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.

Going well again!

Looks as though KAH has lift off!

Could this be the driver?:

Rio eyes targets on back of ore boom
Miner to buy after year of disposals

Capex to rise to $11bn in 2011
By William MacNamara
Guy Elliott, finance director, confirmed that Rio was on the hunt for acquisitions as it finished a year defined by asset disposals.

We are looking strongly at M&A, he said, but scoffed at the notion of a target anywhere near the size of Alcan, its ill-fated $40bn aluminium buy. We are not looking at huge acquisitions. I would say they are in the low-single-digit billions. But we do see some things out there. What we pursue will be businesses that have synergies with ones we already own.....

Where next?:
Mining giant Rio Tinto is to be the junior partner in a joint venture (JV) with Chinalco. The new company has been formed to explore mainland China for world-class mineral deposits. Rio Tinto will own 49% of the JV and will appoint the chief executive of the new company.

seems to have done the sp good at the mo.,.

Still looking very strong!

Good for 300p minimum....

EXT closed at A$9.25. So seems we have more to come. But, by how much do you value a huge resource with RIO on the doorstep?

Uranium surges as Beijing goes nuclear
Created: 8 December 2010
Written by: Mark Robinson
Spot prices for uranium have recently bubbled up to around the $67 (42.38) mark following confirmation that China's plans for its nuclear industry are far more ambitious than previously thought. At the recent International Nuclear Symposium held in Beijing, Chinese authorities announced that the People's Republic intended to construct up to 245 reactors over the next 20 years, at a projected cost of $511bn (323bn).

China's ambitious urbanisation programme, coupled with unrelenting industrial demand, have placed great strain on its existing power infrastructure. Currently it is reliant on coal-fired power stations for 65 per cent of its energy needs, but as demand steadily rises, the country is facing the prospect of perpetual energy deficits unless alternate sources are brought on stream. By 2020, it is estimated that China will require at least 35 per cent of the worlds current output of uranium ore, and thats before the majority of the new reactors come on stream. Other countries, such as India, are also determined to expand nuclear capacity.

The recent hike in the spot price for uranium means it has now risen around 45 per cent since the start of this year. And come 2013, the supply of 'above-ground' uranium that has come from the gradual decommissioning of a vast arsenal of Sovier-era missiles will cease. That could throw the underlying supply-demand picture into sharp relief and have significant implications for the spot price.

See also: Coking coal hots up

WAYS TO GO NUCLEAR...
Polo Resources and Kalahari Minerals both offer indirect exposure to the massive Rossing South uranium deposit via their interests in Australian-listed Extract Resources. Other quoted uranium plays include Vane Minerals, Forte Energy and Red Rock Resources.

There's also Geiger Counter, a Jersey-listed closed-end fund that invests mostly in uranium shares, and the ETF Securities Global Nuclear Energy exchange-traded fund, which goes by the imaginative TIDM of NUKE.

having really been using KAH as a quick trading stock in recent months - and done pretty well out of it too - but am glad i jumped back in a few days ago, almost on a whim

=============

but all something of a damp squib this morning

predateur

Summary from Extract Resources announcement dated today.

" Extract Resources Ltd has agreed to issue 7,299,069 ordinary shares in the Conpany by way of placement to Kalahari Uranium Limited a 100% subsidiary of Kalahari Minerals plc. ( Kalahari)

On completion the shares will e issued at a price of A$8.35 representing a 5% discount to the 3-day VWAP of Extraxct shares from 3rd December 2010 to 7th December 2010.
The placement is expected to raise A$60.9m.

Following completion Kalahari's interest is expected to increase from 100,043,018 shares representing 41.12% of the shares on issue to 107,342,087shares representing 42.83% of the 250,601,367 shares on issue.

The proceeds of the placement, together with existing cash balances of approximately A$39.7m as of 30th November 2010 will provide funding to complete the Company's current drilling programme for further value engineering and optimisation initiatives in support of the Definitive Feasibility Study on the Hurab Uranium Project and will, in due course, permit initial engineering and pre-developement work to commence at the project.

The placement is conditional upon the Company and Kalahari entering into a formal subscription agreeent and confirmation by ASX that it will not exercise its discretion under ASX Listing Rule 10.11.12or, if this confirmation is not forthcomingshareholder approval

Confirmation of the placement is expected to occur on or before 7th January 2011 or if shareholder approval is required witin two business days of shareholder approval "

The closing price of Extract on ASX was A$9.18.

If approved could add further value to Kalahari price.

