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 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%

Since the last RNS, it's interesting to see who now owns a big stake in Kalahari:

Rio Tinto 28,179,810 13.5%

Niger Uranium, Ltd 27,680,000 13.2%

M&G Investment Management 20,075,000 9.6%

Emerging Metals Limited 17,600,000 8.4%

Coronet Resources Limited 16,000,000 7.7%

Blakeney Management Limited 13,440,000 6.4%

New City Investment Managers 7,336,667 3.5%

Eden Group 6,728,694 3.2%

Regent Pacific Group 6,532,898 3.1%

Broken the 200p barrier at last!

Sarah-Jane Tasker | September 14, 2009
Article from: The Australian
PETER McIntyre was so close to fulfilling every junior explorer's dream, but the former Extract Resources boss has cruelly had to bow out and watch from the sidelines as his company steers its way into production at its world-class uranium mine.

Mr McIntyre, 53, is clearly disappointed he will not experience the joy of turning the company's Namibia discovery into a mine, but rather than enter into a public battle with major shareholder Kalahari Minerals, he has chosen to step aside.

The mining veteran of 30 years spent his last day as Extract managing director on Friday at the company's Perth office.

His success in transforming the company from a $4.5 million junior player into a $2.3 billion miner is certain to put him on the wish list of many companies.

Extract started out in late 2003 as a back-door listing through a gold project, and its interest in its flagship uranium mine in Namibia started with a 51 per cent stake in the licences, with AIM-listed Kalahari Minerals holding the remaining interest.

The junior's original focus was copper, but with the tenements neighbouring Rio Tinto's massive Rossing uranium mine, the junior soon decided to sell its gold assets and focus purely on uranium.

"When you are in a world-class address, there is the hope you are sitting on a world-class deposit," Mr McIntyre said.

The company's Husab uranium project, containing the Rossing South and Ida Dome deposit areas, quickly became its focus, and Mr McIntyre soon moved to pull the asset solely under the Extract banner. In that process, Kalahari secured its original 36 per cent stake in Extract.

Mr McIntyre said it was a good consolidation strategy, but it didn't stop there.

Around March 2007, Mr McIntyre moved to tidy up the junior's ownership structure.

Once a 1.5c stock, Extract had a large number of shares on issue that were often subject to the whims of day traders.

When shares rose to 9c, the company conducted a share consolidation to crunch the number of shares, making itself appealing to institutional investors.

With the company starting to take "corporate shape", Mr McIntyre's focus returned to the project site and the original plan to explore the uranium area.

But it was during this time a significant change for the company was born, when it decided to look elsewhere.

"We went from the known into the unknown into the oldest desert in the world," he said.

"No one had ever looked under the sand."

Extract focused on an area 5km south of Rio's hugely successful Rossing mine, where it had identified a good target and from the first line it hit in late 2007, the exciting feeling a junior explorer gets when it believes it's on to a good find began to be felt around the company's boardroom.

By February last year, the company had announced a major uranium discovery at the Rossing South exploration target, sending its shares on a steady climb.

"I have never won lotto before but there is a lot of luck in finding what we did and being at the right place at the right time," Mr McIntyre said.

He had taken his son on his first trip to the African project when the good news flowed in and "was prepared to start hiring him out as a lucky charm".

Rio Tinto had missed out on the expansion upside from its nearby project, having stopped short of extending its reach in the area because of the discovery it made more than 30 years ago.

Extract was fortunate enough to secure the licence next door to Rio's project, before the uranium price increased, fuelling renewed interest in the sector, and in September last year Rio bought 11 per cent of the explorer.

Although the global financial crisis was starting to bite and Rio was going through its own issues, it still increased its share to 15 per cent by December.

"It was an endorsement by Rio Tinto and stamped what we had and was telling the market they clearly endorsed the work we were doing," Mr McIntyre said.

The downturn that crippled many other miners didn't deter Extract's push.

"We continued to be aggressive on the project during that period and ploughed ahead, which was a defining moment for the company," he said.

