Extract dips on uranium resource release

Shares in Extract Resources have dipped as the company releases the maiden resource for its Rossing South Zone 1 project in Namibia, claiming it to be one of the most significant uranium discoveries made in decades.

The project, discovered some 12 months ago, has a resource of 108.3 million pounds of uranium oxide at a grade of 430 parts per million uranium oxide.

Extract managing director Peter McIntyre said the grade of the uranium oxide makes Rossing South the "highest grade, granite-hosted uranium deposit" in Nambia.

He added that there was potential for future resource upgrades and for the project to be in the top 10 global uranium deposits.

The project borders Rio Tinto's Rossing uranium mine. The mining giant holds a 14.4 per cent stake in Extract.

"We will now commence feasibility work on the Zone 1 resource and drilling out Zone 2 to establish an even larger resource base over the next 6 months," Mr McIntyre said.

Shares in Extract dipped 2.5c to a low of $1.44 before climbing to $1.46 at 12:47 AEDT.