3rd & 4th Quarter Production Update
Namibian Resources Plc
("Namibian" or "the Company")
3rd & 4th Quarter production update
Production update for period 1st September 2007 to 29th February 2008
Highlights * Increase in production
* Increase in identified resource
* Mining to date has still not touched the originally identified
resource
* Streamlining of production process
Production in the second half increased by 450 carats compared to the
first half of the current financial year, which ended on 29th
February 2008.
All the mining completed by the Company to date has been outside of
the originally identified resource of the 'Pomona' licence area when
it was first granted to the Company. Dr Donald G Sutherland our Chief
Operations Director has carried out an appraisal of the sampling
results and resource estimates to date and has created a good
geological model of our total resource and our sampling has
identified an additional resource of 5,500 carats. The Company
intends to continue its sampling programme to ensure an ample
resource is available in each block identified in the mining plan
ahead of mining commencing. In addition the sampling programme will
be expanded to allow the Company to assess the potential of a number
of unexplored areas within the 'Pomona' licence area.
In our production update of 27th September 2007, we announced our
intention to streamline our production process and lower production
costs by relocating our screening plants and equipment closer to the
identified diamond resources that were scheduled for extraction in
the next phase of the Company's mining plan. By doing this the
Company will be able to reduce trucking distances, speed up
production and reduce production costs particularly in relation to
fuel costs and wear and tear on vehicles.
As part of the relocation of the screening plants the Company was
required to create two new water dams and laying a considerable
length of new water pipe lines. On sampling prior to creating the
new water dams the Company discovered economic quantities of diamonds
on the site of one of the proposed dams, 'Saltzpfanne' where we have
identified a non-reporting code estimate of 4,600 carats.. The
Company has proceeded to mine out this area, prior to the placement
of the dam. The relocation of the screening plants is nearing completion. One
screen 'Manhattan' has been moved to the North of 'East Saltztal'
whilst the other screen 'Finlay' will move to the 'Saltzpfanne'
location shortly. Thus both screens will be able to operate
simultaneously and more economically. Previously the Company has only
been able to conduct sampling by suspending mining and redirecting
equipment towards sampling. Having both screens operating
simultaneouslywill enable us to mine and sample, at the same time. In
addition we have undertaken a good deal of reconditioning of
equipment and have purchased additional generators and pumps. All
this work will enable us to considerably increase production.
Contacts
The Company
Tony Carlton, Chief Executive Officer 020 8726 0900
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