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.

sp now breaking into new all-time high ground ..... if maintained, then could signal further (significant?) strength

The thing is to get this gem into production now.....even though uranium is dangerous (unless monitored) it is the only way forward for the human race to produce enough electricity....coal and oil just pollute the planet.....KAH can help.

The NRRP is seen as positive and of clearing the decks for a buy out of KAH for it's RS assets?
i've put some info on the URU thread,hope it helps??
cyril

Extract Inundated by Potential Namibia Uranium Mine Partners

By James Paton

Oct. 16 (Bloomberg) -- Extract Resources Ltd., a uranium explorer whose shares have surged almost eightfold in Australia this year, said it has been inundated with requests from companies proposing to join or take over its Namibian project.

Were looking at options to see whether one of the big players would want to come in on a strategic partnership level, Chairman Steve Galloway said in an Oct. 13 telephone interview from Namibia. Extract is being advised by Rothschild, the largest family owned bank, and may ask shareholders in November to consider proposals to bring its Rossing South mine to production, he said. He didnt name any potential partners.

Extract, 15 percent owned by Rio Tinto Group, has gained more this year than any other stock in Australias S&P/ASX 200 Energy Index as investors bet countries will turn increasingly to nuclear power, using fuel derived from uranium, in response to climate change. Drilling at Rossing South suggests it could become one of the worlds largest uranium mines, Galloway said.

Investors are jostling for a piece of the action, said Gavin Wendt, an independent resources analyst who has followed Extract for three years and met with executives from the explorer in the southwest African country about two months ago. A joint venture, possibly with Rio, may be the most likely scenario, he said, adding that the stocks remarkable ride has driven up the potential acquisition cost.

Extract Resources has told suitors were not for sale, Galloway said. Rio Tinto doesnt comment on market rumors or speculation, Tony Shaffer, a spokesman for the company, said by phone from Melbourne yesterday.

Fund Raising

The stock traded at A$10 at 11:10 a.m. in Sydney, valuing the company at almost A$2.4 billion ($2.2 billion), compared with about A$311 million at the end of last year.

The Perth-based explorer may sell more than $700 million in shares and debt in 2011 to bring the Rossing South mine into production, Galloway said. Thats in addition to A$91 million it raised this year by issuing equity.

The Australian company has appointed a chief executive to run its Swakop Uranium subsidiary and oversee development of the mine. Galloway declined to name the person before an announcement due today. Extract also expects to replace Managing Director Peter McIntyre, who stepped down in September, by early next year, he said.

Extract said Oct. 9 it found new high-grade mineralization at Rossing South and estimated the total uranium resource could reach 500 million pounds. The deposit is about 7 kilometers (4.4 miles) from Rio Tintos Rossing mine and approximately 30 kilometers from Paladin Energy Ltd.s Langer Heinrich project.

No Bad News

We keep finding better and better resources, said Galloway, a former mineral economist with the Namibian government. We havent seen bad news yet.

London-based Kalahari Minerals Plc, which owns about 41 percent of Extract, said Oct. 9 the project potentially could rival the worlds biggest known uranium deposit at BHP Billiton Ltd.s Olympic Dam. BHP wouldnt provide an estimate in pounds.

Even before the latest drilling results, Brock Salier, an analyst at Ambrian Partners Ltd. in London, said in research notes that he was confident Extracts resource could exceed 560 million pounds. In an e-mail yesterday, he wrote that the update from Extract showed not only some of the widest, but highest grades, weve seen to date.

Rossing South may be able to produce more than 15 million pounds of uranium oxide a year, a huge amount, Galloway said.

Profitable Business

A possible risk to profits is that a lot of other uranium comes on stream, curbing gains in the price of the nuclear fuel, he said. But I think, over the long run, uranium will be a very profitable business.

The uranium market will have a surplus next year for the first time in at least three years as producers increase output faster than demand rises, the London-based World Nuclear Association said in a Sept. 10 report. Secondary sources such as stockpiles will supply 18,711 metric tons in 2010 compared with 17,620 tons this year, the report showed.

Uranium prices, which peaked at $136 a pound in 2007, rose 5.7 percent in a week to $46 a pound on Oct. 12, Ux Consulting Co. said in an Oct. 13 report.

Extract expects favorable supply and demand conditions when Rossing South is projected to begin production in 2013, Galloway said. By 2013, 2014 there will be a space for new uranium on the market.

Some 440 commercial nuclear power reactors operate in 30 countries, with a further 30 under construction and another 90 planned, the World Nuclear Association said in a March report posted on its Web site.

Galloway said the company is at a crossroads as it explores partnership options and considers whether to expand beyond a single project in a single country. For now were trying to get on with developing the resource as fast as we can, he said.

To contact the reporter on this story: James Paton in Sydney jpaton4@bloomberg.net.

