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Gold/Mining/Energy : Namibian Minerals Corporation -- Ignore unavailable to you. Want to Upgrade?

To: Douglas Freeman who wrote (61)	8/17/1999 11:30:00 AM
From: PHILLIP FLOTOW	Read Replies (1) \| Respond to of 124

This just in: Namibian Minerals Corporation (NAMCO) announces increase in diamond resources to 651 000 carats in Hottentot Bay Grant NASDAQ Trading Symbol: NMCOF, TSE Trading Symbol: NMR, NSE Trading Symbol: NMC LONDON, UK, Aug. 17 /CNW/ - Namibian Minerals Corporation (NAMCO) today announced an increase in diamond resource estimates following completion of a recent bulk sampling programme in Feature 022 of the Hottentot Bay Grant in Namibia, bringing the Company's total estimated resources to 2.9 million carats. The Company has filed an application for a Mining Licence over 359 sq.km. of the Hottentot Bay Grant. Namco's Hottentot Bay Grant covers an area of 526 sq.km and its southern boundary is located some 3 km. west from the embayment where the pioneer of the marine diamond industry Sammy Collins recovered approximately 340 000 carats in four months in 1962. The original resource estimates for Feature 022 were calculated during the Company's Namrod sampling programme in 1995/6. The latest bulk sampling programme, conducted in the first quarter of 1999, aimed to confirm the grade estimates and patterns of mineralisation in order to upgrade the previous resource estimates. Bulk sampling comprised ten trenches which were on average 13 metres wide and 80 metres long each, positioned in previously sampled areas in order to make accurate comparisons with results of the earlier sampling programme. In each trench, bulk samples were measured at 10 metre intervals which represented a cleared bedrock area of 130 sq.m. each. A total of 9 083 diamonds weighing 2 548 carats with an average diamond size of 0.28 carats were recovered during the programme. Approximately 95% of diamonds recovered were gem quality. Diamond grades recovered ranged from less than 0.1 carats/sq.m. to 1.81 carats/sq.m. Independent geological consultants Marine & Coastal Geo-Consultants were commissioned to review sampling data and to re-assess mining resource potential. Based on additional information gained from sampling results, Marine & Coastal have upgraded original resource estimates to 271 000 carats of measured and indicated resources (measured - 106 000 carats; indicated 165 000 carats - previously nil) and 298 000 carats of inferred resources (previously 400 000 carats). The estimates have been calculated using a cut-off grade of 0.1 carat/sq.m. The combined resource estimate for the Hottentot Bay Grant has increased from 488 000 carats to 651 000 carats, which includes 82 000 carats of inferred resources in Feature 012. On the strength of these results the Company filed its application for a Mining Licence over a 359 sq. km. area known as the Saddle Hill Prospect, incorporating resources in Feature 022 and Feature 012 of the Hottentot Bay Grant. ``These results confirm the quality of Namco's sampling methodology and exploration approach. While diamond sizes and the extent of mineralisation were confirmed, the average grades continued to exceed expectations,' said Namco's Exploration Director Mike Woodborne. ``We are delighted to have proved up additional resources for expansion of our mining licence areas.' The current status of the revised resource estimates, excluding current production in Feature 019 of Mining Licence 51 of approximately 200 000 carats is: << ------------------------------------------------------------------------- Licence Area Measured Indicated Inferred Total (Feature) ------------------------------------------------------------------------- ML 51 (Luderitz) ------------------------------------------------------------------------- LBG011 9 000 9 000 ------------------------------------------------------------------------- LBG018 464 000 464 000 ------------------------------------------------------------------------- LBG019 616 000 203 000 819 000 ------------------------------------------------------------------------- LBG020 220 000 116 000 684 000 1 020 000 ------------------------------------------------------------------------- Saddle Hill Prospect (Hottentot Bay) ------------------------------------------------------------------------- HBG012 82 000 82 000 ------------------------------------------------------------------------- HBG022 106 000 165 000 298 000 569 000 ------------------------------------------------------------------------- TOTAL 942 000 484 000 1 537 000 2 963 000 ------------------------------------------------------------------------- >> The resource estimates were compiled 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). The revised model and estimates have been based on reasonable assumptions and rigorous technical evaluation of available information. A description of these assumptions and evaluation together with the geological environment and regulatory systems of the Luderitz Bay Mining Licence and Hottentot Bay Grant are contained in the Company's Annual Information Form dated 30 April 1999. Marine & Coastal actively participated in the sampling programme and has confirmed that the recording of sampling results was undertaken in a rigorous and competent manner. 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. 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. -30- For further information: contact Megan Williams on mwilliams@nam-corp.com or tel + 44 171 824 8900 PHIL