigs operating on site, with additional rigs due on site in
        the next 4 to 6 weeks to accelerate exploration and resource
        definition efforts.

    -   Encouraging results from the RadonX survey programme

The latest round of chemical assay results continues to set Rossing South apart as a truly impressive uranium project.

Extract Resources Chairman, Mr. Steve Galloway , said: "We are pleased that we continue to return results with positive surprises at Rossing South - the quality of the original discovery continues to be confirmed, and if anything, gets better. We are conscious of the need to expandour regional exploration programme. Rossing South as defined for our feasibility study represents just a fraction of the prospective area.The RadonX survey results give us a useful indicator of where we should focus future exploration drilling, and the company is committed to this work.

He added, "With the feasibility study on-going and enough cash to fund a new exploration programme - the company is well positioned to add substantial resources to our existing inventory over the next six months and beyond."

Chemical assay results not previously reported from recent drilling at Rossing South include:

    
    -------------------------------------------------------------------------
    Hole ID        From          To                  Mineralised zones
                    (m)         (m)                         (U(3)O(8))
    -------------------------------------------------------------------------
    Zone 1
    -------------------------------------------------------------------------
    RRC508          98          159                   61m @   686ppm
    -------------------------------------------------------------------------
    RRC509         108          203                   95m @   665ppm
    -------------------------------------------------------------------------
    RRC533         296          409                  113m @   382ppm
    -------------------------------------------------------------------------
    RRC591         209          233                   24m @  2349ppm
    -------------------------------------------------------------------------
    Zone 2
    -------------------------------------------------------------------------
    RRC489         135          185                   50m @  1618ppm
    -------------------------------------------------------------------------
    RRC528         136          227                   91m @   854ppm
    -------------------------------------------------------------------------
    RRC576         146          211                   65m @  1125ppm
    -------------------------------------------------------------------------
    RRC490         155          193                   38m @  1699ppm
    -------------------------------------------------------------------------
    RRC584         120          195                   75m @   770ppm
    -------------------------------------------------------------------------
    RDD086         207          230                   23m @  2417ppm
    -------------------------------------------------------------------------
    including      214          217                    3m @ 11034ppm
    -------------------------------------------------------------------------
    Zone 1&2 'gap'
    -------------------------------------------------------------------------
    RDD077         453          486                   33m @  1487ppm
    -------------------------------------------------------------------------

A complete table of new results is included in Appendix 2.

About Extract Resources

Extract Resources Ltd is an Australian-based uranium exploration and development company whose primary focus is in Namibia . The Company's principal asset is its 100% owned Husab Uranium Project which contains two known uranium deposit areas, Rossing South and Ida Dome . Extensive exploration potential also exists for new uranium discoveries in the region.

Rossing South Exploration Update

General Exploration

A RadonX survey has been completed over the area of alluvial cover in the Rossing South area.

Radon anomalies, generated from the decay of uranium, will be used to define targets for future exploration drilling programs. Initial analysis of the results is encouraging and indicates large areas of anomalous radon flux to the south and west of the existing drilling. Further analysis of the results from the survey, and prioritization of the exploration targets, is ongoing. It is expected that drilling will commence at these target areas within the first quarter of 2010. It should be noted that these RadonX anomalies assist to identify exploration targets, but only subsequent drilling will determine if they reflect significant uranium mineralization as seen elsewhere in Rossing South.

A large area of weak or no RadonX response that lies to the east of Zones 1 and 2 has helped confirm that this area would be a suitable location for planned tailings storage, waste landforms and the process plant. A program of sterilization drilling is currently being carried out over this area.

Resource Definition Update - Zone 1 & Zone 2

Very encouraging results continue from infill resource definition drilling at Zones 1 and 2.

