Reserves grow at Husab

11 August 2011

Estimated uranium reserves at the Husab uranium project in Namibia have increased by 37%, ensuring an operating life of over 20 years for Extract Resources Ltd's planned mine, the company has announced. The total estimated ore in proven and probable reserves now stands at 280 million tonnes containing 319.9 million pounds U3O8 (123,000 tU). Ore grade forecast has been increased from 497 to 518 parts per million. Updated resource figures were reported in June 2011, and the increase in reserves arises from the identification of new resources and the upgrading of inferred resources to proven and probable resources, making them eligible for inclusion as reserves. Extract CEO and managing director Jonathan Leslie described the latest resource model optimisation as a "very pleasing outcome." He pointed out that the latest estimates point to a two-decade mine life based on two zones of mineralisation, and that the addition of defined resources in a further three zones plus promising exploration results from other areas could provide future expansion possibilities. The project recently received its final environmental approval from the Namibian government, and is now awaiting the issue of a mining licence by Namibia's Ministry of Mines.