Kalahari Minerals today revealed further 'exceptional' assay results from Rössing South - part of Extract's world-class Husab uranium project, in which Kalahari’s subsidiary, Kalahari Uranium Limited, holds a 40.6% interest.
The infill drilling on Zones 1 and 2, aimed at proving up Extract's current resource from the 'inferred' to 'indicated' category, was said to be continuing to deliver 'outstanding' results and include an intercept of 73 metres grading 2,243ppm U3O8.
Additionally, the exploratory drilling on the western limb of the Rössing South anteform is also yielding extremely encouraging results which, according to the Company, demonstrates the potential for the entire Husab Project which we believe will be one of the world’s largest economic deposits.
Kalahari’s Executive Chairman, Mark Hohnen, said:
“Extract is clearly highly focussed on the rapid development of the project. 19 drill rigs are currently on site, making the current drilling programme one of the largest being conducted in Africa. Kalahari is fully supportive of this development strategy and look forward to the updated resource estimate which is expected in Q3 2010, as this will add further tangible value to this globally significant asset. The pilot testwork, aimed at identifying the most effective treatment options for the mined uranium, has also delivered encouraging results and is expected to be concluded by the end of June 2010.
We also look forward to the publication of the Rössing South Definitive Feasibility Study, scheduled for release in Q4 2010. Kalahari is confident that this will easily confirm the key findings of last year’s scoping study, supporting Rössing South’s potential to support a profitable, low risk, open pit mine producing in excess of 15Mlb of U3O8 per annum over a 20+ year mine life. Importantly, the scoping study was conducted using an average grade of 487ppm, significantly lower than the grades we are now witnessing at Zones 1 and 2, a factor that should definitely be taken into account when evaluating the project economics further.”
The shares are currently at 160.75, up 6.5% on the day.
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