NAMIBIAN MINERALS CORPORATION STARTS NEW EXPLORATION PROGRAMME
London, England, 2 October 2000…. Namibian Minerals Corporation (NAMCO) today announced that its new exploration vessel MV Zacharias has started exploration of the Company’s ocean diamond licences off the coast of Namibia. The vessel has been chartered for five years and the programme will incorporate the new licence areas acquired in the takeover of Ocean Diamond Mining last year.
Earlier this year, Namco completed geophysical and geotechnical surveys in its three mining licences to create high-quality maps of the varying water depths, ocean floor characteristics and sediment composition and thickness. Using the latest advances in survey technologies, 3D pictures of the ocean floor were produced, and a number of feature areas with diamond potential were clearly identified, including old cliff and beach lines, terraces and basins.
Following these surveys, Namco’s geologists identified 163 prospective feature areas on the inner continental shelf (covering an area of 658 sq.km.) out to 100 metres of water depth in Mining Licences 36, 51 and 103A. Of these, 65 target features (covering an area of 295 sq.km) have been prioritized for exploration in 2000 and 2001, primarily adjacent to the current mining areas in Mining Licences 36 and 51. These extensions of Namco’s known resource areas are considered highly prospective. To date, approximately 500 000 carats of diamonds have been recovered from Mining Licence 51 and 250 000 carats recovered from Mining Licence 36.
The Company’s objective is to substantially increase its resource base and to maintain sufficient resources in the measured and indicated categories for at least two years future mining. As at 31 December 1999, Namco’s total estimated diamond resources were 3.7 million carats, comprising 830 000 carats of measured resources, 605 000 carats of indicated resources and 2.2 million carats of inferred resources¹.
MV Zacharias is equipped with a range of exploration equipment including the new drilling system developed with engineering group Wirth, an airlift sampling tool, a grab sampler and a vibrocore. These capabilities will provide Namco with detailed information on each sample sites’ geology, diamond mineralisation and sediment structure. As well as providing representative samples for resource calculations, this high quality information will enhance future mine planning.
The first 20 features to be sampled contain sediments of less than three metres. Reconnaissance sampling has started using the airlift sampling tool and vibrocore, with the objective of testing resource additions for the existing airlift mining vessels. MV Zacharias is equipped with a dynamic position system which allows highly accurate and rapid movement
This Media Release contains forward looking statements that involve a number of risks and uncertainties. Among the important factors that could cause actual results to differ materially from those indicated by such forward looking statements are operational factors, general economic conditions and the risk factors detailed from time to time in the Company’s periodic reports and registration statements filed with the Securities and Exchange Commission.
Namco starts new exploration/2
between sample sites. The Wirth tool will be used for follow-up sampling and to test deeper sediment extensions adjacent to current mining areas. During final preparation of the vessel in Cape Town, the launch and recovery A-frame onboard Zacharias was damaged and repairs are currently being carried out. The phasing and timing of exploration is not affected.
The capital cost for exploration incurred this year totalled $8.3 million reflecting heavier expenditure on a new winch system for the 85 tons Wirth tool and costs of a new processing plant. Annual operating costs are targeted at US$5 million. The Company expects to announce exploration results quarterly.
“This is our first opportunity since 1996 to start continuous sampling,” said Namco’s Exploration Director Mike Woodborne. “We have identified a large number of promising feature areas to build an expanding base of diamond resources, which is important for our future growth.”
Namibia is the world’s fifth largest diamond producer by value and currently produces approximately 1.5 million carats per annum. Mining of Namibia’s beach deposits started in 1908 and since then more than 75 million carats have been recovered. With substantial investment and developments in technology, ocean diamond resources were discovered and commercial diamond production was started by De Beers off the coast of Namibia in 1990. Ocean diamond mining today accounts for approximately 60% of total Namibian diamond production.
Namco is Africa’s second largest diamond producer with three mining vessels working off the Namibian coast. The Company’s fourth mining vessel MV Ya Toivo, equipped with the proprietary Nam 2 seabed crawler, is scheduled to start operation in fourth quarter 2000.
For and on behalf of the Board of Directors of Namibian Minerals Corporation
J.A.Holberton
Chairman & CEO
None of the Nasdaq National 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.
¹ Namco’s resource estimates were calculated by Marine & Coastal Geo-Consultants cc (Senior Author and Qualified Person: R.De Decker, M.Sc., Pr.Sci.Nat.) based on mining and sampling data provided by the Company and using the resource definitions provided in the Australasian code for Reporting of Identified Mineral Resources and Ore Reserves (JORC code). Marine & Coastal actively participated in the sampling operations and have confirmed that the recording of sampling was undertaken in a rigorous and competent manner. Resource estimates have been based on reasonable assumptions and evaluation. A description of these assumptions and evaluation are contained in the Company’s Annual Information Forms dated 30 April 1999 and 15 April 2000. The grade ranges of the resources are contained in the Company’s media release dated 17 August 1999. Only reserves, as opposed to resources, have demonstrated economic viability.
For further information contact Megan Williams, Corporate Communications Director
tel 44 20 7824 8900 or email mwilliams@nam-corp.com
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