Extract Resources Limited
TSX : EXT
ASX : EXT

Extract Resources Limited

January 10, 2008 21:14 ET

Extract Resources Announces Update for Husab Uranium Project

SOUTH PERTH, WESTERN AUSTRALIA--(Marketwire - Jan. 10, 2008) - Extract Resources (TSX:EXT)(ASX:EXT) is pleased to announce an update on activities at the Husab Uranium Project.

SUMMARY:

- Strong down hole spectrometer and chemical assay results continue to be received from Garnet Valley.

- Extract Resources expects to complete the maiden resource for the Garnet Valley Prospect within 4 weeks.

- Expanded Rossing South work program planned for 2008.

- Drilling to commence at the high grade Holland's Dome Prospect in early 2008.

Ida Dome Prospects

Garnet Valley

12,962 metres of drilling has been completed at Garnet Valley since the Company commenced drilling at this prospect in June 2007. Highly encouraging drill hole assay and down hole spectrometer results continue to be returned from Garnet Valley. Recent highlights, not previously reported, include:



--------------------------------------------------------------------------
Hole ID Bulked out zone Including zones
metres @ ppm eU metres @ ppm eU
--------------------------------------------------------------------------
GDD9 218m @ 104 ppm 59m @ 184 ppm + 11m @ 253 ppm
--------------------------------------------------------------------------
GDD10 10m @ 753 ppm Remainder of hole blocked - awaiting chemical
assays
--------------------------------------------------------------------------
GDD13 111m @ 153 ppm 45m @ 228 ppm + 8m @ 235 ppm + 8m @ 319 ppm
--------------------------------------------------------------------------
GDD16 263m @ 106 ppm 12m @ 342 ppm + 15m @ 297 ppm + 12m @ 346 ppm
--------------------------------------------------------------------------
GDD18 250m @ 134 ppm 42m @ 251 ppm + 13m @ 223 ppm
--------------------------------------------------------------------------
GDD22 86m @ 221 ppm 14m @ 439 ppm + 8m @ 933 ppm
--------------------------------------------------------------------------


A table of previously unreleased results is included as Appendix 1 along with a collar location plan highlighting the most significant result from each drill hole. Where available, chemical assay results are shown as priority to down hole spectrometer results. Only partial results are available from several of the deep diamond holes, as down hole spectrometer logging could not be completed due to in hole blockages. Complete chemical assay results from these holes are expected over the next two months. Hand held spectrometer results continue to indicate that wide zones of potentially economic uranium mineralisation are being intersected in the majority of holes drilled.

Significantly, all prospects that have been drilled to date remain open along strike and, at depth.

Holland's Dome

A mobile core rig will commence drilling at the Holland's Dome Prospect within the next month following a campaign of track construction that has helped access to this area. Hand held spectrometer results from this prospect have been highly encouraging (ASX release 28 March 2007) with results up to 1.41% eU recorded. Spectrometer readings taken from the outcropping alaskite, calc-silicate and skarn indicate that this prospect contains particularly high grade uranium mineralisation for this style of granite hosted, primary mineralisation.

Rossing South

The Company is awaiting chemical assay data for the Rossing South project, located 15 kilometres north of Ida Dome and 5 kilometres south of the Rossing Mine. Three deeper RC holes have been drilled into an anomalous zone as previously reported, and follow-up drilling will resume this month. This work will include an orientated core hole to confirm the orientation of the stratigraphy and has been designed to drill through the full extent of the alaskite zone that is obscured by a surface cover sequence. All indications to date suggest that Rossing South will be a substantial exploration target for the Company going forward.

Drilling Update

During 2007 the Company completed 20,956 metres of drilling on the HUSAB URANIUM PROJECT. Areas drilled include the Ida Dome prospects: Garnet Valley; New Camp; Hook; Ida Central; and exploration area Rossing South. This drilling represents only 35% of the 60,000m program that the Company commenced in 2007. From January to June 2007 only one core rig was working on Ida Central, and additional rigs were allocated to the project, as they became available.

