EXT - Extract Resources

[bigdog]

EXT 7.170 +$0.060 (+0.844%) @ 2:54 PM (not much from the market!!)

ASX ANN
12/03/2010 10:18:00 AM Feasibility Study Update
http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=01046192

COMPANY ANNOUNCEMENT / MEDIA RELEASE
Rössing South Project Feasibility Study Update

Australia – March 12, 2010 – Australian-based uranium mine development and exploration company, Extract Resources Limited (ASX/TSX: EXT) (“Extract or “the Company”) reports that the Rössing South Definitive Feasibility Study (“DFS”) continues to progress well and is on track to confirm the project’s potential to be one of the world’s largest uranium mines. The base case mine plan remains low risk, bulk tonnage, open pit mining, with ore processed through a conventional agitated tank leach plant.

The size of the Rössing South mineralized system continues to grow with strong drilling results continuing from Zones 1 and 2. There are encouraging indications of significant mineralization on the western limb of the Rössing South antiform and high grade mineralisation in both zones.

Extract aims to announce an updated Rössing South resource in Q3, 2010. This revised resource estimate will incorporate infill and extensional drilling that has been completed since July 2009. The updated estimate is expected to increase the overall size and confidence levels of the Rössing South resource.

As part of the ongoing process of optimising the currently defined resource, the most recent mine plan incorporates an average stripping ratio of 6.9:1 over the life of mine. Open pit mining studies indicate that approximately 120 Mt of pre-strip material is to be removed to enable ore movement rates of approximately 15 Mtpa to feed the processing plant.

As outlined in the Preliminary Cost Estimates (“PCE”) released on 3 August 2009, several items were excluded from the initial capital cost estimate. Extract is continuing to refine the cost of independently developing Rössing South, including the costs of using either an owner-operator mine fleet or contract mining. Studies to fully define the costs associated with procurement of water, power and acid delivery, together with external infrastructure including rail and road, are ongoing.

Extract, together with its technical consultants, continues to undertake value engineering to optimize the development of the project and will provide an update following completion of the DFS, completion of which is currently targeted for Q4 2010. An example of this is pilot plant metallurgical testwork which is currently commencing operation in Perth. Extract expects this work to confirm overall process plant recovery as well as reagent and acid consumption.

Extract notes that capital costs for the processing plant and annual operating costs are currently expected to remain in line with the PCE.

 

[bigdog]

22/03/2010 Response to ASX Query
http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=01048882

Speeding ticket after Fridays action!!

The Company is not aware of any information that has not been announced .....

Friday 19-Mar-2010 opened $7.2700 closed $8.3500 with volume of 1,115,390 shares
-- up $1.08

SP $8.18 -$0.17 at 11:04 AM today

1806

 

[bigdog]

http://www.proactiveinvestors.com.a...rm-112-stake-sale-to-itochu-at-185p-6022.html

Friday, March 26, 2010

Kalahari Minerals shareholders confirm 11.2% stake sale to ITOCHU at 185p

Since ITOCHU Corp (TYO: 8001) announced this morning it is buying a 15% stake in Kalahari Minerals (AIM: KAH), two of Kalahari’ significant shareholders, Emerging Metals (AIM: EML) and Regent Pacific (HKG: 0575), have confirmed that they agreed to sell their entire shareholdings to the major Japanese conglomerate.

Kalahari Minerals’ key investment is its stake in Extract Resources (ASX, TSX: EXT) which is developing the world-class Husab uranium project in Namibia. Kalahari holds just over 40% in the Perth-based company. Extract owns and operates the Rossing South uranium deposit at Husab, where the resource currently stands at 292 Mlb (million pounds) graded 439 parts per million triuranium octoxide (U3O8) of which 267 Mlb at a grade of 487 ppm are in Zones 1 and 2.

Emerging Metals (AIM: EML) and Regent Pacific (HKG: 0575) agreed to sell their respective holdings of approximately 8.4% and 2.81% of Kalahari at 185p per share. The two companies share a common management team, with Emerging Metals co-chairmen Stephen Dattels and James Mellon also serving as Regent Pacific’s co-chairmen. Dattels is also the chairman of Polo Resources (AIM: PRL) which is associated with the Rossing South development through its 9% shareholding in Extract.

In total Emerging Metals owned approximately 17.8 million shares, and it will realise approximately £32.9m in gross proceeds once the transaction is complete. Regent Pacific sold 6.3m shares realising total proceeds of £11.7m.

Under the terms of Emerging Metal’s disposal, the shares are being sold in two tranches. The company has already sold half its holdings and it has agreed to sell the balance, subject to shareholder approval. The first tranche will settle on 1 April 2010 and the second tranche is expected to be completed no later than 4 May 2010.

Emerging Metals intend to distribute approximately 50% of the net proceeds to shareholders by way of a special dividend, at approximately 4.4 - 4.8pence per share. Following the disposal, Emerging Metals will be considered to be an investment company, and a new investment strategy to utilize the remainder of the proceeds, will be put to shareholders for approval at a general meeting.

Earlier today, Kalahari said that the ITOCHU significantly solidifies and strengthens its shareholder base.

“ITOCHU is a 150 year old major Japanese trading house with a long history in the uranium market as well as operating in Namibia”, Kalahari chairman Mark Hohnen commented. “Indeed, it has been actively involved in the trading of uranium since 1998 and has delivered over 4,000 tonnes of uranium to the market in 2009, as one of the biggest uranium traders in the world. It has invested in various uranium projects worldwide and has also arranged finance and off-take agreements”.