Last Updated: October 15, 2009 20:31 EDT

Kalahari Minerals plc / Ticker: KAH / Index: AIM / Sector: Mining & Exploration

16 October 2009

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

Extract appoints new CEO for Swakop Uranium

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 announce that Extract Resources Ltd, in which Kalahari has a 40.88%
interest, has appointed Mr Norman Green as Chief Executive Officer of its
wholly owned Namibian subsidiary, Swakop Uranium (`Swakop').

Mr Green is a graduate of the University of the Witwatersrand and a
professional engineer, with considerable experience in southern Africa. Mr
Green has successfully acted as project leader on numerous mining projects,
including the commissioning of a number of mines, such as the Skorpion Zinc
mine and a refinery project for Anglo American Base Metals in Namibia. He has
also worked with Impala Platinum Limited, Assmang Limited and Gencor, now part
of BHP Billiton, notably on their Hillside Aluminium Project. Mr Green will
reside in Namibia, with his primary role being to build a Namibian team to
develop the Rossing South deposit, taking it from a world class discovery to a
world class mine, capable of producing at least 15 Mlbs per annum of uranium.

Kalahari Chairman Mark Hohnen said, "We welcome the appointment of Norman to
lead the Swakop team, as he has a huge amount of experience in the resource
sector in southern Africa, and importantly in Namibia. In addition to this,
Norman will be based in Namibia on a full-time basis, which we see as vitally
important in maintaining the strong relationships that we have developed with
the local authorities, which, in turn, will ensure that the world class Rossing
South uranium assets are developed to their full potential."

* * ENDS * *

Notes to Editors:

Kalahari Minerals Plc is an AIM listed mining and exploration group with a
portfolio of uranium, gold and base metal interests in western and eastern
central Namibia. Its key investment is its circa 40.9% holding in ASX and TSX
listed Extract Resources Limited (
www.extractresources.com),
which is
developing the Husab Uranium Project, strategically located directly south of
Rio Tinto's producing Rossing Mine. Work is focussing on three main prospects
within the project area, Rossing South, Ida Dome and Hildenhof, and results
continue to underpin the prospectivity of the region, particularly following
the world class Rossing South discovery. Extract has reported a JORC compliant
combined Husab Resource (Global Resources) in excess of 292 M lbs U3O8 of which
267 M lbs U3O8 at a grade of 487 ppm from the two zones at Rossing South.
Importantly these are both open ended at depth and along strike. Kalahari
believes Extract has the ground and potential to deliver on Kalahari's
estimates of a resource in the region of 500 M lbs U3O8.

Kalahari's copper interests are focused on two project areas, Dordabis and
Witvlei, where an exploration programme is underway to define +250,000 tonnes
of copper metal. A third project, Ubib, is believed to be prospective for gold
mineralisation, whilst a forth project, the Namib Lead Zinc Project, centred on
the old Namib Lead Mine, contains surface tails and underground mining reserves
of 1.65 million tonnes at 5.7% zinc, 1.6% lead and 40.2 g/t silver (non JORC
compliant). Kalahari aims to take this final project to bankable feasibility
study stage with a view to recommencing mining operations in the short term.

Nice rise this morning.

North River raises 7m for exploration
Business Financial Newswire
Southern African company North River Resources has raised 7m before expenses via a placing at 3p per share.

The placing has been undertaken in conjunction with its proposed reverse acquisition of Kalahari Minerals' gold and base metal assets in Namibia.

On 5 October, the company announced agreement to acquire West Africa Gold Exploration (Namibia) and Craton Diamonds from Kalahari.

North River says the funds will be used for its exploration and development programme.

Temporary suspension of AIM trading in its shares has been lifted.

MD David Steinepreis said, 'We received an excellent response to this placing, prompting us to raise 7m as opposed to the mandatory 5m as part of our agreement with Kalahari, which still resulted in a healthy level of demand at this enlarged figure.'

Niger Uranium announces that the Company proposes a conditional dividend in specie of substantially all of its stake in Kalahari Minerals.

The proposed Special Dividend constitutes a fundamental change of business for the Company which, under Rule 15 of the AIM Rules for Companies, requires Shareholder approval.

Following the Special Dividend (if approved), the Company will continue to hold 2,680,000 Kalahari Shares and its exploration licences in Niger together with its interests in South America and shall continue to operate its business in line with its stated strategy (as adopted at the time of Admission) as a uranium exploration and development company.

Kalahari Minerals plc, the AIM listed resource company, with uranium, gold and
base metal interests in Namibia, announces that, further to Extract Resources
Limited's (`Extract') announcement on 4 November 2009, regarding the conversion
of 5,200,000 warrants to Ordinary Shares, Extract has a total of 242,460,636
Ordinary Shares in issue.