Drilling at Rossing South ceased on 18th December 2009 for the Christmas break. Four diamond rigs recommenced drilling on the 4th January. The remaining 2 diamond and 6 RC rigs are due to start drilling this week. Most rigs are dedicated to infill and resource extensional drilling over Zone 1 and 2 to define resources for conversion to reserves, and to collect samples for metallurgical test work, as part of the Rossing South Feasibility Study. One RC rig will be drilling exploration and sterilisation holes east of the known extents of mineralisation at Zone 1 and Zone 2. The others will be used for exploration.

The continuing flow of strong chemical assay results confirms the continuity and robust nature of the high grade granite hosted uranium mineralization at Rossing South. A list of recently received and previously unreported chemical assay results is shown in Appendix 2.

To view Figure 1 and Appendix 1, please go to http://files.newswire.ca/814/Extract.pdf

The information in this report that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled or reviewed by Mr Martin Spivey , who is a Member of The Australasian Institute of Mining and Metallurgy and Mr Andrew Penkethman who is a Member of the Australian Institute of Geoscientists. Mr Spivey and Mr Penkethman are both full time employees of the Company. Mr Spivey and Mr Penkethman have sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which they are undertaking to qualify as a Competent Person as defined in the 2004 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Mr Spivey and Mr Penkethman consent to the inclusion in this report of the matters based on their information in the form and context in which it appears.

Reference to hand held spectrometer results refers to use of a Company owned Exploranium, GR-135 Plus or Terraplus RS-125, hand held spectrometer. The uranium values are recorded by placing the unit on the bulk RC sample bags or individual trays of drill core and expressed as parts per million (ppm) eU which is equivalent to ppm U. Results from these units provide an indication of uranium mineralisation; they may also be affected by uranium mobility and disequilibrium. These factors should be considered when interpreting eU information whilst waiting for confirmation chemical assay results.

This press release contains forward-looking statements based on current expectations. These forward-looking statements entail various risks and uncertainties that could cause actual results to differ materially from those reflected.

    
                                 APPENDIX 2
                             TABLE OF NEW RESULTS

Husab Project - Rossing South Prospect: RC and Diamond drill hole assay results. Uranium intersections greater than 100 ppm U(3)O(8) over drill hole intersection widths of not less than 2 metres down hole width:

