Extract Resources (ASX and TSX code: EXT), an Australian based mining company is setting up a new uranium (U3O8) project in Namibia. Extract Resources is partly owned by mining giant Rio Tinto. A feasibility study at Rossing South has provided promising results and helped gain the Namibian government’s support for a new mine.
The mine lies close to Rio Tinto's Rossing mine. In a statement for investors Extract Resources mentioned that it had identified an intercept at 68m at a grade of 5767 parts per million. This is much higher than the usual for Namibian uranium reserves.
Extract's aim is to explore, evaluate, develop and produce U3O8 from its advanced projects, as a source of fuel conversion for low-cost, environmentally friendly nuclear power.
There had been rumors that Russian company Rosatom had approached the Namibian government about developing the project. The Russian state owned nuclear company was prepared to spend US$1 billion on the uranium development project.
This rumour gained credibility as Russia and Namibia signed a five-year memorandum of co-operation to develop the latter's uranium resources. However Namibian Minister for Mines Joseph Iita said that there was no truth in the rumours, Rosatom had not approached the Namibian government for a mining license for Rossing South.