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Xtract Resources adds advanced uranium project to growing portfolio

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Xtract Resources (LON:XTR) has announced another deal, adding to its growing portfolio of mining and exploration assets.

It has paid Aardvark Uranium Ltd US$100,000 for a 90 day exclusivity period in which to conduct due diligence for the Namakwa surface uranium deposit.

Namakwa is an advanced project. It has in excess of 3.5mln pounds of uranium resources and has had a feasibility study completed by Anglo American.

"The Namakwa deposit is at an advanced stage and there is excellent infrastructure in the area,” chief executive Jan Nelson said.

“No further geological work or drilling would be required to evaluate the central zone and our due diligence will concentrate on the consideration of the metallurgical test work programme that would be required to confirm recoveries and determine the capital cost of a plant.

"South Africa is looking to increase its contribution to nuclear power electricity generation from 5% to 30%.

“The Namakwa project fundamentals position it well to become a supplier to the new generating capacity.

“As a result of the end of the Highly Enriched Uranium Purchase agreement between Russia and the US and the cancellation of several uranium projects in Russia and Kazakhstan, approximately 45Mlb of uranium supply will be taken off the market, which is anticipated to have a positive impact on the uranium price."

Quick facts: Xtract Resources PLC

Price: 1 GBX

LSE:XTR
Market: LSE
Market Cap: £4.57 m
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