18 October 2007

Positive exploration results continue at Garnet Valley on the Husab Uranium Project, Namibia

Extract Resources (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.

SUMMARY:

• Results from the first of the Garnet Valley diamond holes, designed to test the depth extensions to the shallow uranium mineralization previously reported from Reverse Circulation drilling, has confirmed multiple ore zones, with a bulked-out assayed intersection of 105m @ 0.191 kg/t (191 ppm), including zones of;

o 10 metres assaying 0.377 kg/t U3O8 (377 ppm)
o 31 metres assaying 0.346 kg/t U3O8 (346 ppm)

together with a deeper zone which assayed;
o 19 metres assaying 0.263 kg/t U3O8 (263 ppm) 

• Down-hole spectral logging of a number of RC holes has reported excellent zones of uranium mineralisation, including:

o 35 metres @ 0.521 kg/t eU3O8 (521 ppm)
o 27 metres @ 0.494 kg/t eU3O8 (494 ppm)
o 31 metres @ 0.402 kg/t eU3O8 (402 ppm)
o 23 metres @ 0.336 kg/t eU3O8 (336 ppm)
o 22 metres @ 0.360 kg/t eU3O8 (360 ppm)
o 52 metres @ 0.164 kg/t eU3O8 (164 ppm)  

• Over 2 kilometers of mineralized strike has now been confirmed within the Upper and Lower Garnet Valley, and drilling continues to extend the mineralized zone.

GARNET VALLEY DETAILED UPDATE

Diamond Drilling
Assays from the first diamond hole completed on the Garnet Valley section of the Ida Trend have been received. As expected, GDD001 intersected a number of zones of potentially economic uranium mineralisation within a package of altered alaskitic granites over one hundred metres thick. GDD001 returned an intersection of 105 metres grading 0.191 kg/t U3O8 (with higher grade zones including 31 metres grading 0.346 kg/t U3O8), together with a footwall zone assaying 0.263 kg/t U3O8 over 19 metres. This hole tested the down dip extensions to the intersections made by previously reported drill holes GRC003 (34 metres grading 0.178 kg/t U3O8), and GRC004 (23 metres grading 0.366 kg/t U3O8).

To date 11 diamond holes have been completed at Garnet Valley for an aggregate of 3,674 metres. This drilling has tested a strike distance of approximately 700 metres of the central portion of Garnet Valley to a depth of approximately 250 metres. Diamond drilling at Garnet Valley continues with two machines on site. A third diamond drill continues to operate at Ida Central, to the north along strike of Garnet Valley.

GDD001 is located centrally within the Upper Garnet Valley alaskite panel, and drilling data to date suggest that grades improve at depth to the north towards the Garnet Valley dyke. Assays for the holes drilled to the north of GDD001 are pending.

A plan and sectional view of these results are shown in Appendix 1 in the attached ASX Announcement (click link below) 

Reverse Circulation Drilling
Reverse Circulation drilling at Garnet Valley continues with 65 holes now completed for an aggregate of 5,645 metres advance. To date, RC drilling has tested shallow positions for uranium mineralisation over approximately 2 kilometres of strike within the Upper and Lower Garnet Valley, and its southern extensions. Assays for the first 20 holes have previously been reported (4th September 2007). Uranium mineralisation continues to be intersected in all areas, as confirmed by spectrometer logging of sample spoil. Further rigs are scheduled to commence drilling in October.

Assays have been returned from holes GRC021 to GRC024, which were drilled to test an isolated spectral anomaly in the southern portion of the Hook area, while road works were completed on the entry ramp to the lower Garnet Valley. Low grade intersections were made in this area.

Down-hole Spectral Logging
A campaign of down hole spectral gamma logging was recently undertaken at Garnet Valley, in part to assess uranium mineralisation in drill holes where chemical assays are not expected for some time. The holes were logged using a calibrated down hole spectrometer by Terratec Geophysical Services, a Namibian company with extensive spectral gamma logging experience within the Erongo Region of Namibia.

Down hole spectral gamma logging utilises the radioactive daughter products of the uranium decay series to estimate the concentration of uranium in the substrate being measured, assuming that the daughter products are in equilibrium with the uranium precursor, an assumption which is not necessarily correct.

There are some advantages to measuring uranium using gamma logging methods where secular disequilibrium is not apparent. The main advantages lie in the spectrometer effectively sampling an increased volume of rock when compared to a drill hole, due to the penetrative power of gamma radiation, together with the ability to measure uranium levels in historic holes where no sample remains for chemical assaying. It is also a common perception that chemical assaying of drill samples (particularly drill core) under-reports true uranium grades due to the small sample size and the particular nugget effect typical of uranium mineralisation. A property of gamma logging is the large number of readings taken (in this instance, one measurement every 10 cm down hole), thus allowing for increased data resolution, and perhaps accuracy, when compared with homogenised drill samples assayed over 1 metre intervals.

Results of the spectral gamma logging are shown in the eU3O8 column in the detailed table appended. These results should be regarded as preliminary pending chemical assay verification and more complete equilibrium studies.

Many significant zones of uranium mineralisation have been returned from spectral gamma logging of RC holes at Garnet Valley, including 30.8 metres grading 0.402 kg/t eU3O8, 51.8 metres grading 0.164 kg/t eU3O8, 22.8 metres grading 0.336 kg/t eU3O8, 22.3 metres grading 0.360 kg/t eU3O8, 27.7 metres grading 0.494 kg/t eU3O8, and 35.3 metres grading 0.521 kg/t eU3O8.

Previously unreported Inductively Coupled Plasma Mass Spectrometry (MS) assay results are also shown in the table.

Download the full ASX announcement by clicking here.

Detailed information on all of the company’s activities can be found on the Extract website at www.extractresources.com or by contacting:

Peter McIntyre            or              Richard Henning 
Managing Director                       Investor Relations
(08) 9367 2111                             (08) 9367 2111 
                                                     rhenning@extractresources.com

Extract Resources Limited (ABN 61 057 337 952)
30 Charles Street South Perth WA 6151  •  P.O. Box 752 South Perth WA 6951
Telephone: +61 (08) 9367 2111  •  Facsimile: +61 (08) 9367 2144  •  reception@extres.com.au