30th Jul 2014 12:21
LONDON (Alliance News) - North River Resources PLC Wednesday said it has been granted environmental clearance for the proposed re-commissioning of its Namib lead Zinc Mine in Namibia.
North River Resources shares were up 31% to 0.950 pence, putting them top of the AIM All-Share risers on Wednesday.
The mineral exploration and development company said the Namibian Ministry of Environment and Tourism gave approvals for its Environmental Assessment and Environmental Management Plan at the site.
The company said it recently brought in CSA Global Ltd and Bara Consulting to prove up its mine development plan for the site to a full feasibility study. It said the process will involve a new resource estimate, verification and mine design to update the development plan to provide reserves and the feasibility study.
North River has also commissioned a magnetic separation study, and lock-cycle testing from a diversified sample of recently-drilled core, to optimise the metallurgy of the project.
The news comes after North River announced earlier this month that it had signed a USD12 million project equity agreement with Greenstone Resources, providing it with the equity capital to re-open the Namib mine and bring the site back into production.
In June, the company announced a mine development plan for the site which set out an estimated payback on the project for a 250,000 tonnes per year plant of just 1.4 years, based on mineral inventory of 425,000 tonnes of indicated resource and 234,000 tonnes of inferred resource, at an estimated pre-production capital expenditure of USD25.2 million.
The company applied for Namib's environmental assessment at the beginning of this year and made its application for a mining licence at the site in April.
By Tom McIvor; [email protected]; @TomMcIvor1
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