Five rigs are now on site with drilling recommencing after the Christmas break on 14 January 2008. Another two RC rigs are scheduled to arrive on site by the end of February 2008 taking the project total to seven drill rigs. The additional rigs will be used to accelerate resource definition efforts on the Holland's Dome, Hook and New Camp prospects and continue exploration of the Rossing South area.

Resource Definition Update

Resource work remains on track to define the Company's maiden uranium resource by the end of January 2008. The resource will only include drill hole data collected from the Garnet Valley prospect that is one of seven outcropping zones of uranium mineralisation in the Ida Dome area.
67% of the drilling completed over the past year occurred at Garnet Valley. The quantity of drilling, at the other prospects, does not yet allow a resource to be defined.

Approximately 1.2 kilometres of strike extent on Garnet Valley will be included in the maiden resource estimate. This zone of mineralisation is still open over a strike length of 1.8 kilometres, but the availability of drill hole assay data and the number of holes completed has influenced the quantum of data that could be used in the resource model. Subsequently, only 80% of the drilling completed at Garnet Valley will be utilised in the maiden resource. This information will be incorporated in subsequent resource estimates, when available.

Drilling throughout 2008 will continue to evaluate the uranium mineralisation in the Ida Dome area and is expected to increase the resource inventory that will form the basis of feasibility work expected to commence in the second half of 2008.

The information in this report that relates to exploration results is based on information compiled by Mr Andrew Penkethman who is a Member of the Australian Institute of Geoscientists and Mr Neal Culpan, who is a Member of The Australasian Institute of Mining and Metallurgy. Both Mr Penkethman and Mr Culpan are full time employees of the company. Mr Penkethman and Mr Culpan have sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which they are undertaking to qualify as a Competent Person as defined in the 2004 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Mr Penkethman and Mr Culpan consent to the inclusion in this report of the matters based on their information in the form and context in which it appears.



