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.

EXT up in Australia, hit A$9 before settling at a little under.The following
has been copied from another board by an accomplished pi,i'm sure he won't mind?

As you know, I spent some time factoring all warrants and options in to my spreadsheet last week.

If all options are exercised, nearly all of them push the valuation down slightly, but URU have some at 50p which would actually push the valuation up. Therefore the figure below are 'worst case' figures for look through value to EXT (ignoring all other assets and cash) assuming all KAH warrants & options are exercised, all URU options up to 37p are exercised & all 'in the money' EML warrants & options are exercised.

KAH - 201.1p ---- 16.01% discount to EXT--- needs to rise by 19.18% for parity
URU - 45.09p ----- 34.58% discount to EXT ---needs to rise by 52.85% for parity
EML - 10.11p ---- 22.10% discount to EXT --- needs to rise by 28.37% for parity

(I haven't looked up NWT's warrant/option situation yet)
NWT is an Canadian company with a large stahe in URU (via the Niger project) and even more of a bargain,trading on the TSX.
cyril

is this rights issue deal of 1:35 @ 19% discount, rns after hours, good, bad, or indifferent to holders?
at least holders get a look in for a change

Not sure, at the moment I'm out of the car (KAH) and playing polo (PRL)....probable RNS there tomorrow morning.

*************************************************
BREAKING NEWS
*************************************************

EXT over $10

Zone 3 announcement !

$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$

Extract Resources Managing Director, Mr. Peter McIntyre, said The rapid growth of Zones 1 and 2 is now being complimented by the potential of a third zone of mineralisation along the same Rossing South trend. The potential of the entire 15 kilometre trend is enormous, with some degree of mineralisation being encountered on every line drilled to date.

The Company intends to add further value to the project through ongoing exploration and resource definition drilling aimed at defining the full potential of the project. The Company is also, pushing ahead with the Rossing South Feasibility Study on Zones 1 and 2 to get the project into
production in the shortest possible time frame.

$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$

Six page cover story article on Extract

http://paydirt.com.au/aurora/assets/user_content/File/pdsept09covStory.pdf

Should see a strong rise tomorrow!

Maybe not with markets falling around the world,will take some of the heat out of
stocks?
cyril

We shall see!

niceonecyril: EXT is currently up in Canada, despite Wall St. Now trading at Canadian $8.4 up from $8.0. Also closed in Australia at A$10.06, but will go XR tomorrow.

EXT seems to have closed up 10% in Canada

Kalahari raises 20m
Business Financial Newswire
Kalahari Minerals - the mining exploration group with a portfolio of uranium, copper and base metal interests in Namibia - has conditionally raised 20m through the placing of 11,764,706 shares with new and existing shareholders.

The funds raised will be used to satisfy the company's commitments with regard to the proposed A$91m equity raising announced by Extract Resources Ltd on 26 August so as to maintain its circa 40% shareholding in Extract, held through its 100% owned subsidiary Kalahari Uranium Limited.

Some nice buys are going through this morning.

Tuesday, September 01, 2009

Kalahari Minerals says Extracts Rossing South likely to hold third mineralised zone
by Andre Lamberti

Kalahari Minerals PLC (AIM: KAH) announced a further fundraising aimed at maintaining its 40 percent stake in Extract Resources Ltd (TSX, ASX: EXT) which controls the Husab project in Namibia and its Rossing South uranium deposit. In a separate statement, it said exploration at Rossing South is increasingly indicating a third mineralisation zone along the same trend as Zones 1 and 2, and believes that the true scale and magnitude of the Rossing South project is some way off from being understood.

Kalahari has conditionally raised 20 million via placing 11.76 million new shares at 170 pence each. Furthermore, the company is in advanced discussions to raise an additional 10 million before expenses through the issue of convertible bonds, details of which will be published shortly. Kalahari will use the funds to satisfy its commitments with regard to the proposed A$91 million equity raising announced by Extract last week so as to maintain its stake.

Extract has announced that the proceeds of its proposed fund raising will primarily be used to accelerate and increase the drilling programmes for Zones 1 and 2 and to extend the regional exploration programme which will include areas of identified mineralisation located south of Zone 2.

Kalahari chairman Mark Hohnen said: "The Rossing South prospect continues to deliver outstanding results that underpin our confidence in the potential of this uranium prospect. Exploration lines in the newly identified Zone 3 have yielded some exceptional results which reinforce the potential of a third zone of mineralisation.