ITOCHU, through its wholly-owned subsidiary Nippon Uranium Resources, is buying the equity stake and it will subsequently nominate a director to Kalahari’s board in order to maximise the benefits of the strategic relationship, Kalahari said.

Rossing South is situated directly south of the Rio Tinto (LSE: RIO) Rossing Mine, one of the longest running uranium mines in the world. Rio Tinto has been watching Extract Resources' progress with great interest. To date, Rio has built up a sizeable position in Extract both directly with a 14.72% stake and indirectly through a 13.48% stake in Kalahari.

Extract Resources is conducting a Definitive Feasibility Study (DFS) at Rossing South. Earlier this month the company said that the DFS, which is expected to confirm the project's potential as one of the world's largest uranium mines, is progressing well. Extract aims to announce an updated Rossing South resource in Q3 2010 and it said that capital costs for the processing plant and annual operating costs are currently expected to remain in line with the preliminary cost estimates.

Kalahari's other key investment is its circa 44.9% holding in North River Resources PLC (AIM: NRRP), an emerging southern Africa focused multi commodity resource development company.

 

[bigdog]

EXT SP $8.02 +$0.080 +1.013% @ Tue 06 Apr 2010 3:03 PM

ASX ANN today
6/04/2010 12:04:00 PM Rossing South Exceptional Chemical Assay Results Continue

http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=01052641

Rössing South: Exceptional Chemical Assay Results Continue
6 April 2010: 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:

refer attachment below

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.

2555

 

[bigdog]

Why would Dattels resign for the board?
-- this article suggests "The group has also been linked to rumours of a joint takeover bid for Extract"

http://au.news.yahoo.com/thewest/business/a/-/wa/7037236/battels-resigns-from-extract-board/

Dattels resigns from Extract board

Extract Resources director Stephen Dattels has resigned from the board less than a fortnight after two of the three companies he helms sold their indirect stakes in the uranium hopeful to Japan's Itochu Corp.

---------------------------------------------------------------------------------------------
ASX ANN
08/04/2010 Director Resignation
http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=01053477

In a statement, Extract said Mr Dattels, who was on the board to represent 9 per cent shareholder Polo Resources, had resigned and Polo expected to make an announcement "in due course".

It remains unclear if Polo may have struck a deal to offload its Extract stake or whether it intends to appoint another nominee.

The group has also been linked to rumours of a joint takeover bid for Extract.

Mr Dattels sits on the board of three investment groups, the London-listed Polo and Emerging Metals and the Hong Kong-listed Regent Pacific Group. He was a non-executive director at Extract.

Late last month Emerging and Regent struck a deal with Itochu to sell their stake in Extract's single biggest shareholder, Kalahari Minerals. Kalahari owns 40 per cent of Extract, which is considered its most significant asset.

A Canadian-born lawyer based in London, Mr Dattels made the bulk of his fortune through UraMin, which he founded in 2005 and sold in June 2007 to France's Areva for $US2.5 billion.

-----------------------------------------------------------------------------------------------
ASX ANN
08/04/2010 Director Resignation
http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=01053477

2839

 

[bigdog]

http://www.namibian.com.na/news/mar...cle/a-marriage-of-two-roessings-on-the-cards/

A marriage of two Rössings on the cards?
By: JO-MARÉ DUDDY
13.04.10

THE top brass of Extract Resources, owners of Rössing South, is meeting with President Hifikepunye Pohamba this afternoon to brief him on plans to develop the uranium deposit into one of the biggest uranium mines in the world.

Mark Hohnen, Executive Chairman of Kalahari Minerals, which has 40 per cent shares in Extract, confirmed the meeting yesterday.

They will use the opportunity to introduce Extract’s new Executive Director, Jonathan Leslie, and “to provide a progress report on the Rössing South project, as it enters this transformational period in its development – transforming from a pure exploration company to a one tier uranium production company,” Hohnen said in statement on the Kalahari website.

Leslie’s appointment adds fuel to persistent rumours of a marriage between Rio Tinto’s Rössing Uranium and Extract’s Rössing South. Leslie was a former managing director at Rössing Uranium.

Last week Rössing Uranium spokesperson Jerome Mutumba said his company has suggested a joint venture with Rössing South.

Mutumba said Rössing Uranium has proposed to transport ore from Rössing South to Rössing Uranium to be processed.

“Rössing South is only seven kilometres from the Rössing pit, and the mines could share significant infrastructure.

We see potential for Rössing South and Rössing working together on a joint development, as this will provide value to both Rössing and Extract Resources,” he said.

Rio Tinto already has 15 per cent shares in Rössing South. However, it also holds 14 per cent of the shares in Kalahari Minerals, and therefore effectively owns 21 per cent in Rössing South.

A Consortium of Korean companies led by Korea Electric Power Corp (Kepco) is also keen to get their hands on shares in Rössing South. State-run utility Kepco, Korea Hydro and Nuclear Power Co, and Korea Resources Corp are looking to take a stake of around 15 per cent in Rössing South, Dow Jones Newswires recently reported.

Extract’s wholly-owned subsidiary Swakop Uranium plans to have Rössing South in production by the end of 2013.

It can be ramped up to full production within 18 months after that, Swakop Uranium Chief Executive Officer Norman Green said.

The mine has the potential to produce 15 million pounds of uranium oxide a year, making it one of the three biggest uranium mines in the world.