Appendix 1

Garnet Valley Significant Results Table.
---------------------------------------------------------------------------
Hole Northing Easting Azi_ Dip From To Wid Grade Grade Grade Grade
_id UTM UTM True (deg) (m) (m) -th kg/t lb/t kg/t lb/t
WGS84 WGS 84 (deg) (m) U3O8 U3O8 eU3O8 eU3O8
33S 33S
---------------------------------------------------------------------------
Diamond Holes - Chemical Assay(i)
---------------------------------------------------------------------------
GDD0005 7483858 501303 300 -60 170 174 4 0.16 0.353
---------------------------------------------------------------------------
200 217 17 0.296 0.653
---------------------------------------------------------------------------
245 250 5 0.233 0.514
---------------------------------------------------------------------------
286 295 9 0.422 0.930
---------------------------------------------------------------------------
GDD0006 7483605 500968 300 -60 66 68 2 0.265 0.584
---------------------------------------------------------------------------
73 75 2 0.137 0.302
---------------------------------------------------------------------------
159 163 4 0.308 0.679
---------------------------------------------------------------------------
168 174 6 0.154 0.34
---------------------------------------------------------------------------
219 232 13 0.105 0.231
---------------------------------------------------------------------------
244 247 3 0.146 0.322
---------------------------------------------------------------------------
294 300 6 0.129 0.284
---------------------------------------------------------------------------
313 328 15 0.194 0.428
---------------------------------------------------------------------------
GDD0007 7483538 500929 300 -60 55 57 2 1.043 2.299
---------------------------------------------------------------------------
97 106 9 0.118 0.260
---------------------------------------------------------------------------
114 116 2 0.217 0.478
---------------------------------------------------------------------------
120 130 10 0.536 1.182
---------------------------------------------------------------------------
224 231 7 0.119 0.262
---------------------------------------------------------------------------
243 247 4 0.201 0.443
---------------------------------------------------------------------------
HDD030 7486233 502846 300 -60 71 73 2 0.246 0.542
---------------------------------------------------------------------------
82 84 2 0.437 0.963
---------------------------------------------------------------------------
96 102 6 0.157 0.346
---------------------------------------------------------------------------
118 120 2 0.151 0.333
---------------------------------------------------------------------------
144 146 2 0.222 0.489
---------------------------------------------------------------------------
152 155 3 0.263 0.58
---------------------------------------------------------------------------
188 190 2 0.451 0.994
---------------------------------------------------------------------------
HDD031 7486231 502838 300 -60 110 113 3 0.121 0.267
---------------------------------------------------------------------------
121 123 2 0.197 0.434
---------------------------------------------------------------------------
197 204 7 0.267 0.589
---------------------------------------------------------------------------
240 247 7 0.169 0.373
---------------------------------------------------------------------------
261 263 2 0.237 0.522
---------------------------------------------------------------------------
Diamond Holes - Spectrometer(ii)
---------------------------------------------------------------------------
GDD0008 7483466 500889 300 -60 42 44 2 0.193 0.425
---------------------------------------------------------------------------
54 64 10 0.119 0.262
---------------------------------------------------------------------------
73 89 16 0.137 0.302
---------------------------------------------------------------------------
Hole blocked @ 89m with final depth 334m. Chemical assays awaited.
---------------------------------------------------------------------------
GDD0009 7483698 501108 300 -60 81 299 218 0.104 0.229
---------------------------------------------------------------------------
Inclu- 81 140 59 0.184 0.406
ding
---------------------------------------------------------------------------
148 159 11 0.253 0.558
---------------------------------------------------------------------------
188 191 3 0.265 0.584
---------------------------------------------------------------------------
201 206 5 0.172 0.379
---------------------------------------------------------------------------
271 273 2 0.292 0.644
---------------------------------------------------------------------------
290 299 9 0.128 0.282
---------------------------------------------------------------------------
Hole blocked @ 309m with final depth 397m. Chemical assays awaited.
---------------------------------------------------------------------------
GDD0010 7483395 500851 300 -60 52 57 5 0.265 0.584
---------------------------------------------------------------------------
74 84 10 0.753 1.660
---------------------------------------------------------------------------
Hole blocked @ 84m with final depth 400m. Chemical assays awaited.
---------------------------------------------------------------------------
GDD0011 7483773 501138 300 -60 54 60 6 0.122 0.269
---------------------------------------------------------------------------
80 88 8 0.328 0.723
---------------------------------------------------------------------------
Hole blocked @ 96m with final depth 343m. Chemical assays awaited.
---------------------------------------------------------------------------
GDD0012 7483353 500917 300 -60 6 10 4 0.107 0.236
---------------------------------------------------------------------------
35 40 5 0.211 0.465
---------------------------------------------------------------------------
86 88 2 0.126 0.278
---------------------------------------------------------------------------
Hole blocked @ 118m with final depth 396m. Chemical assays awaited.
---------------------------------------------------------------------------
GDD0013 7483981 501277 300 -60 88 199 111 0.153 0.337
---------------------------------------------------------------------------
Inclu- 88 133 45 0.228 0.503
ding
---------------------------------------------------------------------------
159 167 8 0.235 0.518
---------------------------------------------------------------------------
191 199 8 0.319 0.703
---------------------------------------------------------------------------
GDD0014 7484033 501344 300 -60
---------------------------------------------------------------------------
Hole blocked @ 115m with final depth 263m. Chemical assays awaited.
---------------------------------------------------------------------------
GDD0015 7483940 501347 300 -60 162 172 10 0.472 1.041
---------------------------------------------------------------------------
Hole blocked @ 177m with final depth 313m. Chemical assays awaited.
---------------------------------------------------------------------------
GDD0016 7483337 500783 300 -60 48 311 263 0.106 0.234
---------------------------------------------------------------------------
Inclu- 48 58 10 0.272 0.600
ding
---------------------------------------------------------------------------
67 70 3 0.155 0.342
---------------------------------------------------------------------------
91 105 14 0.149 0.328
---------------------------------------------------------------------------
147 168 21 0.128 0.282
---------------------------------------------------------------------------
175 187 12 0.342 0.754
---------------------------------------------------------------------------
192 207 15 0.297 0.655
---------------------------------------------------------------------------
251 254 3 0.167 0.368
---------------------------------------------------------------------------
270 282 12 0.346 0.763
---------------------------------------------------------------------------
308 311 3 0.103 0.227
---------------------------------------------------------------------------
GDD0017 7483287 500711 300 -60
---------------------------------------------------------------------------
Hole blocked @ 108m with final depth 253m. Chemical assays awaited.
---------------------------------------------------------------------------
GDD0018 7483436 500943 300 -60 86 336 250 0.134 0.295
---------------------------------------------------------------------------
Inclu- 86 90 4 0.183 0.403
ding
---------------------------------------------------------------------------
96 100 4 0.111 0.245
---------------------------------------------------------------------------
111 113 2 2.200 4.850
---------------------------------------------------------------------------
123 132 9 0.303 0.668
---------------------------------------------------------------------------
157 177 20 0.145 0.320
---------------------------------------------------------------------------
183 225 42 0.251 0.553
---------------------------------------------------------------------------
233 236 3 0.159 0.351
---------------------------------------------------------------------------
272 276 4 0.121 0.267
---------------------------------------------------------------------------
302 309 7 0.107 0.236
---------------------------------------------------------------------------
323 336 13 0.223 0.492
---------------------------------------------------------------------------
GDD0019 7483988 501421 300 -60 67 69 2 0.133 0.293
---------------------------------------------------------------------------
212 214 2 0.150 0.331
---------------------------------------------------------------------------
221 229 8 0.270 0.595
---------------------------------------------------------------------------
234 236 2 0.134 0.295
---------------------------------------------------------------------------
248 267 19 0.102 0.225
---------------------------------------------------------------------------
273 276 3 0.244 0.538
---------------------------------------------------------------------------
GDD0020 7484079 501425 300 -60 163 229 66 0.161 0.355
---------------------------------------------------------------------------
Inclu- 163 181 18 0.407 0.897
ding
---------------------------------------------------------------------------
200 202 2 0.493 1.087
---------------------------------------------------------------------------
226 229 3 0.169 0.373
---------------------------------------------------------------------------
GDD0022 7484144 501472 300 -60 140 226 86 0.221 0.487
---------------------------------------------------------------------------
Inclu- 140 146 6 0.256 0.564
ding
---------------------------------------------------------------------------
157 171 14 0.439 0.968
---------------------------------------------------------------------------
194 202 8 0.933 2.057
---------------------------------------------------------------------------
223 226 3 0.295 0.650
---------------------------------------------------------------------------

