Extract Resources - Rossing South Exceptional Drilling Results

SOUTH PERTH , Western Australia , Dec. 8 /CNW/ - Extract Resources Ltd (ASX/TSX/NSX: EXT), a uranium exploration and development company with projects in Namibia , today announced exceptional chemical assay results from the massive Rossing South mineralised system, part of EXT's world-class Husab Uranium Project.

    
    Highlights:

    -   Multiple intersections of high grade uranium mineralisation:
        -  28m @ 4,544 ppm U(3)O(8)
        -  including 3m @ 32,865 ppm U(3)O(8) (3.29%)

    -   Highest grade granite - hosted deposit in Namibia.

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

    -   13 drill rigs operating on site, with more rigs being sourced to
        accelerate exploration and resource definition efforts.

    -   A RadonX exploration programme has commenced over the entire Rossing
        South area of cover to delineate additional uranium anomalies.

    -   EXT continuing to make strong progress with the Rossing South
        Feasibility Study (due for completion in mid-2010).
    

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

Extract Resources Chairman, Mr. Steve Galloway , said: "The latest round of high grade assay results from Rossing South are exceptional with some of the best results returned thus far."

"The mineralised system known as Zone 1 and Zone 2 extends for over five kilometres with infill and extensional drilling upgrading resource status from `Inferred' to `Indicated' so that reserves can be defined as part of the Feasibility Study to be completed in June 2010 .

"The Company is very pleased with the rapid progress being made and with 13 drill rigs now onsite, our work rate will accelerate further.

"We remain focused on developing Rossing South. It is a first class asset and we are confident that the work we are completing now will ensure it becomes a first class mining operation," Mr Galloway concluded.

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 2
    -------------------------------------------------------------------------
    RDD084                  128               175        47m @  2,741 ppm
    -------------------------------------------------------------------------
    Including               128               156        28m @  4,544 ppm
    -------------------------------------------------------------------------
    and                     146               149        3m @  32,865 ppm
    -------------------------------------------------------------------------
    

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.

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 drillcore 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.

Rossing South Exploration Update

General Exploration

The RadonX survey is underway with initial results expected in January 2010 . New uranium anomalies detected from this work will be assessed and prioritised with follow up exploration drilling to commence in quarter one 2010. The main target is new zones of granite hosted uranium mineralisation that lay concealed beneath the Rossing South gravel plain.

Resource Definition Update - Zone 1 & Zone 2

The exceptional assay results from RDD084 were from the southern end of Zone 2. Several strongly mineralised zones were defined, but the exceptional high grade results were from 146 to 149m, 3m grading 32,865 ppm U(3)O(8) (3.29%). The main host rock is coarse grained uraniferous granite. However, some narrow bands of sediment are also present. The high grade zone is quite broken and consists mainly of massive biotite.

Note that the core angles are approximately orthogonal to the core axis indicating that the intersections are approximately true width.

Thirteen rigs are now operating at Rossing South - seven RC rigs and six core rigs. Twelve rigs are dedicated to infill and resource extensional drilling over Zone 1 and 2 to define resources for conversion to reserves as part of the Rossing South Feasibility Study. One RC rig has resumed exploration and sterilisation drilling east of the known extents of mineralisation at Zone 1 and Zone 2.

A steady flow of strong chemical assay results continues to confirm the continuity of the high grade granite hosted uranium mineralisation at Rossing South. A list of recently received and previously unreported chemical assay results is shown in Appendix 2.

    
                                 APPENDIX 2

                             TABLE OF NEW RESULTS
    

Husab Project - Rossing South Prospect: 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))
    -------------------------------------------------------------------------
    Zone 2   RDD084  505353  7503053  270       -60  128  175    47    2,741
    -------------------------------------------------------------------------
                                          Including  128  156    28    4,544
    -------------------------------------------------------------------------
                                          and        146  149     3   32,865
    -------------------------------------------------------------------------
                                          and        161  165     4      244
    -------------------------------------------------------------------------
                                          and        173  175     2      133
    -------------------------------------------------------------------------

    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)
        U(3)O(8) converted to oxide values (U(3)O(8)) using a factor of 1.179
        and rounded to zero decimal places. Note that 100 ppm U(3)O(8) is
        equivalent to 0.1 kg/t U(3)O(8), which is 0.01% U(3)O(8).

    -   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, [phone], [email protected]