    
    -------------------------------------------------------------------------
                     Easting  Northing
                       UTM      UTM   Azi                             Grade
              Hole   WGS84    WGS84  True    Dip   From   To  Width   (ppm
    Prospect   ID     33 S     33 S  (deg)  (deg)    (m)  (m)   (m) U(3)0(8))
    -------------------------------------------------------------------------
    Rossing
     South   RDD077  506204  7504604  270      -60   437  440     3      174
    -------------------------------------------------------------------------
                                                     453  486    33     1487
    -------------------------------------------------------------------------
                                                     492  494     2      260
    -------------------------------------------------------------------------
                                                     521  523     2      176
    -------------------------------------------------------------------------
    Rossing
     South   RDD086  505550  7503350  270      -60   207  230    23     2417
    -------------------------------------------------------------------------
                                   Including         214  217     3    11034
    -------------------------------------------------------------------------
    Rossing
     South   RRC477  505000  7500400  270      -60   240  250    10      444
    -------------------------------------------------------------------------
    Rossing
     South   RRC479  505400  7502800  270      -60    79   88     9      162
    -------------------------------------------------------------------------
                                                     115  163    48      439
    -------------------------------------------------------------------------
    Rossing
     South   RRC480  505350  7503100  270      -60   113  131    18      253
    -------------------------------------------------------------------------
                                                     154  157     3      476
    -------------------------------------------------------------------------
                                                     168  177     9      306
    -------------------------------------------------------------------------
    Rossing
     South   RRC486  505500  7500000  270      -60   161  163     2      115
    -------------------------------------------------------------------------
                                                     275  295    20      447
    -------------------------------------------------------------------------
                                                     302  310     8      104
    -------------------------------------------------------------------------
    Rossing
     South   RRC488  505350  7503300  270      -60    81   84     3      252
    -------------------------------------------------------------------------
                                                     104  108     4      102
    -------------------------------------------------------------------------
                                                     114  151    37     1035
    -------------------------------------------------------------------------
    Rossing
     South   RRC489  505550  7503300  270      -60   100  107     7      587
    -------------------------------------------------------------------------
                                                     135  185    50     1618
    -------------------------------------------------------------------------
                                                     215  222     7      135
    -------------------------------------------------------------------------
                                                     250  252     2      249
    -------------------------------------------------------------------------
    Rossing
     South   RRC490  505750  7503300  270      -60    95  101     6      112
    -------------------------------------------------------------------------
                                                     120  123     3      858
    -------------------------------------------------------------------------
                                                     130  132     2      147
    -------------------------------------------------------------------------
    Rossing
     South   RRC490  505750  7503300  270      -60   155  193    38     1699
    -------------------------------------------------------------------------
                                                     223  259    36      693
    -------------------------------------------------------------------------
                                                     265  269     4      122
    -------------------------------------------------------------------------
                                                     307  309     2      211
    -------------------------------------------------------------------------
    Rossing
     South   RRC498  505750  7502950  270      -60   210  215     5      745
    -------------------------------------------------------------------------
                                                     244  286    42      421
    -------------------------------------------------------------------------
                                  Including          244  273    29      572
    -------------------------------------------------------------------------
                                        and          279  286     7      125
    -------------------------------------------------------------------------
    Rossing
     South   RRC499  505250  7502900  270      -60    80   85     5      232
    -------------------------------------------------------------------------
                                                     101  121    20      488
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    Rossing
     South   RRC500  505460  7502900  270      -60    99  107     8      334
    -------------------------------------------------------------------------
                                                     119  122     3      242
    -------------------------------------------------------------------------
                                                     128  131     3      714
    -------------------------------------------------------------------------
                                                     169  181    12      421
    -------------------------------------------------------------------------
                                                     195  207    12      446
    -------------------------------------------------------------------------
    Rossing
     South   RRC506  506500  7506050  270      -60   164  170     6      482
    -------------------------------------------------------------------------
                                                     261  265     4      187
    -------------------------------------------------------------------------
                                                     281  296    15      398
    -------------------------------------------------------------------------
    Rossing
     South   RRC507  505950  7506050  270      -60    66   75     9      102
    -------------------------------------------------------------------------
                                                     109  141    32      546
    -------------------------------------------------------------------------
                                  Including          109  119    10      366
    -------------------------------------------------------------------------
                                        and          125  141    16      859
    -------------------------------------------------------------------------
                                                     184  199    15      202
