Extract Resources Limited: Heading towards a Buy
Wednesday, February 10, 2010 at 8:50PM
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Extract Resources Chart 11 Feb 2010.JPG


After a rocket like climb Extract Resources Limited (EXT) have settled back to trade at $6.65. The technical indicators are in the oversold zone and suggest that this uranium stock might just be a buy at these levels.

From the last news release in January the company said the following:

Extract Resources Ltd a uranium exploration and development company with projects in Namibia, announced updated exploration results from the massive Rossing South mineralised system, part of Extract’s world-class Husab Uranium Project.

Highlights:

Infill resource definition drilling continues to return high grade intercepts

All zones of uranium mineralisation still open at depth and along strike, in at least one direction.

13 drill rigs operating on site, with additional rigs due on site in the next 4 to 6 weeks to accelerate exploration and resource definition efforts.

Encouraging results from the RadonX survey programme

The Company's primary business focus is in the African nation of Namibia, in which it has a large land position of 2653km2 over several licenses. While the projects have various mineral occurrences, Extract's main objective is based around the potential of the uranium (U3O8) rich provinces in Namibia, particularly within the alaskite belt that hosts the world class Rossing Mine.

The trend at the moment is down and this trend may continue for the near term, however it is a long way down from its all time high so it can viewed as a buying opportunity. As the uranium space is currently out of favour our preference is to wait awhile in the hope of getting a bargain later on.

Extract Resources Limited trades on both the Canadian and Australian Stock Exchanges under the symbol of EXT is based in Perth, Western Australia.


All the best.

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