Kalahari Minerals
Kalahari Minerals plc is an AIM and NSX listed resource company with uranium, gold, copper and other base metal interests in Namibia. The Company’s key value drivers are its holding of approximately 40% in ASX, TSX and NSX listed Extract Resources Limited and its circa 45% interest in AIM listed North River Resources plc.
Kalahari Minerals reports 34% increase in uranium resource at Rossing South
A much anticipated resource update from Extract Resources (ASX & TSX: EXT) delivered another reminder of just how much progress has been made at the Rossing South uranium discovery in Namibia in a short space of time. Extract Resources may be listed in Toronto and Sydney, but a significant portion of its stock is held in London; Kalahari Minerals (AIM: KAH) holds 40%, while Rio Tinto (LSE: RIO) and Polo Resources (AIM: PRL) both have significant minority interests too.
Today Extract Resources reported a revised JORC compliant resource estimate for Rossing South, which lies just south of Rio Tinto’s Rossing Mine – one of the largest uranium mines in the world. The new estimate is 145 million pounds with an average grade of 449 parts per million (ppm) U3O8 and represents a 34% increase size from the previous estimate. The grade of the resource also increased.
“This represents the highest granite-hosted uranium deposit in Namibia,” Extract stated.
While the size and grade of the deposit already place it as one of the most important uranium discoveries in year, there appears to be plenty more to come. Drilling is underway at ‘Zone 2’ which sits on strike and south of Zone 1, and both deposits are still open along strike and down dip, suggesting there plenty of scope for further upgrades in the size of the project. A maiden resource for Zone 2 is expected to be completed in August with analysts anticipating at least 100 million pounds of uranium
Ambrian Capital summed up today’s news perfectly, noting that the resource estimate released today was not only ahead of expectations, but was further buoyed by the increase in grade. Ambrian went on to note that the accompanying map to the press release hinted at possibly more blue sky further to the south were positive spectrometer results have been recorded. On the back of today’s results, Ambrian reiterated its positive stance and upped its price target to 171 pence.
Kalahari Chairman Mark Hohnen said, "These results yet again underpin that Rossing South is one of the world's most significant uranium discoveries. The 34% increase in resource for Zone 1 to 145 million lbs of U3O8 is fantastic news and in line with our estimates. Additionally we were hugely excited about the increase in grade which makes Rossing South the highest grade granite hosted uranium deposit in Namibia. We look forward to Extract publishing a maiden resource for Zone 2 in August, which we believe will elevate Rossing South into the world's top ten global uranium deposits in terms of contained metal. Importantly the mineralisation at Zone 1 and 2 remains open along strike and down-dip."
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Other Kalahari Minerals articles
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18/02/10 Kalahari Minerals equity stake in Extract Resources looking better by the day
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05/10/09 Kalahari Minerals Sells Namibia Projects to North River Resources for 43% stake
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01/09/09 Kalahari Minerals says Extract’s Rossing South likely to hold third mineralised zone
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22/07/09 Kalahari Minerals reports forecast-busting maiden resource for Rossing South Zone 2 ahead of schedule
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29/05/09 Stephen Dattels appears on Kalahari Minerals register through Regent Pacific Group
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20/03/09 Kalahari Minerals' Mark Hohnen Speaks to Proactiveinvestors
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15/12/08 Kalahari Minerals investment in Extract Resources could deliver a big pay day
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19/11/08 Kalahari Minerals calls off merger with Extract Resources on Rio Tinto concerns
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11/11/08 Rossing South continues to return wide, high grade zones of uranium for Kalahari Minerals and Extract Resources
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05/09/08 Kalahari Minerals and Extract Resources agree to merge
Other Kalahari Minerals news
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12/03/10 Kalahari Minerals highly encouraged by Extract Resources progress at Rossing South
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05/03/10 Kalahari Minerals names Richard Lockwood non-exec to assist with Extract's Husab uranium project
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04/03/10 Kalahari Minerals closes Coronet Resources acquisition
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01/03/10 Kalahari Minerals affiliate Extract Resources names ex-Rio Tinto man Jonathan Leslie CEO
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15/02/10 Kalahari Minerals appoints representative to Extract Resources board of directors
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12/02/10 Kalahari Minerals' planned Coronet acquisition to complete in March as deal gets 97.61% acceptances
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03/02/10 Ambrian Capital says Kalahari affilate Extract Resources has FTSE100 potential, maintains 'buy' stance
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01/02/10 Kalahari Minerals calls NWT proposal to issue Extract Resources stake to shareholders value destructive
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28/01/10 Kalahari Minerals lodges document for Coronet Resources takeover
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27/01/10 Mark Hohnen, Executive Chairman of Kalahari Minerals, talks about the world class Rossing South uranium deposit