Kalahari Minerals plc / Ticker: KAH / Index: AIM / Sector: Mining & Exploration
22 June 2010
Kalahari Minerals plc (`Kalahari')
Extract Chairman's Address to Shareholders
Kalahari Minerals plc, the AIM listed resource company, announces that Extract
Resources Limited (`Extract' or `the Company'), in which Kalahari's subsidiary,
Kalahari Uranium Limited, holds a 40.9% interest, held its General Meeting
earlier today and all resolutions were duly passed. Stephen Galloway, Chairman
of Extract, made the following address at the General Meeting:
"It is with pleasure that I have the opportunity today to update you on the
considerable progress that Extract has made since I last addressed shareholders
at the Annual General Meeting, in November 2009.
Having discovered the Rössing South and related uranium deposits within the
Husab Project in Namibia, Extract is rapidly moving from an exploration company
to becoming a world-class uranium producer.
With expected production levels of 15Mlbs of uranium oxide per year, Extract is
in a unique and privileged position, with the development of Rössing South on
track to become one of the largest, stand alone uranium mines in the world.
Achieving our objective of becoming a major uranium producer of global
significance is no simple task and as such Extract has been a hive of activity
over the first six months of calendar 2010. I would like to take this
opportunity to highlight just some of the key developments:
1. We have recently appointed a new management team for Extract, including CEO
and Managing Director, Jonathan Leslie, whom I have already introduced,
Chief Financial Officer Peter Sydney-Smith, who sends his apologies, and
Company Secretary, Siobhan Lancaster, who is here today. The three of them,
each holding critically important positions within the Company, bring
outstanding experience and credentials to your company. These appointments
are in addition to the Swakop Uranium executive team which we are building
under the leadership of Norman Green, whom I introduced at the AGM.
2. To reflect the evolution of the Company, there have also been some board
changes in recent months. Rio Tinto's representative director, Chris
McFadden, and Polo's representative director, Stephen Dattels, resigned
from the board in April. Kalahari Minerals, Extract's largest shareholder,
appointed an additional representative director, Alastair Clayton. Ron
Chamberlain was appointed as a Non-executive Director and Jonathan Leslie
joined the board as Managing Director on 9 April 2010. Like the management
team, the collective credentials of the Extract Board is a major strength
of the Company, and we believe we have the right blend of experience to
deliver on our objective of becoming a major uranium producer.
3. Extract has continued to report exceptional chemical assay drill results.
Since November 2009 we have increased the number of drill rigs on site from
13 to 19. Our aim is to update the market with a new resource estimate in
Q3 2010, and as announced last week, this remains on schedule.
The main objective of the next resource update is to upgrade the current Zone 1
and Zone 2 inferred resources, to predominantly Indicated status, so that
reserves can be defined for the Definitive Feasibility Study (`DFS').
4. The technical team, led by Norman Green, is working diligently towards the
completion of the Rössing South Definitive Feasibility Study, which we aim
to announce to the market in Q4, 2010. Again, this timetable remains on
track, and would be one of the quickest ever globally, for a project of
this scale and complexity.
As part of this Definitive Feasibility Study, Extract continues to liaise with
key stakeholders, including the Namibian government, in relation to the
development of a mine at Rössing south. I should add that in spite of recent
media speculation I can confirm that dialogue between the Namibian government,
Namibian stakeholders and Extract Resources, remain open and positive.
5. Whilst the board is committed to the Rössing South project being developed
solely by Extract, we continue to work with Rothschild to assess potential
partnership opportunities that could deliver additional value to the
development process. As part of this process, Extract remains in
confidential discussions with potential partners. These discussions are
ongoing.
6. The Company also announced last week that work on the environmental impact
assessment and management plan is proceeding on schedule, in parallel with
preparation for the mining licence application. Together with the DFS, the
outcomes from this work will be used to support a mining licence
application over Rössing South before the end of 2010. This is an extremely
positive position for the Company and underpins the hard work by the
management team to achieve our objectives.
7. Results from the recently completed pilot plant testwork program are still
being returned and interpreted. Available results have been encouraging and
provide further support for the base case flow sheet.
Work has just commenced on site this week to excavate a bulk sample from the
northern end of Zone 1 to be used in comminution testwork. This will be the
first explosive rock breaking at Rössing South.
8. And finally, Extract still has a healthy cash position to deliver on its
plans. Extract had $86.7 million in cash as at 30 March 2010.
In conclusion, I would like to reiterate that Namibia has a world class mining
industry with an established mining code and government support. The
international interest in Namibia and its uranium assets in particular, is well
documented, with two new uranium mines in the last 5 years and a third mining
licence being awarded.
Extract is proud to have a strong relationship with the Namibian government and
its relevant organisations, each of which continue to be supportive of our
development plans and initiatives at all levels.
There is open and regular dialogue between Extract and the Namibian government,
including at the highest level, ensuring that the Namibian authorities remain
abreast of all of Extract's developments. This includes regular updates
regarding the Definitive Feasibility Study.
Extract will remain extremely busy for the remainder of 2010, as we strive to
deliver some key milestones for the development of this company; in Q3 2010,
the resource upgrade of Zone 1 and Zone 2, followed by the Definitive
Feasibility Study and mining license application in Q4.
I would like to take this opportunity to thank the board and management for
their commitment to realising the full potential of the world class Rössing
South project. I would also like to thank the Namibian government, stakeholders
and our shareholders for their ongoing support.
Thank you again for your time and attention. We will now move to the formal
business of the meeting."
* * 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 40.9%
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.