As copper becomes ever hotter property and the tantalising price of $3/lb heaves into view, at least for the optimistic among us, companies with their focus on the metal naturally become more interesting. A recent newcomer to the London market, Kalahari Minerals [AIM:KAH] can offer investors no less than three copper projects, with a uranium joint venture thrown in to add piquancy to the proposition.

Altogether, Kalahari can already boast an estimated 250,000 tonnes of copper in the ground across its Namibian ground, which makes it clear that the company has moved beyond exploration and into the pre-feasibility phase with its two key projects. The area in which the company is operating was explored preliminarily by other players back in the 1970s, and a sizable portion of the presently known resources originate from this spell, but failure by those then exploring to come across any very large targets plus a deteriorating political situation in Namibia brought proceedings to a halt.



Now that the copper market looks very different and the politics of Namibia have improved, Kalaharis ground is a lot more desirable. Indeed, the companys Chairman Mark Hohnen admits that it has been lucky to have been able to stake the areas it has, which essentially amount to a large slice of the Namibian section of the Kalahari copper belt, which has some geological similarities with the much storied Zambian copper belt.

Kalaharis first order of priority is the Dordabis project, within which it has homed in on a deposit known as Koperberg. Drilling here has identified oxide and sulphide zones of mineralisation and recorded some good intersections, the highlight of which has been 5 metres graded at 3.43% copper. A small scale pilot processing plant is already recovering copper cathode on site.

The Koperberg resource is still open, and an alluring possibility raised by Hohnen is that it could conform to the Olympic Dam geological model. That is, a massive body of IOCG (iron oxide copper gold) mineralisation with significant smatterings of uranium. It is too early to tell whether this is the case or not, but such a scenario is certainly something pleasant to dream of for Kalahari shareholders, and the company has allocated funds specifically towards testing this hypothesis.

Kalaharis second key project goes by the name of Witvlei, and hosts five known copper deposits along with a number of prospects. The next step for the company will be to try and expand the existing deposits and define resources at the prospects in order to come up with a total resource of a potentially economic size.

If this resource development programme comes up with the goods, Hohnen suggests that an attractive option for Kalahari at Witvlei may be the tried and tested development model of establishing initial cash flow from oxide material before moving on to trickier-to-process sulphides. The same development path could also be worth considering at Koperberg if the Olympic Dam model is not found to hold true there.

Kalaharis only grassroots stage project is Ubib, which has been is known to host copper gold mineralisation with a hint of uranium but needs appraising more thoroughly before much more than this can be said. The project is located some 15 kilometres from Anglo Gold Ashantis Navachab gold mine, which obviously auspicates well. Current work is centred on stream sampling to help identify prospective target zones for the application of more advanced exploration techniques.

The Husab uranium project, which is a joint venture with Extract Resources [ASX:EXT] structured to give Extract 51% and Kalahari the remainder, has surprised both companies. Hohnen says that little was thought of Husab until last year, when some great radiometric anomalies were turned up. The presence of uranium along with other metals has now been confirmed, and diamond drilling to test the deposit at depth begins in the next couple of weeks.

Husab is located right between the Rossing uranium mine, owned by Rio Tinto [LSE:RIO; NYSE:RTP], and the Langer Heinrich deposit, which is being developed by the uranium darling of the Australian market, Paladin Resources [ASX:PDN]. Extract has already gained significant recognition from its constituency of investors for Husab, and if drilling confirms the joint venture partners optimism, then the project could well help win Kalahari some fans in the London market, where uranium plays are not as numerous as they could be, and hence much in demand.

Investment Outlook

Kalahari has raised 6 million by way of its AIM listing, and intends to devote the largest portion of this sum to work at Dordabis. Therefore, this is the project that investors should be keeping their weather eye on. Significant progress down the road to feasibility is sure to add value to the company, other things, such as the copper market, being equal.

But in addition to Dordabis, there is scope for either or both of Witvlei and Ubib to shape up and grab investors attention. Husab already stands out, and with a high level of market interest in new uranium projects still apparent, it is a nice asset for Kalahari to have.

Namibia based miner Kalahari Minerals (KAH) announced an upgrade of resources at its Rossing South project. The firm said uranium resources at the site were 34% higher at 145 million pounds while an increase in grades made the project one of the countrys highest grade sources. Speaking about the announcement, Kalahari Chairman Mark Hohnen stated: We look forward to Extract publishing a maiden resource for Zone 2 in August, which we believe will elevate Rossing South into the world's top ten global uranium deposits in terms of contained metal. Importantly the mineralisation at Zone 1 and 2 remains open along strike and down-dip. Kalahari shares finished unchanged at 127p

< http://www.investegate.co.uk/Article.aspx?id=20090722075834DP4DO
You might need to put KAH in the EPIC address box?
cyril

Another great update....still think that in time the sp will climb to the 190p's or so...

most of the RNS is highly technical geological gibberish, but the opening para as below is the bit we all want to know!

