Kalahari Minerals plc / Ticker: KAH / Index: AIM / Sector: Mining & Exploration
15 June 2007
Kalahari Minerals plc ('Kalahari')
Namibian Uranium Project Update
Kalahari Minerals plc, the AIM listed mining exploration and evaluation group with a portfolio of copper and base metal prospects in Namibia, is pleased to provide an update released by Extract Resources Ltd (ASX: EXT) ("Extract"), in which Kalahari's subsidiary, Kalahari Uranium Limited, holds a 36.4% interest, on recent progress on its portfolio of Namibian uranium interests.
Highlights:
. Scoping study commenced on the Ida Dome Project to asses the potential for a mining operation - includes a provisional plant design, capital and operating cost parameters, and key financial outputs
. Three drill rigs are now working at Ida Dome, in what is a resource definition phase. A further two rigs are expected in June, with a preliminary resource statement scheduled to be released by December 2007
. Husab licence EPL3138 has successfully met the licence renewal criteria
. Ida East assay results continue to define strong zones of uranium mineralisation
. First ever drilling at Rossing South target intersects Rossing stratigraphy and confirms presence of uranium mineralisation
1. HUSAB URANIUM PROJECT
The Husab Project comprises of a number of priority uranium locations, including the Ida Dome and Hildenhof deposits, and the Rossing South exploration target. The Ida Dome is the most advanced project with 90 drill holes (including 60 historical holes) over various sections of the uranium outcrop.
The Company has now commenced a programme of detailed resource drilling on the Ida Dome. In conjunction with this, the Company has commenced a scoping study on the project based on known project characteristics and a number of assumptions which will be tested over the next six months, primarily from the resource drilling and mine designs.
The Namibian Ministry of Mines and Energy has recently renewed the northern license at Husab, EPL 3138, for a further period of two years, in accordance with the Mining Act.
1.1 Scoping Study
GRD Minproc (GRD) has been appointed to complete a Scoping Study on the Ida Dome Uranium Project within the Husab license. GRD have been selected given their knowledge of the uranium industry and their more recent role as Project Manager for the engineering and construction of the nearby Langer Heinrich Uranium Project. The study is expected to take approximately 12 weeks to complete.
The primary objective of the study is to establish the broad economics of the project. To this end GRD will prepare order of magnitude (+/- 30% accuracy) capital and operating cost estimates for the mining and processing plant facility.
The expected outcomes from the study include:
. Preliminary metallurgical testwork programme for initiation during the PFS
. High level process description and design for the processing plant facility
. Order of magnitude capital and operating cost estimates (+/- 30% accuracy) for the processing plant, associated infrastructure and mine
. Whittle sensitivity results, pit shells, quantity and cost schedules.
Subject to the outcomes from the study, the Company plans to incorporate this information with the Company's maiden resource and move onto more advanced feasibility stage work in early 2008.
1.2 Resource Definition Phase
The planned ramping up of resource definition drilling of the Ida Dome uranium targets has recently commenced, with a second diamond core rig and a Reverse Circulation percussion drill having commenced in May. Two additional diamond drills and two RC percussion rigs are expected to commence work at Husab within a two to eight week period. The Company has previously stated its intention of releasing a maiden resource figure for the Ida Dome Project area by the end of 2007.
This resource figure will likely cover 4 of the 8 mineralised target areas identified to date on the Ida Dome. Further drilling will continue on these and other targets into calendar 2008 in order to fully define the extent of uranium mineralisation on the Ida Dome.
The focus of the increased drilling activity is alaskite (sheeted leucogranite) hosted primary uranium targets within the recently granted EPL 3439 (Husab South), where previous shallow intersections were defined from drilling in the mid to late 1970's. These two target areas have recently been renamed "Garnet Valley" and "Holland's Dome" by the Company's geologists, and future references will reflect these revised names.
A 12 month program of 60,000 metres of drilling has been planned for Ida Dome. The Company intends to review its preliminary resource based on drilling up to the end of October 2007, with assays and analysis following to provide a statement by December 2007. Resource definition drilling will continue to at least June 2008, and likely beyond subject to the status of the resource.
1.3 Exploration Progress
Ida Dome
Recent field activities have been directed towards preparing the infrastructure required to support the increased drilling programme on the south side of the Swakop River. To this end a new exploration camp has been constructed between the Garnet Valley and Holland's Dome resource definition areas, and the project water supply infrastructure has been substantially upgraded to allow for the increased drilling rate. Most of the required tasks are nearing completion, allowing for the commencement of up-graded resource definition drilling activities.
Diamond core drilling has continued at Ida Central in the meantime, although progress has been slower than desired due to downtime resulting from equipment failures.