Grevis 2

I think you will find that Polo Resources sold its complete holding in Extract in August this year.

See announcement dated 13th August, by Polo.

" Second tranche , 18,650,849 shares sold for A$7.00. "

Relative to today's closing price A$9.18..............ouch

Thanks predateur; I had thought as much.

Kalahari Minerals to move to main market
StockMarketWire.com
AIM - listed Kalahari Minerals is to apply to move to the main market.

The Group's main asset is a 42% holding in Namibian- mining group, Extract Resources which is currently developing the Husab Uranium Project, projected to be one of the largest uranium mines in the world

Chairman, Mark Hohnen comments: "After a very successful four years on AIM, Kalahari has now reached a size and stage of maturity such that the Board believes the Official List is the most appropriate platform for its future growth.

"We are confident that this move will provide the Company with greater share liquidity, enhanced market exposure and a wider shareholder base, befitting to a company of Kalahari's increased profile.

"As Extract Resources' Husab Uranium Project approaches its development phase, our position as a major strategic shareholder in Extract becomes increasingly prominent.

"We are committed to remaining a supportive investor in Extract, as highlighted by our recent announcement regarding the private placement that we initiated in Extract, and we strongly believe that a listing on the Official List will leverage our influence and ability to guide the development of the Husab project."

Today's RNS: Apac of Hong Kong have added around 9 million shares to their holding

Extract, Rio JV prospect silences takeover talk

The West Australian
West Business (Page 31)
Monday, December 13, 2010

As Extract Resources moves into the final stages of a definitive feasibility study over its Namibian Husab project, expectations of a corporate play for the uranium hopeful are easing.

For some investors and analysts it has been a long question of when, not if, Extract will be taken out by a bigger suitor. Topping the list of likely suspects is major shareholder Rio Tinto, which owns the Rossing a mere six kilometres from Husab.

But speculation is growing that a deal at the asset level may be more likely. In particular, the idea of an Extract-Rio joint venture is gaining traction.

One of the major obstacles of any takeover of Extract is its tightly held share registry, which includes London listed Kalahari Minerals (42.8 per cent) Rio (effectively 19.9 per cent because it also has a stake in Kalahari) and Japanese giant Itochu (16 per cent, which again includes a stake in Kalahari)

According to Deutsche Bank analysts Paul Young and Ben Wilson, a JV with Rio would be the most value-accretive option for Extract. They suggest Extract could strike a JV with Rio over zone one of Husab only, potentially leaving the door open for other deals to be done.

Extract is eyeing the sale of further assets for off take, with Asian uranium traders or nuclear operators the most likely counter parties, according to Young and Wilson.

Shareholders will have to wait for early in the new year for a final price tag on Husab because the study has been delayed until the first quarter of 2011.

Last years scoping study suggested Husab could cost about $US704 million ($714 million) to develop but analysts suggest it will top $US1 billion

Australia Uranium Stocks 'Undervalued' on Pent-up Global Demand

December 23, 2010, 10:06 PM EST By Shani Raja

Dec. 24 (Bloomberg) -- Uranium stocks, already trading at higher valuations than their national benchmark indexes, will rise further amid predictions the price of the fuel may surge as much as 30 percent, investors and analysts said.

Uranium prices, which last month climbed to the highest level in more than two years amid a pickup in demand from China, will rally as the global economic recovery spurs countries in Europe and Asia to increase purchases, they said.

Uranium spot prices rose 40 percent this year and 34 percent since the end of September to $62.50 a pound on Dec. 20, according to Roswell, Georgia-based Ux Consulting, which tracks the industry. Producers in Australia and Canada forecast demand for the metal will increase as countries, including India, expand their use of nuclear power to curb emissions from burning coal.

"Uranium spot prices have rallied strongly over the past few months on strong Chinese demand," said Tim Schroeders, who helps manage $1 billion in Melbourne at Pengana Capital Ltd. "With an improving global economy, it's not unreasonable to expect uranium demand to improve, to fuel increased economic activity."

Uranium rose to the highest price in more than two years last month after China Guangdong Nuclear Power Co. agreed to long-term supply contracts with the world's two largest producers, Denver-based pricing service TradeTech LLC said in a Nov. 26 report.

Nuclear Plants

China Guangdong, the country's second-biggest builder of nuclear-power plants, agreed to buy 29 million pounds of uranium through 2025 from Cameco Corp., based in Saskatchewan, Canada, after striking a deal with the miner's larger rival, Kazakhstan's state-run Kazatomprom.

