Aim-quoted mineral resource exploration and development company North River Resources notes that reliability issues with drill rigs at its Namib project, in Namibia, have put pressure on the scheduled completion of the project’s drilling campaign by the end of June.

But this is being addressed with improved maintenance capability on each shift and additional critical spares at site, explains North River in an April 26 drilling update.

Nonetheless, the development of the drilling programme to test extensions at depth in the North and South orebodies of the Namib resource is in progress, North River says.

The contracted Diamec rig continues to be used for longer drill holes (up to 200 m) from the 5 Level development drive, below the current North resource, while the company’s own Kempe drill continues with shallower (up to 80 m) infill and extension targets in both the north and south orebodies.

Completion of the development of the tunnel on 5 Level in late March was also expected to provide unrestricted access and, therefore, improved operating time for the rigs.

Meanwhile, North River CEO James Beams says it is pleasing to build on the company’s confidence in the geological potential of its Namib project.

Further to the drilling results announced on February 12 and March 21, the company advises that 18 holes, totalling 1 767 m, have been drilled to date on the 3 800 m campaign.

Results have been reported on 11 holes, with the remaining holes awaiting sampling or assay results.

The results reported to date indicate a continuation of mineralisation 80 m below the existing northern part of the orebody, providing growing support for the company’s confidence in delivering an increased resource estimate for the Namib project following completion of the drilling campaign.

“. . . I look forward to releasing further drilling results as we progress the programme towards a larger resource base and longer mine life,” says Beams.

North River Resources’ 100% held Namibian subsidiary, Namib Lead & Zinc Mining, has submitted a formal proposal to the Namibian Ministry of Mines and Energy in respect of its Namib project mining licence application.

As previously announced, the company advised the Ministry on February 26 of its acceptance of the supplementary conditions to the Ministry’s notice of preparedness to grant the mining licence for the Namib project of January 28.

North River Resources has submitted, in accordance with the terms and conditions, its formal proposal on the company’s structure and composition to address the government of Namibia’s objectives of poverty eradication by providing an opportunity for local ownership of the project, participation by historically disadvantaged Namibians in the management of the project and a corporate social responsibility strategy.

The notice makes provision for further engagement between the Ministry and the company to seek agreement on final terms and conditions to be attached to the issue of a mining licence.

North River Resources had a 60-day period (which expired on April 26) to submit the proposal to the Ministry of Mines and Energy.

The company says it simultaneously continues to assess the implications of the introduction of broad-based empowerment legislation, which has been brought about by the Namibian government.

North River Resources highlights that certain obligations under the draft Bill are inconsistent with those laid down under the supplementary conditions to the notice.

The draft National Equitable Economic Empowerment Bill has been published and a period of public consultation had been open to April 29. “If enacted, the draft Bill will set out obligations for companies, irrespective of sector, in respect of, inter alia, ownership and management participation by previously disadvantaged Namibians,” adds the company.

The resultant obligations of the legislation, along with the time frame for finalising and enacting this legislation, are not yet clear, but this is undoubtedly an area in which the company will need further clarity.

North River Resources has reworked its short-term work programme for the Namib project, as a result of the ongoing uncertainty in timing and over the terms under which the mining licence may be issued, as well as the time provision for gaining clarity over the potential implications of the proposed empowerment legislation.

This is aimed at enabling greater focus on growing the mineral resource base to support a longer initial mine life and improved mine economics in keeping with the challenging commodity price environment.