Extract Resources Limited

Extract Resources Limited

November 27, 2007 08:09 ET

Extract Resources Limited: Best Results to Date From Garnet Valley on the Husab Uranium Project, Namibia

SOUTH PERTH, WESTERN AUSTRALIA--(Marketwire - Nov. 27, 2007) - Extract Resources Limited (TSX:EXT)(ASX:EXT) is pleased to announce an update on the resource drilling program currently underway at Garnet Valley on the Husab Uranium Project in Namibia.


Outstanding drilling results received from Garnet Valley, including:

- 86m @ 0.350 kg/t (350 ppm) U3O8 in diamond hole GDD004

- 26m @ 0.419 kg/t (419 ppm) U3O8 in RC hole GRC050

- 34m @ 0.401 kg/t (401 ppm) U3O8 in RC hole GRC051

- 15m @ 0.341 kg/t (341 ppm) U3O8 in RC hole GRC052

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

"We are extremely pleased with these results, and they confirm that our expectations for the Garnet Valley area on the Ida Dome (Husab Project) are on track. While these may be our best assay results to date, there is still a lot more data in the system which we expect will continue to support our resource target for this area." Mr. McIntyre explained that while there is lag between drilling and assaying, Extract geologists take spectrometer measurements of core and RC rock-chips during drilling and geological logging, and therefore have some initial indication of the mineralised zones.

He added, "The deeper diamond holes are opening up the mineralisation at Garnet Valley, and initial indications are that grades are increasing at depth. Our drilling programme continues at a better rate than in previous months and we expect to announce further assay results on a regular basis leading up to our maiden resource statement early in 2008."

Garnet Valley Results

Diamond Drilling

Assays have been returned from diamond drill hole GDD004 drilled within the Garnet Valley section of the 5 kilometre long Ida Trend. Results from this hole include a spectacular intersection of 86 metres grading 0.350 kg/t U3O8 (350 ppm, or 0.035% U3O8). This is the best intersection returned from any drilling carried out on the uranium bearing granites of the Ida Dome to date.

This intersection, together with the previously reported results from GDD001 and GDD002 (105 metres grading 0.191 kg/t U3O8 and 129 metres grading 0.159 kg/t U3O8 respectively) confirms that the Garnet Valley panel hosts a significant body of primary uranium mineralization. Pending further results, these three holes represent the only drilling ever to have tested the full thickness of the mineralized package of alaskites at Garnet Valley; the RC drilling to date has provided only a partial coverage of the footwall portion of the mineralized body.

Hole GDD004 was collared some 400 metres north of GDD001 and 320 metres north of GDD002; it tested the uranium mineralization at depth below the most northerly percussion drill holes completed by the Anglo American Corporation of South Africa in the 1970's. The best of these legacy intersections was 43 metres grading 0.370 kg/t U3O8 from 19 metres depth - current assay results suggest that uranium grades are being maintained or enhanced at depth, with intersection widths showing a tendency to increase substantially with increasing depth. Drilling intersections for these holes are regarded as being approximately true width.

Two diamond drill rigs continue to drill the northern and southern extensions of the Garnet Valley, and a further 16 cored holes are in various stages of geological and geochemical processing. Spectral measurements carried out on drill core indicate that uranium mineralization continues to be intersected by this drilling.

Reverse Circulation Drilling

Assay results from four RC holes drilled within the central portion of the Garnet Valley panel have also been returned. A number of zones of uranium mineralization are present, with the standout intersections including: 5 metres grading 0.584 kg/t U3O8 in GRC049, 26 metres grading 0.419 kg/t U3O8 and 9 metres grading 0.328 kg/t U3O8 in GRC050, 34 metres grading 0.401 kg/t U3O8 in GRC051, and 15 metres grading 0.341 kg/t U3O8 in GRC052. Detailed assay results are listed in the table appended.

At present, RC drilling on the Husab Project is being directed at a first pass assessment of the New Camp anomaly, and exploration drilling on the Rossing South target area has resumed. Further details will be reported as they eventuate.

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.



To view the Garnet Valley Drill Hole Section 46725N, please check the following link: http://www.ccnmatthews.com/docs/garn1127.jpg



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:

Hole_id Northing Easting Azi_True Dip From To Width Grade Grade
UTM UTM (deg) (deg) (m) (m) (m) kg/t lb/t
WGS84 WGS 84 U3O8 U3O8
33S 33S
GDD004 7483843 501201 300 -60 74 160 86 0.350 0.772
Inc. 92 106 14 0.424 0.935
and 114 160 46 0.412 0.908
RC Drilling
GRC049 7483722 500918 300 -60 1 5 4 0.135 0.298
22 27 5 0.584 1.288
39 45 6 0.194 0.428
51 54 3 0.208 0.459
GRC050 7483655 500870 300 -60 0 3 3 0.193 0.426
10 36 26 0.419 0.924
78 87 9 0.328 0.723
93 102 9 0.202 0.445
123 125 2 0.186 0.410
GRC051 7483580 500841 300 -60 1 7 6 0.152 0.335
17 21 4 0.104 0.229
71 105 34 0.401 0.884
GRC052 7483516 500795 300 -60 45 47 2 0.231 0.509
84 99 15 0.341 0.752


- Analyses on half sectioned NQ (50mm) core and riffle split 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)

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