Namibia Critical Metals Advancing Gold, Base Metal and Vanadium Projects, Updates on Kunene Cobalt-Copper Drilling and Metallurgical Test Work
Press Release
Namibia Critical Metals Advancing Gold, Base Metal and
Vanadium Projects, Updates on Kunene Cobalt-Copper Drilling
and Metallurgical Test Work
• Airborne electromagnetic survey to be flown over Grootfontein mafic complex
targeting magmatic Ni-Cu and carbonate-hosted lead-zinc-vanadium deposits
• Favourable stratigraphy and structure for orogenic Otjikoto-type gold
deposits identified at Grootfontein and at Otjiwarongo; s oil sampling
completed at Otjiwarongo (results pending) and planned soil survey to follow
at Grootfontein
• Kunene Phase 1 drilling program completed; additional drilling required to
follow up and test remaining target areas
• Preliminary metallurgical test work indicates potential to significantly
upgrade Lofdal heavy rare earth s and Epembe tantalum -niobium
mineralization using XRF and XRT sorters
Halifax, Nova Scotia March 12, 2019 – Namibia Critical Metals Inc. (“Namibia Critical
Metals” or the “Company” or “NMI”) (TSXV:NMI) today provided an update on a number of
project activities from their diversified critical metals portfolio. The Company has received
further drill results from its Kunene cobalt -copper project and has initiated gold exploration
programs at the Otjiwarongo and Grootfontein projects. An airborne electromagnetic survey
has been contracted to SkyTEM Surveys ApS (“SkyTEM”) and is planned to be flown over the
Grootfontein mafic complex in April to assist in the detection of magmatic nickel -copper
sulphide mineralization as well as to explore for Mississippi Valley type lead -zinc-vanadium
deposits similar to the neighboring Berg Aukas Mine. The Company has also received
preliminary comments on results of metallurgical test work on mineralized samples from the
Area 4 heavy rare earth deposit at Lofdal and from the Epembe tantalum -niobium project
using XRT and XRF ore sorting technologies.
Don Burton, President stated “Exploration on the Kunene Co -Cu project has yielded
encouraging drill results for follow-up and a number of key targets remain to be tested.
However, given the ongoing low price of cobalt, management sees this is an opportune time
to re-focus exploration on other related commodities of interest such as gold, nickel, copper,
zinc and vanadium in our diversified critical metals portfolio. We will therefore allocate more
of our available resources to the Grootfontein and Otjiwarongo projects.”
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Grootfontein Project (Ni-Cu, Pb-Zn-V, Au)
Grootfontein is an early stage project which offers a number of opportunities for discovery of:
i) magmatic nickel-copper type deposits within the Grootfontein mafic complex;
ii) Mississippi Valley Type (“MVT”) carbonate hosted lead-zinc-vanadium deposits and
iii) gold deposits of the Otjikoto type where B2Gold has an operating 2.75 million
ounce gold mine.1
The entire area is poorly explored due to the extensive cover of Kalahari sands and calcrete.
The first two deposit types are ideal electromagnetic (“EM”) targets and the Company is
planning to fly the first airborne EM survey over the mafic complex at flight line spacing of
400 meters and over the Berg Aukas target area at a flight line spacing of 200 meters (Figure
1).
Figure 1 – Grootfontein Project area (EPL 6561 and EPL 5992) showing magnetic response from buried mafic
complex, location of the Berg Aukas mine to the north and magnetic anomalies in favourable structural setting and
stratigraphy to the south to be tested for gold potential. Planned airborne EM survey flight path showing varying
flight line spacings for different targets (flight lines over gold targets cover a strike length of 28 kilometers for scale)
Based on historic drill holes and airborne magnetic survey interpretations, Grootfontein
constitutes a huge mafic complex covering 360 km 2 with the potential to host magmatic
nickel, copper, vanadium, platinum group elements and chromite mineralisation as cumulates
or late magmatic disseminations and stockworks. Two shallow drill fences (total of 1,386 m)
were drilled by Anglo American in 1988 and more recent work by Ongopolo Mining proved
1 B2Gold disclosure (Company website) of Otjikoto Probable Reserves = 0.99M oz (19.5 Mt @ 1.57 g/t Au);
Indicated Resource = 1.51M oz (35.4 Mt @ 1.33 g/t Au); Inferred Resource = 0.25M oz (4.6 Mt @ 1.70 g/t Au)
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that the main intrusive phases are depleted in nickel and copper. The Company’s exploration
model therefore assumes that metals were likely fractionated as sulphides during the intrusive
phase, gravitationally accumulated in the magma and intruded in the adjacent, pre -existing
rocks.
