outstanding chemical assay results from rssin, page-4

And from Ambrian....




Infill Drilling Results - More wide, high-grade zones


Extract Resources, in which Kalahari* owns 40.44%, has released assay results from infill drilling at Rossing South. Zone 1 highlights include 146m @ 639ppm and 21m @ 2,003ppm, while results from Zone 2 include 129m @ 1,415ppm and 99m @1,078ppm. Extract now has 15 rigs on site, and is securing additional rigs to speed the drilling programme.

Given these stunning results, we reiterate our confidence that management will reach its stated 452-552Mlbs target this year, and breach 550Mlbs thereafter.
Although only infill drilling, there are a good mix of results sub-200m and 200-400m; with a pit optimisation to close to 400m depth against a previous drill resource mainly shallower than 250m, we expect depth extensions to drive the Zone 1 and 2 resource increases. (my bold throughout)

In our view, recent goings-on between Kalahari shareholder Niger and Niger shareholder NWT were a distraction, and nothing more now that Niger has sold around half of its Kalahari shares and proposed to distribute the remainder. Moreover, while we think it unlikely Niger will eventually call for Kalahari to distribute its Extract shares; should the request be made, it would certainly be voted down by Kalahari shareholders in our view.

Further restructuring is also probable: of Polo's 9.3% holding in Extract; and the potential for the Kalahari and Extract structure to be 'collapsed'. That would remove the Kalahari implied discount to Extract (currently at 8%), and deliver a much cleaner corporate structure.

Key share price drivers for Kalahari will be the release of a resource upgrade and following pre-feasibility data around mid-year.
We expect the pre-feasibility will indicate production throughput higher than the 15Mtpa in the scoping study given the size of the resource, and note that even at a conservative US$50/lb, 6x EBITDA lifts from GBP 2.69/KAH share at 15Mtpa to GBP 3.58 at 20Mtpa. For energy bugs, 6x EBITDA at 25Mtpa and US$60/lb equates to GBP 6.20/KAH share, although it is probably too early to be banking on reaching 25Mtp.



http://www.kalahari-minerals.com/News/Analyst_Research/Infill_Drilling_Results_-_More_wide~_high-grade_zo/News.aspx?id=165


Cheers all!