3rd Oct 2007 07:00
Namibian Resources PLC03 October 2007 Namibian Resources Plc - 2nd Quarter Progress Report Namibian Resources Plc Progress report for 2nd Quarter period from 1st June 2007 to 31st August 2007. During the Quarter activities have been primarily focussed on sampling ofvarious deposits and exploration work to enable production to be planned forfuture periods. In addition, mining was divided between completion of mining ofthe Hannahtal deposit, bedrock sweeping of Hannahtal and northern West Salztal,and reprocessing of tailings. The total production of diamonds from all sourceswas 454 ct at an average diamond size of 0.53 ct/st, compared to 519 ct at anaverage 0.59 ct/st. While the average diamond size is considered to besatisfactory, the total production reflects the emphasis on sampling andexploration, and the directors intend production levels to be substantiallyhigher in future. Mining The small Hannahtal deposit was initially prospected in late April and early May2007 and mining which started in April was completed during the quarter. Totalproduction from this deposit (including in the previous quarter) was 548 ct atan attractive average diamond size of 0.69 ct/st. The mined area is now beingrehabilitated. During the quarter a small amount of production was derived from bedrocksweeping at the northern end of Salztal West. Mining has now ceased in thispart of the valley which is distinct from the main deposit along the floor ofthe West Salztal valley where it is hoped to resume operations in the presentquarter. After the quarter end, mining started on the Salzpfanne deposit which isdiscussed below. Sampling Sampling has continued to be focussed on the wind-eroded basins in the SW of thePomona area. Although individual deposits in this part of the mining contractarea are small they are notable for their large average diamond sizes. Thefollowing separate deposits have been sampled during the quarter. Salzpfanne. As reported for the previous quarter, it was envisaged that the DMSmay be re-positioned to this location as a more central site for futureoperations. A sample trench was excavated to determine whether the proposedsite for the DMS was negative for diamonds. In fact the trench was stronglypositive across much of the width of the valley, as was a follow-up trench some100 m to the north. On the basis of the sample results to date a preliminarynon-Reporting Code resource estimate for this deposit is 4,600 ct at an averagediamond size of 0.42 ct/st. Prior to re-locating the DMS it is necessary towork out this area and, as noted above, mining has been started adjacent to thefirst sample line. Mariannental. Sampling has been completed in this small basin to the NW ofSalzpfanne. Three trenches were excavated across the deposit and a diamondconcentration with a reasonable prospect of eventual economic extraction wasoutlined in the central and eastern part of the lower northern valley slopewhere the deposits average 40 cm in thickness. An indicated diamond resource of300 ct is estimated at an average diamond size of 0.51 ct/st. Hannahtal North. This basin lies to the north of Hannahtal and to the west ofnorthern Annatal. Three sample lines have been completed and all have produceddiamonds. More sample lines are required prior to estimation of the diamondresource but the average size of the diamonds recovered to date (0.65 ct/st) isattractive. Current activities Current activities are focussed on the mining of the Salzpfanne deposit. Notonly will this result in a significant increase in production for the presentquarter relative to the one just passed but it is also important for the longerterm plan for re-location of the major items of processing equipment. The West Salztal deposit remains to be worked out. Operations had to besuspended there because of excess water and flooding of the mining area.Pumping has reduced the water level and it is anticipated that additionalproduction should be derived from this deposit in the present quarter. Interim Results Our interim results for the six months ended 31 August 2007 will be announced bythe end of October. A C A CarltonChief Executive Officer. The technical information presented in this report has been reviewed by DrDonald G Sutherland of Placer Analysis Ltd, technical consultants to SonnbergDiamonds (Pty) Ltd. Dr Sutherland is a Qualified Person for the purposes of theAIM Guidance Note on Mining Oil and Gas companies dated March 2006. DrSutherland has BSc and PhD degrees from Edinburgh University and is a Member ofthe Institute of Materials, Minerals and Mining. He has over 30 yearsexperience in diamond exploration and mining. References in the report todiamond resources have been made following "The Reporting Code" for reporting ofMineral Exploration Results, Mineral Resources and Mineral Reserves prepared bythe Institution of Mining and Metallurgy (now the institute of Materials,Minerals and Mining) Working group on resources and Reserves in Conjunction withthe European Federation of Geologists and the institute of Geologists ofIreland. For further information, please contact: Namibian ResourcesTony Carlton +44 (0)20 8726 0900 Collins Stewart Europe LimitedAdrian Hadden +44 (0)20 7523 8350 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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