Extract Resources Limited
TSX : EXT
ASX : EXT

Extract Resources Limited

January 22, 2008 17:56 ET

Extract Resources: Major Drill Intersections at Garnet Valley

SOUTH PERTH, WESTERN AUSTRALIA--(Marketwire - Jan. 22, 2008) - Extract Resources (TSX:EXT)(ASX:EXT) is pleased to announce an update on the resource drilling program at Garnet Valley on the Husab Uranium Project in Namibia.

The Company has just received assay results from RC drilling on the southern end of Garnet Valley, up to 520 metres south west of, and along-strike from the current zone being modeled for inclusion in the impending maiden resource estimate. These results represent the best RC assays received to date, with exceptional widths at medium to high grades. The new results will not be incorporated in the maiden resource, but clearly indicate that increases in subsequent resource estimates are expected.



Major results includes:

------------------------------------------------------
Hole ID From To Mineralised
(m) (m) zones
------------------------------------------------------
GRC062 18 23 5m @ 830 ppm
plus 47 74 27m @ 360 ppm

------------------------------------------------------
GRC063 65 102 37m @ 459 ppm
plus 109 115 6m @ 654 ppm

------------------------------------------------------
GRC064 51 83 32m @ 331 ppm
including 78 82 4m @ 1,208 ppm

------------------------------------------------------
GRC065 65 115 50m @ 494 ppm
including 65 79 14m @ 832 ppm
and 95 115 20m @ 566 ppm
------------------------------------------------------


Details

Previously unreported assay results from 8 RC holes drilled from the southern portion of Garnet Valley have been returned with a number of stand-out zones of exceptional width and grade. These RC results are in fact the best returns to date, with grades significantly above the current average obtained so far for Garnet Valley. Detailed assay results are listed in the appended table.

This group of holes is located from 200 to 520 metres further south west, along-strike of the southern extent of the area upon which the impending maiden resource is being modeled (see Appendix 1). This clearly indicates that the initial resource for Garnet Valley will have significant upside potential. Please refer to attached plan and section for relative locations.

At present, RC drilling on the Husab Project is being directed at a first pass assessment of the New Camp and Hook prospects, and exploration drilling on the Rossing South target area continues. Additional information will be reported, as it becomes available.

The information in this report that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Mr Andrew Penkethman who is a Member of the Australian Institute of Geoscientists. Mr Penkethman is a full time employee of the company. Mr Penkethman has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity he is 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 consents to the inclusion in this report of the matters based on his information in the form and context in which it appears.

To view APPENDIX 1: Garnet Valley Drill Hole Location Plan, please visit the following link: http://www.ccnmatthews.com/docs/EXT0123_apendix1.jpg.

To view APPENDIX 2: Garnet Valley Drill Hole Section 45600N from the Latest Set of Assay Results, please visit the following link: http://www.ccnmatthews.com/docs/EXT0123_apendix2.jpg.



APPENDIX 3:

TABLE OF NEW RESULTS

Husab Project: Garnet Valley Drilling Results

Uranium intersections greater than 0.1 kg/t U3O8 over drill hole
intersection widths of not less than 2 metres down hole width:

---------------------------------------------------------------------------
Northing Easting

UTM UTM Azi_ Grade Grade
Hole WGS84 WGS84 True Dip From To Width kg/t lb/t
_id 33S 33S (deg) (deg) (m) (m) (m) U3O8 U3O8
---------------------------------------------------------------------------
GRC0060 7483200 500393 300 -60 70 72 2 0.229 0.506
---------------------------------------------------------------------------
GRC0061 7483179 500426 300 -60 60 73 13 0.339 0.748
---------------------------------------------------------------------------
84 90 6 0.128 0.281
---------------------------------------------------------------------------
109 114 5 0.218 0.481
---------------------------------------------------------------------------
GRC0062 7483123 500363 300 -60 18 23 5 0.803 1.770
---------------------------------------------------------------------------
47 74 27 0.360 0.793
---------------------------------------------------------------------------
94 107 13 0.143 0.314
---------------------------------------------------------------------------
115 120 5 0.665 1.467
---------------------------------------------------------------------------
GRC0063 7483089 500262 300 -60 37 53 16 0.180 0.397
---------------------------------------------------------------------------
58 61 3 0.237 0.522
---------------------------------------------------------------------------
65 102 37 0.459 1.011
---------------------------------------------------------------------------
109 115 6 0.654 1.442
---------------------------------------------------------------------------
GRC0064 7483142 500332 300 -60 51 83 32 0.331 0.729
---------------------------------------------------------------------------
including 78 82 4 1.208 2.663
---------------------------------------------------------------------------
GRC0065 7483069 500295 300 -60 17 21 4 0.192 0.424
---------------------------------------------------------------------------
65 115 50 0.494 1.090
---------------------------------------------------------------------------
including 65 79 14 0.832 1.833
---------------------------------------------------------------------------
95 115 20 0.566 1.247
---------------------------------------------------------------------------
GRC0067 7482974 500143 300 -60 91 93 2 0.154 0.339
---------------------------------------------------------------------------
96 98 2 0.121 0.267
---------------------------------------------------------------------------
112 116 4 0.250 0.552
---------------------------------------------------------------------------
GRC0068 7483028 500208 300 -60 0 3 3 0.200 0.440
---------------------------------------------------------------------------
15 20 5 0.348 0.768
---------------------------------------------------------------------------
100 102 2 0.335 0.738
---------------------------------------------------------------------------
109 113 4 0.113 0.249
---------------------------------------------------------------------------

Notes:
- Analyses on RC chips by Genalysis Laboratory Services, Perth. Uranium
assays were carried out by Four Acid Digest/MS (Method AT/MS).
- 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.
- Assays expressed as kg/t U3O8 have been converted to lb/ tonne by
multiplying by 2.2046.
- All results are from the Garnet Valley panel of the Ida Trend.
- Intersection widths are estimated to be approximately true width.


(ABN 61 057 337 952)

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
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    Website: www.extractresources.com