Extract Resources - Rossing South - A new zone of mineralisation

SOUTH PERTH, Western Australia, Oct. 9 /CNW/ - Extract Resources ("the Company") today announced confirmation of a new zone of uranium mineralisation at Rossing South.

    
    Highlights:

    -   A new zone of uranium mineralisation has been discovered on the
        western limb of the Rossing South antiform.

    -   Zones 1 and 2 - Infill drilling continues to return high grade
        intersections.
    

Significant mineralisation has been encountered in 2 adjacent RC holes drilled on the western side of the dome structure south of Zone 2. It is in interpreted to dip shallowly to the west. A diamond drill hole (RDD082) is being drilled to confirm this orientation.

The core recovered so far shows that the banding and boundaries are at low angles to the core axis consistent with a shallow westerly dip; further, the hole has already intersected alaskite containing uranium mineralisation.

The mineralisation discovered to date at Zones 1 and 2 lies predominantly on the eastern limb of the Rossing South antiform.

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))
    ------------------------------------------------------

     New Zone
    ------------------------------------------------------
     R3RC0001           157    212     55m @ 1474 ppm
    ------------------------------------------------------
     R3RC0002           104    157     53m @ 1616 ppm
    ------------------------------------------------------

     Other Results
    ------------------------------------------------------
     Zone 1
    ------------------------------------------------------
     RDD037             435    522      87m @ 978 ppm
    ------------------------------------------------------
     RDD062              49    142      93m @ 619 ppm
    ------------------------------------------------------
     RRC408             140    185      45m @ 995 ppm
    ------------------------------------------------------
     RRC433             139    186      47m @ 1130 ppm
    ------------------------------------------------------
     Zone 2
    ------------------------------------------------------
     RDD048             348    361      13m @ 1712 ppm
    ------------------------------------------------------
     RRC413             264    292      28m @ 528 ppm
    ------------------------------------------------------
    

The broad zones of strong uranium mineralisation from Rossing South continues to increase the known size of this massive mineralised system. The expanded drilling programme has 10 drilling rigs currently on location, 5 diamond rigs and 5 RC.

Extract Resources Chairman, Mr. Steve Galloway, said "As we continue infill drilling on Zone 1 as part of our programme to get our resource base into measured and indicated category, our exploration programme is extending the known mineralisation further south along the 15km strike length. Recent magnetic images showed the potential for the mineralised zone to divide into an antiform with both western and eastern limbs. These recent drilling results and chemical assays are spectacular and confirm that a new, high grade, zone has been discovered on the western limb of this antiform."

"The Company intends to add further value to the project through ongoing exploration and resource definition drilling aimed at defining the full potential of the project. As stated recently, we believe a total resource of 500 Mlbs is achievable from targets already defined. The Company is now well advanced with the Rossing South Feasibility Study on Zones 1 and 2 and the project is shaping up to be one of the world's largest uranium mines, capable of producing 15 Mlbs of U3O8 per year."

About Extract

Extract Resources is an Australian-based uranium exploration and development company whose primary focus is in the African nation of 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.

Rossing South Exploration Update

New Zone

As previously reported, a RC rig was completing a line of drilling south of the Zone 2 line (Figure 1). This drilling was aimed at following up on a zone of strongly anomalous uranium mineralisation defined by reconnaissance exploration drilling, a further 400 metres to the south. Some exceptional results have been returned, as indicated by chemical assay of the drill samples, with multiple mineralised zones intersected. Results returned thus far, include: 55m @ 1474ppm and 53m @ 1616ppm. These high grade intersections were returned from pegmatitic leucogranites (alaskite) with abundant smoky quartz and clumpy biotite.

It was necessary to position a diamond rig to determine the stratigraphic orientation and dip of the intersections. This delayed the release of the chemical assay results as the company could not be confident that the results were accurate given the lack of geological knowledge in the exploration zone. The recovered core shows that the banding and boundaries are at low angles to the core axis consistent with a shallow westerly dip. Accordingly, the intercepts are likely to be 65% to 75% of true thickness.

General Exploration

Extensive exploration potential still remains to be tested throughout the Husab Project with priority given to Rossing South. The recently acquired helimag data captured on a 50 metre line spacing reiterates the exploration potential at Rossing South concealed by the Namib Desert (Figure 1). Uranium mineralisation defined at Rossing South thus far has been intersected mainly in the east limb of the Rossing South antiform (Figure 2). With the discovery of the mineralised zone in the west limb position, there will be further exploration along strike to the south and in the true Rossing position located about 2 km further west.

