Kalahari Minerals plc / Ticker: KAH / Index: AIM / Sector: Mining & Exploration
21 May 2010
Kalahari Minerals plc (`Kalahari')
Exceptional Assay Results from Rössing South
Kalahari Minerals plc, the AIM listed resource company, is pleased to provide
an update, published by Extract Resources Ltd (`Extract' or `the Company'), in
which Kalahari's subsidiary, Kalahari Uranium Limited, holds a 40.6% interest,
regarding further exceptional assay results from the Rössing South mineralised
system, part of Extract's world-class Husab Uranium Project.
Kalahari's Executive Chairman, Mark Hohnen, said, "These latest exceptional
assay results underline the enormous potential of the Rössing South project.
The infill drilling on Zones 1 and 2, aimed at proving up Extract's current
resource from the Inferred to Indicated category, continues to deliver
outstanding results and include an intercept of 73 metres grading 2,243ppm
U3O8. Additionally and highly significantly, the exploratory drilling on the
western limb of the Rössing South anteform is also yielding extremely
encouraging results and demonstrates the potential for the entire Husab Project
which we believe will be one of the world's largest economic deposits.
"Extract is clearly highly focussed on the rapid development of the project. 19
drill rigs are currently on site, making the current drilling programme one of
the largest being conducted in Africa. Kalahari is fully supportive of this
development strategy and look forward to the updated resource estimate which is
expected in Q3 2010, as this will add further tangible value to this globally
significant asset. The pilot testwork, aimed at identifying the most effective
treatment options for the mined uranium, has also delivered encouraging results
and is expected to be concluded by the end of June 2010.
"We also look forward to the publication of the Rössing South Definitive
Feasibility Study, scheduled for release in Q4 2010. Kalahari is confident that
this will easily confirm the key findings of last year's scoping study,
supporting Rössing South's potential to support a profitable, low risk, open
pit mine producing in excess of 15Mlb of U3O8 per annum over a 20+ year mine
life. Importantly, the scoping study was conducted using an average grade of
487ppm, significantly lower than the grades we are now witnessing at Zones 1
and 2, a factor that should definitely be taken into account when evaluating
the project economics further."
Extract Announcement:
Rössing South: Mineralisation on western limb confirmed with further strong
results from Zone 1 and 2, including 73 metres grading 2243ppm U3O8
21 May 2010: Extract Resources Ltd (ASX/TSX/NSX: EXT), a uranium exploration
and development company with projects in Namibia, today announced the latest
round of exceptional chemical assay results from the Rössing South mineralized
system, part of Extract's world-class Husab Uranium Project.
Aggressive drilling rates continue to underpin the Company's commitment to
completing the Rössing South Definitive Feasibility Study and the development
of a mine at this globally significant project.
Highlights:
* 19 drill rigs now operating at Rössing South, with the key focus on
resource definition.
* Stand out intercept of 73 metres grading 2243ppm U3O8 with mineralisation
still open down dip and along strike.
* Chemical assay results from multiple drill holes confirm high grade
mineralisation on the western limb of the Rössing South antiform.
* Steady flow of exceptional high grade chemical assays received from infill
and resource extensional drilling, including:
Hole ID From To Mineralised zones
(m) (m) (U3O8)
Zone 1
RDD119 348 358 10m @ 1026 ppm
RDD141 151 168 17m @ 2745 ppm
RDD143 329 340 11m @ 1017 ppm
RDD145 371 444 73m @ 2243 ppm
RRC659 238 256 18m @ 1419 ppm
RRC737 261 307 46m @ 1031 ppm
RRC750 176 213 37m @ 2001 ppm
RRC758 157 169 12m @ 1522 ppm
and 192 204 12m @ 1285 ppm
and 222 240 18m @ 1018 ppm
Zone 2
RDD112 289 342 53m @ 1265 ppm
RDD147 378 388 10m @ 1084 ppm
RDD148 325 335 10m @ 1226 ppm
RDD149 368 383 15m @ 1470 ppm
RRC717 261 271 10m @ 1015 ppm
RRC718 242 272 30m @ 1032 ppm
RRC721 137 160 23m @ 1249 ppm
RRC771 185 195 10m @ 1665 ppm
Resource Definition Update - Zone 1 & Zone 2
Significant drilling rates continue at Rössing South where approximately 1300
drill holes have been completed for 330000 metres of drilling. There are
currently 19 drill rigs operating at Rössing South: nine RC rigs; and ten
diamond core rigs. The main focus of drilling has been infill resource
definition work aimed at converting the Inferred Resource to Indicated. Some
extensional, sterilization and exploration drilling is also being completed.