 

[bigdog]

http://www.southerntimesafrica.com/...&id=3979&sid=99259b81422b2d1b32f42ecadf1801bf

Rössing Uraniun joint venture proposal rejected
By Felix Njini 19-04-2010

Kalahari Minerals blocks Rio Tinto JV plan

Windhoek – London-listed Kalahari Minerals Plc has flatly rejected proposals by Rio Tinto-owned Rossing Uranium to jointly develop the world class Rossing South (Husab Uranium) uranium deposit, The Southern Times has established.

Kalahari Minerals is the top shareholder in Toronto-listed and Australia-based Extract Resources.

The Perth-based Extract Resources wholly owns Rossing South, also known as the Husab uranium deposit, which has been confirmed as the highest grade granite-hosted uranium deposit in Namibia and one of the most significant uranium discoveries in decades.

Kalahari Minerals owns a 40.37 percent stake in Extract and Rio Tinto also owns a 14.7 percent stake in Extract in addition to a 15.8 percent stake in Kalahari Minerals.

The Southern Times understands that Rossing, Namibia's oldest uranium mine, has outlined a joint venture proposal to Extract to jointly develop the world class Rossing South deposit. Rossing South, also known as Husab project, is situated about seven kilometres south of the current Rossing uranium open pit.

Management at Rossing Uranium said it is feasible to process ore mined at Extract's Rossing South deposit. Ore from Rossing South could be transported by conveyor belt to the Rossing uranium plant for processing.

'This would cut down on capital requirements for Extract and introduce synergies which would enable Rossing and Extract to maximise value for their shareholders,' said Jerome Mutumba, Manager corporate and external affairs at Rossing Uranium.

Rossing Uranium proposes that processing uranium ore at its existing plant would minimise environmental damage.

The Rossing South deposit is located in the Namib Naukluft Park.

However the major reason behind Rossing Uranium's push for a joint venture with Extract is that its current main pit has run out uranium ore.

Furthermore, Rossing Uranium is running out of quality grade uranium ore resulting in a projected fall in uranium output from 4 150 tonnes in 2009 to 3 838 tonnes in 2010.

Werner Ewald, mine manager at Rossing Uranium confirmed that Rossing had run out of quality ore.

Ewald said that Rossing Uranium needed four years to expand its main SJ Pit, already 370 metres deep and too narrow to continue mining.

Kalahari Minerals executive chairman Mark Hohnen told The Southern Times that Extract will develop the Rossing South deposit as a stand alone uranium mine.

Hohnen said in an interview that Kalahari Minerals would use its majority shareholding in Extract Resources to block joint venture proposal from Rio Tinto's Rossing Uranium.

Although Hohnen said that Extract will have to review all the available options first before making a decisions, indications point to the Australian junior miner ducking the Rio Tinto joint venture proposal.

Hohnen said that Extract will likely go on the market to raise nearly US$1 billion required and bring the mine into commercial production by 2014.

'I am aware that they (Rio Tinto) would like to do the joint venture but Extract (Resources) has to consider whether it's in the best interests of its shareholders and Namibian people,' Hohnen told The Southern Times.

'But I can see more benefits for Namibia in a new mine, we support Extract Resources in starting their own mine, Husab (Rossing South) has to be developed as a standalone project,' Hohnen said. Uranium production is expected to start in2014 at 5 700 tonnes a year, the equivalent of more than 10 percent of the uranium mined worldwide in 2008.

Extract this week announced the appointment of former Rio Tinto executive Jonathan Lesley as MD. 'He (Lesley) has to review everything and see what is in the best of Namibia…we are also mindful of the fact that the deposit is in a national park and the concern is economic impact versus environment impact.

I am glad that Extract has put in place a very professional team which will look into all those issues,' Hohnen said.

He maintained Extract Resources would not be bullied into a joint venture arrangement with Rossing Uranium.
'Rossing Uranium wants to present the fact that it is an easy thing to jointly develop but we have to weigh all the benefits for Namibia and Rio Tinto is only one of the many shareholders.

'Extract must carefully review all the opportunities in front of them to come up with the best way forward for shareholders and the people of Namibia,' Hohnen said.

3317

 

[clint]

A good read on the latest dyl news realease
Up near Ida Dome and Salem area.

● High grade alaskite hosted uranium mineralisation discovered at Tubas Alaskite
project area in Namibia
● Discovery hole ALAR13 returned chemical assays of:
o 89 metres at 400 ppm cU3O8 from 128 metres, including:
 11 metres at 710 ppm cU3O8 from 182 metres, and
 16 metres at 600 ppm cU3O8 from 199 metres
o 102 metres continuous mineralisation to end of hole at 223 metres
● ‘Alaskite Alley’ hosts a number of uranium projects including Rio Tinto’s Rossing
Uranium Mine and Extract Resources’ Rossing South and Ida Dome Projects as
well as others.

 

[bigdog]

ASX ANN
21/05/2010 11:40:00 AM Rossing South Drilling Results Update

Rössing South: Mineralisation on western limb confirmed with further strong results from Zone 1 and 2, including 73 metres grading 2243ppm U3O8 21 May 2010: Extract Resources Ltd (ASX/TSX/NSX: EXT), a uranium exploration and development company with projects in Namibia, today announced the latest round of exceptional chemical assay results from the Rössing South mineralized system, part of Extract’s world-class Husab Uranium Project.

Aggressive drilling rates continue to underpin the Company’s commitment to completing the Rössing South Definitive Feasibility Study and the development of a mine at this globally significant project.