Two RC rigs and one diamond rig are engaged in drilling exploration holes south of Zone 2. The geological sequences observed at Zones 2 and 3 are remarkably similar to each other.

Resource Definition Update

Seven rigs are dedicated to resource drilling at Rossing South. Two RC rigs at Zone 1 and one RC rig at Zone 2 are drilling infill holes on 50m spaced sections, to increase the level of confidence in the material currently classified as Inferred. Two diamond rigs are drilling resource extension and definition holes at Zone 2. Two further diamond rigs are drilling 6 holes at Zone 2 for geotechnical purposes.

Chemical assay results and handheld spectrometer readings from Zone 1 and Zone 2 continue to confirm the presence of broad, high grade alaskite-hosted uranium mineralisation. Further drilling at Zone 1 and Zone 2 in the coming months is expected to extend the known dimensions of mineralisation. Infill drilling is expected to increase the level of confidence in the known mineralisation.

Two RC and one diamond rig are currently undertaking exploration drilling south of Zone 2. Additional rigs are periodically on site for short periods involved in civil geotechnical and hydrogeological investigation for the PFS.

A full list of recently received and previously unreported chemical assay results is shown in Appendix 2.

    
                                 Appendix 1

    To see Appendix 1, please see URL below:

    http://files.newswire.ca/476/Extract-Appendix-1-Husab.doc


                                 APPENDIX 2:
                             TABLE OF NEW RESULTS

    Husab Project - Rossing South Prospect: RC and drill core chemical assay
    results. Uranium intersections greater than 0.1 kg/t (100 ppm) U(3)O(8)
    over drill hole intersection widths of not less than 2 metres down hole
    width:

    -------------------------------------------------------------------------
            Northing  Easting
               UTM     UTM     Azi_                    Grade    Grade   Assay
              WGS84   WGS84    True  Dip From To Width (kg/t    (lb/t    Met-
    Hole_id    33S     33S    (deg)  (deg)(m) (m) (m) U(3)O(8)) U(3)O(8)) hod
    -------------------------------------------------------------------------
    R3RC0001 7500000 504000       270 -60 157 212  55  1.474    3.249   AT/MS
    -------------------------------------------------------------------------
    R3RC0002 7500000 504100       270 -60 104 157  53  1.616    3.562   AT/MS
    -------------------------------------------------------------------------
                                          187 192   5  0.440    0.969
    -------------------------------------------------------------------------
                                          211 220   9  0.192    0.424
    -------------------------------------------------------------------------
    RDD037   7506602 506956       270 -60 332 358  26  0.775    1.708   AT/MS
    -------------------------------------------------------------------------
                            Including     332 348  16  0.704    1.551
    -------------------------------------------------------------------------
                            and           353 358   5  1.743    3.842
    -------------------------------------------------------------------------
                                          410 425  15  0.285    0.629
    -------------------------------------------------------------------------
                                          435 522  87  0.978    2.156
    -------------------------------------------------------------------------
                            Including     435 468  33  0.286    0.630
    -------------------------------------------------------------------------
                            and           473 511  38  1.871    4.125
    -------------------------------------------------------------------------
                            and           518 522   4  1.050    2.314
    -------------------------------------------------------------------------
    RDD048   7504002 505944       270 -60 309 315   6  0.423    0.932   AT/MS
    -------------------------------------------------------------------------
                                          332 335   3  0.226    0.499
    -------------------------------------------------------------------------
                                          348 361  13  1.712    3.774
    -------------------------------------------------------------------------
                                          373 400  27  0.703    1.551
    -------------------------------------------------------------------------
                            Including     373 378   5  1.155    2.546
    -------------------------------------------------------------------------
                            and           385 400  15  0.864    1.904
    -------------------------------------------------------------------------
    RDD051   7505404 506407     255.5 -60 357 364   7  1.096    2.415   AT/MS
    -------------------------------------------------------------------------
                                          373 375   2  1.316    2.902
    -------------------------------------------------------------------------
                                          432 441   9  0.444    0.978
    -------------------------------------------------------------------------
    RDD052A  7503899 505408        90 -60 100 102   2  0.145    0.320   AT/MS
    -------------------------------------------------------------------------
                                          303 308   5  0.336    0.742
    -------------------------------------------------------------------------
    RDD054   7503903 506205       270 -60 268 273   5  0.126    0.277   AT/MS
    -------------------------------------------------------------------------
                                          302 304   2  0.505    1.112
    -------------------------------------------------------------------------
                                          333 365  32  0.618    1.364
    -------------------------------------------------------------------------
                            Including     333 353  20  0.641    1.412
    -------------------------------------------------------------------------
                            and           359 365   6  1.127    2.485
    -------------------------------------------------------------------------
                                          422 429   7  0.116    0.256
    -------------------------------------------------------------------------
                                          438 446   8  0.129    0.283
    -------------------------------------------------------------------------
    RDD056   7503803 506205       270 -60 272 291  19  0.174    0.384   AT/MS
    -------------------------------------------------------------------------
                                          347 352   5  0.240    0.529
    -------------------------------------------------------------------------
                                          366 374   8  0.168    0.369
    -------------------------------------------------------------------------
                                          409 444  35  0.394    0.868
    -------------------------------------------------------------------------
    RDD057   7503503 506206       270 -60 422 431   9  0.132    0.290   AT/MS
    -------------------------------------------------------------------------
    RDD060   7505103 506307       270 -60 194 196   2  0.119    0.262   AT/MS
    -------------------------------------------------------------------------
                                          207 211   4  0.157    0.347
    -------------------------------------------------------------------------
                                          268 270   2  0.119    0.262
    -------------------------------------------------------------------------
                                          288 299  11  0.359    0.791
    -------------------------------------------------------------------------
                                          305 311   6  0.406    0.894
    -------------------------------------------------------------------------
                                          330 343  13  0.516    1.138
    -------------------------------------------------------------------------
    RDD061   7506901 506654       270 -60  26  31   5  0.154    0.339   AT/MS
    -------------------------------------------------------------------------
                                           71  88  17  2.245    4.949
    -------------------------------------------------------------------------
                                          104 120  16  0.703    1.551
    -------------------------------------------------------------------------
                                          146 152   6  0.168    0.370
    -------------------------------------------------------------------------
    RDD062   7506752 506677       270 -60  49 142  93  0.619    1.364   AT/MS
    -------------------------------------------------------------------------
                            Including      49  64  15  0.306    0.674
    -------------------------------------------------------------------------
                            and            69  77   8  0.210    0.462
    -------------------------------------------------------------------------
                            and            85 142  57  0.892    1.966
    -------------------------------------------------------------------------
                                          203 215  12  0.441    0.972
    -------------------------------------------------------------------------
                                          222 230   8  0.209    0.461
    -------------------------------------------------------------------------
    RDD063   7506602 506585       270 -60  57  62   5  0.736    1.622   AT/MS
    -------------------------------------------------------------------------
                                           83 106  23  0.675    1.487
    -------------------------------------------------------------------------
                            Including      83  88   5  0.835    1.841
    -------------------------------------------------------------------------
                            and            94 106  12  0.939    2.069
    -------------------------------------------------------------------------
    RDD064   7505405 506186       270 -60  96 112  16  0.906    1.998   AT/MS
    -------------------------------------------------------------------------