The latest round of chemical assay results have been received from 89 drill
holes located throughout Rössing South. Multiple intercepts of high grade
mineralization were reported further establishing the continuity of the
high-grade, granite-hosted uranium mineralization. A full list of recently
received and previously unreported chemical assay results is included in
Appendix 1.
Mineralization in Zone 1 remains open down-dip to the east with the high grade
results received in this area (e.g. RDD145, 73m @ 2243ppm U3O8) highlighting
the significant potential for additional drilling to further increase the size
of the current resource.
Exploration Update - Western Limb drilling results
Chemical assay results received for drill holes on the western limb of the
Rössing South antiform confirm the presence of high grade uranium
mineralization with multiple drill holes in this area west of Zone 1, Zone 2
and south of Zone 2 with significant uranium mineralization, including:
* RRC750, 37m @ 2001ppm U3O8;
* RRC717, 10m @ 1015ppm U3O8;
* RRC718, 30m @ 1032ppm U3O8; and
* RRC771, 10m @ 1665ppm U3O8.
The Company is currently drilling out this area for inclusion in the next
resource upgrade. Drill holes continue to intersect potentially high grade
uranium mineralization, as identified by hand held spectrometer results.
Chemical assay results will be reported when available.
Rössing South Feasibility Study Update
Resource Update
Aggressive drilling rates continue to define an updated resource estimate for
Rössing South within the third quarter of calendar 2010. The main aim is to
upgrade the current Zone 1 and Zone 2 Inferred Resource to Indicated status.
The Indicated Resource is expected to form the basis of the DFS mining
inventory so that reserves can be defined.
Pilot Plant Testwork
`Proof of design' testwork commenced in the Company's pilot plant in Perth on
22 March 2010. The objectives of this work includes finalising the base case
flow sheet, to quantify comminution, leaching, filtration, ion exchange,
solvent extraction parameters and to characterize uranium product for marketing
purposes. Results have been encouraging and the Company remains confident that
the testwork objectives will be met and completed by the end of June 2010.
The Definitive Feasibility Study (DFS) remains on track for completion in the
fourth quarter of the 2010 calendar year.
About Extract Resources
Extract Resources Ltd is an Australian-based uranium exploration and
development company whose primary focus is in Namibia. The company's principal
asset is its 100%-owned Husab Uranium Project which contains two known uranium
deposit areas, Rössing South and Ida Dome. Extensive exploration potential also
exists for new uranium discoveries in the region.
For further information, please contact:
Jonathan Leslie Richard Henning
Chief Executive Officer/Managing Director Investor Relations
jleslie@extractresources.com +61 89367 2111
rhenning@extractresources.com
The information in this report that relates to Exploration Results, Mineral
Resources or Ore Reserves is based on information compiled or reviewed by Mr
Martin Spivey, who is a Member of The Australasian Institute of Mining and
Metallurgy and Mr Andrew Penkethman who is a Member of the Australian Institute
of Geoscientists. Mr Spivey and Mr Penkethman are both full time employees of
the Company. Mr Spivey and Mr Penkethman have sufficient experience which is
relevant to the style of mineralisation and type of deposit under consideration
and to the activity which they are undertaking to qualify as a Competent Person
as defined in the 2004 Edition of the `Australasian Code for Reporting of
Exploration Results, Mineral Resources and Ore Reserves'. Mr Spivey and Mr
Penkethman consent to the inclusion in this report of the matters based on
their information in the form and context in which it appears.
