JOHANNESBURG (miningweekly.com) – With a recently completed mine development plan for the $25.2-million restart of the Namib lead and zinc project, in Namibia, demonstrating good economics and a payback period of just over a year, London-listed North River Resources said on Monday it would now focus on securing project funding.

The mine development plan estimated a 1.4-year payback period on the 250 000 t/y, seven-year project based on a lead-, zinc- and silver-bearing ore inventory of 425 000 t of indicated resource and 234 000 t of inferred resource.

North River MD Martin French believed the payback period provided a good indication that the project, located 30 km from Swakopmund, could “quickly” become profitable.

“It provides encouraging economics, especially if the mine life can be extended over time with deeper drilling and near-mine exploration,” he said, adding that, with planning to restart the previously abandoned operation well-advanced, the company would turn its focus to securing project funding.

North River pointed out that the mine had ready access to existing infrastructure, further lowering the capital cost of the project.

The company also aimed to make further reductions in both the capital expenditure and the project timelines.

It explained that the ore would be accessed through the two existing declines, with high-grade ore ready to be mined with minimal capital development required.

“The mine will be developed and ore extracted using hand-held techniques, with simple technologies being used to keep both capital and operating costs down,” noted French.

The concentrates would be transported 70 km by road or rail to Namibia's main port of Walvis Bay, which had a bulk concentrate ship loading facility, for export.

Further, minimal or low-cost refurbishment would be required for an existing 1.5-million-tonne tailings dam and the existing 22 kV power line, which connects the operation to the national grid.

The company aimed to deliver a further upgraded resource as it accelerated its resource expansion programme.

“The project currently has three diamond drills operating on site. Drilling is targeting the deeper untested zones beneath the southern and northern lodes, which, the directors believe, show potential to add to overall resources,” French said.

“North River is confident that significant increases to its resources will be forthcoming. These increases will further enhance the economics of the project,” he concluded.