Following active buying in the open market to avoid dilution, post Extract's
share and warrant placing, announced on 25 August 2009, Kalahari has
pro-actively sought to maintain and increase its shareholding in Extract,
underlining its support and belief in Extract's portfolio, particularly in the
Rossing South Project.

Indeed, Kalahari is pleased to report that its current interest of 98,018,911
Ordinary Shares in Extract, represents 40.43% of Extract's enlarged issued
share capital.

* * ENDS * *
cyril

98,018,911*8.68*0.5572 = 474.4m Against a M/Cap of just 369m
cyril

The Times today

Rumour of the day

Shares in Kalahari Minerals rose 3p to 176p amid rumours that Extract, in which the group has a 40 per cent stake, may put out a particularly bullish resource update this week. Kalaharis management is visiting potential investors in the United States in an attempt to drum up further interest in the Namibia-focused group.

cyril

More news just released regarding Rossing South,its just gets better and better.
cyril

Kalahari Minerals says that Extract Resources, in which it holds a 40.44% interest, has produced an exceptionally encouraging update highlighting the potential of its Husab Uranium Project.

Kalahari Chairman Mark Hohnen comments: "The exceptional assay results again underpin the breadth of Rossing South and confirm the global significance of this massive mineralised system.

The continuity being confirmed by the in-fill drilling at Zones 1 and 2 is advancing the resource to Measured and Indicated status which is obviously crucial for the bankable feasibility study.

"Importantly all zones of uranium mineralisation are still open at depth and along strike, in at least one direction, which reinforces our belief that the estimated resource figure of 500 million pounds U3O8 for the project is highly conservative.

"Additionally at the Salem prospect, located approximately 10km south of Rossing South Zone 2, every hole drilled intersected multiple zones of anomalous uranium mineralisation from shallow depths, which again highlights the huge potential of the ever expanding Husab Project."

cyril

From the above worth repeating,

"Importantly all zones of uranium mineralisation are still open at depth and along strike, in at least one direction, which reinforces our belief that the


""estimated resource figure of 500 million pounds U3O8 for the project is highly conservative""
cyril

A question for anybody ?....Is uranium in the "wild" dangerous to humans and animals alike or only after it has been processed...pardon my ignorance on the matter...

this will pretty much answer your question .......

Although radioactive, it has a very low specific activity (i.e., the amount of radioactivity per gram) and thus, being a heavy metal, is considerably more hazardous from the standpoint of chemical toxicity. Indeed, for natural uranium the chemical toxicity is the overriding consideration and is approximately the same as the chemical toxicity of lead.

i would recommend that you do not sprinkle even unprocessed uranium ore on your porridge!

Thanks .....my next question is when mining this substance do they wear bunny suits or not.....this is a massive deposit Kalahari (through Extract) have and governments and major mining companies will be locking arms over this.

only if you're white ..... natives and their labour come cheap

Looks like nuclear is very much back in vogue for generating electricity....britain should have copied the french in producing 80% of their needs from nuclear powerstations instead of the coal and oil route.

Rio Tinto said to be eying Rsing South

Written by Administrator
Friday, 27 November 2009 08:21

Rio Tinto, the mining giant that owns Rsing Uranium is reported to be planning to buy out Rsing South uranium deposit, which is reportedly one of the biggest uranium finds in recent years. According to a well-placed source in Australia who is close to both Rio Tinto and Extract Resources, Rio Tinto wants Rsing South so that it can expand its uranium production capacity. The source told the Economist that the only hurdle at the moment was that some of Extract shareholders are demanding more money.
Jerome Mutumba, manager corporate communications and external relations at Rsing Uranium told the Economist this week that Rio Tinto has acquired on behalf of Rsing,

14.7% interest in Extract Resources Ltd, the company which owns the Rsing South deposit, and 14.1% of Kalahari Minerals which owns 40% of Extract Resources.
Rio Tinto and Rsing see great potential for Rsing South to be developed and operated together with Rsing as this will provide value to both Rsing and Extract Resources.
Rsing South is only seven kilometres from the Rsing pit, and the mines could share significant infrastructure. Hence we see potential for Rsing South and Rsing working together on a joint development as this will provide value to both Rsing and Extract Resources.
A significant investment will be required dependent upon the nature of the joint development, Mutumba said.
He said Rsing Uranium remain interested in discussing with the board of Extract how it might maximise value for all shareholders in both Extract and our Rsing mine.
Rsing produces 8% of global primary uranium production and is already a world class
mine. Rsing South has the potential to be a similar scale, Mutumba said.



http://www.economist.com.na/index.php?option=com_content&view=article&id=20541:rio-tinto-said-to-be-eying-roessing-south&catid=542:headlines&Itemid=62
cyril