Reference to hand held spectrometer results refers to use of a Company owned
Exploranium, GR-135 Plus or Terraplus RS-125, hand held spectrometer. The
uranium values are recorded by placing the unit on the bulk RC sample bags or
individual trays of drill core and expressed as parts per million (ppm) eU
which is equivalent to ppm U. Results from these units provide an indication of
uranium mineralisation; they may also be affected by uranium mobility and
disequilibrium. These factors should be considered when interpreting eU
information whilst waiting for confirmation chemical assay results.
This press release contains forward-looking statements based on current
expectations.
These forward-looking statements entail various risks and uncertainties that
could cause actual results to differ materially from those reflected.
APPENDIX 1
TABLE OF NEW RESULTS
Husab Project - Rössing South Prospect: Drill hole chemical assay results.
Uranium intersections greater than 100ppm U3O8 over drill hole intersection
widths of not less than 2 metres down hole width:
Prospect Hole Easting Northing Azi True Dip From To Width Grade
ID UTM UTM WGS84 (deg) (deg) (m) (m) (m) (ppm
WGS84 U308)
33 S
33 S
Zone 1 RDD138 507000 7507050 269.5 -60 134 143 9 106
161 174 13 134
249 255 6 210
262 264 2 162
Zone 1 RDD139 507000 7506850 269.5 -60 105 108 3 145
165 180 15 382
227 248 21 271
268 281 13 188
303 305 2 218
310 318 8 175
337 340 3 481
401 408 7 466
Zone 1 RDD119 507100 7506850 269.5 -60 54 56 2 177
88 90 2 284
168 219 51 165
338 340 2 344
348 375 27 509
including 348 358 10 1026
384 401 17 326
448 458 10 276
463 467 4 254
489 493 4 414
Zone 1 RRC724 505850 7506700 90 -60 227 229 2 116
Zone 1 RDD118 506850 7506550 269.5 -60 276 300 24 251
322 326 4 117
347 362 15 246
369 372 3 575
389 405 16 373
Zone 1 RDD141 506750 7506550 269.5 -60 151 168 17 2745
206 211 5 643
221 250 29 586
including 221 225 4 810
and 234 244 10 1075
282 288 6 138
308 339 31 766
including 310 330 20 1074
356 366 10 146
386 391 5 698
Zone 1 RRC791 505990 7506500 89.5 -60 107 110 3 157
Zone 1 RDD117 506750 7506450 269.5 -60 338 342 4 523
Zone 1 RDD143 506550 7505950 269.5 -60 218 229 11 144
245 247 2 382
285 300 15 337
317 342 25 689
including 329 340 11 1017
Zone 1 RDD116 506500 7505850 269.5 -60 279 283 4 214
329 356 27 272
399 402 3 491
411 413 2 364
423 430 7 626
Zone 1 RRC750 505850 7505850 90 -60 148 159 11 151
165 171 6 142
176 213 37 2001
including 176 188 12 3278
and 198 213 15 2306
220 222 2 119
Zone 1 RDD144 506450 7505800 269.5 -60 175 214 39 314
219 226 7 1301
232 244 12 306
252 256 4 333
268 277 9 140
282 294 12 544
347 360 13 632
376 391 15 377
397 399 2 112
Zone 1 RRC659 506250 7505700 269.5 -60 70 73 3 150
87 95 8 127
127 129 2 189
214 216 2 410
238 256 18 1419
265 273 8 132
Zone 1 RRC660 506350 7505650 269.5 -60 231 235 4 236
244 248 4 117
255 280 25 375
288 294 6 320