But Mr McIntyre's key role in building the company into a $2.3bn emerging miner wasn't enough to keep his largest shareholder happy.

He refuses to dwell on the reasons for his decision to resign but Kalahari, which owns 38.7 per cent of the miner, moved in May to remove him as a director.

And it wanted another board seat while Extract's next two biggest shareholders, Rio Tinto and Polo Resources, also called for boardroom representation.

Mr McIntyre said he took the view that it would be better to step aside rather than go through the process of calling a public meeting, where investors would be asked to vote on his removal.

"It is not good for a company to go through these episodes and it is embarrassing for the company," he said.

"It was unfortunate and it is disappointing not to take the company to the next phase.

"It's not easy, but you're in a public company and you have to accept it."

His replacement has not been named but Mr McIntyre is positive the team in place will fulfil his dream of turning the discovery into a successful producing mine, with 2013 the target for first output.

He still owns a sizeable stake in the company, valued in excess of $56m at the time of his departure, bolstered by his decision last week to convert one million of his directors' incentive options into shares.

Mr McIntyre plans to take a break from work, but not surprisingly, he will continue to keep a close eye on the Extract story.

"When this great project comes into development, I hope I go to the opening ceremony and cut the ribbon," he said, adding that he had no plan to sell his shares. He believes the project could outshine Rio's mine and become the largest pure uranium deposit in the world.

From another BB:

Worth looking at City Natural Resources High Yield Trust (CYN) who have EXT and KAH as top 2 holdings and runs at a decent discount to NAV. Also some other goodies in there.

1. Extract Resources 6.2
2. Kalahari Minerals 4.9
3. Goldcorp 4.9
4. New Britain Palm Oil 2.9
5. Kiwara 2.7
6. Nido Petroleum 2.7
7. REA Ordinary and 9.5% Pref 2.7
8. Randgold Resources 2.0
9. FMG Finance 9.75% 2013 1.7
10. Pike River Coal 1.7
Top 10 holdings represent 32.4%

Extract still rising in Australia. Up about 5% overnight.

While a nice rise its in keeping with the ASX as a whole?
11.17 assie dollars.
cyril

EXT below A$9 now,probanly the reason for KAH's fall in the SP at 183.5p on low volume.Could be a top up time as news of Zone 3 imminent,which should start the ball rolling again?
cyril

From todays interims;

Chairman's Statement

The highlight for us during this six month period was the
confirmation from Extract Resources Limited that its Rossing South uranium
deposit is the largest uranium discovery made in recent decades. With a
current JORC resource of 267 M lb U3O8 for Zones 1 and 2 of Rossing South
alone, Kalahari maintains that Extract has the ground and potential to deliver
a total resource well in excess of 500 M lbs U3O8 from the entire Husab
Project, which places it amongst the largest uranium projects in the world.
Indeed, if the mineralisation continues at Rossing South, into further zones
south of the initial two zones, as we expect, and has been indicted in recent
announcements by Extract regarding the emergence of Zone 3, Extract will have
a uranium project which will rival BHP Billiton's Olympic Dam project. With a
circa 40% interest in Extract, this naturally bodes well for Kalahari and its
shareholders and, accordingly, I believe that it is imperative for Kalahari to
maintain, and ideally increase, this exposure to Extract. With an exciting
portfolio of additional copper, gold and other base metal assets which we are
actively looking to develop further and ascribe increased value to over the
short to medium term, I am confident that Kalahari has a very bright future.

Uranium Interest

Extract's Husab project, located in one of the world's most
prolific uranium regions, has two defined uranium resources, being Rossing
South and Ida Dome. Recent focus has centred on the world class Rossing South,
which from discovery in February 2008, already has a JORC compliant resource
of 267 M lb of U3O8 at a grade of 487 ppm from Zones 1 and 2, which are both
open at strike and down-dip. This has defined it as the highest grade
granite-hosted uranium deposit in Namibia (the grade is more than 50% higher
than Rio Tinto's operating Rossing Mine) and ranks it as the seventh top
global uranium deposit by contained metal.

