Namco shifts focus to Bakers Bay

Namibian Minerals (NMR-T) has recovered 1,007 diamonds totalling 362 carats from 189 samples (from 378 holes) during ongoing sampling on two of its marine concessions off the coast of Namibia.

On Mining Licence 51, sampling returned a total of 258 diamonds weighing in at 82.7 carats from Feature LBG 019, an ancient paleo-channel that has yielded some 400,000 carats. Feature LGB 018, immediately south, yielded 131 stones for 43.9 carats. In all, 74 of 103 samples taken contained diamonds.

The results confirm that mineralization extends for about 1.2 km south of the previously mined area in LBG019 and into LBG018, and that a well mineralized area hosted by thicker sediments in the central part of the channel is 200 metres wide and extends some 600 metres south of the previously mined area.

Further sampling on LBG 018 has been deferred, as Namco wants to concentrate on the Bakers Bay deposit, which it believes may represent a major new mining area.

About 110 km to the south at Mining Licence 36A, or Bakers Bay, sampling has concentrated on testing a broad sediment-filled basin some 4 km long and 300 to 600 metres wide. The basin has surrendered more than 60,000 carats to previous limited airlift mining by Namco and Ocean Diamond Mining.

Seventy-one of 86 samples derived from Features BBY005 and 006, two of three target areas on the licence, returned diamonds. Feature BBY005 returned 600 stones weighing 224.5 carats; 18 stones weighing 11 carats were harvested from Feature BBY006. The targets

The sampling program focused on basin measuring 4 km long and between 300 and 600 metres wide, and identified a continuously mineralized region over an 800 x 400 metre area.

Both licences are currently in production, and Namco notes that the average diamond size recovered during the recent sampling is greater than current production from Licence 51.

Namco also says that the Wirth drilling system onboard the MV Zacharias vessel has been performing satisfactorily in a variety of sediment types.

During the recent third quarter, Namco posted a US$940,000 (1 per share) loss, compared with a loss of US$$665,000 (1 per share) during the year-ago period. Cash flow from operations swung to the negative side to the tune of US$9 million during the recent quarter, compared with positive cash flow of US$1.7 million a year earlier. Direct production costs nearly doubled to US$8.2 million, from US$4.4 million, as the MV Ya Toivo vessel began production and vessel charter rates increased.