Zone 1 RRC671 505952 7505550 269.5 -60 60 62 2 121
100 104 4 527
110 117 7 193
156 160 4 743
167 226 59 338
Zone 1 RDD115 506350 7505450 269.5 -60 361 363 2 177
388 393 5 1069
Zone 1 RRC737 506000 7505450 269.5 -60 129 139 10 294
157 170 13 558
181 183 2 315
193 197 4 650
205 232 27 452
261 307 46 1031
including 267 281 14 2089
Zone 1 RRC738 506100 7505450 269.5 -60 136 143 7 103
189 196 7 543
266 288 22 588
294 297 3 142
Zone 1 RDD114 506350 7505350 269.5 -60 265 268 3 405
300 308 8 253
325 339 14 422
350 366 16 211
376 387 11 611
392 414 22 179
Zone 1 RRC758 506025 7505200 269.5 -60 67 70 3 391
111 114 3 295
128 130 2 308
157 169 12 1522
182 187 5 1069
192 204 12 1285
210 250 40 620
including 222 240 18 1018
Zone 1 RRC569 506250 7505150 269.5 -60 171 187 16 155
223 225 2 790
265 270 5 703
321 338 17 513
Zone 1 RDD145 506350 7505150 269.5 -60 268 271 3 112
306 311 5 195
320 338 18 303
344 353 9 745
371 444 73 2243
including 423 443 20 5061
457 460 3 3543
Zone 1 RRC702 505875 7505100 269.5 -60 84 88 4 331
Zone 1 RRC703 506050 7505100 269.5 -60 81 83 2 146
126 128 2 125
143 149 6 328
157 161 4 572
Zone 1 RRC704 506150 7505100 269.5 -60 65 70 5 118
87 92 5 103
115 117 2 126
123 125 2 116
216 228 12 361
Zone 2 PC164 506300 7504600 269.5 -60 80 83 3 134
Zone 2 RDD160 505375 7504200 90 -60 124 126 2 369
Zone 2 RDD146 505850 7504050 269.5 -60 218 221 3 148
286 304 18 286
311 318 7 298
323 338 15 392
343 358 15 460
375 381 6 128
Zone 2 RDD147 505950 7504050 269.5 -60 138 140 2 220
259 261 2 256
373 392 19 746
including 378 388 10 1084
415 423 8 231
Zone 2 RDD148 506050 7504050 269.5 -60 244 251 7 237
263 267 4 329
303 309 6 1191
316 320 4 185
325 335 10 1226
340 345 5 598
Zone 2 PC158 505250 7504000 90 -60 55 58 3 248
219 221 2 266
Zone 2 RDD149 505950 7503950 269.5 -60 228 231 3 244
278 288 10 215
300 321 21 754
368 383 15 1470
Zone 2 RRC691 505750 7503850 269.5 -60 198 208 10 226
214 223 9 506
242 245 3 1646
261 275 14 775
280 291 11 441
Zone 2 RRC638 505230 7503750 89.5 -60 241 244 3 235
Zone 2 RRC639 505340 7503750 89.5 -60 255 268 13 284
289 293 4 316
Zone 2 RDD112 506150 7503650 269.5 -60 223 232 9 277
248 258 10 386
280 370 90 811
including 289 342 53 1265
Zone 2 RBE180 509600 7503600 0 -90 132 136 4 101
Zone 2 RRC717 504900 7503600 89.5 -60 256 287 31 495
including 261 271 10 1015
305 307 2 167
Zone 2 RRC718 505000 7503600 89.5 -60 180 197 17 215
202 205 3 557
211 217 6 225
242 272 30 1032
342 348 6 157
Zone 2 RRC719 505100 7503600 89.5 -60 182 204 22 275
Zone 2 RRC720 505200 7503600 89.5 -60 176 192 16 425
204 223 19 236
Zone 2 RRC693 506050 7503450 269.5 -60 313 334 21 696
365 374 9 175
Zone 2 RRC640 505750 7503400 269.5 -60 75 80 5 146
122 125 3 158
220 231 11 245
Zone 2 RRC721 505650 7503350 269.5 -60 107 113 6 132
130 194 64 635
including 137 160 23 1249
and 167 194 27 392
238 242 4 357
Zone 2 RRC751 505950 7503250 269.5 -60 226 240 14 202
