Located near Swakopmund on the west coast of Namibia, Extract Resources’ Husab Uranium Project is the largest in-situ, and highest grade, granite-hosted uranium deposit in Namibia, and currently the third largest uranium-only deposit in the world.  The Husab Uranium Project is located approximately 45 kilometres northeast of Namibia’s main port, Walvis Bay, and within Erongo region, an area that holds several world class uranium deposits and mines, including the Rössing (primary granite hosted uranium) and Langer Heinrich (secondary palaeo channel hosted uranium).

Potential Large-Scale, Open-Pit Mine

Extract is focused on developing a mine based on the resources currently defined in Zones 1 and 2 of the Husab  Uranium Project.

The Measured Resource for Zones 1 and 2 was increased in June 2011 (ASX Release 7 June 2011) to 84 million pounds, the Indicated Resource in Zone 1 and 2 was increased to 274 million pounds of U₃0₈  and the Inferred Resources at Zones 1,2,3,4,5 increased to 130 million pounds of U₃0₈ . This represented a 33% increase in the Total Global Resource since the August 2010 resource estimate. There is also further exploration potential in the Husab Uranium Project area.  

Based on a Definitive Feasibility Study of the Husab Uranium Project, Extract plans to develop a large-scale load-and-haul, open-pit mining operation, with ore from the mine feeding a conventional agitated acid leach process plant, at a rate of 15 million metric tons of ore per year. With anticipated annual production of approximately 15 million pounds of uranium, the Husab Uranium Project would become the second-largest uranium mine in the world, second only to the McArthur River uranium mine in Canada.

Additional Exploration Potential

In Q1, 2011 Extract completed its Definitive Feasibility Study on Zones 1 and 2 of the Husab Uranium Project. This was released to the market on 5 April 2011. The scope of the study is comprehensive and encompasses the preparation of an environmental impact assessment (EIA) and management plan (EMP), detailed mine planning and process plant design, as well as consideration of requirements for supporting infrastructure, including power, water and logistics.

Exploration at the Husab Uranium Project is continuing apace, with up to 6 rigs on site during 2011. 50% of drilling will focus on infill drilling to bring previously defined indicated resources to measured status. The June 2011 resource update is being optimised with the expectation that significant increases to the reserve base and mine life will be achieved. One example of this is the definition of maiden Measured Resources of 84M lbs U₃0₈   that are now available for conversion to Proven Reserves. It is anticipated that this will meet the Company goal of defining five years of name plate capacity mill feed as to Proven Reserves.    

Our drilling programme continues to define further granite hosted uranium mineralisation, to improve our confidence and understanding of our resources, and to identify further prospective areas for exploration. While we have begun the transition from explorer to producer, we are confident that we have not yet exhausted the exploration potential of the Husab Uranium Project, and we believe that our resource base will continue to grow in the coming years. We are currently focusing our exploration on the prospective Rossing South anticline trend, south from Zone 5 towards the junction with the Ida Dome trend. This area is mainly under cover (basement geology concealed by surface sands and gravels) and features targets such as the recently discovered Middle Dome. Other exploration prospects, such as Salem and Pizzaro, will also be subject to additional exploration.