---------------------------------------------------------------------------
RC holes - Chemical Assay(iii)
---------------------------------------------------------------------------
GRC0053 7483441 500775 300 -60 67 70 3 0.685 1.51
---------------------------------------------------------------------------
GRC0054 7483387 500707 300 -60 22 25 3 0.181 0.399
---------------------------------------------------------------------------
GRC0055 7483349 500614 300 -60 8 14 6 0.174 0.384
---------------------------------------------------------------------------
39 41 2 0.131 0.289
---------------------------------------------------------------------------
75 78 3 0.187 0.412
---------------------------------------------------------------------------
99 101 2 0.114 0.251
---------------------------------------------------------------------------
106 109 3 0.197 0.434
---------------------------------------------------------------------------
GRC0056 7483317 500494 300 -60 9 11 2 0.196 0.432
---------------------------------------------------------------------------
43 45 2 0.139 0.306
---------------------------------------------------------------------------
92 102 10 0.206 0.454
---------------------------------------------------------------------------
GRC0057 7483305 500525 300 -60 33 67 34 0.219 0.483
---------------------------------------------------------------------------
GRC0058 7483238 500478 300 -60 3 6 3 0.379 0.836
---------------------------------------------------------------------------
47 53 6 0.162 0.357
---------------------------------------------------------------------------
57 67 10 0.134 0.295
---------------------------------------------------------------------------
75 77 2 0.127 0.28
---------------------------------------------------------------------------
GRC0059 7483258 500449 300 -60 NSR
---------------------------------------------------------------------------
RC holes - Spectrometer(ii)
---------------------------------------------------------------------------
GRC0073 7483971 501233 300 -60 43 139 96 0.112 0.247
---------------------------------------------------------------------------
Inclu- 43 50 7 0.135 0.298
ding
---------------------------------------------------------------------------
54 61 7 0.167 0.368
---------------------------------------------------------------------------
67 90 23 0.142 0.313
---------------------------------------------------------------------------
99 104 5 0.121 0.267
---------------------------------------------------------------------------
113 115 2 0.172 0.379
---------------------------------------------------------------------------
119 128 9 0.154 0.340
---------------------------------------------------------------------------
132 139 7 0.153 0.337
---------------------------------------------------------------------------
GRC0074 7484051 501302 300 -60 59 68 9 0.143 0.315
---------------------------------------------------------------------------
119 128 9 0.226 0.498
---------------------------------------------------------------------------
147 150 3 0.108 0.238
---------------------------------------------------------------------------