Highlights:• 19 drill rigs now operating at Rössing South, with the key focus on resource definition.
• Stand out intercept of 73 metres grading 2243ppm U3O8 with mineralisation still open down dip and along strike.
• Chemical assay results from multiple drill holes confirm high grade mineralisation on the western limb of the Rössing South antiform.
• Steady flow of exceptional high grade chemical assays received from infill and resource extensional drilling including (see insert below):

Resource Definition Update – Zone 1 & Zone 2
Significant drilling rates continue at Rössing South where approximately 1300 drill holes have been completed for 330000 metres of drilling. There are currently 19 drill rigs operating at Rössing South: nine RC rigs; and ten diamond core rigs. The main focus of drilling has been infill resource
definition work aimed at converting the Inferred Resource to Indicated. Some extensional, sterilization and exploration drilling is also being completed.
The latest round of chemical assay results have been received from 89 drill holes located

throughout Rössing South. Multiple intercepts of high grade mineralization were reported further establishing the continuity of the high-grade, granite-hosted uranium mineralization. Highlights are shown in Figure 1 and a full list of recently received and previously unreported chemical assay results is included in Appendix 1.

Mineralization in Zone 1 remains open down-dip to the east with the high grade results received in this area (e.g. RDD145, 73m @ 2243ppm U3O8) highlighting the significant potential for additional drilling to further increase the size of the current resource.

Exploration Update – Western Limb drilling results
Chemical assay results received for drill holes on the western limb of the Rössing South antiform confirm the presence of high grade uranium mineralization. Figure 1 shows multiple drill holes in this area west of Zone 1, Zone 2 and south of Zone 2 with significant uranium mineralization,
including:
• RRC750, 37m @ 2001ppm U3O8;
• RRC717, 10m @ 1015ppm U3O8;
• RRC718, 30m @ 1032ppm U3O8; and
• RRC771, 10m @ 1665ppm U3O8.

The Company is currently drilling out this area for inclusion in the next resource upgrade. Drill holes continue to intersect potentially high grade uranium mineralization, as identified by hand held spectrometer results. Chemical assay results will be reported when available.

Rössing South Feasibility Study Update
Resource Update
Aggressive drilling rates continue to define an updated resource estimate for Rössing South within the third quarter of calendar 2010. The main aim is to upgrade the current Zone 1 and Zone 2 Inferred Resource to Indicated status. The Indicated Resource is expected to form the basis of the
DFS mining inventory so that reserves can be defined.

Pilot Plant Testwork
‘Proof of design’ testwork commenced in the Company’s pilot plant in Perth on 22 March 2010. The objectives of this work includes finalising the base case flow sheet, to quantify comminution, leaching, filtration, ion exchange, solvent extraction parameters and to characterize uranium product for marketing purposes. Results have been encouraging and the Company remains confident that the testwork objectives will be met and completed by the end of June 2010.

The Definitive Feasibility Study (DFS) remains on track for completion in the fourth quarter of the 2010 calendar year.

----------------------------------------------------------------------
• Steady flow of exceptional high grade chemical assays received from infill and resource extensional drilling including:

4170

 

[tambo66]

Getting better than even us optimists expected but the best part is the statement that Extract plan on mining within 2 1/2 years, and KAH picking up more shares, surely the SP must start to move soon?

DYOR of course

 

[Sean K]

Why are they taking so long to complete feasability studies?

They had an economic resource yonks ago and have just kept drilling and drilling. What are they after? A 1000 year project?

Really, after the first 50Mt they should have gone straight to mining the sucker. Buy a truck, some spades, a mill, and GO!

Maybe POU is too low for them to start up?

 

[bigdog]

TWO ASX ANNOUNCEMENTS today

17/06/2010 11:45:00 AM Rossing South Project Update
http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=01072251

SP EXT 7.010 $-0.080 (-1.128%) @ Thu 17 Jun 2010 3:45 PM

COMPANY ANNOUNCEMENT / MEDIA RELEASE

Rössing South Project Update
Australia – June 17, 2010 – Australian-based uranium mine development and exploration company, Extract Resources Limited (ASX/TSX/NSX: EXT) (“Extract or ‘the Company) is pleased to report that work on advancing the Rössing South Project development is progressing well and provides the following update.

Resource Update
The Rössing South resource upgrade remains on track for Q3 of calendar year 2010. Since the maiden Zone 2 resource release (ASX announcement 22 July 2009) Extract’s technical team has focused on infill drilling Zones 1 and 2 with the aim of upgrading the Inferred Resource to Indicated status. This upgrade is expected to define a significant resource that can be converted to reserves and hence a mining inventory for the Definitive Feasibility Study (“DFS”).

Some drilling to define Measured Resource has also commenced at Zone 1. However, the majority of the results from this work will not be available in time for inclusion in the Q3 resource upgrade.

Additional drilling has also been completed in the western limb position of the Rossing South anticline and south of Zone 2 on the eastern limb. The aim of this drilling has been to define a maiden Inferred Resource that is also expected to contribute to the Q3 resource update.

Exploration and resource definition drilling completed to date at Rössing South has only focused on the northern most eight kilometers of a 15 kilometre long target. Once priority resource definition drilling has been completed additional exploration drilling will be undertaken.

Definitive Feasibility Study Update
The DFS continues to progress well and is on track for completion in Q4, 2010. It is expected that the DFS will confirm the project’s potential as one of the world’s largest uranium mines. The base case mine plan remains low risk, bulk tonnage, open pit mining, with ore processed through a conventional agitated tank leach plant.

