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.

and of course one can offer as much or as little as one chooses, but there is no compulsion to accept ..... i suspect that the initial offer was already on the low side, and though it is certain that nuclear plant development will be put back by say 1-2 years, the long-term demand will remain as fossil fuels diminish ...... indeed, the fact that the japanese reactors seem to have withstood this massive earthquake and tsunami remarkably well, says plenty about the safety precautions already incorporated into this 20/30 year-old design

dont get too excited - buttons i hink but gl

sorry i think and know - lol

Extract holds firm on Kalahari deal

Australian Financial Review
PRINT EDITION: 25 Mar 2011
Angela Macdonald-Smith

Extract Resources chief executive Jonathan Leslie is confident about uranium demand growth in China and sees little risk of China Guangdong Nuclear Power backing away from its $1.2 billion move on Extract's biggest shareholder.

The nuclear crisis in Japan may well slow reactor building plans in Europe but China, the main growth market, would probably still rely heavily on nuclear power, Mr Leslie told The Australian Financial Review .

That meant Extract's huge Husab uranium deposit in Namibia was as strategically important as ever, he said. "I would be very surprised if nuclear was not a large part of China's energy mix going forward, which translates into the need for a huge amount of uranium."

China Guangdong's bid for Kalahari Minerals, which owns 42.8 per cent of Extract, was "very hard evidence" of the attractiveness of the Husab deposit, he said.

Mr Leslie's comments came amid speculation that China Guangdong would use the Japanese nuclear crisis to cut the price of its proposed offer for Kalahari, just as Russia's ARMZ this week shaved at least 12 per cent off its takeover bid for fellow African uranium explorer Mantra Resources.

Both Kalahari's and Extract's shares have crashed since the Japan quake, although Perth-based Extract has recovered almost half its lost ground, closing yesterday at $8.23.

But Extract's shares are well short of the circa $10.75 see-through value from China Guangdong's 290 pence ($4.65) per share proposed offer for London-listed Kalahari.

But Mr Leslie said he did not see many parallels between the ARMZ bid to China's move on Kalahari.

"This is a strategic move, it's not a trading opportunity," he said, noting that the cut in the price for Mantra was in any case a "pretty modest reduction", far from the "armageddon event" some had depicted.

Prior to the Chinese approach to Kalahari, Extract had been negotiating with another of its major shareholders, Rio Tinto, on the joint development of Husab, using Rio's adjacent Rossing mine in Namibia.

Rio is keen to get access to Husab, a deposit formerly known as Rossing South, and any backing away by China Guangdong from its proposed bid runs the risk of Rio elbowing out the Chinese.

"I would think it would be a dangerous move for the Chinese to try to renegotiate because it just opens the door for Rio to come in," said Warwick Grigor at BGF Equities.

"People are chasing quality assets just as they were before and Rossing South is one of those assets," he said.

China Guangdong is understood to be focusing on securing regulatory clearances for its bid so it can proceed with a firm offer for Kalahari. That would then most likely be followed up with a bid for Extract.

Meanwhile, Extract is proceeding "full steam" on its feasibility study for a stand-alone development of Husab, due to be released by the end of the month, Mr Leslie said.

He acknowledged that the drop in Extract's share price could make the stand-alone option more difficult for Husab, which some analysts estimate will cost more than $1.5 billion.

But the talks with Rio, the Chinese bid for Kalahari and the presence of Japan's Itochu as a shareholder in both Kalahari and Extract mean Extract has a range of other options for financing the mine, he said.

"We're lucky because we have more options than most," Mr Leslie said. "It goes back to the strategic importance of the project."

http://www.afr.com/p/business/companies/extract_holds_firm_on_kalahari_deal_MTnmQHplOct90NWjivSIUJ?hl

Kalahari Minerals plc - DFS Confirms Husab's Potential to be One of the Top Three Largest Uranium Mines Globally
Tuesday , 05 Apr 2011

Kalahari Minerals plc, the AIM listed resource company, is pleased to announce that Extract Resources Ltd (Extract' or the Company'), in which Kalahari's subsidiary, Kalahari Uranium Limited, holds a 42.79% interest, has announced the publication of the Definitive Feasibility Study (DFS') on Zones 1 and 2 of the Husab Uranium Project (Husab') in Namibia, highlighting its potential and world class nature.

Kalahari's Executive Chairman, Mark Hohnen, said, "The results of the DFS yet again prove that Husab is the most exciting new uranium project in the world today. The base case development map is now in place for Zones 1 & 2 to transform these into one of the three largest uranium mines in the world, producing 15Mlb of U3O8 per annum via conventional open pit mining and a proven process flow sheet. This is, in isolation, already a fantastic achievement and endorses our investment faith in the project. However, it has to be emphasised that the study is only a base case and Extract has set up the Mine Optimisation and Resources Extension programme (M.O.R.E.') to increase the mine life and to investigate opportunities to add significant additional value through optimisation of the mine plan and process modifications, and to enhance the project's expected mine life, operating and financial performance.

