Extract Resources - Rössing South: Exceptional Chemical Assay Results
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SOUTH PERTH, Western Australia, April 6 /CNW/ - Extract Resources Ltd (ASX/TSX/NSX: EXT), a uranium exploration and development company with projects in Namibia, today announced further excellent chemical assay results from the Rössing South mineralised system, part of Extract's world-class Husab Uranium Project.

These results further confirm the global significance of the Husab Uranium Project and endorse Extract's commitment to the completion of a Definitive Feasibility Study later this year and, in due course, the development of a mine at Rössing South.

Highlights:

    
    -   Infill and resource extensional drilling continues to yield
        exceptional high grade uranium mineralisation.

    -   Aggressive drilling program continues with 17 rigs currently
        operating at Rössing South.

    -   The resumption of exploration drilling has met with immediate success
        on the western limb of the Rössing South anticline.

    -   Additional drill rigs have been sourced for deployment in the coming
        weeks to exploration drilling targets.

    -   'Proof of design' testwork for pilot plant has commenced.

    -   Resource update for Zone 1 and Zone 2 on track for Q3 2010.

    -   Numerous high grade chemical assay results from recent Zone 1 and
        Zone 2 drilling, including:


             --------------------------------------------------
              Hole ID    From       To        Mineralised zones
                           (m)      (m)            (U3O8)
             --------------------------------------------------
             Zone 1
             --------------------------------------------------
             RDD103      200      222      22m  @  1410 ppm
             --------------------------------------------------
             RDD113      377      405      28m  @  1144 ppm
             --------------------------------------------------
             RRC648       40       63      23m  @  1026 ppm
             --------------------------------------------------
             RRC544      127      147      20m  @  1199 ppm
             --------------------------------------------------
             RRC657       79       98      19m  @  1137 ppm
             --------------------------------------------------
             RRC646      156      185      29m  @  1082 ppm
             --------------------------------------------------
             RRC675      233      304      71m  @  1015 ppm
             --------------------------------------------------
             RRC625      143      161      18m  @  1097 ppm
             --------------------------------------------------
             Zone 2
             --------------------------------------------------
             RDD110      279      320      41m  @  1222 ppm
             --------------------------------------------------
             RRC649      313      322      16m  @  1371 ppm
             --------------------------------------------------
             RRC655      253      276      23m  @  1336 ppm
             --------------------------------------------------
             RRC633      249      305      56m  @  1129 ppm
             --------------------------------------------------
             RRC672      229      241      12m  @  2005 ppm
             --------------------------------------------------
             RRC692      179      247      68m  @  1037 ppm
             --------------------------------------------------
             RRC610      240      271      31m  @  1007 ppm
             --------------------------------------------------
             RRC620      110      122      12m  @  1157 ppm
             --------------------------------------------------
             RRC662      170      192      22m  @  1162 ppm
             --------------------------------------------------
    

Resource Definition Update - Zone 1 & Zone 2

The Company continues to increase the number of drilling rigs on site with a total of 17 now operating at Rössing South. Four reverse circulation (RC) rigs and seven diamond core rigs are completing infill and resource extensional drilling at Rössing South and an additional RC rig is continuing with sterilization drilling. The other five rigs have been deployed to exploration drilling.

At the Rössing South project the company has now completed over 300,000 metres of drilling with 232,347 metres of this total dedicated to resource definition within Zone 1 and Zone 2 (Figure 1). The Company anticipates that the infill and resource extensional drilling completed since July 2009 will move more of the resource to the Indicated category and will be incorporated in the Definitive Feasibility Study. An updated resource statement for Zone 1 and Zone 2 is expected to be announced in Q3, 2010.

The latest round of chemical assay results were received from 66 drill holes located throughout Zone 1 and Zone 2. Multiple intercepts of high grade mineralization were reported reconfirming the continuity of the high-grade, granite-hosted uranium mineralization. Highlights are shown in Figure 1 (below) and a full list of recently received and previously unreported chemical assay results is included in Appendix 1.

Uranium mineralisation remains open along strike and down dip at both Zone 1 and 2, with additional drilling expected to increase the size of this globally significant mineral system. Figure 2 (below) is a plan showing the gridded and contoured uranium assay x mineralized intersection thickness product in each hole drilled to date, where chemical assay results are available. It shows several high value areas have been identified at both zones, some of which are still open, making these excellent early mining targets. Additional drilling is expected to increase the size of these high grade domains.

Figures 3 and 4 (below) are cross sections of Zone 1 and Zone 2, respectively. Each illustrates the geological interpretation and demonstrates the continuity of the high-grade, granite-hosted uranium mineralisation at Rössing South. Figure 3 (cross section looking west) shows the high grade area at the southern end of Zone 1. The southerly plunge of the mineralised system in this part of the deposit is evident and reinforces the view that additional mineralisation can be expected in the gap between Zone 1 and Zone 2.

Figure 4 (cross section looking north) illustrates that mineralisation has been intersected on both the east and west limb of the Rössing South anticline. Mineralisation has been defined on this section over a width in excess of 1000 metres and is still open down dip on both fold limbs.

Exploration Update

As previously announced (ASX Release 26th October 2009) the Company has identified the western limb of the Rössing South antiform as a structural position with potential to host uranium mineralization. Recent drilling of this target has confirmed this potential with four RC rigs and one diamond core rig currently dedicated to drilling out this area. Hand held spectrometer results indicate that high grade uranium mineralisation has been intersected in multiple drill holes. Chemical assay results are pending and will be announced in due course.

This western limb area has only been partly tested and additional drilling is required down-dip to the west and along strike to the north and south to determine the extent of this high value mineralization. Additional drilling rigs are being deployed to further test this highly prospective target.

Rössing South Feasibility Study Update

Results of metallurgical testwork done to date have been encouraging. One of the final steps in this process is completing metallurgical tests in a pilot plant. Approximately 10 tonnes of drill core has been transported from Namibia to Perth for 'proof of design' pilot plant testwork. Commissioning of the pilot plant commenced on 22 March 2010 and all test work is expected to be complete by the end of June 2010. The objectives of this work are to finalise the base case flow sheet, to quantify comminution, leaching, filtration, ion exchange, solvent extraction parameters and to characterize uranium product for marketing purposes. Of particular interest will be acid, water and other reagent consumption rates.

To view Figure 1, 2, 3, 4 and Appendix 1, please visit: http://files.newswire.ca/814/ExtractRes_HUSAB_Apr6.doc

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, Rössing South and Ida Dome. Extensive exploration potential also exists for new uranium discoveries in the region.

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.

For further information: Jonathan Leslie, Chief Executive Officer, [email protected]; Richard Henning, Investor Relations, [phone], [email protected]