Remaining assays for HDD019, the first hole drilled at Ida East, have been returned. This produced a further intersection of 8 metres assaying 0.626 kg/t U3O8 from 334 metres, following on from an earlier, previously reported, intersection of 15 metres @ 0.291 kg/t U3O8 from 138 metres down hole. A second hole completed at Ida East, HDD028, located 160 metres to the north of hole 19, also reported potentially economic uranium mineralisation, with a best intersection of 38 metres @ 0.162 kg/t U3O8 from 196 metres down hole. The two holes completed at Ida East to date indicate that the area represents a significant target, although further drilling will be delayed until current activities at Ida Central are substantially complete.
Previously unreported drilling results from Ida East are tabled below:
Table 1: New Results, Ida East Diamond Drilling, Uranium intersections greater than 0.1 kg/t U3O8 over a minimum down hole thickness of 2 metres.
|
Hole_id |
Northing UTM33 |
Easting UTM33 |
Azi_mag (deg) |
Dip (deg) |
From (m) |
To (m) |
Width (m) |
Grade kg/t U308 |
|
HDD019 |
7485127 |
503269 |
134.5 |
-45 |
334 |
342 |
8 |
0.626 |
|
HDD028 |
7485275 |
503322 |
134.5 |
-45 |
196 |
234 |
38 |
0.162 |
|
inc |
229 |
232 |
3 |
1.182 | ||||
|
263 |
265 |
2 |
0.122 | |||||
|
278 |
280 |
2 |
0.139 | |||||
|
358 |
360 |
2 |
0.113 |
Notes:
. Analyses on half cut NQ (50mm dia) core by Genalysis Laboratory Services, Perth.
. Uranium assays were carried out by Four Acid Digest/MS (Method AT/MS).
. Metal values (U) have been converted to oxide values (U3O8) using a factor of 1.179, and expressed as kg/t U3O8. Note that 100 ppm U3O8 is equivalent to 0.1 kg/t U3O8.
. True widths are estimated to range from 80% to 100% of down hole thicknesses.
Rossing South
Exploration drilling to date at Rossing South has totaled 412 metres in 6 holes. Drilling conditions have been challenging in the unconsolidated surface gravels mantling the Namib Desert Plain. In the limited area drilled to date, the thickness of the surficial gravels varies from 4 to 30 metres.
Geologically, the results of the drilling completed to date are most encouraging. Large thicknesses of alaskitic leucogranites have been intersected beneath the gravels, and spectrometer assaying has indicated anomalous levels of uranium in several holes. Drilling has been temporarily suspended as the rig has been reassigned to the Ida Dome, but it is anticipated that exploration drilling will resume in July.
Uis Uranium Project
It is expected that Environmental Clearances for EPL's 3327 and 3328 will be finalised shortly, allowing for field exploration to commence on these licenses.
* * ENDS * *
For further information please visit www.kalahari-minerals.com or contact:
Mark Hohnen Kalahari Minerals Plc Tel: +61 (0) 893 672 111
Olly Cairns Blue Oar Securities Plc Tel: 020 7448 4400
Neil MacLachlan Ambrian Partners Ltd Tel: 020 7776 6412
Isabel Crossley St Brides Media & Finance Ltd Tel: 020 7242 4477
Kalahari Minerals Plc is an AIM listed mining and exploration group with a portfolio of copper and base metal prospects within western and eastern central Namibia. Two of the project areas, Dordabis and Witvlei, are prospective for sediment hosted copper mineralisation consistent with the world class Zambian Copper Belt. Kalahari has undertaken significant drilling at its Dordabis copper target and has returned copper intersections of 47 metres at 1.46%, 21 metres at 2.09% and 38 metres at 1.28%. The third project, Ubib, is believed to be prospective for gold mineralisation, and is nearby the operating Navachab gold mine.
The Company has an option to earn a 90% interest in the highly prospective Namib Lead Zinc Project centred on the old Namib Lead Mine, which was an underground operation from 1965 - 1992. Previous mine studies (non JORC compliant) indicate surface tails and underground mining reserves of 1.65 million tonnes at 5.7% zinc, 1.6% lead and 40.2 g/t silver. Kalahari aims to take the project to bankable feasibility study stage with a view to re-commencing mining operations in the short term
Additionally, the Company holds a 36.4% interest in ASX listed Extract Resources Limited, which is focused on uranium exploration. Its key project is the Husab uranium project in Namibia where results from an ongoing drilling programme reinforce the Company's belief that the area has a strong potential to host an economic uranium deposit.
The information in this report as it relates to geology, geochemistry and geophysics, has been prepared by Mr. Martin Spivey. Mr. Spivey is a Corporate Member of the Australasian Institute of Mining and Metallurgy, and has more than five years of experience in estimation, assessment of, and evaluation of Mineral Resources and Ore Reserves which are relevant to the style of mineralisation under consideration. Mr. Spivey is a consultant to the Company, and is employed by Silverlode Pty Ltd. Mr. Spivey has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and activities herein reported, 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" and Part two of the AIM Guidance Notes for Mining, Oil and Gas Companies. Mr. Spivey consents to the inclusion in this report of such information in the form and context in which it appears.
