Shares in AIM listed resource company Kalahari Minerals (LON:KAH) edged up 1.3% to 158p this morning on news that its investee company Extract Resources (ASX:EXT) had uncovered significant uranium mineralisation at the newest zone of the already globally significant Husab Uranium Project in Namibia. Extrat, which is 41.15% held by Kalahari, said that continuous mineralisation at Zone 5 had now been identified over a strike length of 1.7km and remains open along strike and down dip.

Kalahari's Executive Chairman, Mark Hohnen, said: “These results confirm the emergence of a high grade continuously mineralised strike of 1.7km at Zone 5, which provides further credence for the commissioning of multiple mining operations across Husab. Importantly, these assays include an intersection of 29 metres, grading 1,653 ppm U3O8 from 279 metres, which ranks within the top 2% for metal content within the current Husab database, confirming Zone 5, which remains open along strike and down dip, as a high priority exploration target.”

In addition to the drilling programme underway at Zone 5, Extract also has a further 6km of the entire 15km Rössing South Anticline which is yet to be drill tested. This additional exploration work will continue in tandem with resource drilling at Zones 1 and 2, with the objective of upgrading the confidence levels of early mining areas in Zones 1 and 2 from Indicated to Measured resources.

Work on a definitive feasibility study at the project is continuing and is set to be completed in the fourth quarter of 2010. A 200 tonne bulk sample of granitic material recently excavated from the northern portion of Zone 1 is currently undergoing comminution testwork in Johannesburg in order to refine the current designs for crushing and milling equipment. In parallel with the DFS and Environmental Impact Assessment study, early planning for a Mining Licence application for Husab's Rössing South has started. It is anticipated that the Mining Licence application will be lodged with the Namibian Ministry of Mines and Energy in the fourth quarter of 2010.

Finally, Extract said that a large number of additional uranium exploration targets had been identified within the Husab project, many of which have had no previous work carried out on them. During the next 12 months, reconnaissance level exploration will be completed on many of these targets in order to assess their potential to host…

Unlock the rest of this article with a 14 day trial

Unlock with Email
Unlock with Google

Already have an account?
Login here