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.

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

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

in a pissy market, at least KAH shows some blue, albeit not much following yet another cracking update ..... not currently holding, but i really do wonder what these guys have to do to become "market darlings"

Another quality set of drilling results from EXT,it just better and betterer.http://asx.com.au
cyril

Been around for a few of days,but a good resd and shows the long term potential.

From the Sunday Times.

The great uranium stampede; Everybody wants supplies as nuclear power comes roaring back, writes Danny Fortson
Danny Fortson
990 words
31 January 2010
The Sunday Times
ST
1
10
English
(c) 2010 Times Newspapers Limited. All rights reserved
It's an odd place for a group of Frenchmen to pitch a tent city. Bakouma is one of the deepest, darkest corners of African jungle. From Bangui, the capital of the land-locked Central African Republic, it takes days to navigate the 800km of dirt track to this patch of virgin forest in the middle of the continent. Usually they go by light aircraft to a nearby landing strip.

Most of the 160 or so jungle dwellers are scientists but they are not there to count butterflies.

They are drawing up plans for a uranium mine. Areva, France's state-owned nuclear giant, is behind the project. It hopes to begin clearing forest next year after the government approves its plan.

Bakouma is not an isolated case. It's just one example of a silent landgrab unfolding around the globe. After decades as a forgotten commodity, uranium, the radioactive element used as the primary fuel for nuclear power, is hot property again. Agents for companies, many of them government-controlled, are fanning out across the globe to gain access to the powdery, radioactive ore.

The scramble has been set off by the comeback of nuclear power. In the past couple of years countries that for decades had shunned it as an expensive, pariah technology have embraced it anew. Britain is leading the charge. The government envisages a new generation of reactors to replace the rickety old stations that will be retired in the coming years. The renaissance has taken hold elsewhere, from America to the Middle East and China.

For some, the resulting uranium rush is worrying. Rianne Teule, a nuclear campaigner at Greenpeace, said: "A lot of new countries in Africa are opening up to uranium mining but it is non-African companies that are exploiting the resource Chinese, Canadian and French firms. It's a whole new phase of colonialism."

It's also a serious business. As with oil, companies and governments are seeking to ensure supplies of a fuel that will play an increasing role as economies move away from traditional fossil-fuelled power.

Last year Kazakhstan leapfrogged Australia and Canada to become the largest supplier of uranium, producing about 14,000 tonnes, a fifth of global consumption.

Niger has also begun drawing the attention, and money, of big multinationals. Areva is investing more than 1 billion (870m) in a giant new mine in the impoverished desert nation. CNNC, China's stateowned nuclear firm, bought a stake in a project there last week. And Obtala Resources, a London-listed group run by Frank Scolaro, former chairman of Regal Petroleum, is in the final stages of negotiating licences for two new prospects.

"These are the kinds of projects we like," said Scolaro. "The world is going nuclear and they will need the fuel."

Today there are 439 reactors operating in the world. According to Steve Kidd at the World Nuclear Association, another 142 are in the pipeline, and 53 of these are already under construction.

Of the latter, 20 are in China. "We forget that in France in the 1970s they were building five new reactors a year," he said. "The Chinese are just doing what the French did, but on a Chinese scale."

The mining boom has been boosted by a surge in the uranium price. "For three decades uranium cost $10 a pound because nuclear power wasn't seen as very desirable. Now that we have all these concerns about the environment and going low-carbon, it's different. It hit $137 [a pound] two years ago," said Joe Kelly, head of nuclear fuel markets at Icap Energy. Today the spot price for unenriched uranium is $42 a pound, enough for most projects to go ahead.

The Cigar Lake mine in Saskatchewan, Canada, the world's largest undeveloped highgrade deposit, jointly owned by Areva and Cameco of Canada, will open next year. It is one of eight that will begin producing in the next 12 months.

A couple of the biggest sources, meanwhile, could soon run out. America and Russia supply up to a fifth of the world's needs from decommissioned bombs or stockpiles built up during their nuclear arms race. They are gradually releasing these into the market. "There is a worry that when the cold-war stocks run out we won't be able to meet demand," said Kelly.