According to Jamie Coutts, a Singapore-based analyst at BGC Partners, a 30 percent gain in uranium prices next year isn't unrealistic as China boosts purchases and after countries including France indicated they will increase nuclear-power generation, while Malaysia and Vietnam outlined plans to build their first nuclear plants.

Pengana's Schroeders is more reticent about that figure.

"Whilst an expectation of higher uranium prices is not unreasonable, a 30 percent rise within 12 months from current levels would surprise," he said.

Uranium stocks have had a mixed performance this year, with Cameco, the world's No. 2 producer, soaring 18 percent in Toronto through yesterday, while Energy Resources of Australia Ltd., controlled by Rio Tinto Group, has plunged 53 percent in Sydney.

Top Picks

Coutts said among his top picks in Australia in the industry are Paladin Energy Ltd., which produces the metal in Africa and has climbed 18 percent this year in Sydney through yesterday, and Extract Resources Ltd., which has risen 7 percent and isn't yet producing.

Paladin traded at 63 times estimated earnings as of the close of trading yesterday, compared with 14 times for Australia's benchmark S&P/ASX 200 Index, while Energy Resources, even after this month forecasting as much as an 83 percent decline in profit for the year, traded at 25 times. Cameco traded at 38 times estimated earnings in Toronto, compared with 18 times for Canada's Standard & Poor's/TSX Composite Index.

"Investors have to do their homework and find out which stocks really have the upside and are most leveraged to an increase in uranium prices," Coutts said. "But when you look overall at the supply-demand metrics of the sector, it really does become a compelling case for higher prices."

Spot Prices

Both Paladin and Extract's businesses are more tied to potential gains in uranium spot prices because of the nature of the contracts the companies negotiated, Coutts said. Others, for instance Energy Resources, have sealed more longer-term deals that are less influenced by potential gains in spot prices, he said.

While Energy Resources, which sells uranium to utilities in Asia, Europe and North America, has signed long-term contracts, the prices it gets are still influenced by spot prices, Lyndon Fagan, a Sydney-based analyst at Royal Bank of Scotland Group Plc said earlier this year.

Most uranium is currently delivered under term contracts, according to Eric Webb, Senior Vice President of Information Services at Ux Consulting.

"Many contracts today are combination offers, although you do still have a few pure market-related ones," he said.

Paladin Energy's Chief Executive Officer John Borshoff told analysts last month that the company expects uranium prices will keep rising after China "piled up" contracts. Last week, the company said it acquired uranium assets for C$260.9 million ($258.4 million) from Fronteer Gold Inc. in a deal that gives the Canadian company 52.1 million Paladin shares.

Atomic Expansion

China and India are leading the biggest atomic expansion since the decade after the 1970s oil crisis in order to reduce air pollution and power their economies. Chinese uranium demand may rise to 20,000 tons annually by 2020, more than a third of the 50,572 tons mined globally last year, according to the World Nuclear Association.

Macquarie Group Ltd. reported last month that Chinese uranium imports had increased, especially between June and September.

Vietnam's government said in June the country plans to build as many as 13 nuclear-power plants with a capacity of 16,000 megawatts by 2030, and that it welcomes overseas assistance.

Malaysia is considering building two 1,000-megawatt nuclear-power plants to start operations in 2021 and 2022 respectively, state news agency Bernama reported this week, citing Energy, Green Technology and Water Minister Peter Chin.

Romania, Lithuania and the U.K. plan to build new nuclear plants, while France and Finland are already doing so. Italy plans a return to atomic energy after more than two decades.

Nuclear energy accounts for about a third of electricity production in the European Union, where 14 nations have atomic- power plants.

http://www.businessweek.com/news/2010-12-23/australia-uranium-stocks-undervalued-on-pent-up-global-demand.html

Dec 23, 2010 (The Australian - ABIX via COMTEX) --
Over 20 fund managers from major institutional investors with a total $A95bn of Australian equities under management have been surveyed by "The Australian". The results show that the most highly-regarded corporate CEOs during 2010 include Ken MacKenzie of Amcor, Craig Dunn of AMP, Chris Rex of Ramsay Health Care and Graeme Liebelt of Orica. The stocks most likely to become the targets of takeover suitors in 2011 meanwhile were thought to be Riversdale Mining, Equinox Minerals, Extract Resources, Oil Search, Santos, Fairfax Media, Goodman Fielder and Computershare.

LOOK at KAH go this a.m. well in the money.,.

Excellent!