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Namibian Resources - A diamond in the rough? (NBR)     

Tokyo - 22 Nov 2004 16:10

logo_nbr.jpg



Namibian Resources Plc was incorporated in January 2001 and achieved a listing on the AIM of the London Stock Exchange in March 2004.

The Company, which operates through its 100% owned subsidiary Sonnberg Diamonds (Namibia)(Pty) Limited, holds a contract from NAMDEB Diamond Corporation (Pty) Ltd for the prospecting and mining of diamonds within the Pomona concession in the Luderitz District of Namibia. The concession area covers an area of about 120 square km (12,000 ha), and the Company is authorised by NAMDEB to prospect and mine in certain defined areas within this concession.

Namibian Resources aims to use the funds raised from the listing to increase annual production from the current level of 2,900 carats/year to 7,500 carats and then on to 15,000 carats/year.

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Very difficult to find information on this company as they do not even have a home page, friends of mine feel the annual production levels are greatly under estimated and we could see a huge up side to this company before Christmas 2004. The new equipment they are using looks promising.

graph.php?startDate=17%2F11%2F04&period=graph.php?startDate=29%2F12%2F04&period=

http://www.mining-investor.com/

Tokyo - 20 Dec 2004 13:43 - 23 of 94

50 pence already, and still we haven't received word on their talks with the black empowerment party. I said it last week, and I'll say it again, there is still alot more to come with NBR

IMHO

tokyo

willfagg - 20 Dec 2004 13:54 - 24 of 94

I hope you are right . You mentioned this one on the PET thread a while back and bought in last week( wish I had when you first stated) even so look a great prospect. Need something to recover PET as i did not get in cheap and not out yet( not by choice)just cant bare myself to aprt with such a loss.

Tokyo - 21 Dec 2004 08:07 - 25 of 94

Willfagg - a point that hasn't been picked up on yet, is that the new area they have been granted is alot bigger(x26 I think) than the one, on which they based all their financial projections. I plan to call the company later today, and will report back what I find.

Tokyo

willfagg - 21 Dec 2004 09:13 - 26 of 94

that would be good to hear, thanks.It looks a winner. currently reeling form massive (for me) losses in PET and YOO(although I hope this will recover shortly)So need something to lighten my darkness!

Tokyo - 21 Dec 2004 11:09 - 27 of 94

Have just had a really interesting conversation with Andrew Carlton of Namibian resources they guy is exteremly helpful and open to investors, we discussed dry Vs wet screening, and a whole host of other areas, I tried to jot down the information that he was giving, but it was coming so quickly and positively, I would suggest the best thing to do, would be to ring the company yourself as they are exteremly happy with how things are working out, and making new contacts relationships all the time in Namibia, as if the black empowerment group wasn't enough they are also talking with various other groups including the ladies empowerment group, a host of politicians, etc, it would seem that they are positioning themselves to become a real player in Namibia. Below are a couple of points from the conversation, but I would suggest calling yourself on 0208 726 0900. Mr Carlton also mentioned that additional information on NBR can be found on http://www.mining-investor.com/

1. Dry vs Wet screening

Within NBR's last RNS you will see they have been granted an extension, this is for the Saltztal block further in the south,which was first surveyed by Consolidated diamond mines company in 1929, but was thought to be impossible to mine as the area was too wet, within this area it is impossible to dry screen as the area is indeed too wet, and the screens just get blocked up. Wet screening will allow them to blast away the earth with water jets, and then screen the material through a wet screen and indentify any diamond material, which is then sent off to be sorted.

2. New Equipment

The DMS is a sort of mobile screening machine, it can sort through 100 tonnes of material, the material is then screened, gravel washed, and the diamond material separated as it fluoreces in the screens, this is then sent through many secure processes and end up in the sorting box where the final diamond material is removed.


There was so much more, but it is best just to jot down some questions and give NBR a call, they are very investor friendly, and very positive about their future, after today's conversation I'll be adding when funds allow.


Tokyo

Andy - 21 Dec 2004 11:54 - 28 of 94

Tokyo,

Any chance you could cut and paste the NBR symbol and the info from the Mining-investor link into the header here please?

