14th Dec 2005 07:00
Namibian Resources PLC14 December 2005 Namibian Resources PLC 14th December 2005 AIM Listed Namibian Resources PLC Progress Report (1) Production from West Saltztal continues satisfactory (2) Mining Plan for 2006 and onwards completed (3) Management strengthened (4) Website ready for launch shortly (5) Cash resources good and no borrowings (1) Production West Saltztal production from the beginning of the financial year on 1st march2005 to 25th November 2005 has totalled 4,577 carats with an average size of .60carats per stone. Between 10% and 15% of stones have weighed in excess of 1carat and six stones in excess of 2 carats have been mined, the largest being2.60 carats. This production exceeds the original estimate of 4,200 carats forthis identified resource and should continue for another 12 weeks. The natureof the mined material continues to give difficulty due to heavy water seepagefrom the salt pan. The Company is trenching and sampling ahead to determinewhether the remaining 2km length of the West Saltztal is diamondiferous. (2) Mining Plan The first sampling of the East Saltztal although incomplete is very encouraging. The company, is therefore moving a second screen to this area and commencemining by the end of January. With two in field screens operating the Companyis hopeful that sufficient material will be available to justify the purchase ofa second 10 ton/hr Dense Medium Separation plant by July of 2006 and possiblymove to a second shift. Sufficient resources, have been identified to be minedfor the next two to three years. The Morro road-sweeper has been completelyrefurbished and will be operating continuously from early January on the Idatalbedrock sweeping where a thin veneer of diamondiferous gravel is present.Bedrock sweeping this area which is 10 km long by 150 meters wide has been veryencouraging. The Idatal was mined down to bedrock in the early nineteenhundreds and was fabulously rich. (3) Management Management at the mine in Namibia has been strengthened with the appointment oftwo engineering staff to take charge of the screen, DMS and flowsort. They willalso carry out all maintenance servicing and repairs on site (other than majorrepairs). This should substantially reduce servicing costs and increaseproduction from January 1st reducing delays caused by minor breakdowns. (4) Website Nambian Resources has commissioned a website. The first draft is complete andthe launch of the website anticipated in the next three weeks. An announcementwill be made as soon as it is up and running. (5) Cash Resources The company has no borrowing and cash balances are adequate for the foreseeablefuture following the exercise of the warrants exercisable by 31st December 2005at 10p. This is subject to change should our negotiations for additionalconcessions reach a successful conclusion. Most of the 5 million warrants for conversion into ordinary shares at aconversion price of 10p have been exercised at 14th December 2005. The warrantsexpire on 31st December 2005 and will have no value thereafter. There isevidence that certain shareholders have sold sufficient ordinary shares to takeup their entitlement. This may be the reason that our share price has beendrifting downwards as no other reason is known. Further Info: Tony Carlton, Chief Executive Namibian Resources Plc. Tel: 020 8726 0900 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
NBR.L