    -------------------------------------------------------------------------
                                                     225  227     2      374
    -------------------------------------------------------------------------
    Rossing
     South  RRC508  505850  7506050    90      -60    98  159    61      686
    -------------------------------------------------------------------------
                                  Including           98  107     9      222
    -------------------------------------------------------------------------
                                        and          116  149    33     1176
    -------------------------------------------------------------------------
                                        and          156  159     3      162
    -------------------------------------------------------------------------
                                                     174  179     5      233
    -------------------------------------------------------------------------
    Rossing
     South  RRC509  505880  7506000    90      -60    73   75     2      125
    -------------------------------------------------------------------------
                                                     108  203    95      665
    -------------------------------------------------------------------------
                                  Including          108  165    57      977
    -------------------------------------------------------------------------
                                        and          173  178     5      881
    -------------------------------------------------------------------------
                                        and          187  203    16      159
    -------------------------------------------------------------------------
    Rossing
     South  RRC510  506350  7506100   270      -60    58   71    13      135
    -------------------------------------------------------------------------
                                                     107  111     4      384
    -------------------------------------------------------------------------
                                                     117  122     5      266
    -------------------------------------------------------------------------
    Rossing
     South  RRC516  505550  7502750   270      -60   139  195    56      475
    -------------------------------------------------------------------------
                                  Including          139  147     8     1172
    -------------------------------------------------------------------------
                                        and          152  176    24      609
    -------------------------------------------------------------------------
                                        and          184  195    11      195
    -------------------------------------------------------------------------
                                                     212  215     3      193
    -------------------------------------------------------------------------
    Rossing
     South  RRC517  505650  7502750   270      -60   217  219     2      109
    -------------------------------------------------------------------------
    Rossing
     South  RRC518  505750  7502850   270      -60   120  124     4      140
    -------------------------------------------------------------------------
                                                     229  231     2      328
    -------------------------------------------------------------------------
                                                     255  277    22      494
    -------------------------------------------------------------------------
    Rossing
     South  RRC519  505650  7502850   270      -60   176  180     4      297
    -------------------------------------------------------------------------
    Rossing
     South  RRC520  505550  7502850   270      -60    90   95     5      106
    -------------------------------------------------------------------------
                                                     131  144    13      140
    -------------------------------------------------------------------------
                                                     177  191    14      234
    -------------------------------------------------------------------------
                                                     212  217     5      170
    -------------------------------------------------------------------------
    Rossing
     South  RRC521  505320  7502800   270       -60   98  108    10      271
    -------------------------------------------------------------------------
                                                     123  148    25      112
    -------------------------------------------------------------------------
    Rossing
     South  RRC523  505350  7503000   270       -60   98  103     5      249
    -------------------------------------------------------------------------
                                                     119  131    12      181
    -------------------------------------------------------------------------
                                                     139  141     2      103
    -------------------------------------------------------------------------
                                                     149  152     3     1712
    -------------------------------------------------------------------------
    Rossing
     South  RRC524  505550  7503000   270      -60    75   80     5      127
    -------------------------------------------------------------------------
                                                     131  148    17      168
    -------------------------------------------------------------------------
                                                     181  183     2      542
    -------------------------------------------------------------------------
                                                     191  214    23      313
    -------------------------------------------------------------------------
                                                     229  239    10      134
    -------------------------------------------------------------------------
                                                     248  251     3      228
    -------------------------------------------------------------------------
    Rossing
     South  RRC525  505350  7503150   270      -60   109  113     4      228
    -------------------------------------------------------------------------
                                                     127  130     3      239
    -------------------------------------------------------------------------
    Rossing
     South  RRC526  505450  7503150   270      -60    75   80     5      217
    -------------------------------------------------------------------------
                                                     119  122     3      419
    -------------------------------------------------------------------------
                                                     153  159     6      727
    -------------------------------------------------------------------------
    Rossing
     South  RRC527  505550  7503150   270      -60   104  197    93      583
    -------------------------------------------------------------------------
                                  Including          104  117    13      111
    -------------------------------------------------------------------------
                                        and          122  131     9      563
    -------------------------------------------------------------------------
                                        and          136  146    10     1673
    -------------------------------------------------------------------------
