Extract Resources has announced that Namibia’s Ministry of Mines and Energy has issued it with a mining licence for the Husab Uranium Project.
Extract Resources is a uranium exploration and development company with a primary focus on Namibia. The company’s 100 per cent-owned Husab Uranium Projecthosts the largest and highest grade granite-hosted uranium deposit in the country.
Since the initial discovery of uranium mineralisation at the northern end of Husab in February 2008, proven and probable reserves of 320 million pounds of U308 have been defined.
The mining licence, which is valid for 25 years, will enable the project to move into its production phase, establishing Husab as one of the three largest uranium mines in the world. Extract plans to develop Husab to produce 15 million pounds of U308 per year.
Commenting on the news, Extract’s CEO and managing director Jonathan Leslie said: "We are delighted to have received the mining licence for the Husab Project so soon after the notice of preparedness. This is the last stage to achieving all of the permits we need in order to develop Husab, the world's fourth largest primary uranium deposit. Extract looks forward to developing its world class asset with Namibians, for Namibia."
Kalahari Minerals subsidiary, Kalahari Uranium Limited, holds a 42.74 per cent interest in Extract Resources. Kalahari's executive chairman Mark Hohnen said: "This is truly fantastic news for all parties as it both underpins Husab's position as one of the most exciting new uranium projects in the world today and highlights Namibia as an excellent investment destination.
“The granting of the mining licence removes a potential development barrier and ensures Extract can move forward with this globally significant uranium asset, enabling the process of identifying strategic investors and project debt to begin in earnest.”
Hohnen continued: "Husab is on course to become one of the three largest uranium mines in the world, producing 15Mlb of U3O8 per annum via conventional open pit mining and a proven process flow sheet, as demonstrated by the definitive feasibility study. With a current resource in excess of 500 M.lbs U3O8 and considerable scope for further upside through the mine optimisation and resource extension (MORE) programme and newly delineated areas of high grade mineralisation in the wider Husab area, I believe that Husab's position as a world-class globally strategic asset is undeniable.”
Headquartered in Perth, Australia, Extract has offices in London, Swakopmund and Windhoek, Namibia.