Zone 2 RRC706 504900 7503200 89.5 -60 77 100 23 401
Zone 2 RRC707 504800 7503200 89.5 -60 134 139 5 753
161 163 2 448
Zone 2 RRC708 504700 7503200 89.5 -60 181 196 15 647
Zone 2 RRC678 505450 7503150 269.5 -60 163 165 2 262
Zone 2 RRC764 504450 7502800 89.5 -60 287 289 2 248
Zone 2 RRC677 505450 7502550 269.5 -60 113 115 2 130
Zone 2 RRC679 505650 7502550 269.5 -60 196 208 12 231
229 236 7 129
Zone 2 RRC694 505600 7502500 269.5 -60 259 261 2 367
Zone 2 RRC667 505350 7502450 269.5 -60 77 79 2 120
84 89 5 214
Zone 2 RRC668 505450 7502450 269.5 -60 104 108 4 132
202 206 4 223
Zone 2 RRC685 505550 7502450 269.5 -60 230 233 3 403
Zone 2 RRC666 505450 7502350 269.5 -60 150 152 2 315
161 165 4 384
173 179 6 1583
Zone 2 RRC670 505350 7502200 269.5 -60 192 202 10 141
Zone 2 RRC695 505750 7502200 269.5 -60 336 338 2 112
Zone 2 RRC731 505450 7502200 269.5 -60 140 147 7 828
Zone 2 RRC714 505450 7501800 269.5 -60 151 163 12 190
324 326 2 172
352 369 17 137
Zone 2 RRC715 505550 7501800 269.5 -60 237 242 5 470
Zone 2 RRC716 505650 7501800 269.5 -60 324 326 2 435
Zone 2 RRC697 505200 7501400 269.5 -60 119 121 2 282
Southern
Extension
173 195 22 122
258 271 13 217
Zone 2 RRC698 505300 7501400 269.5 -60 163 166 3 163
Southern
Extension
179 181 2 115
240 242 2 218
Zone 2 RRC699 505400 7501400 269.5 -60 211 216 5 121
Southern
Extension
295 301 6 164
Zone 2 RRC700 505500 7501400 269.5 -60 230 233 3 101
Southern
Extension
306 308 2 185
373 377 4 333
Zone 2 RRC680 504900 7501000 269.5 -60 242 244 2 309
Southern
Extension
Zone 2 RRC741 505000 7501000 269.5 -60 115 119 4 233
Southern
Extension
293 295 2 271
Zone 2 RRC752 505100 7501000 269.5 -60 291 293 2 211
Southern
Extension
Zone 2 RRC754 505300 7501000 269.5 -60 121 123 2 156
Southern
Extension
247 252 5 207
265 273 8 603
356 362 6 447
Zone 2 RRC755 505400 7501000 269.5 -60 205 207 2 190
Southern
Extension
236 238 2 233
287 293 6 173
327 329 2 218
Zone 2 RRC687 504750 7500600 269.5 -60 144 146 2 135
Southern
Extension
178 180 2 181
185 187 2 430
Zone 2 RRC722 504950 7500600 269.5 -60 183 193 10 253
Southern
Extension
198 201 3 189
256 260 4 130
Zone 2 RRC723 504850 7500600 269.5 -60 197 200 3 123
Southern
Extension
Zone 2 RRC734 505050 7500600 269.5 -60 171 179 8 113
Southern
Extension
211 213 2 565
218 223 5 397
Zone 2 RRC735 505150 7500600 269.5 -60 232 234 2 487
Southern
Extension
249 255 6 228
Zone 2 RRC736 505250 7500600 269.5 -60 128 130 2 506
Southern
Extension
189 192 3 121
242 244 2 565
Zone 2 RRC688 504000 7500200 0 -90 30 35 5 160
Southern
Extension
158 181 23 811
Zone 2 RRC689 504100 7500200 0 -90 150 152 2 380
Southern
Extension
Zone 2 RRC690 503900 7500200 0 -90 160 174 14 642
Southern
Extension
193 196 3 753
Zone 2 RRC771 503800 7500200 0 -90 146 153 7 368
Southern
Extension
163 169 6 540
185 195 10 1665
Zone 2 RRC745 503700 7499800 0 -90 161 164 3 578
Southern
Extension
175 179 4 703
