Extract hunts down uranium "elephant"

Brendan Ryan | Wed, 03 Feb 2010 15:20
[miningmx.com] -- EXTRACT Resources’ uranium strike south of Rossing Uranium in Namibia “had all the redeeming features of a great uranium mine” said Extract chairman Steve Galloway.

Addressing the Mining Indaba Conference being held in Cape Town on Wednesday, Galloway added Extract’s geologists had followed a traditional geological proverb in their approach.

“It’s a well-known saying that if you want to hunt for elephants then you need to look in elephant country.

“For uranium, elephant country is around Rossing Uranium and you could say we have found a herd of elephants there,” he quipped.

Galloway described Extract’s Rossing South project as the most important uranium discovery of the past 40 years.

He said it was positioned to become the second largest uranium mine in the world assuming it reached its projected annual production rate of 15 million pounds of U308.

Extract is headquartered in Perth and listed on the Australian and Toronto stock exchanges.

The controlling shareholder is AIM-listed Kalahari Minerals which holds 40% of the equity but Rio Tinto – which owns Rossing Uranium – has a 15% stake in Extract and a 15.8% stake in Kalahari Minerals.

That has triggered speculation that Rio Tinto is intent on a creeping takeover of the Rossing South project to extend the economic life of its existing Rossing Uranium mine.

In February last year Rio Tinto spokesman Nick Cobban told Miningmx that, “Rossing South is an early stage exploration project situated close to Rossing Uranium which shows some promise.

“We are interested in discussing with the board of Extract how we might maximise value for shareholders in both Extract and our Rossing Mine.”

Galloway said that Extract had “kept a low profile until now” but that was about to change.

In November, Extract announced it had invited interested parties to submit proposals for their potential partnership in the development of Rossing South.

The company added, “due to the size and quality of the Rossing South deposit, Extract has received extensive interest from a number of parties seeking to participate in the project’s developmen. Extract will keep shareholders informed of any material developments.”