Namibian starts new exploration program

Namibian Minerals’ new exploration vessel, MV Zacharias, has started

exploration of the company’s ocean diamond licences off the coast of Namibia.

The vessel has been chartered for five years and the program will

incorporate the new licence areas acquired in the takeover of Ocean Diamond

Mining last year.

Earlier this year, Namco completed geophysical and geotechnical surveys

in its three mining licences to create high-quality maps of the varying water

depths, ocean floor characteristics, and sediment composition and thickness.

Using the latest advances in survey technologies, 3-D pictures of the ocean

floor were produced, and a number of feature areas with diamond potential were

clearly identified, including old cliff and beach lines, terraces, and basins.

Following these surveys, Namco’s geologists identified 163 prospective

feature areas on the inner continental shelf (covering an area of 658 square kilometres)

out to 100 metres of water depth in Mining Licences 36, 51 and 103A. Of these,

65 target features (covering an area of 295 square kilometres) have been prioritized for

exploration in 2000 and 2001, primarily adjacent to the current mining areas

in Mining Licences 36 and 51. These extensions of Namco’s known resource areas

are considered highly prospective. To date, approximately 500,000 carats of

diamonds have been recovered from Mining Licence 51 and 250,000 carats

recovered from Mining Licence 36.

The company’s objective is to substantially increase its resource base

and to maintain sufficient resources in the measured and indicated categories

for at least two years future mining. As at Dec. 31, 1999, Namco’s total

estimated diamond resources were 3.7 million carats, consisting of 830,000 carats

of measured resources, 605,000 carats of indicated resources and 2.2 million

carats of inferred resources.

MV Zacharias is equipped with a range of exploration equipment including

the new drilling system developed with engineering group, Wirth, an airlift

sampling tool, a grab sampler and a vibrocore. These capabilities will provide

Namco with detailed information on each sample sites’ geology, diamond

mineralization and sediment structure. As well as providing representative

samples for resource calculations, this high-quality information will enhance

future mine planning.

The first 20 features to be sampled contain sediments of less than three

metres. Reconnaissance sampling has started using the airlift sampling tool

and vibrocore, with the objective of testing resource additions for the

existing airlift mining vessels. MV Zacharias is equipped with a dynamic

position system which allows highly accurate and rapid movement between sample

sites. The Wirth tool will be used for follow-up sampling and to test deeper

sediment extensions adjacent to current mining areas. During final preparation

of the vessel in Cape Town, the launch and recovery A-frame on board Zacharias

was damaged and repairs are currently being carried out. The phasing and

timing of exploration is not affected.

The capital cost for exploration incurred this year totalled $8.3-million

reflecting heavier expenditure on a new winch system for the 85-ton Wirth

tool and costs of a new processing plant. Annual operating costs are targeted

at $5-million (U.S.). The company expects to announce exploration results

quarterly.

“This is our first opportunity since 1996 to start continuous sampling,”

said Namco’s exploration director, Mike Woodborne. “We have identified a large

number of promising feature areas to build an expanding base of diamond

resources, which is important for our future growth.”