(i) Notes:
1. Analyses on half core by Genalysis Laboratory Services, Perth.
2. Uranium assays were carried out by Four Acid Digest/MS (Method AT/MS).
3. Metal values (U) have been converted to oxide values (U3O8) using a
factor of 1.179, and expressed as kg/t U3O8. Note that 100 ppm U3O8 is
equivalent to 0.1 kg/t U3O8, which is 0.01% U3O8.
4. True widths are estimated to range from 70% to 100% of intersection
thickness depending on the drill hole dip.

(ii) Notes:
1. All results based on down hole spectrometer logging completed by
Terratec Geophysical Services.
2. Spectrometer total count eU data was collected on 0.1m intervals. These
intervals were composited to 1.0m zones.
3. The 1.0m wide zones were reviewed to determine the significant results
shown in the above table.
4. eU data is considered equivalent to reporting uranium oxide
values (U3O8).
5. Results greater than 0.100 kg/t U3O8, over intersection lengths of at
least 2.0m have been reported.
6. Conversions: 0.01% equals 100ppm equals 0.100kg/t equals 0.22046lb/t.
7. True widths are estimated to range from 85% to 100% of drill hole
intersection length.
8. Holes GDD008, 9, 10, 11, 12, 14, 15 & 17 were all partially blocked so
they could not be fully logged with the down hole spectrometer. Chemical
assays are awaited.

(iii) Notes:
1. Analyses on RC chips by Genalysis Laboratory Services, Perth.
2. Uranium assays were carried out by Four Acid Digest/MS (Method AT/MS).
3. Metal values (U) have been converted to oxide values (U3O8) using a
factor of 1.179, and expressed as kg/t U3O8. Note that 100 ppm U3O8 is
equivalent to 0.1 kg/t U3O8, which is 0.01% U3O8.
4. True widths are estimated to range from 70% to 100% of intersection
thickness depending on the drill hole dip.


Appendix 2

To view the Garnet Valley Drill Hole Location and Significant Results Plan (Grid UTM Zone 33 South), please visit the following link: http://www.ccnmatthews.com/docs/asximage.pdf

Contact Information

  • Extract Resources
    Peter McIntyre
    Managing Director
    +61 (08) 9367 2111
    or
    Extract Resources
    Richard Henning
    Investor Relations
    +61 (08) 9367 2111
    Email: rhenning@extractresources.com
    or
    Extract Resources Limited
    30 Charles Street
    P.O. Box 752 South Perth WA , 6951
    +61 (08) 9367 2111
    +61 (08) 9367 2144 (FAX)
    Website: www.extractresources.com