Lofdal Heavy Rare Earth Deposit: Earth works commenced on starter pit for pilot-scale phase
Press Release
Namibia Critical Metals Inc.
Lofdal Heavy Rare Earth Deposit: Earth works commenced on
starter pit for pilot-scale phase
Halifax, Nova Scotia September 20, 2021 – Namibia Critical Metals Inc. (“Namibia Critical
Metals” or the “Company” or “NMI”) (TSXV:NMI) is pleased to provide an update on the
development of the Lofdal Heavy Rare Earth project since granting of a Mining Licence in
July.
The Company has commenced earth works to develop a starter pit to a depth of about 15
metres at the Area 4 deposit. Mining activities are contracted to Gecko Mining (Pty) Ltd. and
blasting to Bulk Mining Explosives A total of 32,100 t ons of mineralized material will be
extracted, of which 8,300 t ons will be representative of fresh (unoxidized) mineralized
material from 10 to 15 m etre depth and will undergo pilot -scale test work for further
processing optimization.
The Lofdal heavy rare earth deposit is one of only two primary xenotime projects under
development in the world. The deposit has the potential for significant production of
dysprosium and terbium, the two most valuable rare earth elements used in high powered
magnets and other high-tech applications.
The Lofdal Project is being developed in joint venture with Japan Oil, Gas and Metals National
Corporation (“JOGMEC”) targeting a long term, sustainable supply of heavy rare earths to
Japan.
The Company is also pleased to announce that JOGMEC, has increased the project funding by
additional $437,000 bringing the Term 1 and 2 expenditures to date to $6,600,000.
Darrin Campbell, President of Namibia Critical Metals stated “We are incredibly pleased with
the rapid progress of the project after the grant of the Mining License in July. Moving into the
pilot-scale phase is yet another impressive milestone achieved in such a short period with our
JOGMEC partners. We believe that Lofdal will eventually be recognized as one of the top heavy
rare earths deposits of dysprosium and terbium in the western world.
Starter pit and pilot-scale test work
The Company has engaged highly experienced local mining contractor Gecko Mining (Pty) Ltd.
to develop the starter pit over a surface area of 120 m etres x 25 metres in the central part
of the Area 4 deposit (Figure 1). Hard rock blasting is subcontracted to the international
specialist group Bulk Mining Explosives (BME). The initial depth of 15 meter is planned to be
reached by the second week of October 2021.
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In total about 32,100 tons of mineralized material hosted by eight mining blocks of the current
mine model will be extracted of which two blocks with about 8,300 tons are fresh mineralized
material. This fresh mineralized material is regarded as representative for the expected typical
run-of-mine below oxidation level of the entire Lofdal deposit. The starter pit entails mining
of about 10,000 tons of waste rock from the hanging wall.
Figure 2: Ground-breaking at Lofdal Mine
Figure 1: Location and outline of the Lofdal Area 4 starter pit
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Gecko Mining (Pty) Ltd. is also contracted to crush and screen the fresh mineralized material.
Sub-samples will be shipped for pilot-scale test work including XRF sorting at Rados South
Africa, XRT and multi -sensor sorting at Tomra Hamburg, and for lab -scale magnetic
separation and flotation tests at SGS Canada. Planned test work is designed based on the
results of the current lab-scale processing test programs by the above companies to further
optimize the key processing steps while operating with industrial scale processes.
Figure 3: "Free-digging" - soft material is excavated to 1.5 m (left) and an additional 0.5-1 m is removed after mechanical rock
breaking (right)
Figure 4: Stockpiling of oxidized ore
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About Japan Oil, Gas and Metals National Corporation (JOGMEC)
JOGMEC is a Japanese government independent administrative agency which among other
things seeks to secure stable resource supplies for Japan. JOGMEC has a strong reputation as
a long term, strategic partner in mineral projects globally. The mandated areas of
responsibilities within JOGMEC relate to oil and natural gas, metals, coal and geothermal
energy. JOGMEC facilitates opportunities with Japanese private companies to secure supplies
of natural resources for the benefit of the country’s economic development.
Rare earths are of critical importance to Japanese industrial interests and JOGMEC has
extensive experience with all aspects of the sector. JOGMEC provided Lynas with
US$250,000,000 in loans and equity in 2011 to ensure supplies of the Light Rare Earths
metals suite to the Japanese industry.
