JOHANNESBURG (miningweekly.com) – The definitive feasibility study (DFS) for Aim-listed North River Resources’ Namib lead/zinc/silver mine, in Namibia, has confirmed that the project is technically low risk and economically robust, the company said on Wednesday.
It added that a strong after-tax internal rate of return of more than 50% over the life of the mine and the short payback period justified the development of the project.
"The DFS is a major milestone for [Namib] and North River. The study has gone through an exhaustive process and the project economics are strong. While the mine life is short, so is the payback, as much of the major infrastructure is already in place,” North River MD Martin French said.
According to the DFS, the project would have 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 was estimated at 280 000 oz/y.
The project had an initial mine life of 3.5 years and resources of 1.25-million tonnes, which was equivalent to a five-year life-of-mine.
“From known geology, there are good indications that the mine life may be extended, while many deeper and near-mine regional areas have yet to be explored. We are, therefore, hopeful that the value of the project will grow over the coming year and beyond,” French said.
He stated that underground drilling continued with a near-mine exploration programme also planned to start next year.
“The company is now advanced on working up the project execution plan for [Namib]. The board will soon formally review the DFS and implementation planning,” French concluded.