Hot Features
Premium
Trade smarter, not harder: Unleash your inner pro with our toolkit and live discussions.
Significant increase in underground Mineral Resources at Namib and operational update
· 36% increase in total underground resources to 1,250,000 tonnes
· Increases in the reported zinc and lead grades to 6.5% and 2.5% respectively
· Several unusually long drill intercepts encountered under the historic mine
· A maiden Ore Reserve, prepared in accordance with the 2012 JORC Code, is expected within weeks
North River Resources has announced that its JORC 2012 compliant Mineral Resource Estimate for the Namib Lead Zinc Mine has seen tonnage increase of 36%, to 1,250,000 tonnes, over the previous statement released in December 2013. Within this, Indicated Resources have increased by 33% to 877,000 tonnes, at 2.7% Pb, 6.0% Zn and 44.4 g/t Ag.
The Estimate of underground resources was prepared by CSA Global (UK) Ltd.
The increases are due to an extensive underground drilling programme over the last six months, targeting both new extensions of known mineralised shoots, as well as infill drilling to convert inferred resources into the indicated category. 45 new diamond drill holes were completed (4,090 m) since the last Mineral Resource Estimate. Of these 49% (22 holes) had significant intercepts. The average zinc grade has increased by 13% and the average lead grade by 4%.
At South, many of the holes were drilled from around 200m below surface from the bottom of the historic mine. Given our knowledge of the mined out areas of the deposit, the length of some of the intercepts exceeded expectations. These included:
o NLDD046 46.3m (6.00m) @ 9.76% Zn, 2.73% Pb, 43.48 g/t Ag
o NLDD053 31.6m (6.00m) @ 12.37% Zn, 0.35% Pb (Silver Results Pending)
o NLDD047 15.8m (9.05m) @ 11.38% Zn, 0.65%Pb, 41.6 g/t Ag
o NLDD044 14.9m (6.00m) @ 21.02% Zn, 0.14% Pb, 36.98 g/t Ag
Drilling Lengths are all down hole. The numbers in brackets are estimated true widths.
Further holes are being planned to investigate these unusually large intercepts. The resource expansion also produced an increase in average grade. This was likewise due to a significant number of higher-grade intercepts.
Bara Consulting is currently working on mine designs, based up on which the indicated resources are expected to generate a maiden reserve for the project. The reserve figures will be published in a Feasibility Study, which is expected to be released in October 2014. On June 30, 2014, the Company published a comprehensive Mine Development Plan which is available on the website. The Company is hopeful that the rise in grade of the resources, combined with strengthening zinc and lead prices and possible optimisation of capex studies, could result in improved project economics.
Furthermore, the Company has recently invited a number of engineering firms to tender for an EPCM contract for the turn-key construction of a processing plant. Site preparation continues with the installation of surface and underground communications. Offices have been constructed on site, road upgrades are in progress, along with the installation of additional underground infrastructure and safety systems. As previously announced, the Company has applied for a Mining Licence, and is in discussions with the Namibian authorities, awaiting approval. The Company is also making good progress on accomplishing the necessary milestones to trigger the drawdown of its next tranche of pre-agreed equity funding, which will be at a price of 0.7p.
Martin French, Managing Director of North River Resources said “We have invested considerable expertise and focus into our resource expansion programme and currently have three drills operating underground. This is particularly challenging, as the mineralised shoots at Namib are erratic, making them difficult to define.
“Targeting involved complex work delineating a strata-bound envelope and integrating this with a re-interpretation electromagnetic data to direct our drills. We are therefore especially pleased that these efforts have borne fruit with such a significant increase in total resource, a strong conversion to indicated resource and a good increase in grade.
“The resource expansion programme is continuing apace with the commencing of drilling from our new exploration tunnel, 150m below the Northern lodes. We hope to be adding further resource and reserves over the coming 12 months. Work continues to complete the Feasibility Study and other aspects of implementation planning, in anticipation of a Mining Licence approval.”