Tokyo - 21 Dec 2004 12:05 - 29 of 94

Andy, it has been done

Tokyo - 21 Dec 2004 13:00 - 30 of 94

Another point I forgot to add from the phone call was that he mentioned all the equipment is in place and they are ready to go from January, not sure how long it will take for the institutes to get interested, but as this moves on such little volume, as soon as they start with the DMS and wet screening in January this is going to get very interesting. I have asked NBR to send me their prospectus, but if anyone has the Collins Stewart report, could you contact me via the private messenger

Tokyo

p.s he also mentioned that he would meet with Collins stewart later today, as they will up date that report soon

dexter01 - 21 Dec 2004 16:06 - 31 of 94

Hello Tokyo mate,
you are putting in a lot of good work here,as usual,this really does look very interesting. I`m hoping it will go back to 45p ish,then i`ll jump in, the thing i like is the market cap v price, so when any news(good) is put out it should really motor.
Dexter

wilbs - 21 Dec 2004 16:12 - 32 of 94

Hi Tokyo,

Im with you on this one. I bought in yesterday. Pity there is no website but I am gonna trawl the net to see if there is anything else I can find. I will post it if I find anything. Good to see you too dexter.

wilbs

Andy - 21 Dec 2004 16:14 - 33 of 94

Tokyo,

Cheers, and thanks for the updates from the company.

I dipped my toe in yesterday, and once I have time to study NBR in more detail, I may well add again in the future.

I also hold, FDI, which is operating further down the coast in Namaqualand, S.Africa.

dexter01 - 21 Dec 2004 16:17 - 34 of 94

hi wilbs,
what`s your position on PET now?, i`m out at the moment( with some profit), just waiting to get back in.
NBR, as tokyo has researched, has fantastic potential, i will get in when i feel i have enough breathing space to get out if it drew a blank where investors were banking on it.
how`s sunny Diss ?
dexter

wilbs - 21 Dec 2004 16:24 - 35 of 94

Hi dexter.

Sunny diss is cold & foggy diss at the moment. Ive been unfortunate thet I have to give up my job & am on the sick for a short time but it is great that I can do research & keep an eye on the shares all day where as before I was working from 6 till 6. As with PET, I sold half my holding at 130p so got some profit, im holding the rest to see what happens. Bought into sibr earlier today.

wilbs

Tokyo - 21 Dec 2004 17:55 - 36 of 94

Got sent some reports from NBR today will have a look at them tomorrow as it is a bit late tonight, will post the best bits from them if people are interested, the engineering report is 35 pages long, so not really something I can put on the BB, Dexter I'll send you a copy via e-mail.

Tokyo

Andy - 21 Dec 2004 18:29 - 37 of 94

Tokyo,

Cheers, look forward to that.

Tokyo - 22 Dec 2004 09:00 - 38 of 94

Morning Campers, just about to get started on these NBR reports.

will report back later, Here is the contents page, perhaps if you want to see certain parts just ask and I'll try a cut & paste, as the report is too big to post here.

Tokyo

CONTENTS.


Summary 4

1. Introduction 6
1.1 Project situation 6
1.2 Conceptual approach 6

2. Type and nature of diamond deposits in the concession 8
2.1 Type of deposits 8
2.2 Nature of deposits 8
2.3 Diamond content 10

3. Resource base 12
3.1 Current resource statement 12
3.2 Development potential 14

4. Mining 15
4.1 Introduction 15
4.2 Basic mining system 15
4.3 Bedrock surface cleaning 15
4.4 Equipment required 16
4.5 Tailings dumps 16
4.6 Stockpiles 17

5. Processing 18
5.1 Feed preparation 18
5.2 Diamond concentration 19
5.3 Diamond recovery 20
5.4 Equipment required 20

6. Security 22
6.1 Introduction 22
6.2 Regional security 22
6.3 Plant security 22
6.4 Costs 23

7. Water supply 24
7.1 Introduction 24
7.2 Plant operations 24
7.3 Human consumption 26

8. Prospecting and exploration 28
8.1 Deposits of interest 28
8.2 Sampling methods 28
8.3 Volumes to be sampled 29
8.4 Sample distribution 30
8.5 Sampling equipment 30
8.6 Processing 30
8.7 Costs 30

9. Environmental considerations 32
9.1 The general environment of the Pomona concession 32
9.2 Sonnbergs environmental responsibilities 33

10. Investment required for development 34
10.1 Investment required 34

References 35

dexter01 - 22 Dec 2004 09:31 - 39 of 94

morning tokyo,sorry afternoon
got the e-mail and attachment, but it would`nt open in outlook express, could you possibly send it again and i`ll try to open it in yahoo,
it should prove interesting reading.
cheers,
dexter

Tokyo - 22 Dec 2004 09:48 - 40 of 94

dexter - just sent it again

Tokyo - 22 Dec 2004 10:45 - 41 of 94

Here is the summary from the 1st report, bit busy today, so thought I'd post parts 1-5 of the report, so others can read it, probably won't be able to see graphs.