Results from the recently completed pilot plant testwork program are still being returned and interpreted with available results encouraging and providing further support for the base case flow sheet.

Work is set to commence in the next week to excavate a bulk sample from the northern end of Zone 1 to be used for confirmatory comminution test work. This will be the first explosive rock breaking at Rössing South.

Water Update
The company’s 100% owned Namibian subsidiary, Swakop Uranium (Pty) Ltd, which holds Exclusive Prospecting Licence 3138, within which Rössing South is located, has recently formed an agreement with NamWater. As reported by NamWater on June 11, 2010, the agreement between NamWater and other potential resource customers is to co-operate in the financing, designing, procurement, engineering, construction, commissioning and operation (including maintenance) of a coastal desalination plant with the capacity to ensure sufficient water for the company’s current and future demands.

Mining Licence Update
Work on the Environmental Impact Assessment and Management Plan is proceeding on schedule in parallel with preparation for a Mining Licence application. The outcomes from this work will be used to support a Mining Licence application over Rössing South before year end.

========================================================================
Second ASX ANN today
17/06/2010 11:28:00 AM Extract appoints RBC Capital Markets as Corporate Broker
http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=01072245

COMPANY ANNOUNCEMENT / MEDIA RELEASE
Extract Resources appoints RBC Capital Markets
as Global Corporate Broker
17 June 2010

Extract Resources Limited (ASX/TSX/NSX: EXT) (“Extract” or “the Company”) is pleased to announce the appointment of RBC Capital Markets as its global corporate broker to the Company with immediate effect.

Jonathan Leslie, Chief Executive Officer said: “We are delighted to welcome RBC Capital Markets as Extract’s global corporate broker. RBC’s global platform, specialist skills in the mining sector and outstanding research makes them an ideal partner with Extract as we move from an exploration to a development company.”

4661

 

[bigdog]

http://www.theaustralian.com.au/bus.../story-e6frg9df-1225881086740?from=public_rss

Clock ticking for Extract Resources in Namibia
Matt Chambers From: The Australian June 18, 2010 12:00AM

EXTRACT Resources needs to secure a mining licence for its huge South Rossing uranium deposit in Namibia by April or risk losing it as Russia and other major developers show interest.

The Perth-based company has been looking for a partner to develop the $US1 billion mine since May last year and says it is on track to complete a feasibility study by the end of 2010, but analysts say the company has a big task ahead of it.

Observers are divided on whether any delay could prompt the government to hand the project to another developer, such as Russia's state-owned Rosatom, which has signed an agreement to develop uranium mines in the sparsely populated southern African country and submitted a mine plan for South Rossing.

Extract says it is taking nothing for granted but is confident it can do enough work on the project to satisfy the Namibian government.

"Extract will have applied for a mining licence by April," a spokesman said. "The company is well on track to achieving this and doesn't envisage any difficulties being granted a mining licence."

Extract wants to start mining up to 6700 tonnes of uranium in South Rossing in 2013.

This would make it the second-biggest uranium mine, after Canada's McArthur River project.

The prospect of gaining a slice of one of the world's biggest and best undeveloped uranium deposits has attracted a long and intriguing list of parties interested in Extract and/or South Rossing.

Extract's biggest shareholder, Kalahari Resources, recently revealed Apac Resources had taken a 9.55 per cent in Kalahari.

Apac, a Hong Kong company that owns 20 per cent of Mt Gibson iron, has been linked to controversial businessman and corporate raider Lee Ming Tee.

Rio Tinto, which controls the nearby Rossing mine, has a 15 per cent stake in Extract and a 12.5 per cent stake in London-listed Kalahari (whose only major asset is its Extract stake). Japan's Itochu has taken a 15.5 per cent stake in Kalahari, while French nuclear company Areva, state-owned Korea Resources and Paladin Resources have also been seen as potential white knights for Extract in the project. Despite the interest, Extract's 13-month search for a partner, which has been led by Rothschild, has failed to throw up an offer acceptable to the company and Kalahari, which owns 40 per cent of Extract.

Doubts over Extract's hold on the project were raised last month when talks between Russian Prime Minister Vladimir Putin and President Dmitry Medvedev and Namibian President Hifikepunye Pohamba resulted in a five-year memorandum of co-operation over uranium between the two nations.

It also led to a statement from Rosatom that it had put in an application to develop South Rossing and would be prepared to spend $US1bn on uranium development. BBY analyst Gavin Van Der Wath said he did not see the Namibian government handing over the ground, even if it did not make the deadline for the application. "People will try to scoop this project up, but do I think Extract will lose the project? No," he said. "But it will weigh on their share price until there is something definite."

Yesterday, Extract reaffirmed its target of a third-quarter resource upgrade and a fourth-quarter definable feasibility study.

Another analyst, who didn't want to be named, said the company would struggle to have studies and financing in place by the time a mining licence was needed, which could place the project at risk. "I don't think they will have a bankable feasibility study in the fourth quarter -- their rigs are still drilling like mad," he said. "I think the government might be prepared to look at other developers, particularly with the Russians saying we're prepared to spend $US1bn ($1.1bn) and Kalahari seen as a bunch of gunslingers."

The emergence of Apac could make matters more volatile.

In 2008 the Australian Takeovers Panel found Mr Lee had used Apac and Shougang Concord, who claimed to be independent entities, to try to get control of Mt Gibson Iron.

Sources close to Extract said there had been no known case of a company in Namibia fulfilling the terms of an exploration licence and not being granted a mining licence. Extract's newly installed managing director, Jonathan Leslie, a former Rio director, has said the company has seen no evidence of Rosatom trying to muscle in on the asset.

