15th Sep 2008 07:00
Namibian Resources Plc - 2nd Quarter 2008/9 Progress Report
Progress report for period from 1st June to 31st August 2008
General
During the quarter production by Sonnberg Diamonds (Namibian Resources' 100%-owned subsidiary) continued to be derived from the Salzpfanne and the East Salztal North deposits. Sampling was also undertaken in the East Salztal South deposit. Total production from all sources was 663 ct at an average diamond size of 0.40 ct/st.
Mining
Mining from the Salzpfanne deposit continued in Blocks B and C with 400.61 ct being derived from the former and 118.64 ct from the latter. The overall mined grade of around 0.04 ct/t was below expectation largely because production from Block C was derived from the margins of that block close to the screening plant. The average diamond size from the sections mined in the Salzpfanne deposit was slightly under 0.4 ct/st which is in line with the expectation that diamond size will slowly decline as the deposit is mined upslope. Throughput on the Salzpfanne screening plant was restricted for part of the period by mechanical problems which had been rectified by the end of the quarter.
The East Salztal North deposit was in production during the first half of the quarter after which the equipment was used for sampling as described below. Total production from this source was 126.66 ct at an average size of 0.41 ct/st. The grade of deposit mined continues to be in advance of what was expected based on the sampling in 2006.
Ten diamonds weighing 4.10 ct were also recovered from clean-up operations.
Prospecting
Prospecting was undertaken in the East Salztal South deposit. Historical records suggest that a single diamond of 0.25 ct was recovered from a trench sample in this section of the East Salztal valley. In terms of the geological model that has been developed for diamond concentration in the Pomona valleys it was considered that this area was of interest and two initial sample trenches were placed across the valley, one at the southern end of the deposit and the other towards the northern end where a subsidiary basin occurs. Each trench was divided into 30x3-m sections. Five of the six sections returned diamonds. Of particular note, however, is the large average diamond size. At 1.08 ct/st this is easily the highest average for initial samples that Sonnberg has found in the concession. Of the 12 diamonds recovered 6 were more than 1 ct in weight with the two largest at 2.66 ct and 2.77 ct. These are exceptional sizes for diamonds from initial trench samples. Further sampling and acquisition of a larger diamond parcel may, of course, result in a smaller overall average size but from experience in other deposits in the area it would be unlikely that the eventual average diamond size in East Salztal South is very much smaller than these figures indicate.
Previous sampling experience indicates that the grade of the initial samples (which ranged between 0 and 0.11 ct/t in individual sample sections) can be more variable relative to the eventual deposit average than is the stone size. Too much emphasis should not be placed on these initial figures and the trenches are too widely spaced to permit a resource estimate to be made. Follow-up sampling and detailed mapping of the deposit are underway and will be reported on when completed.
Diamond values
Sonnberg produces high quality diamonds of good average size. During the quarter the values received by Sonnberg for its diamonds from Namdeb (the mining licence holder) continued to be strong (relative to diamond size) in both US dollar and Namibian dollar terms.
Tony Carlton
Chief Executive Director
|
Namibian Resources Tony Carlton |
Tel: +44 (0)20 8726 0900 |
|
Collins Stewart Europe Limited Adrian Hadden |
Tel: +44 (0)20 7523 8350 |
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