"Accordingly we look forward to the resource update, scheduled for Q2 2011, which relates specifically to infill drilling in Zones 1 and 2 and is expected to result in additional resources as well as converting Inferred Resources to Indicated thereby increasing the maiden reserve of 225 million lbs contained uranium, and extending the project's mine life.

"Additionally, the study, being based only on the defined resources at Zones 1 & 2, does not include the highly prospective areas of Middle Dome, which recently yielded the second highest grade-width intersection in the entire Husab exploration (non-resource) drilling database, Zones 3, 4, 5, Salem, Ida Dome and Pizzaro. Therefore, we believe that there is huge scope for proving up additional resources through on-going exploration.

"Kalahari remains fully supportive of Extract and its development initiatives for Husab. The true scale of the wider project and its potential to support multiple mining operations is only just starting to be appreciated. We believe that the reality is that Husab already represents a hugely significant strategic asset in the context of supply for the nuclear industry, which has now been significantly de-risked, and we believe that there is still significant upside in terms of scale. This was clearly recognised by CGNPC-URC who announced a Possible Offer for Kalahari on 7 March this year. The board of Kalahari believes that CGNPC-URC continues to look to satisfy the stated pre-conditions, as set out in the announcement of 7 March, and we look forward to being able to update the market on this in due course."

From the above statement:

"The board of Kalahari believes that CGNPC-URC continues to look to satisfy the stated pre-conditions, as set out in the announcement of 7 March, and we look forward to being able to update the market on this in due course."

Isn't it time this went back to 300p ?...very disappointing sp at the moment !.

Yes!

YES!

Please !

Might be a 50p surge if the takeover hots up.....

Why the slump ?.....I was expecting 350p by now...(:(((

Kalahari confident as deadline for Chinese bid looms-UPDATE 1

Trade the NewsSaturday April 30, 2011 06:53:10 AM GMT

KALAHARI/ (UPDATE 1)* Kalahari chairman says confident deal will go through
* Kalahari shares trading at 230p, below 290p CGNPC offer

* Deadline for CGNPC bid is 5 p.m. (1600 GMT) on May 3

* CGNPC declines to comment

(Adds details, quotes, background)
LONDON, April 28 (Reuters) - Uranium miner Kalahari Minerals is confident it will seal a deal with state-owned suitor China Guangdong Nuclear Power (CGNPC), despite worries over the takeover price that have held back its shares.
"I am confident in CGNPC. They need uranium, and they want to do the deal," Executive Chairman Mark Hohnen told Reuters.
"I am confident the deal will go through."
He said the two sides had held "commercial discussions" but declined to comment on whether the Chinese had proposed a price cut in the light of Japan's Fukushima nuclear disaster that has prompted Europe, the United States and China to review uranium reactor programmes.

By May 3, under an agreed plan, CGNPC has to either formalise the offer, which would hand resource-hungry China a stake in one of the world's largest uranium mines, agree with Kalahari to extend the bid or scrap negotiations over the deal

The original proposal -- announced last month just days before the Fukushima nuclear reactor was crippled by an earthquake and tsunami -- was backed by Kalahari management and values the company at 756 million pounds ($1.26 billion).

That represents a 25 percent premium to the current market value, reflecting concerns the Chinese could be seeking to renegotiate the price.

CGNPC declined to comment. (Reporting by Clara Ferreira-Marques; Additional reporting by Wan Xu; Editing by Will Waterman) ($1=.6003 Pound)

From today's RNS, JP Morgan seem very confident that matters will proceed to a profitable conclusion, so why the drop in the share price?

28/04/2011 11:17 UKREG Form 8.3 - Kalahari Minerals Plc

PUBLIC OPENING POSITION DISCLOSURE/DEALING DISCLOSURE BY A PERSON WITH INTERESTS IN RELEVANT SECURITIES REPRESENTING 1% OR MORE
Rule 8.3 of the Takeover Code (the "Code")
1.KEY INFORMATION
(a) Identity of the person JPMorgan Asset Management whose positions/dealings are being disclosed:
(b) Owner or controller of interests and short N/A
positions disclosed, if different from 1(a):

(c) Name of offeror/offeree Kalahari Minerals Plc in relation to whose relevant securities this form relates:
(e) Date position held/dealing undertaken: 27 April 2011
(f) Has the discloser previously disclosed, NO
Class of relevant security:
Interests Short positions
Number % Number %
(1) Relevant securities owned 15,007,314 6.11
and/or controlled:
(2) Derivatives (other than options):
(3) Options and agreements to purchase/sell:
TOTAL: 15,007,314 6.11

3.DEALINGS (IF ANY) BY THE PERSON MAKING THE DISCLOSURE

(a)Purchases and sales

Class of relevant Purchase/sale Number of securities Price per unit
security
Ordinary Share Purchase 4,000 2.4368 GBP

Kalahari welcomes news on Namibia minerals policy
StockMarketWire.com
Kalahari Minerals has welcomed confirmation that proposed changes to Namibia's minerals policy will not affect the application for a mining licence at Husab.