SUMMARY.


The present report presents a programme for the development of Sonnbergs Pomona concession where it is prospecting and mining for diamonds under contract to NAMDEB, the mining licence holder. Sonnbergs contract endures until April 2012 and contains a provision for an extension for a further 10 years after that date. Sonnberg has been mining in the Pomona concession since 1992 with an average annual output of around 2,900 ct.

The present development programme has a capital budget of approximately US$2.4 million (1.4 million) and is planned to raise the Sonnbergs annual output to around 100,000 m3 (180,000 t) per year, equivalent to a diamond production level of between 7,500 and 15,000 ct/yr, depending upon the order with which the identified diamond-bearing deposits are brought into production. It is anticipated that revenues will increase to between US$1.1 million and US$1.5 million per year.

An integral element of the development programme is that Sonnberg must vigorously pursue a prospecting programme. The objective is to quantify the diamond resources contained within the over 2 million m3 of known diamond-bearing material which cannot at present support an estimate of contained diamond resource. Wider exploration within the concession is also envisaged. Provision is made in the capital budget for the first two years of prospecting.

The diamond-bearing deposits in the Pomona concession occur within thin, sheet-like, loose, gravely sands resting in the bottom of a series of valleys. There is little or no overburden. Mining is therefore a relatively simple operation which can be carried out by a front-end-loader, occasionally assisted by a bulldozer. The generally low-gradient bedrock surface lends itself to cleaning either by sweeping or by scraping. Deposit transport is by 20-t articulated dump truck.

Hitherto most of Sonnbergs processing has been dry. However, not all deposits are amenable to dry screening and it is proposed that Sonnberg move to all-wet processing of material. This will lead to a much better particle separation on the screens and corresponding better diamond recovery. It is therefore necessary to provide a regular water supply. This is most capital- and operating-cost effectively done by establishing a pipeline to pump water from Jammerbucht to a reservoir at the watershed west of Pomona village at the head of Idatal. From there, water can be supplied by gravity feed through to the southern part of the concession where the greater part of the known diamond resources exist.

Diamond recovery, based on the use of Pleitz jigs, in Sonnbergs operations to date has been highly inefficient. It is proposed to move to the use of Dense Media Separation (DMS) technology, the standard in the wider diamond industry. Two 10 t/hr DMS units will provide the capacity for the envisaged rate of production. It is proposed to use two small units to provide greater flexibility in operations given the wide scatter of relatively small individual deposits in the concession. An increase in plant operating costs is compensated by reduced trucking costs.

Final diamond recovery will be by X-ray technology allied to diamond-picking in a glove box.

Sonnbergs operations come within the NAMDEB security umbrella which provides regional access control with the potential for searching using, where appropriate X-ray technology. Sonnberg also has its own security staff and all operations involving handling diamonds are covered by CCTV.

Sonnberg is contracted to adhere to NAMDEBs Environmental Management Programme which requires active environmental protection measures during operations as well as ground rehabilitation following completion of operations in any given part of the concession.


1. INTRODUCTION.


1.1 PROJECT SITUATION.

Sonnberg Diamonds (Pty) Ltd, a 100%-owned subsidiary of Namibian Resources plc, holds a contract to prospect and mine for diamonds in the 120-km2 Pomona concession, which is part of a larger mining licence held by the NAMDEB Diamond Mining Corporation (Pty). Sonnbergs contract endures until April 2012 and contains a provision for an extension for a further 10 years after that date. Sonnberg Diamonds and its predecessor company Sonnberg Diamante (Pty) Ltd, have been mining in the Pomona concession since 1992 with an average annual production of around 2,900 ct and a peak annual production of around 5,500 ct.

