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.

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!

12 January 2011

Kalahari Minerals plc (`Kalahari')

Extract Quarterly Report

Kalahari Minerals plc, the AIM listed resource company, is pleased to provide a
quarterly report published today on ASX by Extract Resources Ltd (`Extract' or
`the Company'), in which Kalahari's subsidiary, Kalahari Uranium Limited, holds
a 41.12% interest.

To view figures and diagrams relating to the announcement set out below please
visit www.kalahari-minerals.com for the full version of the Extract release.

Extract announcement:


OVERVIEW

Husab Project Update

* Target for completion of Definitive Feasibility Study (DFS) remains Q1
2011.

* 17 drill rigs operating at Husab during Q4 2010. Priority on infill
drilling at Zone 1. 72,172 metres drilled during the quarter and over
570,000 metres of drilling completed to date.

* Further outstanding chemical assay results continue to demonstrate the high
grade granite hosted uranium mineralisation at the Husab Project.

* Environmental Impact Assessment and Management Plan lodged with the
Ministry of Environment and Tourism.

* Mining Licence lodged with the Ministry of Mines and Energy.

....................

RNS a lot to read but the future looks good and staying put.,.

KAH and EXT both up today.

Kalahari Minerals: Singer Capital upbeat on progress at Extract's Rsing South uranium project
Thursday, January 13, 2011 by Jamie Ashcroft

Extract Resources (TSX:EXT, ASX:EXT) is making progress on all fronts at the world class Rsing South uranium deposit at the Husab project in Namibia, according to research by City Broker Singer Capital Markets.

Rsing South is currently one of the worlds largest uranium deposits. Investors on Londons AIM market are likely to have heard about the project through Kalahari Minerals (LON:KAH) who has a 41.12 percent stake in Extract.

Yesterday Kalahari published an update, relaying Extracts fourth quarter results, to its investors.

This morning Charlie Long gave his view on Kalahari in a note to clients. The Definitive Feasibility Study remains on track for publication in Q1 (calendar), whilst the Environmental Impact Assessment and mining licence application have been lodged with the relevant ministries, Long said.

We remain confident that between the boards of Extract and Kalahari there is enough experience to take Rossing South to production, although we recognise that the construction of a new desalination plant could still delay proceedings.

He adds: We will be watching closely for any developments on the desalination plant as we regard the timing of its construction as the most likely source of delay.

Extract is currently running a massive 17 rig drilling programme. It drilled 72,172 metres in the three months ended 31 December 2010. This took the overall running total to over 570,000 metres. At the moment Extract is focused on Priority 1 infill drilling at Rsing Souths Zone 1.

A resource upgrade is guided for H1 2011, Long said.

We are currently forecasting an update inventory of 375 million pounds, although there is probably upside potential here.

The analyst added: We maintain our target price of 305p based on a peer comparison and an increased inventory of 375 million pounds uranium (U3O8).

(305p good for starters based on 375mlbs... Lots of potential for further increases when you consider press releases from KAH in the past have said they expect north of 500mlbs. Some analysys have even mentioned up to 1000mlbs!)

Monday 21 February, 2011Kalahari Minerals PLC
Extract Resources and Rio Tinto Discussions

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

21 February 2011

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

Discussions Regarding Potential Combination of Extract's Husab Uranium Project
and Rio Tinto's Rsing Uranium Mine

Kalahari Minerals plc, the AIM listed resource company, notes the announcement
published today on the ASX by Extract Resources Ltd (`Extract'), in which
Kalahari's subsidiary, Kalahari Uranium Limited, holds a 41.08% interest. The
Board of Kalahari confirms that is holding discussions with Extract to explore
various different options that might simplify the Extract/Kalahari shareholding
structure.

A further announcement will be made when appropriate.

Full Extract announcement:

Partnership Update

February 21, 2011: Extract Resources Limited (ASX/TSX/NSX: EXT) ("Extract")
advises that it is currently holding discussions with Rio Tinto around a
potential combination of the Husab Uranium Project with the neighbouring
Rsing Uranium Mine, with a view to capturing the significant potential
synergies that could be generated from a joint development of the two projects.
Extract is also holding discussions with Kalahari Minerals Plc to explore
various options that might simplify the Extract/Kalahari shareholding
structure.

These discussions remain confidential and incomplete and there is no certainty
that the parties will reach any agreement. Extract will continue to keep
shareholders informed of any material developments.

About Extract Resources:

Extract Resources Ltd is an international uranium exploration and development
company whose primary focus is in Namibia. The company's principal asset is its
100%-owned Husab Uranium Project which contains one of the fifth largest
uranium only deposits in the world. Extensive exploration potential also exists
for new uranium discoveries in the region. Extract Resources is listed on the
Australian (ASX), Toronto (TSX) and Namibian (NSX) Stock Exchanges.

market likes rns, jumped up nice, glad to be in around 170's.,.

Rio trying to extract best Namibia deal

RIO Tinto is believed to be in the final stages of its complex negotiations with Extract and its 40 per cent shareholder Kalahari Minerals over a uranium joint venture in Namibia. One of the important considerations for Rio is being able to take advantage of the higher value the market places on Extract's project compared with its peers.

With that in mind, it makes sense that the deal on the table is believed to involve a joint venture of the assets that would also allow Rio a bigger share of the holding company that houses the joint venture. Under this scenario, it would be logical for Extract and Kalahari, which also counts Rio as a 15 per cent shareholder, to merge. Rio and Extract/Kalahari would each own 50 per cent of the joint venture. Rio's interests in both Extract and Kalahari would be folded into the joint venture.

Conjecture that Kalahari is opposed to the joint venture that would enable Rio to treat Extract's higher grade ore from its Husab project through its Rossing plant (which is facing challenges including declining ore grades and an increasing capital expenditure profile) is not true.

It is believed Kalahari is supportive of the opportunity. But the London-listed group has taken a robust approach to discussions, keen to ensure it ends up with a fair deal.

http://www.theaustralian.com.au/business/opinion/centro-lenders-sit-tight-as-tsenin-talks/story-e6frg9if-1226011606284

it will be nice if there's some truth behind this as KAH really hasn't performed very well of late

you guys must have been sleeping ..... sp has been pretty whizzy and is strong yet again today