It had also been assured at the highest level that the Namibian government would not interfere with negotiations. Extract chairman Steve Galloway has strong contacts in the government, having worked in a number of senior positions there.

 

[bigdog]

ASX ANN today
2/07/2010 10:24:00 AM Rossing South Drilling Results Update
http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=01076353

Rössing South: High Grade Result of 68 metres grading 5767 ppm U3O8

2 July 2010: Extract Resources Ltd (ASX/TSX/NSX: EXT), a uranium exploration and development company with projects in Namibia, today announced exceptional infill drilling assay results and the emergence of a new zone of uranium mineralisation at Rössing South, part of Extract’s world-class Husab Uranium Project.

Strong drilling rates continue to support the next resource update which will form the basis for completing the Rössing South Definitive Feasibility Study. The Company remains committed to the development of a mine at this globally significant project.

Highlights:
• Outstanding intercept of 68 metres grading 5767 ppm U3O8 in Zone 1.
• New zone of uranium mineralisation indicated at Rossing South based on strong hand held spectrometer results from RC drilling samples
• Known dimension of Rössing South mineralised system now defined over eight kilometres with indications of high grade mineralisation on southernmost line of drilling.
• Seven kilometres of prospective 15 kilometre trend still to be tested.
• First firing of explosives at Rössing South undertaken.
• Steady flow of exceptional high grade chemical assays received from infill and resource extensional drilling, including: (see attachment at bottom)

Exploration Update – New Zone Emerging
Exploration drilling on five lines, 200 metres apart, has defined strongly anomalous uranium mineralisation over 800 metres of strike, as indicated by hand held spectrometer results from the bulk RC samples (see Figure 1). Confirmation chemical assay results are required to fully quantify the significance of these results, but based on past experience the Company believes a new granite hosted zone of uranium mineralisation is emerging. Chemical assay results will be released when available. Importantly, mineralisation remains open down dip and along strike with additional drilling
expected to increase the known dimensions of this zone.

Additional drilling has been planned in this area to follow up on the highly encouraging results returned to date.

Only the northernmost nine kilometres of the 15 kilometre long Rössing South target have been drill tested. The prospective stratigraphy for hosting granite hosted uranium mineralisation continues under the Rössing South gravel plain to the Salem area (see Figure 1). Exploration drilling over this area will continue, but given the enormous size of the target zone will be ongoing for some time to come.

Resource Definition Update – Zone 1 & Zone 2
The main focus of drilling has been infill resource definition work aimed at converting the Zone 1 and 2 Inferred Resource to Indicated (see Figure 2). Some extensional, sterilization and exploration drilling is also being completed.

19 drill rigs are currently operating at Rössing South: nine RC rigs; and ten diamond core rigs. Multiple significant results continue to be returned from this drilling with a full list of recently received and previously unreported results shown in Appendix 1. These results continue to demonstrate the continuity of the granite hosted uranium mineralisation at Rössing South.

Rössing South Feasibility Study Update

Resource Update
Sufficient drilling has now been completed to define an updated resource estimate for Rössing South within the third quarter of calendar 2010. The main aim is to upgrade the current Zone 1 and Zone 2 Inferred Resource to Indicated status. The Indicated Resource is expected to form the basis of the DFS mining inventory so that reserves can be defined.

The images shown in Figure 2 highlight the Zone 1 and 2 resource areas which will be the focus of the next resource update. The main mineralised population is shown, as indicated by the >75 ppm U3O8 image. The assays >1600 ppm U3O8 demonstrate the extent of high grade drill hole intersections that tend to be distributed throughout both zones. The >75 ppm U3O8 wireframe image shows the grade shells that are being modeled for the resource upgrade.

First blast at Rössing South
A bulk sample is currently being mined from the northern end of Zone 1 to assist with comminution testwork. This work commenced on Thursday 24th June 2010 when the first ever use of explosives at Rössing South was undertaken (Figure 3).

The Definitive Feasibility Study (DFS) remains on track for completion in the fourth quarter of the 2010 calendar year.

5086

 

[bigdog]

The SP has been doing very well for past days!

EXT 7.00 $+0.250 (+3.704%) today at Fri 09 Jul 2010 10:41 AM
-- high today of $7.10

Date…….. Close Volume
08-Jul-10 6.75 392,800
07-Jul-10 6.50 306,560
06-Jul-10 6.43 358,682
05-Jul-10 6.50 253,060
02-Jul-10 6.58 250,031
01-Jul-10 6.30 381,731
30-Jun-10 6.50 637,747
29-Jun-10 6.35 170,677

WHO IS SELLING THEIR 10%???
-- from top 20 reported as at May 19, 2010
-- ZERO (POLO) looks likely and Dattels is no longer on the EXT board!

1 KALAHARI URANIUM LIMITED 98,053,911 40.37%
2 RIO TINTO INTERNATIONAL HOLDIN GS AUSTRALIA PTY LTD 35,705,693 14.70%
3 ZERO NOMINEES PTY LTD 22,450,849 9.24%
4 J P MORGAN NOMINEES AUSTRALIA LIMITED 7,641,295 3.15%
5 HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED 7,486,837 3.08%
6 CITICORP NOMINEES PTY LIMITED 7,059,286 2.91%
7 NATIONAL NOMINEES LIMITED 6,346,598 2.61%
8 S G J INVESTMENTS PTY LTD 6,000,000 2.47%
9 CANADIAN REGISTER CONTROL 4,536,633 1.87%

http://www.cmemarkets.com/v3/2010/0...-resource-developer-extract-resources-nikkei/

DJ Itochu To Buy Interest In Aussie Resource Developer Extract Resources -Nikkei

Thu Jul 08 18:38:14 2010 EDT

TOKYO (Nikkei)--Itochu Corp. (8001.TO) has decided to buy a roughly 10% stake in Australia's Extract Resources Ltd. (EXT.AU), which is developing uranium mines in Namibia, the Nikkei reported in its Friday morning edition.