219 221 2 266
244 249 5 572
Zone 2 RRC746 503800 7499800 0 -90 94 98 4 447
Southern
Extension
158 169 11 193
Zone 2 RRC747 503900 7499800 0 -90 20 25 5 125
Southern
Extension
35 40 5 169
148 159 11 465
248 250 2 163
Zone 2 RRC748 504000 7499800 0 -90 137 140 3 380
Southern
Extension
Zone 2 RRC749 504100 7499800 0 -90 25 30 5 108
Southern
Extension
Zone 2 RRC772 503400 7499600 0 -90 206 209 3 568
Southern
Extension
Zone 2 RRC762 505300 7499600 0 90 147 150 3 163
Southern
Extension
165 167 2 110
190 192 2 127
213 229 16 252
293 295 2 303
Notes:
* Analyses on RC chips and ½ NQ drill core by Genalysis Laboratory Services,
Perth. Uranium assays were carried out by Four Acid Digest/MS (AT/MS).
* Metal values (U) have been expressed as parts per million (ppm) U3O8
converted to oxide values (U3O8) using a factor of 1.179 and rounded to
zero decimal places.
* Note that 100 ppm U3O8 is equivalent to 0.1 kg/t U3O8, which is 0.01% U3O8.
* Intersection widths are estimated to be approximately true width.
Figures rounded to zero decimal places.
* * ENDS * *
For further information please visit www.kalahari-minerals.com or contact:
Mark Hohnen Kalahari Minerals plc Tel: +44 (0) 20 7292 9110
Simon Raggett Strand Hanson Limited Tel: +44 (0) 20 7409 3494
Stuart Faulkner Strand Hanson Limited Tel: +44 (0) 20 7409 3494
Rory Murphy Strand Hanson Limited Tel: +44 (0) 20 7409 3494
Richard Chase Ambrian Partners Ltd Tel: +44 (0) 20 7634 4700
Rory Scott Mirabaud Securities LLP Tel: +44 (0) 20 7878 3360
Hugo de Salis St Brides Media & Finance Ltd Tel: +44 (0) 20 7236 1177
Susie Callear St Brides Media & Finance Ltd Tel: +44 (0) 20 7236 1177
Notes to Editors:
Kalahari Minerals plc is an AIM and NSX listed resource company with uranium,
gold and base metal interests in Namibia. Its key investment is its 40.6%
holding in ASX, TSX and NSX listed Extract Resources Limited
(www.extractresources.com), which is developing the Husab Uranium Project,
strategically located directly south of Rio Tinto's producing Rossing Mine.
Work is focussing on three main prospects within the project area, Rossing
South, Ida Dome and Hildenhof, and results continue to underpin the
prospectivity of the region, particularly following the world class Rossing
South discovery. Extract has reported a JORC compliant combined Husab Resource
(Global Resource) in excess of 292 M lbs U3O8 at a grade of 439 ppm of which
267 M lbs U3O8 at a grade of 487 ppm is from the two zones at Rossing South at
100 ppm U3O8 cut-off. Importantly, these are both open ended at depth and along
strike. Kalahari believes Extract has the ground and potential to deliver on
Kalahari's estimates of a resource in the region of 550 M lbs U3O8.
Kalahari's other key investment is its circa 44.7% holding in North River
Resources plc, an AIM listed emerging southern African focussed multi commodity
resource development company.