In the current market, there is no rush to buy anything. Concerns over the fallout from the sub-prime property debacle in the US and fears that the American economy is headed for a downturn are both good reasons for sitting on the sidelines. After a good run in many of the leaders, the blue-chip end of the market looks vulnerable to selling short-term. Meanwhile, many AIM stocks have seen liquidity dry up. Prices look set to drift.

But that is no reason to stop doing one’s homework. Now is a good time to pick out a few shares to stick on buying lists once sentiment improves. And improve it surely will. I doubt very much that we are heading into a prolonged market retreat.

One such share is Kiwara, a junior mining business focused on two big prospects in Zambia, which emerged over the summer from a reverse takeover of a Richard Wollenberg shell company, Wadharma Investments. The shares have since enjoyed a strong run. After a placing at 10p in July, Kiwara has shot up to 34p, valuing the company at £53 million. That run reflects the fact that the vendors of the Zambian projects are locked into their shareholdings for another year. There is not a lot of stock about. But I suspect the shares will nonetheless tail back after their recent strong run. This is one to buy at around the 27p to 30p level.

I like Kiwara for several reasons. First, it is chaired by Colin Bird, an old Anglo-American hand who also runs Jubilee Platinum, which has performed well for this newsletter. He is supported by a very experienced corporate financier, Peter Vivian-Neal, who has done a lot of deals in Africa. The two of them have ensured that the company’s exploration programme is fully funded for two years.

Then there is the prospect of a substantial mine – or possibly two. Kiwara’s licence area lies on the edge of the Kabompo Dome in north-west Zambia, which is a recognised area of mineralisation and hosts two other mines. Target number one is an 11 km-long structure known to contain a lot of nickel, copper and cobalt at Kalumbila, which has been drilled on and off over many years. Most of the companies involved were looking for a high-grade mine that failed to materialise. But recent electromagnetic surveys by Kiwara have identified an 8 km extension to the mineralisation north of a fault previously thought to define the limit of the trend and supported the case for a low-grade venture.

The second target is the Kawanga uranium prospect. This was drilled by AGIP, the Italian giant, over a ten-year period from the early 1970s. The drilling spanned a 1,000 metre stretch but mineralisation is thought to extend some way further. This will be redrilled.

There are also a number of other prospects in the licence area, but Kiwara’s priority is to work up the two big targets to establish reserves to international standards and prepare mining pre-feasibility studies in 2009. In the meantime, there should be a strong flow of exploration news. It is clearly early days but there is enough to suggest that Kalumbila hosts big tonnages of nickel, copper and cobalt. Put Kiwara on your watch list and look for an opportunity to buy the shares below 30p.

Kiwara	AIM	£23.17m	14.00p	0.00p
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Other company articles:
Copper cheer for Kiwara			20/08/2008
Kiwara awaiting assay results			04/01/2008
Kiwara: hold back for that sub-30p price			23/11/2007
Kiwara: put it on your buying list			02/11/2007