The trading company will purchase shares held by an investment firm for an estimated Y15 billion. A sales agreement is expected this week.

Itochu took a 15% stake in Extract Resource's top shareholder, Kalahari Minerals Plc, this past spring. The British company owns 40% of the resource
developer.

Extract Resource is developing the Rossing South mine in central Namibia, which is scheduled to begin churning out 5,800 metric tons a year in 2013, representing more than 10% of global uranium production. By investing in the lead developers, Itochu hopes to clinch sales rights for the output, mainly for supply to Japanese electric utilities.

With annual uranium sales of 4,000 tons a year, the trading house is the world's No. 2 seller. Uranium demand is expected to soar due to a string of nuclear power projects worldwide.

(END) Dow Jones Newswires

07-08-10 1838ET

15432

 

[bigdog]

Official ASX ANN that POLO is the seller!

9/07/2010 1:23:00 PM ITOCHU agrees to aquire 10.3% stake in Extract

http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=01078197

ITOCHU agrees to acquire a 10.3% interest in Extract Resources

9 July 2010: Extract Resources Ltd (ASX/TSX/NSX: EXT), a uranium exploration and development company with projects in Namibia, was notified today that ITOCHU Corporation (“ITOCHU”), a major Japanese trading house, has acquired a 10.3 per cent stake in Extract through its wholly owned Australian subsidiary, Nippon Uranium Resources (Australia) Pty Ltd (“Nippon Uranium”).

Polo Resources Limited was the vendor of 9.2 per cent of the shares to Nippon Uranium, and following this transaction will have no shareholding in Extract. The remaining 1.1 per cent of the shares purchased by Nippon Uranium was acquired from a related party of Polo.

The acquisition is subject to approval by shareholders of Polo Resources Limited and Australian Foreign Investment Review Board ("FIRB”) approval over a portion of the stake.

Extract Resources Chairman, Stephen Galloway, said: “We welcome ITOCHU’s presence on the share register. ITOCHU has a long history in the uranium market as well as experience operating in Namibia, and as a new stakeholder in Extract, we believe we can benefit from their experience in the sector.”

-------------------------------------------------------------------------
The history of ITOCHU Corporation dates back to 1858 when the Company's founder Chubei Itoh commenced linen trading operations. Since then, ITOCHU has evolved and grown over 150 years.

With approximately 150 overseas bases in 74 countries, ITOCHU, one of the leading sogo shosha, is engaging in domestic trading, import/export, and overseas trading of various products such as textile, machinery, information and communications technology, aerospace, electronics, energy, metals, minerals, chemicals, forest products, general merchandise, food, finance, realty, insurance, and logistics services, as well as business investment in Japan and overseas.

-----------------------------------------------------------------------
Annual world demand for uranium for use in nuclear generation amounts to approximately 65,000 tons.

As one of the three biggest uranium traders, ITOCHU sells about 4,000 tons of natural uranium per year (as at 2008). In recent years, major Japanese trading corporations have been aggressively investing in various projects to develop natural resources.

ITOCHU has long been focused on uranium, and is committed to an aggressive approach in uranium trading activities, in order to ensure stable energy supplies and also to reinforce the company’s wide range of resource development business.

 

[bigdog]

ASX ANN
11/08/2010 8:27:00 AM Rossing South Resource Update
http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=01086997

RESOURCE UPGRADE ESTABLISHES RÖSSING SOUTH AS THE 6TH LARGEST GLOBAL URANIUM DEPOSIT

Highlights:
• Resource upgrade moves Rössing South into the top 6 global uranium deposits by contained metal.
• Zones 1 and 2 Indicated Resource increased to more than a quarter of a billion pounds (257M.lbs) U3O8: a ten-fold increase in Indicated Resource from the previous resource statement (ASX release 22nd July 2009).
• Inferred Resource of 110M.lbs U3O8, including Maiden Inferred Resource from Zones 3 and 4.
• 37% increase in Total Resource size from previous resource statement (ASX release 22nd July 2009).
• Confirmed as the largest in-situ and highest grade granite-hosted uranium deposit in Namibia.
• Extensive exploration potential within Husab Uranium Project still to be tested with an extensive drilling program continuing.
• Resource now defined to support completion of Definitive Feasibility Study (DFS).

August 10, 2010: Extract Resources Limited (ASX/TSX/NSX: EXT) (“Extract” or “the Company”) today announces a new resource estimate, following JORC Code and Canadian NI43-101 guidelines, for the Rössing South Deposit, part of Extract’s Husab Uranium Project in Namibia.



The size and grade of the new resource confirms Rössing South as one of the most significant uranium discoveries made in the last decade, and establishes it as the largest in-situ and highest grade, granite-hosted uranium deposit in Namibia. The increased resource underpins the Company’s next milestone, which is the completion of the Definitive Feasibility Study (“DFS”), and takes Extract another step forward from a successful explorer to becoming a major uranium producer.