The Company currently owns a 95% interest in the Lofdal project with the remaining 5% held
for the benefit of historically disadvanta ged Namibians. The terms of the JOGMEC joint
venture agreement with the Company stipulate that JOGMEC provides $3,000,000 in Term 1
and $7,000,000 in Term 2 to earn a 40% interest in the Lofdal project. Term 3 calls for a
further $10,000,000 of expenditures to earn an additional 10% interest. JOGMEC can also
purchase another 1% for $ 5,000,000 and has first right of refusal to fully fund the project
through to commercial production and to purchase all production at market prices. The
collective interests of NMI and historically disadvantaged Namibians cannot be diluted below
a 2 6% carr ied working interest upon payment of $5,000,000 to JOGMEC for the dilution
protection. The JV Agreement is structured such that no NMI equity will be issued and it is
totally non -dilutive to NMI shareholders. To date, JOGMEC, has funded Term 1 and 2
expenditures totaling $6,600,000.
About Namibia Critical Metals Inc.
Namibia Critical Metals Inc. holds a diversified portfolio of exploration and advanced stage
projects in the country of Namibia focused on the development of sustainable and ethical
sources of metals for the battery, electric vehicle and associated industries. The two advanced
stage projects in the portfolio are Lofdal and Epembe. The Company also holds significant
land positions in areas favourable for gold mineralization.
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Figure 5: Location of Namibia Critical Metals’ projects highlighting position of gold projects (Erongo, Otjiwarongo and
Grootfontein) in relation to important gold projects within the Navachab-Otjikoto gold belt
Heavy Rare Earths: The Lofdal Dysprosium-Terbium Project is the Company’s most
advanced project being fully permitted with a Mining Licence (ML 200) and Environmental
Clearance Certificate (ECC) issued in 2021. The project is being developed in joint venture
with Japan Oil, Gas and Metals National Corporat ion (“JOGMEC”) to provide a sustainable
supply of heavy rare earths to Japan, most notably dysprosium and terbium.
Gold: The Company’s Exclusive Prospecting Licenses (“EPLs”) prospective for gold are located
in the Central Namibian Gold Belt which hosts a number of significant orogenic gold deposits
including the Navachab Gold Mine, the Otjikoto Gold Mine and more recently the discovery of
the Twin Hills deposit. At the Erongo Gold Project, stratigraphic equivalents to the meta-
sediments hosting the recent Osino gold discovery at Twin Hills have been identified and soil
surveys are progressing over this highly prospective are a. The Grootfontein Base Metal
and Gold Project has potential for magmatic copper-nickel mineralization, Mississippi Valley-
type zinc-lead-vanadium mineralization and Otjikoto -style gold mineralization. Detailed
interpretation of geophysical data and regional geochemical soil sampling have identified first
gold targets, with the first targets being drill-tested.
Tantalum-Niobium: The Epembe Tantalum -Niobium-Uranium Project is at an
advanced stage with a well-defined, 10 km long carbonatite dyke that has been delineated by
detailed mapping and radiometric surveys and over 11,000 meters of drilling. Preliminary
mineralogical and metallurgical studies including sorting tests (XRT), indicate the potential for
significant physical upgrading. Further work will be undertaken to advance the project to a
preliminary economic assessment stage.
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Copper-Cobalt: The Kunene Co pper-Cobalt Project comprises a very large area of
favorable str atigraphy along strike of the Opuwo cobalt-copper-zinc deposit. Secondary
copper mineralization over a wide area points to preliminary evidence of a regional -scale
hydrothermal system. Exploration targets on EPLs held in the Kunene project comprise direct
extensions of the cobalt-copper mineralization to the west, sediment-hosted copper, orogenic
copper, and stratabound manganese and zinc-lead mineralization.
The common shares of Namibia Critical Metals Inc. trade on the TSX Venture Exchange under
the symbol “NMI”.
Donald M. Burton, P.Geo. is the Company’s Qualified Person and has reviewed and approved
the scientific and technical information in this press release.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term
is defined in the policies of the TSX Venture Exchange) accepts responsibility for the
adequacy or accuracy of this release.
For more information please contact -
Namibia Critical Metals Inc.
Darrin Campbell, President
Tel: +01 (902) 835-8760
Fax: +01 (902) 835-8761
Email: [email protected]
Web site: www.NamibiaCriticalMetals.com
The foregoing information may contain forward -looking information relating to the future performance of Namibia Critical Metals Inc. forward-
looking information, specifically, that concerning future performance, is subject to certain risks and uncertainties, and actual results may differ
materially. These risks and uncertainties are detailed from time to time in the Company's filings with the appropriate securities commissions.