                                        and          151  154     3      350
    -------------------------------------------------------------------------
                                        and          160  197    37      788
    -------------------------------------------------------------------------
                                                     246  254     8      127
    -------------------------------------------------------------------------
    Rossing
     South  RRC528  505750  7503150   270      -60   136  227    91      854
    -------------------------------------------------------------------------
                                  Including          136  148    12      669
    -------------------------------------------------------------------------
                                        and          154  167    13     1139
    -------------------------------------------------------------------------
                                        and          177  183     6     1922
    -------------------------------------------------------------------------
                                        and          191  194     3      284
    -------------------------------------------------------------------------
                                        and          204  227    23     1806
    -------------------------------------------------------------------------
    Rossing
     South  RRC529  505850  7503150   270      -60    70   75     5      110
    -------------------------------------------------------------------------
                                                     195  203     8      250
    -------------------------------------------------------------------------
                                                     212  254    42      638
    -------------------------------------------------------------------------
                                                     282  290     8      299
    -------------------------------------------------------------------------
    Rossing
     South  RRC530  505570  7503200   270      -60   105  107     2      164
    -------------------------------------------------------------------------
                                                     154  189    35      597
    -------------------------------------------------------------------------
                                                     221  230     9      493
    -------------------------------------------------------------------------
    Rossing
     South  RRC531  505950  7506150   270      -60    73   75     2      562
    -------------------------------------------------------------------------
                                                     111  116     5     1351
    -------------------------------------------------------------------------
                                                     125  128     3      199
    -------------------------------------------------------------------------
                                                     136  139     3      226
    -------------------------------------------------------------------------
    Rossing
     South  RRC532  506000  7506150   270      -60   140  196    56      530
    -------------------------------------------------------------------------
                                                     208  213     5     2523
    -------------------------------------------------------------------------
                                                     253  255     2      287
    -------------------------------------------------------------------------
    Rossing
     South   RRC533  506550  7506150  270      -60   296  409   113      382
    -------------------------------------------------------------------------
    Rossing
     South   RRC533  506550  7506150  270      -60   296  409   113      382
    -------------------------------------------------------------------------
                                  Including          296  302     6      205
    -------------------------------------------------------------------------
                                        and          311  352    41      684
    -------------------------------------------------------------------------
                                        and          360  363     3      188
    -------------------------------------------------------------------------
                                        and          371  384    13      595
    -------------------------------------------------------------------------
                                        and          391  409    18      280
    -------------------------------------------------------------------------
    Rossing
     South  RRC534  506550  7506450   270      -60   146  150     4      210
    -------------------------------------------------------------------------
                                                     210  217     7      161
    -------------------------------------------------------------------------
                                                     275  277     2      137
    -------------------------------------------------------------------------
    Rossing
     South  RRC535  506650  7506450   270      -60   141  144     3      246
    -------------------------------------------------------------------------
                                                     153  174    21      346
    -------------------------------------------------------------------------
                                                     202  204     2      473
    -------------------------------------------------------------------------
                                                     241  244     3      164
    -------------------------------------------------------------------------
                                                     251  257     6      206
    -------------------------------------------------------------------------
                                                     264  322    58      319
    -------------------------------------------------------------------------
                                                     343  348     5      229
    -------------------------------------------------------------------------
    Rossing
     South  RRC536  506450  7506500   270      -60    58   65     7      106
    -------------------------------------------------------------------------
                                                      71   82    11      155
    -------------------------------------------------------------------------
    Rossing
     South  RRC537  506550  7506500   270      -60    91   96     5      208
    -------------------------------------------------------------------------
                                                     151  161    10      216
    -------------------------------------------------------------------------
                                                     184  197    13      415
    -------------------------------------------------------------------------
                                                     243  253    10      220
    -------------------------------------------------------------------------
                                                     258  265     7      163
    -------------------------------------------------------------------------
                                                     271  282    11      161
    -------------------------------------------------------------------------
    Rossing
     South  RRC538  506650  7506550   270      -60   163  211    48      750
    -------------------------------------------------------------------------
    Rossing
     South  RRC541  505850  7506100    90      -60    75   92    17      364
    -------------------------------------------------------------------------
