London, Sep. 30, 2009 (PR Newswire UK Disclose) --
Kalahari Minerals plc / Ticker: KAH / Index: AIM / Sector: Mining &
Exploration
30 September 2009
Kalahari Minerals plc (`Kalahari' or `the Company')
Interim Results
Kalahari Minerals plc, the AIM listed mining exploration and
evaluation group with a portfolio of uranium, copper and base metal interests
in Namibia, announces its results for the six month period ended 30 June 2009.
Overview
- Extract Resources Limited's (`Extract') Rossing South defined as
the highest grade granite-hosted uranium deposit in Namibia and expected
to be one of the top 5 global uranium deposits by contained metal
- Rossing South has a current JORC resource of circa 300 M lbs of
U3O8 @ 487 ppm across two zones - average resource grades are ~50% higher
than the operating Rio Tinto Rossing Mine 7 km to the north
- Zone 1 & 2 of Rossing South remain open along strike and down-dip
indicating that Extract has the ground and potential to deliver a total
resource in excess of 500 M lbs U3O8 from the entire Husab Project
- Cost estimates demonstrate that Rossing South could support a
profitable, long life, low cost, low technical risk uranium mine producing
14.8M lbs U3O8 per year, making it one of the world's largest uranium
mines
- Additional portfolio of copper, gold and other base metal assets
which the Board are actively looking to develop further and ascribe
increased value to over the short to medium term
- Completed two fund raisings raising in excess of £47 million
primarily to maintain and increase position in Extract
Chairman's Statement
The highlight for us during this six month period was the
confirmation from Extract Resources Limited that its Rossing South uranium
deposit is the largest uranium discovery made in recent decades. With a
current JORC resource of 267 M lb U3O8 for Zones 1 and 2 of Rossing South
alone, Kalahari maintains that Extract has the ground and potential to deliver
a total resource well in excess of 500 M lbs U3O8 from the entire Husab
Project, which places it amongst the largest uranium projects in the world.
Indeed, if the mineralisation continues at Rossing South, into further zones
south of the initial two zones, as we expect, and has been indicted in recent
announcements by Extract regarding the emergence of Zone 3, Extract will have
a uranium project which will rival BHP Billiton's Olympic Dam project. With a
circa 40% interest in Extract, this naturally bodes well for Kalahari and its
shareholders and, accordingly, I believe that it is imperative for Kalahari to
maintain, and ideally increase, this exposure to Extract. With an exciting
portfolio of additional copper, gold and other base metal assets which we are
actively looking to develop further and ascribe increased value to over the
short to medium term, I am confident that Kalahari has a very bright future.
Uranium Interest
Extract's Husab project, located in one of the world's most
prolific uranium regions, has two defined uranium resources, being Rossing
South and Ida Dome. Recent focus has centred on the world class Rossing South,
which from discovery in February 2008, already has a JORC compliant resource
of 267 M lb of U3O8 at a grade of 487 ppm from Zones 1 and 2, which are both
open at strike and down-dip. This has defined it as the highest grade
granite-hosted uranium deposit in Namibia (the grade is more than 50% higher
than Rio Tinto's operating Rossing Mine) and ranks it as the seventh top
global uranium deposit by contained metal.
Preliminary cost estimates indicate that Zones 1 and 2 could
support a profitable, long life, low cost, low technical risk uranium mine
producing 14.8M lbs U3O8 per year, making it one of the world's largest
uranium mines.
Ongoing drilling is expected to define a much larger resource with
9 km of the prospective 15 km Rossing South trend still to be explored.
Current drilling is focussed on exploring mineralisation south of Zone 2,
referred to as the newly emerging Zone 3, and is yielding exceptional results.
A drilling programme is also underway at the Salem prospect, which is 10 km
south of Zone 2 and which is also demonstrating highly encouraging
intersections.
Ida Dome, the second key area within Husab, has a current JORC
resource of 25.1m lbs U3O8 within the Garnet Valley, New Camp and Ida Central
zones. These areas have not as yet been closed off and are expected to
continue to grow along with future resource drilling on Holland's Dome, which
is also within Ida Dome. We expect that additional drilling programmes at Ida
Dome will define a resource in excess of 40 M lb U3O8, adding to Extract's
already enormous resource at Rossing South, also within the Husab Uranium
Project.
As we strive to ensure that Extract delivers exceptional operating
performance and maximise the value of our investment, we have become involved
in a number of key decisions. During the period, we successfully instigated
various board changes at Extract, marking a significant strengthening of the
leadership team and bringing a strong Namibian representation, which we
believe is important given the geographical location of Extract's projects.
These appointments include the Namibian national Inge Zaamwani-Kamwi, who
joined as a Non-executive Director, along with additional new Non-executive
Directors, John Main, Stephen Dattels and Chris McFadden.
Copper and Base Metals Assets
Kalahari maintains an exciting portfolio of copper and base metal
assets across Namibia. It is currently analysing data generated from drilling
programmes at these projects during 2008 with the aim of defining +250,000
tonnes of copper metal at its two key projects, Dordabis and Witvlei, and
bringing the Namib zinc lead mine back into production.
Whilst results from all these projects have been encouraging, the
Board is aware that little value is being attributed to them by the market. We
are therefore reviewing various options available to the Company to maximise
each project's potential to the benefit of our shareholders.
Financial Overview
Recognising our need to maintain and increase our position in
Extract, on 1 May 2009 we announced that a placing of 17,890,000 new Ordinary
Shares to raise £17.89 million at 100 pence per share had been completed for
the use of maintaining, or if possible increasing, our position in Extract
Resources which at that time stood at 38.50%. At the period end, Kalahari's
cash position was £6.36 million.
Post period end we raised additional funds through a placing of
11,764,706 new Ordinary Shares to raise approximately £20 million at 170 pence
per share, and the issue of convertible loan notes to raise a further £10
million. The intended use of the proceeds of the placing and convertible loan
notes was to satisfy the Company's commitments with regard to the proposed
A$91 million equity raising announced by Extract on 26 August 2009 so as to
maintain our circa 40% shareholding.
Over the period we have welcomed major new institutions to our
shareholder base, whilst also maintaining our strong relationships with our
established shareholders.
Corporate Overview
We strengthened our team with the appointment of two new
Non-executive Directors, Neil MacLachlan and David de Jongh Weill, who both
have exceptional qualities and experience and have already given the Company
valuable advice and support. We are delighted to welcome them to the team.
Outlook
Rossing South remains of considerable importance to Kalahari, and
we therefore look forward to results from its exploration and resource
definition drilling, aimed at defining the full potential of the project.
Extract is, with Kalahari's full support, pushing for the completion of the
Feasibility Study on Zones 1 and 2, which is being conducted with the
intention of bringing the project into production in the shortest possible
time frame.
We have maintained a robust balance sheet and outstanding
shareholder register, which has continuously supported our vision, all factors
which stand us in good stead for the future. We are confident that the
fundamentals of our commodities remain attractive and that significant value
can be added to them, which in turn will be reflected in our share price.
Mark Hohnen
Executive Chairman
30 September 2009
Options
As previously announced, or noted in the Company's previous audited
accounts, since 30 October 2007 the Company has granted an aggregate of
11,475,000 options (of which 464,167 options have already been exercised) to
directors, consultants and employees of the Company. All such options were
granted as stand alone options and the Company announces that it is now
entering into individual option agreements with the various option holders
documenting such grants. Each option agreement reflects the exercise price,
the vesting periods, and the term of the option as agreed at the time of
grant. 