Kalahari's subsidiary, Kalahari Uranium, has a 43% stake in Australias Extract Resources which owns the Husab uranium project in Namibia.

It noted a report from Extract which stated that it welcomed the confirmation from mines and energy minister Isak Katali that the proposed changes would not apply to existing exploration and mining licences.

At 2:00pm: (LON:KAH) share price was -0.5p at 225.5p


Story provided by StockMarketWire.com

Great! Now let's see if RIO will bid since the Chinese have walked away and cannot re-bid for 3 months.

Namibia Looks At Windfall Tax On Mining, by Lorys Charalambous, Tax-News.com, Cyprus
Wednesday, May 25, 2011




With the objective of gaining more tax revenue from current high global commodity prices, Namibias Mines and Energy Minister, Isak Katali, has disclosed that the government is looking to impose a windfall tax on mining in the country.

Mining plays an extremely important role in Namibias economy, accounting for some 60% of its export earnings and over 15% of its gross national product. Its main mining products include diamonds, uranium, gold, zinc, copper and lead. Namibia is one of the worlds largest diamond producers and provides in the region of 10% of the worlds uranium.

During a speech to the annual meeting of the Chamber of Mines of Namibia, Katali is reported to have said: "It is my view that as the custodian of the mineral resources, the state should also benefit in good times BEYOND NORMAL TAXES AND ROYALTIES. I am talking about windfall taxes to enable government to achieve this objective."

He has requested the Chamber of Mines to enter into discussions with his Ministry to formulate proposals that would provide the government with the additional tax revenue it is looking for, whilst also ensuring that Namibia remains attractive for both local and foreign investment in the mining industry.

In April this year, the Namibian government already gave the mining sector cause for concern when it decided to give all future mineral rights, including those for uranium, to a state-owned mining company.


http://www.tax-news.com/news/Namibia_Looks_At_Windfall_Tax_On_Mining____49543.html

Reuters
30th June 2011


TORONTO Canadian uranium producer Cameco is shopping for development-stage uranium projects and will consider opportunities in Africa, the company's incoming chief executive told Reuters on Wednesday.

Cameco is "scouring the world" for mines that could be in production within 10 years, said Tim Gitzel, who will take over the top job at the company on Friday.

That global search could take the Saskatoon, Saskatchewan-based miner to Africa, the only major uranium-producing region in the world where it does not have operations. Cameco produced about 22.8-million pounds of uranium in 2010 from projects in North America and Kazakhstan.

"We wouldn't hesitate to go to Africa if we could find a project that made sense to Cameco," said Gitzel, who worked for French nuclear giant Areva before joining Cameco as chief operating officer in 2007.

"In my previous life, I looked after uranium mines in Niger and some Gabon properties," he said. "Now Namibia is a big country [for uranium mining]."

Namibia and Niger together produce some 15% of the world's uranium.

Saskatchewan-born Gitzel, who took his first mining job at the tender age of 17, is taking over the top job at Cameco from retiring CE Jerry Grandey at a time when public sentiment is against nuclear power.

Shares of the uranium producer have tumbled more than 30% since a devastating earthquake and tsunami hit Japan in March, leading to the Fukushima debacle, the worst nuclear accident since Chernobyl.

While Gitzel remains confident that the industry will recover, he said the drop in company valuations has created a buying opportunity for Cameco.

"We'll watch now around the world as valuations of other companies and other projects come off," Gitzel said. "If there's something that makes sense, we have the ability to move very quickly on that."

Gitzel did not say how much Cameco would be willing to pay for acquisitions, but he made it clear that the company already has plenty of exploration plays and is looking for assets that are well into the development process.

"We'd be interested if we could find something that could come into production in the next 10 years," he said. "For the uranium business that's near-term production."

GLOBAL FOOTPRINT

Over his first summer as CEO, Gitzel plans to indulge in one of his favorite activities -- visiting Cameco's mine sites.

The company has major projects underway in Canada, the United States, Kazakhstan and Australia, and plans to double uranium production to 40-million pounds a year by 2018.

With development projects underway and his eye on M&A targets, Gitzel sees plenty of opportunity for Cameco even though countries such as Germany and Switzerland have backed away from nuclear power in the aftermath of Fukushima.

"We're watching the world and the market very closely," he said. "We see growth in the market over the next 10 years."

Edited by: Reuters

http://www.investegate.co.uk/Article.aspx?id=20111110070000PDE6E

http://www.investegate.co.uk/Article.aspx?id=20111130072549P9ADC