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

Client
North River Resources (NRR).

Project Description
Namib was operated as the Deblin mine between 1968 and 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 has indicated that discussions with the Namibian Ministry of Mines regarding the mining licence application for the Namib lead/zinc project are advancing.

The company in October said it would review its short-term operational strategy to ensure it benefited from the $4-million raised during that month for use when the mining licence was issued.

The funds were initially intended to be applied to a work plan to advance the Namib project towards a construction decision. This plan was nominally based on an assumed receipt of the licence by the end of October.

Depending on the timing of the receipt of the licence and project funding, the company now expects it will need to fund corporate overheads in addition to the project development costs over a longer period, and raise further funding before a construction decision can be made.

The company believes an increase in reserves and the mine life will be a major positive in securing an appropriate funding package for the construction of the mine and, ultimately, to deliver enhanced value.

Preparations for project financing and construction decisions are also ongoing.
 
"The revised work plan will lead to an increased level of operational news flow over the next six months, with initial results from exploration and resource and reserve drilling expected in the first quarter of 2016, ahead of a resource upgrade towards the end of the second quarter. Results of the front-end engineering design process are also expected to be available in the first quarter,” NRR CEO James Beams has said.

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.