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.

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

sleeping lion.......been in and watching.....kerching as gibby say's

Making good headway today.,.

glad i topped up a week or two ago even if it means being a bit o'weight in a twitchy market

Takeover bid !.

i know that's on the cards (allegedly!), but just smoke for now unless you know more than me

aha ......

Statement Re Possible Offer

The Board of the Company notes the recent rise in the Company's share price.

On 21 February 2011 the Company announced it was holding discussions with
Extract Resources Ltd (`Extract'), in which Kalahari holds an approximate 43%
interest, to explore various different options that might simplify the Extract/
Kalahari shareholding structure to facilitate a combination of Extract's Husab
Uranium Project with the neighbouring Rsing Uranium Mine owned by Rio Tinto
plc. These discussions remain ongoing and there is no certainty that the
parties will reach any agreement.

The Company further confirms that it is in talks with a third party, which may
or may not lead to an offer being made for the entire issued share capital of
the Company. Discussions are continuing and a further announcement will be made
when appropriate.

Has to be at least 400p I would like to think......those not in, time to buy quicko....topped up myself....surprised this has not jumped up by more yet....

I don't know about 4, but there was talk of 3.50. Nice whatever the result. Could RTZ be about to pounce? It would make sense as it would give them the leverage they would need to force an agreement on Extract.

RNS: 17:07 "GNPC Uranium Resrc" Possible Recommended Cash Offer of 290p!!!!

hope they tell them where to go......want a lot more than that.,.

EXT.AX
Australia's Extract Resources shares surge on prospects of bid
19 minutes ago at Reuters

Tue Mar 8, 2011 3:53am EST

* Rio seen as potential suitor due to Namibian mine proximity

* Rio owns 14 pct stake in Extract and its parent Kalahari

* Extract tells shareholders studying Chinese bid approach for parent

*

MELBOURNE, March 8 (Reuters) - Shares of Extract Resources jumped 7.3 percent on Tuesday on expectations it could become a target for global miner Rio Tinto after a Chinese bid approach for the uranium miner's top shareholder.

Namibia-focused Extract is 43 percent owned by Kalahari Minerals , which said on Monday it was in talks about a possible $1.23 billion takeover offer from a unit of state-owned China Guangdong Nuclear Power Holding Corporation (CGNPC).

Rio Tinto owns 14 percent of Kalahari and is also a 14.2 percent shareholder in Extract and has long been seen as a suitor for Extract as the two companies have neighbouring uranium projects in Namibia.

Rio Tinto declined to comment on Kalahari's announcement that it had been approached with an offer of 290 pence per share and would recommend the offer to shareholders if a formal bid was made on the proposed terms.

Extract shares soared 7.3 percent on Tuesday to close at A$9.94, valuing the company at A$2.9 billion.

Extract said last month it was holding talks with Rio Tinto on jointly developing its Husab uranium project and Rio's Rossing uranium mine, but that did not involve a takeover.

The Chinese move on Kalahari could spur Rio Tinto to find a way to disentangle the cross shareholdings between Extract and Kalahari, analysts said.

"Rio has flagged a willingness to undertake those sort of small-to mid-tier transactions," said Ben Lyons, an analyst at ATI Asset Management, which owns Rio Tinto shares.

"Rio's certainly got the balance sheet capacity to undertake these sorts of transactions."

Rio Tinto has said it is looking at acquisitions worth $5 billion or less.

It has already made a $3.9 billion takeover offer for Mozambique-focused coal miner Riversdale Mining , which is likely to be extended for a third time later this week.

Extract told shareholders to take no action while it considered what Kalahari's announcement meant for it. (Reporting by Sonali Paul; Editing by Rob Taylor and Muralikumar Anantharaman)

290p....you have to be kidding !.....nothing less than 350p....minimum....perhaps 400p to me....

Well we are now heading into new territory. The market does not seem to believe that the party is over.