Kalahari cited an Extract statement from yesterday saying that chemical assay results have confirmed strong uranium mineralisation 1.2 kilometres south of the current Zone 2 resource area. Reverse circulation drilling at the potential new zone returned 72 metres at 676 parts per million triuranium octoxide, including 35 metres at 866 ppm U3O8. Extract is confident that a second line of drilling, 400 metres to the South, will continue to extend and increase the known dimensions of mineralisation.

Extract Resources Managing Director Peter McIntyre, said: The rapid growth of Zones 1 and 2 is now being complimented by the potential of a third zone of mineralisation along the same Rossing South trend. The potential of the entire 15 kilometre trend is enormous, with some degree of mineralisation being encountered on every line drilled to date."

Extensive exploration potential still remains to be tested throughout the Husab project with priority given to Rossing South.

One RC rig is currently drilling at the Salem prospect, approximately 10 kilometres south of Rossing South. Initial handheld spectrometer results on drill samples, from all the holes completed so far at Salem, are very encouraging - with numerous zones of uranium anomalism being returned, according to Extract.

Ambrian Capital issued a note on Kalahari, calling the news a double-wammy for Extract, and by extension Kalahari. It previously valued Kalahari at 2.19 per share, but has now suspended its valuation and recommendation pending admission of the new shares to trading.

Regarding the first results from Zone 3, the broker said this is the first hole released and we expect more like it. Although only one hole has been assayed chemically, the company map shows five more holes with good grades and widths from hand held spectrometry.

With these new drill results confirming our speculative view of Zone 3, and Salem likely to add to this, we are now confident that the resource will ultimately reach 500 million pounds of U3O8, and may even exceed that, it added.

EXT: Nice rise last night, down under!

A single trade of 611,839 bought at 180p this AM

A few words from Mining News, dated the 4th Sept, today.

"Already the seventh-largest uranium deposit in the world, McIntyre said in 12 months Rossing South could knock off McArthur River as the largest, bar Olympic Dam".

7 September 2009

Kalahari Minerals plc (`Kalahari' or `the Company')

Raises 10 million through issue of Convertible Loan Notes

Kalahari Minerals plc, the AIM listed mining exploration and evaluation group
with a portfolio of uranium, copper and base metal interests in Namibia,
announces that further to the announcement made on 1 September 2009 regarding
the placing of new ordinary shares to raise 20 million, the Company has raised
a further 10 million following the receipt of irrevocable commitments to
subscribe for secured convertible loan notes (`the Loan Notes').

The Loan Notes (which will not be listed) will be issued pursuant to the terms
of a loan note instrument to be dated on or around 7 September 2009 (`the Loan
Note Instrument'). Under the terms of the Loan Note Instrument, the Loan Notes
may be converted into ordinary shares of 1p each in the Company (`Ordinary
Shares') at any time on or before the second anniversary of execution of the
Loan Note Instrument at an exercise price of 212.5 pence per Ordinary Share, or
at 195 pence per Ordinary Share in the event that there is a transfer of, or
relinquishment of control over at least 50% of the Ordinary Shares of the
Company to a third party within 6 months of the date of the Loan Note
Instrument.

In the event that the Loan Notes are not converted on or before the second
anniversary of execution of the Loan Note Instrument the Loan Notes shall be
repaid together with compounded interest at a rate of 10 per cent. per annum.
Kalahari has a right to pre-pay any or all of the Loan Notes at any time after
the first anniversary of the date of execution of the Loan Note Instrument. In
the event that Kalahari elects to pre-pay any or all of the Loan Notes it will
also be required to pay a premium of 10% of the Loan Notes plus any accrued
interest.

Kalahari will grant security for the Loan Notes over 2,650,000 ordinary shares
in Extract Resources Limited held by its subsidiary Kalahari Uranium Limited.

The Company has not paid any commissions in relation to the grant of the Loan
Notes.

The funds raised through the issue of new ordinary shares and convertible loan
notes will be used to satisfy the Company's commitments with regards to the
proposed A$91 million equity raising announced by Extract Resources Ltd
(`Extract') on 26 August 2009 and to maintain its circa 40% equity position in
Extract, held though its 100% owned subsidiary Kalahari Uranium Limited.

cyril

EXT hitting and holding A$10 with heavy trading at present.
cyril

Looking better by the day!

Taken from today's RNS showing Prudential have increased their holding to 9.6%

RNS Number : 6545Y

16:21 Kalahari Minerals (KAH) Holding(s) in Company

07 September 2009

Prudential plc group of companies

Date on which issuer notified: 04 September 2009

7. Threshold(s) that is/are crossed or reached: 9.6%