Kalahari Chairman Mark Hohnen said, "These are incredible results
which ensure that Rossing South is now one of the largest uranium deposits in
the world. The 82% increase in the resource at Rossing South and the gradequality mean this project is truly world class. Including Ida Dome, Extract
now has a JORC compliant resource in excess of 300 M.lbs U3O8 of which 267
M.lbs U3O8 @ 487 ppm is from the two zones at Rossing South. With both Zones 1
& 2 open along strike and down-dip we are confident that Extract has the
ground and potential to deliver on Kalahari's estimates of a resource in the
region of 500 M.lbs U3O8."

from a chart point of view, note that sp has now broken into all-time high ground ..... one way and another, very bullish

Yep !.....reading all the figures means nothing to me but I trust that there are people out there that do....a sharp climb has to come now as long as the price of uranium doesn't plummet.

Hanson Westhouse recently reported :-

"Extract Resources is trading at an EV/lb of US$6.53 which we believe includes a premium for both the anticipated resource announcement for Zone 2 of Rossing South in August and current corporate interest. This is inline with the agreement between Mega Uranium Ltd (TSX: MGA), JAURD (the Japan Australia Uranium Resources Development Co. Ltd.) and ITOCHU Corporation (ITOCHU) for 35% of the 23.7Mlbs U3O8 (8.4Mlbs attributable) Lake Maitland project in Australia which has an EV/lb of US$5.9 per lb. We believe this is the M&A value of pre-development uranium in the ground. "

http://www.wametals.com.au/investors/research_pdfs/090713_hansonwesthouse.pdf




au$7.58 values the updated resource at us$4.84 per pound.

At us$5.9 per pound, EXT would have a share price of au$9.24

The value of Kalahari's EXT @ au$9.24 would be 2.14 per share


EXT @ au$9.24 gives a look-through value of :-
URU = 50.43p
EML = 11.89p
PRL = 4.07p
NWT = 15.90p (Canadian 28.74c)
cyril

Well, I was expecting Lady KAH KAH here.. to rise a bit more than this today....staying put on my stock anyway...

disappointing that sp failed to hold through all-time high

Anybody any idea what the price of uranium is doing at the moment ?....

Uranium rose as high as $136 per pound in 2007 (from a low of $8 per pound in 2002). That means the price of uranium jumped about 1600% between 2002 and 2007.

However, prices soon came crashing down:

As you can see, things haven't been pretty for uranium lately. The spot price for U3O8 recently fell another $2 per pound and now stands at $49 a pound.

========
actually you can't see, because the chart didn't or wouldn't copy across

Thanks for the info....this drop might hold the sp back then...

it hasn't been a recent drop ..... indeed, price has recovered from about $40 over the last couple of months

Still climbing....gently day by day....now breaking new ground ..

9% rise so far today...160p....looking great..

Extract(pun)from todays RNS.

Kalahari Minerals plc, the AIM listed mining exploration and evaluation group
with a portfolio of uranium, copper and base metal interests in Namibia, is
pleased to provide an update released by Extract Resources Ltd (`Extract' or
`the Company'), in which Kalahari's subsidiary, Kalahari Uranium Limited, holds
a 40% interest.

Kalahari Chairman Mark Hohnen said, "This is great news with preliminary cost
estimates indicating that Rossing South could support a profitable, long life,
low cost, low technical risk uranium mine producing 14.8M lbs U3O8 per year,
making it one of the world's largest uranium mines. Importantly, Namibia
already hosts other world class uranium projects including Rio Tinto's Rossing
and Paladin's Langer Heinrich uranium mines, located either side of Extract's
project, therefore providing good infrastructure and knowledge of the sector,
which would greatly assist in the development of Rossing South.

"With a JORC compliant resource of 267 M.lbs U3O8 @ 487 ppm, Rossing South is
already one of the world's largest uranium deposits. However, it has
considerable additional potential as the uranium mineralisation on all zones
drilled to date is still open at depth and along strike. This confirmed
resource and the outstanding exploration potential still to be tested across
the whole Husab project should ensure a long and successful mining operation.
As we have mentioned in previous announcements, we believe that Extract has the
ground and potential to deliver on Kalahari's uranium estimates of a resource
in the region of 500 M.lbs U3O8.

"We look forward to receiving regular updates from Extract as it advances the
Prefeasibility Study, prior to embarking on the Definitive Feasibility Study
and ultimately potentially creating one of the world's largest uranium mines."

Extract announcement:

STUDY HIGHLIGHTS

* Production rate 15.0 M tpa

* Estimated head grade 487 ppm U3O8
cyril

banked 50% of these the other day at a respectable profit, albeit that it has proved pretty premature ..... never mind

Still in and wondering where the top is ?,....in future years this should be worth several times what it is today but there is the high possibility of a takeover before then.

my thought exactly ..... it's so easy to get sucked in and then to suffer, though in this instance, at least there is something (concrete!!) on which to hang ones hat ..... slightkly curiously perhaps, though sp is nicely up, trading volume is still very low at 115k

i was also interested to read the bit about sulphuric being a high cost item for them.
it's actually very cheap to produce, but i guess if you have to bring in parcel tanker loads from say india and then store it, the unit cost goes up several-fold

That'll be Rio's problem imo, as they seem fav's to any take over of the
Rossing South.With their own Rossing project next door, less inrurstructure and associated costs known.
EXT would be the obvious t/o target but KAH could be a cheap way of doing so?
cyril