The US Department of Energy has pledged not to flood the market. If it did, the price would crash and bring many new projects to an abrupt halt.

That would be no bad thing, said Greenpeace's Teule, who argued that many of the new mining areas are virtually unregulated.

A recent investigation in Niger uncovered radioactive shovels on sale in the local market in Arlit, a company town next to Areva's mine there. The country is the world's sixth-largest producer and has ambitions to move up the rankings. It employs only three nuclear inspectors to keep watch on the industry.

Areva acknowledged the problem but said the company has instituted a plan to stop radioactive "waste rock" and scrap metal from finding its way into the local community.

Teule said: "We are using this as a specific example to other countries about the problems they can get themselves into and to ensure there is proper regulation and reports on the environmental impact."

Indeed, even as investors flood into Niger, companies are starting new projects in other poor countries such as Namibia and Malawi.

"Getting a mine going in Texas takes two bookshelves full of authorisations," said one commentator.

"In Niger you give a shovel to a guy on $2 a day and you're mining uranium."

A nuclear power station building boom has increased demand for uranium Australia's Olympic Dam deposit (inset) is one of the world's largest
cyril

miningmx.com] -- EXTRACT Resources uranium strike south of Rossing Uranium in Namibia had all the redeeming features of a great uranium mine said Extract chairman Steve Galloway.

Addressing the Mining Indaba Conference being held in Cape Town on Wednesday, Galloway added Extracts geologists had followed a traditional geological proverb in their approach.

Its a well-known saying that if you want to hunt for elephants then you need to look in elephant country.

For uranium, elephant country is around Rossing Uranium and you could say we have found a herd of elephants there, he quipped.

Galloway described Extracts Rossing South project as the most important uranium discovery of the past 40 years.

He said it was positioned to become the second largest uranium mine in the world assuming it reached its projected annual production rate of 15 million pounds of U308.

Extract is headquartered in Perth and listed on the Australian and Toronto stock exchanges.

The controlling shareholder is AIM-listed Kalahari Minerals which holds 40% of the equity but Rio Tinto which owns Rossing Uranium has a 15% stake in Extract and a 15.8% stake in Kalahari Minerals.

That has triggered speculation that Rio Tinto is intent on a creeping takeover of the Rossing South project to extend the economic life of its existing Rossing Uranium mine.

In February last year Rio Tinto spokesman Nick Cobban told Miningmx that, Rossing South is an early stage exploration project situated close to Rossing Uranium which shows some promise.

We are interested in discussing with the board of Extract how we might maximise value for shareholders in both Extract and our Rossing Mine.

Galloway said that Extract had kept a low profile until now but that was about to change.

In November, Extract announced it had invited interested parties to submit proposals for their potential partnership in the development of Rossing South.

The company added, due to the size and quality of the Rossing South deposit, Extract has received extensive interest from a number of parties seeking to participate in the projects developmen. Extract will keep shareholders informed of any material developments.
cyril

Confirmed reports of several interested parties can be founed on EXT's
site via ASX.com (5thFeb)
cyril

KAH is tanking at the minute breaking both the 50/200day average,ae 151p this is lookimg very tasty? Too good to drop much more with its fundimetals but worth waiting to see where it bottoms out?
cyril

there is something quite odd about this stock ...... you read about it, and it sounds as though it should be roaring ahead - but it patently is not! .... for all that, while volume is pretty pathetic (about 150k this morning) bids far outnumber sells

Not looking good....perhaps people including myself expected Rio Tinto to step in and snap this up.....

Kah's value is closely tied in with EXT (down now to A$7.09), but on very low volume also. As EXT is held extremely tightly by the institutiuns,it would appear only the pi's selling at the moment,so the only thing that imo has brought on(outside market conditions)this drop is NWT's action against URU who own over 13% of KAH.
With urainum being much sort after,maybe market looking for cheap stock?
cyril