Namibian Resources wishes to invest in Sonnberg with a view to increasing diamond production and placing the operations on a technically superior basis. The objective of this report is to outline an appropriate method of mining and processing the diamond deposits in the Pomona area, due regard being given to the terms and conditions of the contract with NAMDEB.


1.2 CONCEPTUAL APPROACH.

Diamond production from the Pomona concession is a relatively simple operation. However, there are many ways in which it can be carried out in the context of a small mine all of which have various advantages and disadvantages. Based on knowledge of the deposits, Sonnbergs operations to date, and prior experience elsewhere, the following concepts have been applied in outlining the programme for the development of the concession.

Redundancy in equipment provision. Sonnbergs operations in the past have been greatly hindered by the break-down of single pieces of equipment which occur at critical links in the production chain. Such breakdowns are always likely in the context of a small mine operating in a harsh environment. To the greatest reasonable extent possible, a degree of redundancy should be designed into the provision of equipment as well as the mine plan itself. Thus, for example, rather than purchase a single 30-t haulage truck, it may be better to purchase, say, two 15-t trucks. This will increase capital expenditure but at the long-term gain of more uniform production.

More than one working face. Mining in the Pomona concession is characterised by a large number of relatively small mining areas (including former dumps) each of which has a distinct character in terms of diamond grade and value. Production, both in terms of caratage and revenue, can therefore vary very substantially from time to time even if the volume of material being processed is uniform. In such circumstances it is good practice to source production from a number of areas at the same time, thus reducing overall variability in revenue. Such an approach leads to easier overall management of the mine. It is therefore considered that Sonnberg should plan to have three or four areas in production at any one time.

Make of equipment. Currently Sonnberg, through inheritance and occasional purchase, has a range of different makes of equipment Caterpillar, Bell, Fiat-Hitachi, etc. It will represent a significant saving in spare part and maintenance costs to use a single make of equipment, to the greatest extent possible. Therefore over a period of time, through necessary new purchases, Sonnberg should begin to consolidate its equipment on a chosen limited number of makes.

Wet vs dry processing. The current Sonnberg processing plant is essentially dry with the exception of the final concentrate production in the Pleitz jigs. Dry processing of gravels is typically more inefficient that wet processing and results in a much poorer diamond recovery. Certain of the diamond-bearing material in the concession is also damp and tends to blind dry screens. In the past this material was treated by Sonnberg using a diamond pan plant. Overall, there are clear advantages to Sonnberg in establishing a wet process plant.

Stockpiles. Running of a plant at or near its capacity on a small mine is made much easier where a stockpile or stockpiles are operated at the plant. This means that down-time in mining or haulage does not have the immediate effect of bringing production to a stand-still. Similarly mining can still proceed during down-time at a plant. Stockpiles for each mining area in production should therefore be established in the immediate vicinity of the plant.

Realism in the capacity of a small mine. For a range of reasons small mines productivity is normally less than in large mines. It is therefore necessary to be realistic as to the likely rate of working at a small mine. The present programme therefore has been designed so as not to attempt to make maximum utilisation of either time or equipment.

Tokyo - 22 Dec 2004 10:46 - 42 of 94

2. TYPE AND NATURE OF DIAMOND DEPOSITS IN CONCESSION.


2.1 TYPE OF DEPOSITS.

The geological occurrence of the diamond deposits present within the Pomona concession has been described previously (Sutherland, 2003). In summary, diamonds are known to be present in the following types of deposits.

Untouched original in-place deposits;

Areas previously mined but where there is a thin veneer of material resting on bedrock which requires mining by bedrock sweeping or scraping;

Areas previously mined that are covered by the waste material left following dry field screening of the original deposit;

Tailings dumps.

Table 1 summarises the volumes of diamond-bearing material that are presently estimated to be in each type of deposit. A more detailed breakdown of their estimated diamond content is given in Sutherland (2003) and a summary is included in Section 3 of this report.

Table 1: Volumes of diamond-bearing material identified in the Pomona concession.

