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.

Article in the Investors Chronicle this morning...bottom line is : it remains a buy at 64p.....that's not far from where it is now !......I might have sold out yesterday and switched over to Emerging Markets ltd (EML), but today I would not sell out if I were still in !.

At the beginning of the week i would have snapped your hand off for 71p, so all in
all one has to be pleased. As we know nothing goes up in a straight line, Rossing
South still their with its rich vein of uranium and the struggle to gain control will not go away, a few profit takers and a poor market at the end of the week closing,
alters nothing.
The average time for a RNS concerning the project is about 1 month so we should not be to far awy from one, if as thought another increase in resources will add further icing to the already overflowing cake.
aimho
cyril

rf
not holding on too long and not bailing out too soon? what to do? maybe a happy medium ? i think your original first course of action would have been so. just my opinion. no one knows whats going to happen next but a stress free,relaxing,forget about position is always nice to have. just my opinion.
looking at the 15 min intraday chart i see it made high yesterday(thursday) in the 3-15 to 3-30 time frame. bull trap? notice the times of your posts at or around this time.both just before and just after.
anyway for long term holders what does a fifteen min chart matter? quite right. but having waited for just another 45 mins we could then see what the 4 hourly chart might be telling us.and it tells us a lot. and so it goes on followed by the daily, the weekly and so on.the correct procedure is to do this in reverse to what i describe, it just seems more relevant to me in this instance. i will skip passing comment on the daily and weekly please dyor.
the long term quarterly chart is showing that price is currently sitting/resting just above a fibonacci support level.whether that will hold or break i have no idea.
good tactics combined with money management is as important if not more so than being right or wrong.
i hope you are right, but if you are wrong i hope also that you have a good tactical exit strategy planned.it also helps to have a good tactical exit strategy planned to take some profit should we be right.never be afraid to take a profit.
all just my opinion.
good luck to you and all holders.
regards
jkd

Thanks jkd.... I love to read your posts !...., I've taken a big profit (makes a change), and bought back in to EML with half my funds...who have just increased their position in KAH.....with that company they also have exposure to other rare metals and a possible zinc price recovery....EML and URU sp's are very much tied to KAH's sp....and there seems to be a lot more to come from them and a possible Rio Tinto takeover;... for the exit : I have to hope that I am able to be watching should something go wrong...(big problem for amateurs like myself that !), but all in all this still looks very promising with the experts predicting that uranium prices are due to rise sharply along with KAH's resource estimate...cheers !.

why not take the sweat out and place a running stop?

I'm not sure if I can do that on my account, I'll have a look,.....don't you have to do that on purchase ?, I know you can do that with cfd's and spread bets.

guaranteed stops - yes ..... non, should be able to place at any time

RF; you certainly can on selftrade and i would have thought it possible on Barc?

To trade or to hold long term?

For me i will hold my KAH and maybe trade my URU? The question will always be,
bank a profit against a possible T/Over offer, which will see the SP rocket. Top slicing is probably the most prudent way and i know many sucessful investors who do just that.
Personally i'm most bullish on this stock and small pull back's are just run of the
mill, it should also be noted that institutions hold more than 70% of stock and seem to be increasing?
RIO (who,s own site is next to Rossing South(they knows,you know))are not in this for fun?
aimho
cyril

Peter McIntyre, Extract Resources MD, is on record as saying "Rsing South is the first new alaskite-hosted uranium discovery in Namibia in many years and is shaping up as the most significant discovery since the SJ deposit at the Rsing Mine". Put another way, Rsing South could emerge as the most significant uranium discovery in Namibia in some thirty years.
It also should be remembered that KAH is not just about Rossing South, they have exciting projects of their own.

cyril

KAH being tipped to multibag from here i recall not sure where though off hand, a quiet thread on advfn as well. Need to research more.

Extract mentioned as possible take over target?

Most of the explorers will find it difficult to raise the capital needed to develop a mine. Some of the more promising ones, such as Extract Resources, and potentially Energy and Minerals Australia, are likely takeover targets.

Rio has invested in Extract in recent months because the explorer's project adjoins its Rossing uranium mine in Namibia. Rio is also the controlling shareholder in ERA, which has garnered good reviews from analysts in recent weeks based on the potential for a major extension to its Ranger mine in the Northern Territory at the Ranger 3 Deeps underground project.

cyril

Well I've looked and I love what I see, looks close to a 'once in a lifetime opportunity' to aquire a stake in what's been touted as the best Uranium find in 30 years. I'm in, thanks for the heads up, downside looks to be Rio Tinto will buy KAH/URU/EXT out so have to hope of a bid battle which I believe is possible with big players like Areva.

loks like i've missd the boat badly ..... was contemplating a couple of hours ago, but hd to go to an appt

URU may be the way in and currently down on this morning's trading.

well have foolishly taken a modest plunge here ..... hope that doesn't place the kiss of death fo everyone else

wonder if good news has been leaked? One minute flat next up 15% on no news (that the ordinary Joe knows). Agree, URU looks the best way in here as they hold a large stake in KAH which it seems Rio Tinto are after given they are stake building.

surely RIO want the real stuff and not just shares in a company that owns shares in another ..... i know it's backdoor, but prob unnecessarily complicated

Some more valuations,

"Extract Resources (ASX: EXT)
Extract Resources currently has a 25.1Mlbs resource at Ida Dome and 108.3Mlbs for Zone 1 at Rossing South. Combined with estimated cash of A$20m at the end of June 2009, these resources imply a valuation of A$4.02 per share. We are expecting a resource of at least 105Mlbs for Zone 2 at Rossing South, due in July 2009. This would imply a valuation of A$7.12 per share.

Kalahari Minerals (AIM: KAH)
Based on the revised valuation for the 40.6% of Extract Resources which Kalahari Minerals owns plus Kalaharis 5.5m of cash but not including their base metal exploration assets, we have ascribed a target price of 88p per share for the company. With a 105Mlbs resource for Zone 2, this would increase to 154p per share."
cyril

Also,
RNS Number : 7522N
Kalahari Minerals PLC
23 February 2009

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

23 February 2009

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

Emerging Metals Increases Stake

Kalahari Minerals plc, the AIM listed mining exploration group with a portfolio of copper, base metal and uranium interests in Namibia, was notified on 23 February 2009 that Emerging Metals Limited has purchased 2,475,000 ordinary shares in the Company, representing approximately 1.38% of the Company's total voting rights, raising its total interest in Kalahari to 15,820,000 ordinary shares representing 8.84% of its total voting rights.


cyril

who is "we" or s it just some BB guru?