    RDD076   7504901 506205       270 -60 379 381   2  0.274    0.603   AT/MS
    -------------------------------------------------------------------------
                                          397 404   7  0.178    0.392
    -------------------------------------------------------------------------
                                          439 468  29  0.306    0.676
    -------------------------------------------------------------------------
    RRC399   7506301 505954       270 -60  79  84   5  0.922    2.032   AT/MS
    -------------------------------------------------------------------------
                                          119 125   6  0.104    0.229
    -------------------------------------------------------------------------
                                          181 186   5  0.202    0.446
    -------------------------------------------------------------------------
                                          202 212  10  0.576    1.269
    -------------------------------------------------------------------------
                                          221 265  44  0.301    0.664
    -------------------------------------------------------------------------
    RRC400   7506303 506005       270 -60 142 146   4  0.142    0.314   AT/MS
    -------------------------------------------------------------------------
                                          169 206  37  0.237    0.522
    -------------------------------------------------------------------------
                                          234 252  18  0.248    0.548
    -------------------------------------------------------------------------
                                          281 315  34  0.410    0.904
    -------------------------------------------------------------------------
                                          325 343  18  0.772    1.702
    -------------------------------------------------------------------------
                                          355 362   7  0.535    1.179
    -------------------------------------------------------------------------
                                          373 387  14  0.530    1.169
    -------------------------------------------------------------------------
    RRC407   7505953 506256       270 -60 140 142   2  0.221    0.486   AT/MS
    -------------------------------------------------------------------------
    RRC408   7505952 506356       270 -60 103 126  23  0.299    0.660   AT/MS
    -------------------------------------------------------------------------
                                          140 185  45  0.995    2.193
    -------------------------------------------------------------------------
                                          211 213   2  0.285    0.629
    -------------------------------------------------------------------------
                                          259 306  47  0.505    1.113
    -------------------------------------------------------------------------
    RRC410   7506051 506307       270 -60  56  61   5  0.279    0.614   AT/MS
    -------------------------------------------------------------------------
                                           76 104  28  0.296    0.653
    -------------------------------------------------------------------------
                                          110 112   2  0.809    1.784
    -------------------------------------------------------------------------
    RRC413   7501204 505306       270 -60 207 225  18  0.357    0.788   AT/MS
    -------------------------------------------------------------------------
                                          231 239   8  0.455    1.003
    -------------------------------------------------------------------------
                                          264 292  28  0.528    1.164
    -------------------------------------------------------------------------
                            Including     264 279  15  0.390    0.860
    -------------------------------------------------------------------------
                            and           284 292   8  1.081    2.383
    -------------------------------------------------------------------------
                                          311 318   7  0.205    0.453
    -------------------------------------------------------------------------
                                          323 332   9  0.105    0.232
    -------------------------------------------------------------------------
                                          338 346   8  0.148    0.326
    -------------------------------------------------------------------------
    RRC415   7501204 505506       270 -60 178 182   4  0.134    0.296   AT/MS
    -------------------------------------------------------------------------
                                          224 238  14  0.153    0.336
    -------------------------------------------------------------------------
                                          269 272   3  0.151    0.333
    -------------------------------------------------------------------------
                                          318 320   2  0.219    0.482
    -------------------------------------------------------------------------
                                          347 352   5  0.507    1.117
    -------------------------------------------------------------------------
    RRC416   7501200 505600       270 -60 270 278   8  0.113    0.250   AT/MS
    -------------------------------------------------------------------------
                                          300 307   7  0.240    0.530
    -------------------------------------------------------------------------
                                          337 340   3  0.141    0.310
    -------------------------------------------------------------------------
    RRC421   7501602 505206       270 -60 134 136   2  0.356    0.785   AT/MS
    -------------------------------------------------------------------------
                                          141 160  19  0.187    0.412
    -------------------------------------------------------------------------
                                          294 296   2  0.127    0.281
    -------------------------------------------------------------------------
    RRC422   7501602 505305       270 -60 142 151   9  0.660    1.456   AT/MS
    -------------------------------------------------------------------------
                                          223 261  38  0.189    0.417
    -------------------------------------------------------------------------
                                          276 290  14  0.119    0.263
    -------------------------------------------------------------------------
    RRC423   7501602 505405       270 -60 217 229  12  0.647    1.427   AT/MS
    -------------------------------------------------------------------------
                                          300 321  21  0.196    0.433
    -------------------------------------------------------------------------
                                          330 335   5  0.118    0.260
    -------------------------------------------------------------------------
                                          348 351   3  0.243    0.535
    -------------------------------------------------------------------------
                                          368 379  11  0.222    0.490
    -------------------------------------------------------------------------
    RRC424   7501600 505500       270 -60 287 297  10  0.338    0.744   AT/MS
    -------------------------------------------------------------------------
                                          320 324   4  0.149    0.328
    -------------------------------------------------------------------------
                                          378 382   4  0.136    0.299
    -------------------------------------------------------------------------
    RRC425   7501600 505600       270 -60 284 299  15  0.183    0.404   AT/MS
    -------------------------------------------------------------------------
                                          307 314   7  0.129    0.285
    -------------------------------------------------------------------------
                                          328 360  32  0.196    0.431
    -------------------------------------------------------------------------
    RRC426   7501600 505700       270 -60 307 326  19  0.164    0.361   AT/MS
    -------------------------------------------------------------------------
                                          332 354  22  0.243    0.536
    -------------------------------------------------------------------------
    RRC427   7500800 504900       270 -60 149 153   4  0.129    0.285   AT/MS
    -------------------------------------------------------------------------
