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For Namib project
North River has announced the completion of the Mine Development Plan (“MDP”) for its Namib Lead and Zinc Project in Namibia. The MDP demonstrates that the Project has good economics based on the current Mineral Resource.
The current Mineral Resource has yet to be converted to reserves and is not adequate to complete a feasibility study compliant with JORC 2012 guidelines. Accordingly, at the Company’s request, the MDP has been prepared to the same standards as a feasibility study (i.e. +/-15% of costs) based on a Mineral Inventory, incorporating both Indicated Resource and portions of the Inferred Resource, and provides a good indication of the economics of developing the mine.
The MDP sets out an estimated payback on the Project for a 250 kilo tonnes (kt) per annum plant of just 1.4 years, based on a Mineral Inventory of 425 kt of Indicated Resource, and 234 kt of Inferred Resource.
The MDP also includes an updated Mineral Resource statement as at March 2014, which shows a small increase over the December 2013 estimate announced previously, as shown in the table below. Drilling underground has been delayed by a series of mechanical breakdowns of the larger of the two drills. However, the resource expansion programme has now been accelerated by mobilizing a third drill. An exploration tunnel is also being excavated 150 meters below surface, under the Northern lodes, to provide additional drill pad locations. In due course the Company anticipates announcing an updated Mineral Resource, which together with this Mine Development Plan will produce a JORC compliant feasibility study.
As announced previously, the completion of the feasibility study had also been delayed by lock-cycle metallurgical testing, which most accurately simulates the plant process. This work has now been completed. A Zinc recovery of 78% was attained at a grade of 51% and Lead recovery of 82% was attained at a grade of 54%.