High resource grades at Zones 1 and 2 have been maintained since the previous resource statement (ASX release 22nd July 2009), confirming that the drilling adequately defines the inherent grade distribution and continuity within the deposits.

Figure 1 (below) highlights the rapid progress the Company has made since early 2008 in advancing the resource inventory to underwrite the definition of reserves and, in due course, support the development of a long-life mining operation at the Husab Uranium Project.

Since July 2009, the drilling effort has been successful in both the conversion of resources from Inferred to Indicated status and growing the resources in Zones 1, 2, 3 and 4. Indicated and Inferred Resources (Total Resource) grew by approximately 37% for all four zones. Indicated Resources now account for 70% of the Total Resource.



Extract’s Managing Director, Jonathan Leslie, said: “The resource upgrade at Rössing South is a significant step forward for the Company and for the Husab Uranium Project. We have further defined one of the world’s largest uranium resources which supports the scheduled completion of the Definitive Feasibility Study in Q4 2010 and, in time, the development of a world-class mine.
“We also expect that the resource base will continue to increase with on-going drilling. Once in full production, the Husab Uranium Mine is expected to become the second largest producer in the world.

Mr Leslie also added, “The immediate priority remains completing the Definitive Feasibility Study on Zones 1 and 2 to bring these deposits into production within the shortest possible time frame. Seventeen drill rigs remain on site with the current focus on completing the drilling required to define Measured Resources within the Zones 1 and 2 starter pits.

“Once the resource update has been optimised additional drilling will be planned, aimed at converting additional Inferred Resource material to Indicated status and defining additional resources down plunge of high grade domains. An updated resource is expected within Q1 2011.

“Significant exploration potential remains to be tested throughout the Husab Uranium Project, with 7 of the 15 kilometre Rössing South trend yet to be drilled. Although Extract’s priority remains resource definition and project development, exploration of this large mineralised system is expected to continue for some time.”

The Company looks forward to providing further updates as the full potential of the Husab Uranium Project continues to be realised.

 

[Mr Z]

She looks due to pull out of this $6.xx funk soonish IMO.

Disclosure: I have owned, bought and sold EXT from around the 7c level. Another mining story I love, so of course I am completely bias!

 

[Sean K]

Going to be one of the biggest producers in the world with the tonnage and grade already identified.

Maybe found a bottom. Rounding a little with some higher lows but $7.00 the challenge. Through there and I'd be pretty confident the medium term bottom was made.

 

[bigdog]

http://www.proactiveinvestors.com.a...-ceo-predicts-higher-uranium-price--9758.html

Friday, September 03, 2010

Extract Resources CEO predicts higher uranium price

by Lawrence Williams, Mineweb.com

As Extract Resources (ASX: EXT) progresses the big Rossing South (Husab) project in Namibia the prospect is for rising uranium prices ahead.

In a presentation to the Africa Downunder conference in Perth, Extract Resources CEO, Jonathan Leslie was predicting higher uranium prices as burgeoning demand and shortage of supply would see it moving up from its current trading range.

Given the company is exploring, and developing, what is already estimated to be the world's fifth largest uranium resource at Rossing South in Namibia - and it is still growing - a degree of price optimism doesn't go amiss, but Leslie's views are echoed by uranium analysts around the world.

The latest resource estimate from Extract of 367 million pounds of contained U3O8 includes 110 million pounds of inferred material from Rossing South Zones 3 and 4 for the first time. Zones 3 and 4 are continuations along strike from Zones 1 and 2. It also showed a major transfer of resource in Zones 1 and 2 from the Inferred category to the better Indicated category as infill drilling has enabled this to be recalculated. Now the Indicated resource is put at 257 million pounds of U3O8, a tenfold increase from this category as last reported a year earlier.

Indeed on current plans Rossing South (which will be known as the Husab mine) would be the world's second largest uranium producer and would be coming on stream in 2014 and while the mine would be low cost and should be able to operate profitably at current prices in the $40+ range, a boost to say $70/lb - which many feel is on the cards - would make Extract a highly profitable operator. Anticipated output from Husab would be some 15 million lb/y U3O8 concentrate (yellowcake).

Extract - and London-based Kalahari Resources which owns just over 41% of Extract - have been the subject of major interest in the markets. As we reported here last month, the likelihood is that they will be bought out at some stage by a major mining group - Rio Tinto has a significant stake in both Kalahari and Extract (12.5% and 14.7% respectively) - but there are a number of other significant minority holdings in both companies and there has been much jockeying for positionin these holdings over the past couple of years as the significance of the deposit being exposed becomes more apparent.

A Japanese trading house, Itochu, has built/is building, an important stake in both companies - it holds 14.9% of Kalahari and is buying 10.1% of Extract through wholly-owned Australian subsidiary Nippon Uranium Resources - and one assumes Rossing South - or Husab - is on China's radar too given that country's huge nuclear power expansion plans.

Leslie said "The scoping studies to date suggest low cash costs and attractive economics for Husab with the definitive feasibility study due to commence in the forthcoming December quarter.

"We anticipate at this stage that project development will continue through to the end of 2013 with commissioning and first production underway over 2014-2015."

Mr Leslie said Rossing South's path to maiden output would benefit from the deposit's high grades and conventional, low risk open pit mine development, with testwork to date generating good recoveries from conventional agitated acid leach operations.

Internal studies by Extract in March this year suggested a production throughput of 40,000 tonnes per day at a head grade of 487 parts per million and production costs of around US$23.60 per pound.

The Husab development has an estimated capital cost of US$704 million and an estimated mine life of 20 plus years.