Type of deposit Volume(m3)

In-place deposits 630,000
Bedrock sweeping deposits 36,000
Previously mined areas (resampled) 36,000
Previously mined areas (unsampled) 1,166,000 1,273,000
Tailings dumps 743,000

Total 2,611,000 2,718,000


2.2 NATURE OF THE DEPOSITS.

The undisturbed diamond deposits in the Pomona concession almost everywhere consist of a loose gravely sand resting directly on the valley-bottom bedrock surface. In certain valleys there are carbonate-cemented horizons within the diamond-bearing sediments. In valleys that have been previously mined, the diamond-bearing material consists of waste from in situ dry sieving whereby the over- (+8 mm) and under-size (-1.6 mm) material rests on the valley floor in a series of small, roughly conical mounds. These mounds consist of loose, gravely sand or sandy gravel. From the point of view of mining, there is little to distinguish such material from the undisturbed deposits.

2.2.1 Sediments.

No significant overburden occurs and the full thickness of sediment resting on bedrock is targeted for excavation. In certain locations it may be advantageous to bulldoze the upper approximately 10 cm of sandy material, particularly where it consists of small dunes gathered around vegetation tussocks. This both removes an essentially barren layer of mobile fine to medium sand and reduces the amount of vegetation passed to the screening plants. Where abundant such vegetation can reduce the effectiveness of the screening process.

The deposits are essentially thin sheets whose dimensions in plan are one to two orders of magnitude greater than their thickness. Average deposit thicknesses range from less than 5 cm to a maximum of 1.27 m. Maximum deposit thickness ranges up to around 2.5 m but thicknesses over 1.5 m are quite localised. Figure 1 shows the frequency of the average and maximum sediment thicknesses for the deposits identified as containing diamond resources in Sutherland (2003).

Figure 1: Histograms of average and maximum sediment thickness in the diamond bearing deposits of the Pomona concession.


2.2.2 Bedrock surface

The nature of the bedrock surfaces on which the deposits rest largely reflects the lithology and structure of the underlying rocks which can be categorised as three principal types (Sutherland, 2003) granite gneisses, clastic metasediments and chemical metasediments. Much less frequent are the occasional igneous intrusions encountered although these can present locally sharp relief features. Weathering-resistant silicified sediments are also occasionally present on the tops of a number of hills. Such flat-topped hills can be a prominent part of the local scenery but have only a minor relationship to the diamond deposits.

Three broad hardness characteristics for the bedrock can be identified and these are related to the bedrock lithologies (Table 2).

Table 2: Relationship between exposed bedrock hardness and bedrock lithology.

Hard, unweathered to lightly weathered Firm, weathered Soft, decomposed
Granite gneiss Yes Yes
Clastic metasediments Yes Yes
Chemical metasediments Yes


Underlying the deposits on the valley floors the bedrock relief is generally gentle. Locally, however, moderate to high relief elements occur. The higher relief elements, which may locally acts as traps for diamonds and also pose difficulties for excavation are a consequence of the following factors (Table 3).

Table 3: Causes of higher relief elements in different rock types in the Pomona concession.

Cause of relief elements Granite gneiss Clastic metsediments Chemical metasediments

Differential weathering of joints Yes
Differential erosion or weathering of strata Yes Yes
Differential erosion of intrusive rocks Yes Yes Yes
Fluvial erosion of bedrock (minor and moderate sized channels) Yes Yes
Aeolian erosion of bedrock Yes Yes Yes


The distribution of the various bedrock relief elements has not been systematically mapped in the concession. However, it may be stated that the relief elements caused by intrusive rocks and both fluvial and aeolian erosion are essentially local. The differential weathering of the joints in the granite gneisses appears to form areas with dimensions of some tens of metres of higher relief. Erosion or weathering of strata, particularly in the areas underlain by clastic metasediments can, however, be areally extensive. Such bedrock relief is widely found, for example through Hexenkessel. In such areas it creates a significant difficulty to mining and ensuring that the bedrock surface is cleared of all diamond-bearing material.


2.3 DIAMOND CONTENT.

The Pomona area was made famous by the diamond concentrations on the ground surface from which diamonds were picked up by hand. However, the remaining deposits are much lower in grade and have diamonds distributed throughout the greater part of the thickness of sediment present. There is some evidence for diamond distribution within the deposits being affected by the specific processes such as ephemeral stream activities or aeolian activity by which the deposits were formed or modified. However, the typically very thin sediments militate against any attempt to selectively mine the deposits in a vertical sense. Deposits are sub-divided in plan, but in almost all areas encountered the full thickness of sediment present must be regarded as diamond-bearing from a practical mining point of view.
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