Kalahari Minerals Expects Further Upgrades At Rossing South

Mining company Kalahari Minerals PLC (KAH.LN) Wednesday said it expects estimates of the amount of uranium ore at Rossing South in Namibia to rise to 250 million pounds in the coming months following further drilling, as it reported a wider full-year loss.

Kalahari owns a 38.85% stake in Australia's Extract Resources (EXT.AU), which owns Rossing South. Recent results put the project's resource at 133.1 million pounds of U308, a type of uranium mineral, at grades of more than 400 parts a million of uranium.

That makes it one of the most significant uranium finds in decades and potentially one of the biggest deposits on earth, according to the two companies. More drilling is planned.

Rossing South's potential has attracted the interest of Rio Tinto PLC (RIO.LN), which owns a 15.6% stake in Extract and a 15.8% stake in Kalahari, and Polo Resources Ltd. (PRL.LN), which Tuesday increased its stake in Extract to 5.7%.

Kalahari, which also has interests in copper and base metals, said Wednesday its pretax loss widened to GBP11 million from GBP7.3 million a year earlier.

At 1306 GMT, shares in Kalahari were up 10.5 pence, or 9.9%, at a record 117 pence, outperforming a higher Alternative Investment Market, up 0.12%.

Company Web site: www.kalahari-minerals.com

-By Jason Douglas, Dow Jones Newswires; 44-20-7842-9272; [e-mail]

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