Extract Resources Limited

Extract Resources Limited

December 06, 2007 08:59 ET

Extract Resources Limited: MOU With NamWater and Husab Project Update

SOUTH PERTH, WESTERN AUSTRALIA--(Marketwire - Dec. 6, 2007) - Extract Resources (TSX:EXT)(ASX:EXT) is pleased to announce the signing of a MOU with NamWater and provides an update on the Husab Uranium Project in Namibia.


- Extract and NamWater have signed a memorandum of understanding to enter into formal discussions relating to agreements to facilitate water supply to the planned Ida Dome Uranium Mine.

- Extract Resources remains on track to announce a maiden resource centred on the Garnet Valley Prospect in early 2008 - significant project upside still exists.

- Extract announces its corporate social charter and assists road safety in Namibia.

Extract Resources Managing Director, Peter McIntyre, released the update today saying;

"I am extremely pleased with my recent visit to Namibia. The company clearly has a long term commitment to developing relationships with both government and utilities and to have had such a positive response from NamWater has been reassuring in terms of our operational planning".

Mr McIntyre met with the 50 administration and field staff employed locally. He added, "...we are clearly on track to meet our targeted objectives. The maiden resource will only cover a fraction of the 10km strike extent of the Ida Dome outcropping mineralization so we expect that additional drilling will continue throughout 2008 and beyond to define and increase the resource base".

MOU with NamWater

Through a Memorandum of Understanding with Extract, NamWater has undertaken to develop a desalination capacity that will supply at least 4 million cubic meters of desalinated water per annum to the Ida Dome Mine by March 2011. In return, Extract will agree to purchase a specified volume of water per annum and will enter into the necessary agreements to facilitate the development. The MOU was signed by the two parties on Tuesday 4th December 2007.

Resource Definition Update

Namibian based geophysical consultants are currently on site completing down hole spectral logging on all of the drill holes where chemical assay data is not yet available. Once this data has been collected it will be reviewed and merged with the Company's already significant data set which includes, detailed outcrop mapping, channel sampling, lithological and geotechnical drill logs, chemical assay data and existing down hole spectral logging. This data set is being reviewed to define a geological model that will form the basis of the Company's maiden resource estimate. This initial resource estimate, following JORC code guidelines, is expected to be completed before the end of February 2008.

Following on from this expected initial resource estimate there will remain significant scope for upgrades, since the majority of the resource definition targets around Ida Dome are as yet untested by drilling. Only 20% of the strike extent of the Ida Dome alaskites, including the 1.5km of Garnet Valley so far tested by drilling, will be included in the maiden resource estimate. Garnet Valley is just one of seven outcropping zones of mineralized alaskite in the area.

Further resource definition drilling is expected to continue on the Ida Dome alaskites well into 2008.

Corporate Social Charter

As part of the Extract corporate social charter, Managing Director Peter McIntyre - on behalf of the company - donated N$53,000 for a speed laser device to the Namibian Police as part of the Xupifa Eemwenyo Road Safety project. The Prime Minister, Nahas Angula officiated at the hand-over ceremony, asking for "zero road accidents" and hoping that the measures to discourage drivers from speeding and reduce fatalities will be successful, particularly over the festive season.

The information in this report that relates to exploration results is based on information compiled by Mr Martin Spivey, who is a Member of The Australasian Institute of Mining and Metallurgy and Mr Andrew Penkethman who is a Member of the Australian Institute of Geoscientists. Mr Spivey is a consultant to the Company and is employed by Silverlode Pty Ltd. Mr Penkethman is Manager Projects for Extract Resources Limited, and is a full time employee of the company. Mr Spivey and Mr Penkethman 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 Spivey and Mr Penkethman consent to the inclusion in this report of the matters based on their information in the form and context in which it appears.

(ABN 61 057 337 952)

Contact Information