Published on Monday January 17 2011
EXTRACT Resources is making progress on all fronts at the world class Rössing South uranium deposit at the Husab project in Namibia, according to research by City Broker Singer Capital Markets.
Rössing South is currently one of the world’s largest uranium deposits.
Investors on London’s AIM market are likely to have heard about the project through Kalahari Minerals who has a 41,12 per cent stake in Extract.
Kalahari published an update last week, relaying Extract’s fourth quarter results, to its investors.
Charlie Long gave his view on Kalahari in a note to clients.
“The Definitive Feasibility Study remains on track for publication in the first quarter [calendar], whilst the Environmental Impact Assessment and mining licence application have been lodged with the relevant ministries,” Long said.
“We remain confident that between the boards of Extract and Kalahari there is enough experience to take Rössing South to production, although we recognise that the construction of a new desalination plant could still delay proceedings.”
He added: “We will be watching closely for any developments on the desalination plant as we regard the timing of its construction as the most likely source of delay.”
Extract is currently running a massive 17 rig drilling programme. It drilled 72 172 metres in the three months ended December 31 2010.
This took the overall running total to over 570 000 metres. At the moment Extract is focused on ‘Priority 1’ infill drilling at Rössing South’s Zone 1.
“A resource upgrade is guided for the first half of 2011,” Long said.
“We are currently forecasting an update inventory of 375 million pounds, although there is probably upside potential here.”
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