Name and Location
Namib lead/zinc/silver mine project, Namibia.

Client
North River Resources (NRR).

Project Description
Namib was operated as the Deblin mine from 1968 to 1991. It was abandoned by its owners in 1992 and remained idle until its acquisition by Kalahari Minerals in 2007. In 2009 NRR acquired the project and began an investigation into its reopening.

The definitive feasibility study (DFS) has confirmed that the Namib project is technically low risk and economically robust.

The project has a maiden mineral ore reserve of 585 000 t at 6.2% zinc, 2.9% lead and 46 parts per million silver.

Total mineral resources are estimated at 1.25-million tonnes at 2.5% lead, 6.5% zinc and 43.7 g/t silver, equivalent to a 3.5-year mine life.

According to the DFS, the project will have a yearly throughput of 250 000 t at an average grade of 9% lead and zinc, producing 19 100 t of metal in concentrate. Silver by-product output is estimated at 280 000 oz/y.

The process route is based on simple bulk crushing and milling, followed by lead then zinc flotation.

The project has an initial mine life of 3.5 years and resources of 1.25-million tonnes, equivalent to a five-year life-of-mine (LoM). The resource expansion programme is continuing and it is expected that the mine life will increase further over the coming year.

Net Present Value/Internal Rate of Return
According to the cash-flow models produced in the DFS – one based only on the initial reserve, the other considering all resources as an LoM plan – the project has a net present value, at an 8% discounted resource value, of $50.26-million, and a reserve value of $31.17-million. The project has an estimated internal rate of return of 65% (resource value) and 45% (reserve value).

Payback based on the resource value is estimated at 12 months, while payback on the reserve value is estimated at 15 months.

Value
The total life-of-mine capital cost of the project is estimated at $27.78-million and the reserve total estimated at $27.8-million.

Duration
The project will take 13 months to bring the mine into production.

Latest Developments
NRR announced in April this year that its wholly owned Namibian subsidiary, Namib Lead & Zinc Mining, had submitted a formal proposal to the Namibian Ministry of Mines and Energy in respect of its Namib project mining licence application.

The company advised the Ministry in February of its acceptance of the supplementary conditions (T&Cs) to the Ministry’s notice of preparedness to grant the mining licence for the project.

The company has submitted in accordance with the T&Cs its formal proposal on its structure and composition to address government’s objectives of poverty eradication.

The notice provides for further engagement between the Ministry and the company to seek agreement on final terms and conditions to be attached to the issuing of a mining licence. The company will provide further updates in due course.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
NRR, tel +264 64 461701, fax +264 61 300209 or email reception@northriverresources.com.