Preliminary cost estimates indicate that Zones 1 and 2 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.

Ongoing drilling is expected to define a much larger resource with
9 km of the prospective 15 km Rossing South trend still to be explored.
Current drilling is focussed on exploring mineralisation south of Zone 2,
referred to as the newly emerging Zone 3, and is yielding exceptional results.
A drilling programme is also underway at the Salem prospect, which is 10 km
south of Zone 2 and which is also demonstrating highly encouraging
intersections.

Ida Dome, the second key area within Husab, has a current JORC
resource of 25.1m lbs U3O8 within the Garnet Valley, New Camp and Ida Central
zones. These areas have not as yet been closed off and are expected to
continue to grow along with future resource drilling on Holland's Dome, which
is also within Ida Dome. We expect that additional drilling programmes at Ida
Dome will define a resource in excess of 40 M lb U3O8, adding to Extract's
already enormous resource at Rossing South, also within the Husab Uranium
Project.

As we strive to ensure that Extract delivers exceptional operating
performance and maximise the value of our investment, we have become involved
in a number of key decisions. During the period, we successfully instigated
various board changes at Extract, marking a significant strengthening of the
leadership team and bringing a strong Namibian representation, which we
believe is important given the geographical location of Extract's projects.
These appointments include the Namibian national Inge Zaamwani-Kamwi, who
joined as a Non-executive Director, along with additional new Non-executive
Directors, John Main, Stephen Dattels and Chris McFadden.

Copper and Base Metals Assets

Kalahari maintains an exciting portfolio of copper and base metal
assets across Namibia. It is currently analysing data generated from drilling
programmes at these projects during 2008 with the aim of defining +250,000
tonnes of copper metal at its two key projects, Dordabis and Witvlei, and
bringing the Namib zinc lead mine back into production.

Whilst results from all these projects have been encouraging, the
Board is aware that little value is being attributed to them by the market. We
are therefore reviewing various options available to the Company to maximise
each project's potential to the benefit of our shareholders.

Financial Overview

Recognising our need to maintain and increase our position in
Extract, on 1 May 2009 we announced that a placing of 17,890,000 new Ordinary
Shares to raise GBP17.89 million at 100 pence per share had been completed for
the use of maintaining, or if possible increasing, our position in Extract
Resources which at that time stood at 38.50%. At the period end, Kalahari's
cash position was GBP6.36 million.

Post period end we raised additional funds through a placing of
11,764,706 new Ordinary Shares to raise approximately GBP20 million at 170 pence
per share, and the issue of convertible loan notes to raise a further GBP10
million. The intended use of the proceeds of the placing and convertible loan
notes was to satisfy the Company's commitments with regard to the proposed
A$91 million equity raising announced by Extract on 26 August 2009 so as to
maintain our circa 40% shareholding.

Over the period we have welcomed major new institutions to our
shareholder base, whilst also maintaining our strong relationships with our
established shareholders.

Corporate Overview

We strengthened our team with the appointment of two new
Non-executive Directors, Neil MacLachlan and David de Jongh Weill, who both
have exceptional qualities and experience and have already given the Company
valuable advice and support. We are delighted to welcome them to the team.

Outlook

Rossing South remains of considerable importance to Kalahari, and
we therefore look forward to results from its exploration and resource
definition drilling, aimed at defining the full potential of the project.
Extract is, with Kalahari's full support, pushing for the completion of the
Feasibility Study on Zones 1 and 2, which is being conducted with the
intention of bringing the project into production in the shortest possible
time frame.

We have maintained a robust balance sheet and outstanding
shareholder register, which has continuously supported our vision, all factors
which stand us in good stead for the future. We are confident that the
fundamentals of our commodities remain attractive and that significant value
can be added to them, which in turn will be reflected in our share price.

Mark Hohnen

Executive Chairman

30 September 2009

cyril

Flying again at 205p.
cyril