Kalahari Minerals
Rossing South continues to return wide, high grade zones of uranium for Kalahari Minerals and Extract Resources
Kalahari Minerals (AIM: KAH) and Extract Resources (TSX & ASX: EXT), who are in the middle of an all share merger, announced further wide, high grade zones of uranium mineralisation from the Rossing South uranium project in Namibia.
Assay results from ongoing drilling were reported as “particularly high for this style of primary, granite hosted uranium mineralisation”.
Highlights included RRC043, which intersected 73 metres @ 500 ppm U308 from 88 metres down hole, and a further 14 metres at an impressive 4,019 ppm U308 from 230 metres down hole. Extract Resources currently has four reverse circulation (RC) and two core rigs operating at Rossing South, drilling on “Zone 1” on a 100x100 metre grid which is anticipated to enable an initial resource statement by January 2009.
The “majority” of the holes are drilling into multiple zones of moderate to steep east dipping uraniferous alaskite with “potential for additional mineralised zones beyond the limit of drilling”.
To date Extract has completed 196 resource definition drill holes for 56,800 metres on Zone 1, and the Company said it intends to move to Zone 2 once Zone 1 is “drilled out”.
Kalahari Executive Chairman Mark Hohnen said, 'This is another set of particularly high grades returned from the continuing RC programme on site at Rossing South. With the drill programme at Zone 1 scheduled to be completed by the end of November, the Company is expecting the initial resource definition to be completed by January 2009. Combined with the extensive exploration potential that remains at Rossing South, Kalahari continues to support Extract in the further development of this very exciting discovery'
Kalahari Minerals holds a 39.11% interest in Extract Resources, and is currently in the midst of a merger with Extract Resources which could create an emerging mid-tier natural resources group with interests in uranium, copper, lead, zinc and gold in Namibia.
The ink was barely dry however on the proposed merger between Kalahari Minerals and Extract Resources, and already the first twist in the plot has appeared. Rio Tinto (LSE: RIO), the FTSE 100 mining titan, announced today this is had acquired stakes in both companies, widely believed to have been picked up from battered hedge fund, RAB Capital (AIM: RAB).
Rio Tinto holds a 14.9% interest in Kalahari Minerals and a 13.1% stake in Extract Resources. Assuming the merger goes ahead as planned, Rio Tinto will hold a 18.6% stake in the combined entity.
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Other Kalahari Minerals news
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11/12/08 Kalahari Minerals says Extract Resources makes large uranium finds at Rossing South
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10/12/08 Emerging Metals raises Kalahari Minerals stake to 6.28 pct after placing
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09/12/08 Kalahari Minerals raises £3.95 million
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25/11/08 Kalahari Minerals says Rossing South is a world class discovery
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29/09/08 Kalahari Minerals reports more excellent results from Rossing South Uranium Prospect
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11/09/08 Rio Tinto acquires stakes in Kalahari Minerals and Extract Resources
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02/09/08 Kalahari Minerals reports massive uranium zones at Rossing South
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07/08/08 Resource statement at Ida Dome lifts Kalahari Minerals
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21/07/08 Rab Capital increases stake in Kalahari Minerals
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16/07/08 Kalahari Minerals updates on Rossing South uranium