                                                     124  170    46      549
    -------------------------------------------------------------------------
                                                     181  204    23      197
    -------------------------------------------------------------------------
                                                     209  213     4      245
    -------------------------------------------------------------------------
    Rossing
     South  RRC542  506000  7506250   270      -60   125  151    26      926
    -------------------------------------------------------------------------
                                                     260  263     3      446
    -------------------------------------------------------------------------
                                                     274  350    76      418
    -------------------------------------------------------------------------
                                  Including          274  304    30      915
    -------------------------------------------------------------------------
                                        and          310  314     4      141
    -------------------------------------------------------------------------
                                        and          319  325     6      124
    -------------------------------------------------------------------------
                                        and          330  350    20      115
    -------------------------------------------------------------------------
    Rossing
     South  RRC543  505950  7506250   270      -60    73   80     7      584
    -------------------------------------------------------------------------
                                                      86   89     3      395
    -------------------------------------------------------------------------
                                                     140  183    43      486
    -------------------------------------------------------------------------
                                  Including          140   155   15     1142
    -------------------------------------------------------------------------
                                        and          165   174    9      335
    -------------------------------------------------------------------------
                                        and          181   183    2      153
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    Rossing
     South  RRC551  505660  7503100   270      -60    95   100    5      111
    -------------------------------------------------------------------------
                                                     112   145   33      603
    -------------------------------------------------------------------------
                                  Including          112   114    2      221
    -------------------------------------------------------------------------
                                        and          122   129    7      396
    -------------------------------------------------------------------------
                                        and          134   145   11     1498
    -------------------------------------------------------------------------
                                                     156   162    6      222
    -------------------------------------------------------------------------
                                                     178   191   13      102
    -------------------------------------------------------------------------
    Rossing
     South  RRC552  505860  7503100   270      -60   198   210   12      665
    -------------------------------------------------------------------------
                                                     231   236    5      363
    -------------------------------------------------------------------------
    Rossing
     South  RRC554  505450  7503450   270      -60   156   186   30     1081
    -------------------------------------------------------------------------
                                  Including          156   167   11     2432
    -------------------------------------------------------------------------
                                       and           174   186   12      462
    -------------------------------------------------------------------------
    Rossing
     South  RRC555  505550  7503450   270      -60    55    60    5      117
    -------------------------------------------------------------------------
                                                     133   149   16     1616
    -------------------------------------------------------------------------
    Rossing
     South  RRC555  505550  7503450   270      -60   176   238   62      836
    -------------------------------------------------------------------------
    Rossing
     South  RRC561  505350  7502850   270      -60    91   115   24      541
    -------------------------------------------------------------------------
                                  Including           91    96    5      131
    -------------------------------------------------------------------------
                                        and          101   115   14      871
    -------------------------------------------------------------------------
                                                     136   138    2      544
    -------------------------------------------------------------------------
                                                     143   162   19      318
    -------------------------------------------------------------------------
    Rossing
     South  RRC562  505300  7502850   270             78   103   25      189
    -------------------------------------------------------------------------
                                                     109   114    5      316
    -------------------------------------------------------------------------
                                                     120   135   15      312
    -------------------------------------------------------------------------
    Rossing
     South  RRC571  505650  7503200   270      -60   130   154   24      296
    -------------------------------------------------------------------------
                                                     196   199    3      120
    -------------------------------------------------------------------------
                                                     215   222    7      191
    -------------------------------------------------------------------------
    Rossing
     South  RRC576  505750  7503250   270      -60   146   211   65     1125
    -------------------------------------------------------------------------
    Rossing
     South  RRC584  505950  7503650   270      -60   120   195   75      770
    -------------------------------------------------------------------------
    Rossing
     South  RRC591  506900  7506850   270      -60   209   233   24     2349
    -------------------------------------------------------------------------

    Notes:
    -   Analyses on RC chips and 1/2 NQ drill core by Genalysis Laboratory
        Services, Perth. Uranium assays were carried out by Four Acid
        Digest/MS (AT/MS).
    -   Metal values (U) have been expressed as parts per million (ppm) U3O8
        converted to oxide values (U3O8) using a factor of 1.179 and rounded
        to zero decimal places. Note that 100 ppm U3O8 is equivalent to 0.1
        kg/t U3O8, which is 0.01% U3O8.
    -   Intersection widths are estimated to be approximately true width.
    -   Figures rounded to zero decimal places.

For further information: Steve Galloway, Chairman, + 264 61 227950; Richard Henning, Investor Relations, +61 89367 2111, [email protected]; Melita Vega, Hill & Knowlton, (416) 413-4743, [email protected]

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