Companies: KAH   

Namibia-focused Kalahari Minerals has received encouraging assay results from 36 per cent-owned Extract Resources' Husab project.

Drilling at the project's Garnet Valley zone has yielded results ranging from 32 metres with 331 parts of U308 per million to four metres with 1,207 parts per million. Grades vary from 0.314 lbs of U308 per tonne of ore to 2.663 lbs a tonne. Extract has three targets, Rossing South near Rio Tinto's long-standing Rossing uranium mine, Hildenhof and Ida Dome. Kalahari's chairman Mark Honnen says the company is 'convinced' Extract has a resource of 100 million lbs.

AIM-quoted Kalahari also has a clutch of promising100 per cent-owned high-grade copper, copper/gold, lead and zinc projects with features similar to Zambia's copper belt, including Dordabis and Witvlei, where the company is targeting more than 250,000 tonnes of copper metal. Honnen sounds confident of establishing a resource compliant with the mining industry's international 'JORC' standard this year.

Floated at 15p in 2006, Kalahari shares, of which RAB Capital funds and RAB boss Philip Richards have significant holdings, reached 39.5p before last Christmas, but have slipped lately. Analysts argue the current price of 26.25p, up 0.5p today, is less than the 27p-a-share value of the Extract uranium stake, with the copper, gold, lead and zinc in for nothing — even though Honnen insists Kalahari is a development, not an exploration company.

Kalahari should outperform several sector peers.

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