                                          328 339  11  0.139    0.305
    -------------------------------------------------------------------------
                                          352 359   7  0.128    0.281
    -------------------------------------------------------------------------
                                          383 385   2  0.197    0.435
    -------------------------------------------------------------------------
                                          391 399   8  0.116    0.255
    -------------------------------------------------------------------------
    RRC428   7500800 505000       270 -60 145 150   5  0.227    0.500   AT/MS
    -------------------------------------------------------------------------
                                          189 198   9  0.695    1.532
    -------------------------------------------------------------------------
                                          238 240   2  0.562    1.239
    -------------------------------------------------------------------------
                                          247 252   5  0.291    0.641
    -------------------------------------------------------------------------
    RRC429   7500800 505100       270 -60 128 140  12  0.678    1.494   AT/MS
    -------------------------------------------------------------------------
                                          236 238   2  0.292    0.645
    -------------------------------------------------------------------------
                                          253 255   2  0.161    0.355
    -------------------------------------------------------------------------
    RRC431   7506053 506405       270 -60  49  61  12  0.141    0.310   AT/MS
    -------------------------------------------------------------------------
                                           74 115  41  0.542    1.195
    -------------------------------------------------------------------------
                            Including      74  93  19  0.520    1.147
    -------------------------------------------------------------------------
                            and            99 115  16  0.749    1.652
    -------------------------------------------------------------------------
                                          152 154   2  0.624    1.376
    -------------------------------------------------------------------------
                                          169 201  32  0.452    0.997
    -------------------------------------------------------------------------
                                          222 225   3  0.701    1.545
    -------------------------------------------------------------------------
                                          239 244   5  0.216    0.477
    -------------------------------------------------------------------------
                                          252 255   3  0.197    0.434
    -------------------------------------------------------------------------
                                          291 295   4  0.177    0.391
    -------------------------------------------------------------------------
    RRC433   7506150 506350       270 -60 105 110   5  0.254    0.560   AT/MS
    -------------------------------------------------------------------------
                                          139 186  47  1.130    2.492
    -------------------------------------------------------------------------
    RRC434   7506150 506450       270 -60  70  77   7  0.199    0.438   AT/MS
    -------------------------------------------------------------------------
                                           86  97  11  0.358    0.790
    -------------------------------------------------------------------------
                                          190 215  25  0.544    1.199
    -------------------------------------------------------------------------
                                          234 257  23  0.791    1.743
    -------------------------------------------------------------------------
                                          293 300   7  0.440    0.969
    -------------------------------------------------------------------------
    RRC436   7506250 506400       270 -60  74  81   7  0.218    0.480   AT/MS
    -------------------------------------------------------------------------
                                          176 178   2  0.169    0.372
    -------------------------------------------------------------------------
                                          223 231   8  0.379    0.835
    -------------------------------------------------------------------------
                                          241 245   4  0.126    0.277
    -------------------------------------------------------------------------
                                          251 255   4  0.361    0.797
    -------------------------------------------------------------------------
                                          260 265   5  0.183    0.404
    -------------------------------------------------------------------------
    RRC437   7506250 506500       270 -60  67 126  59  0.683    1.506   AT/MS
    -------------------------------------------------------------------------
                            Including      67 108  41  0.703    1.550
    -------------------------------------------------------------------------
                            and           113 126  13  0.874    1.927
    -------------------------------------------------------------------------
                                          161 213  52  0.586    1.291
    -------------------------------------------------------------------------
                            Including     161 188  27  0.636    1.402
    -------------------------------------------------------------------------
                            and           193 213  20  0.659    1.454
    -------------------------------------------------------------------------
                                          222 225   3  0.169    0.373
    -------------------------------------------------------------------------
    RRC439   7506350 506450       270 -60  51  71  20  1.236    2.724   AT/MS
    -------------------------------------------------------------------------
                                          278 280   2  0.743    1.638
    -------------------------------------------------------------------------
    RRC440   506550 7506350       270 -60  78 120  42  0.159    0.351   AT/MS
    -------------------------------------------------------------------------
                            Including      78  87   9  0.187    0.413
    -------------------------------------------------------------------------
                            and            96 101   5  0.172    0.380
    -------------------------------------------------------------------------
                            and           108 120  12  0.316    0.697
    -------------------------------------------------------------------------
                                          152 192  40  0.322    0.710
    -------------------------------------------------------------------------
                            Including     152 170  18  0.529    1.165
    -------------------------------------------------------------------------
                            and           177 192  15  0.212    0.467
    -------------------------------------------------------------------------
    RRC441   7506303 506106 270       -60  73  75   2  0.190    0.420  AT/MS
    -------------------------------------------------------------------------

    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) or Pressed Pellet X-ray fluorescence (XRFPP).
    -   Metal values (U) have been converted to oxide values (U(3)O(8))
        using a factor of 1.179, and expressed as kg/t U(3)O(8). 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).
    -   Assays expressed as kg/t U(3)O(8) have been converted to lb/ tonne by
        multiplying by 2.2046.
    -   Intersection widths are estimated to be approximately true width.
    

The information in this report that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Mr Neal Culpan, who is a Member of The Australasian Institute of Mining and Metallurgy. Mr Culpan is a full time employee of the Company. Mr Culpan has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is 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 Culpan consents to the inclusion in this report of the matters based on his 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.

SOURCE EXTRACT RESOURCES

For further information: For further information: Steve Galloway, Chairman; Richard Henning, Investor Relations, rhenning@extractresources.com

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