The following is an update on the progress of the company’s operations in the Koichab prospect of its Luderitz Bay concession in Namibia.
During the build-up phase of production, the NamSSol is being deployed on
the margin of an extensive high-grade deposit in thin sediment layers of
approximately one – two metres. Production to date has yielded an average
diamond size of 0.45 carats with the largest stone weighing 2.83 carats. This
compares favourably with the previously reported average size of 0.37 carats.
The average grade of the area mined to date is consistent with the results of
the sampling program. The diamonds are at least 95% gem quality. These
diamond sizes and grades are encouraging. Concentration during this early
phase of production remains on achieving targeted mining rates and cleaning
efficiencies.
During the last ten weeks of operating in Namibian waters, the NamSSol
has undergone rigorous testing of its pumping system, tracking ability and of
its launch and recovery system. Teething problems have been rectified,
operator familiarity has increased and the tool has recorded an upward trend
of operational hours on the ocean floor.
Operating conditions have shown that modifications are required to
enhance the NamSSol’s production controls and to speed the launch and recovery
cycle. MV Kovambo is scheduled to arrive in Cape Town on March 25 1998 for a
port call to effect modifications at a cost of approximately US$500,000. The
company’s cash position is US$5.6 million.
The company and SubSea Offshore Ltd are confident that mining time,
production rates and cleaning efficiency of the ocean bedrock will be
significantly enhanced following MV Kovambo’s port call. Full operational
capacity is expected to be achieved by the end of June.
