Monday March 27, 8:09 am Eastern Time
Company Press Release
SOURCE: Namibian Minerals Corporation
Namibian Minerals Corporation (Namco)
Announces Update on Recently Acquired
Ocean Diamond Mining Holdings Ltd (ODM)
Operations
LONDON, March 27 /PRNewswire/ -- Namibian Minerals Corporation (Namco) (Nasdaq: NMCOF - news;
Toronto: NMR - news; Namibian: NMC) today announced continued progress in the integration and development
of mining and exploration activities of recently acquired African ocean diamond producer Ocean Diamond Mining
Holdings Ltd (ODM).
In the acquisition, completed in October 1999, Namco secured an additional 20 000 sq.km. of ocean diamond
concessions including Mining Licence 36 in Namibia (362 sq.km.), three vessels and US$10 m. in cash. ODM's
fiscal 1999 production was 64 000 carats. As previously reported, Namco immediately initiated productivity
improvements by increasing the supply of spares and dedicating all three vessels to mining. ODM's production for
November and December 1999 was 17 200 carats, representing a 30% increase on the comparable months in
1998. Similar performance has continued in 2000.
95% of ODM's production is gem quality and size distribution continues to meet expectations. Namco's overall
first quarter diamond prices have significantly improved from US$156 in the fourth quarter of 1999 to US$169 in
the first two months of 2000. This increase is attributed to strong diamond demand and to the slightly larger
average stone sizes recovered from ODM's mining licence.
Namco's new vessel, the 2500 tons MV Zacharias, started geophysical surveys over parts of Mining Licence 36
earlier this month. Equipped with the latest advances in geophysical equipment, MV Zacharias has the capability to
survey previously inaccessible sediments up to 12 m. thick. The two month programme will survey 3000 line km
and, combined with exploration data, will provide detailed information on ocean floor topography for future mine
planning and resource evaluation.
A US$4 million upgrade is planned for MV Namibian Gem and MV Ivan Prinsep in the second and third quarter
respectively. This includes the improvement of the two airlift mining systems onboard MV Namibian Gem,
installation of security systems and complete engineering overhauls to both vessels. Refurbishment of existing
mining equipment was completed on MV Oceandia in March.
Group production rates are expected to improve as technical enhancements progress on the two ODM vessels, as
Namco's 140 tons NamSSol mining system is deployed in Mining Licence 36 and when Nam II, the next
generation mining system, enters production in the second half of the year. It is expected that quarterly production
and revenue figures will therefore vary substantially over the year.
This quarter, MV Kovambo, the support vessel for NamSSol, commenced operations in lower grade areas of
Mining Licence 36. Mining has concentrated on the edges of the 2.42 sq.km. Halifax Basin, a sediment filled
depression where more than 140 000 carats were previously recovered by ODM in less than 0.46 sq.km., using
airlift technology limited to mining sediment depths to 3m.
``We acquired ODM for the potential of its concessions. Our confidence in these concessions is already fully
justified and we intend to unlock further value through exploration later this year,' said Chairman and CEO Alastair
Holberton.
Namco currently holds 97.7% of ODM. An application to delist ODM from the Johannesburg Stock Exchange
has been filed.
The Company's 1999 Annual Report and Accounts will be posted to shareholders in early April. First quarter
results will be announced in May.
Namco is Africa's second largest ocean diamond producer. The Company develops breakthrough subsea
technology to profitably mine gem diamonds from its concessions off the coast of Namibia. Earnings in 1999 were
US$17.1 million, US$0.43 per share.
For and on behalf of the Board of Directors of Namibian Minerals Corporation
J.A.Holberton
Chairman & Chief Executive Officer
Neither The Nasdaq Stock Market, The Toronto Stock Exchange, nor the Namibian Stock Exchange has
reviewed the information herein and do not accept responsibility for the adequacy or the accuracy of the above.
SOURCE: Namibian Minerals Corporation
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