PERTH (miningweekly.com) – Uranium developer Extract Resources on Friday reported that its definitive feasibility study (DFS) on Rossing South , in Namibia, would likely increase the overall size of the uranium project's resource.

The updated resource estimate would be released in the third quarter, while the DFS would be wrapped up in the final quarter of the year.

Extract reported that the size of the Rossing South mineralised system continued to grow, with strong drilling results from zones one and two, while there was also “encouraging” indications of mineralisation on the western limb of the project.

The company said in a statement that the DFS continued to progress on track to confirm the project’s potential to be one of the world’s largest uranium mines. The base-case mine plan remained low-risk, bulk tonnage, openpit mining, with ore processed through a conventional agitated tank leach plant.

A preliminary cost estimate report on the mineralisation at Rossing South had indicated that the project could support a viable openpit mining operation developed to feed a 15-million ton a year agitated tank sulphuric acid leach process plant. Production had been estimated at 14,8-million pounds of uranium oxide a year.

The capital costs for the development were initially estimated at just over $700-million, but company chairperson Steve Galloway had previously indicated that it would "more likely" total about $1-billion.

He said that the bigger part of funding would probably come from the shareholders, but added that the company would also be looking at some project financing.

Aim-listed Kalahari Resources is Extract's largest shareholder, and has recently increased its share to 41%, while Rio Tinto Australia and Polo Resources are also significant shareholders.

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