Immediately north of the mafic complex t here is potential for Mississippi Valley Type lead-
zinc-vanadium mineralisation as evidenced by the Berg Aukas mine. Berg Aukas is a
dolostone-hosted deposit which according to historical records, produced 1.6 Mt of ore grading
4.0% Pb, 16.8% Zn and 0.9% V 2O5 during the period 1967-1975. The Grootfontein project
area hosts favourable stratigraphy for this deposit type immediately west of Berg Aukas.
The Damaran Gold B elt which hosts the Otjikoto gold deposit ( 2.75 million ounces gold ,
B2Gold) stretches over the southern half of the Grootfontein license block. The orogenic gold
mineralization is typically associated with hydrothermal alteration and pyrrhotite
mineralization which form magnetic anomalies. The Company has purchased and interpreted
200 meter line spacing magnetic survey data from the Geological Survey of Namibia. The
magnetic anomalies are interpreted to occur within the same stratigraphic and structural
setting which hosts the Otjikoto Gold Mine. This area is also completely covered and will be
explored using soil geochemical survey methods.
Otjiwarongo (F, Rare Earths, Au)
Otjiwarongo is another early stage conceptual target based on geophysical data. Circular
anomalies will be tested for potential minerali zations associated with alkaline intrusive
complexes such as niobium-tantalum, fluorspar and rare earths. Typical examples for these
mineralizations are the Okorusu fluorspar deposit and the rare earths minerali zation at the
Eisenberg complex. The circular anoma ly measures one kilometer in diameter and can be
easily tested by drilling to determine if in fact a carbonatite body is the source and what styles
of mineralization might be associated with it (fluorspar, rare earths, tantalum, niobium etc.).
The magnetic anomalies of interest at Otjiwarongo are also situated in favourable stratigraphy
and structural setting of the Damaran Gold Belt and may be associated with gold
mineralization similar to that at B2 Gold’s Otjikoto gold mine (Figure 2). As at Grootfontein ,
the area of interest is largely hidden by cover. The Company has already collected 925 soil
samples on a 200 x 100 meter grid over the key magnetic anomalies in the western portion
of the project area. Samples have been submitted to Activation Laboratories for multi-element
ICP and for gold fire assay analyses and results are pending.
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Figure 2 – Otjiwarongo Project area (EPL 5847) showing magnetic responses in favourable stratigraphy with
potential for Otjikoto-type mineralization. Circular magnetic features may also be related to alkaline intrusions similar
to the carbonatite complex which hosts the Okorusu fluorspar deposits. Imag e on right shows distinct magnetic
signature of B2Gold’s Otjikoto deposit.
Kunene Project (Co-Cu)
As was previously announced (Company press release dated December 18, 2018) drilling at
Kunene indicates the continuation of the Dolomite Ore Formation (“DOF”) which hosts the
Opuwo Co -Cu-Zn deposit which is under development by Celsius Resources Ltd., on to
Namibia Critical Metals’ land holdings. In addition to the Co -Cu horizons, two vanadium -
enriched horizons were intersected within the same stratigraphic sequence in the NMI drill
holes. Results from the first three reverse circulation holes on the Okanihova Central Target
were also previously reported and indicates widespread copper mineralization in the
sedimentary strata in the hanging wall of the Okanihova lineament . Additional results have
been received from five other target areas (Figure 3) and all drill results are now reported
(Table 1 and Table 2).
B2Gold’s Otjikoto Gold Mine has a distinctive
magnetic signature
Otjikoto
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Figure 3– Kunene Co-Cu Project Area showing drill target areas tested to date (white ovals) and remaining target
areas recommended for drilling (yellow ovals). NSM = no significant mineralization. Cobalt soil anomalies are shown
on SkyTEM airborne EM conductivity layer (Con13 = approximately 70 vertical meter depth) and satellite topography
image.
*Width is down-the-hole length in meters. True widths cannot yet be determined with
the available information
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*Width is down-the-hole length in meters. True widths cannot yet be determined with
the available information
All drill hole analyses were carried out under strict QAQC protocols including the insertion of
standards, blanks and duplicates. Sample preparation was carried out by Activation
Laboratories (Windhoek, Namibia) and ICP analyses with appropriate acid digestion s were
carried out by Activation Laboratories (Ancaster, Canada).
The Phase 1 drilling program has tested seven target areas with a total of 1,481 meters of
diamond drilling in 8 holes, and 4, 283 meters of reverse circulation drilling with 19 holes.
Significant results requiring additional drilling were realized at DOF East (DOF Extension
target), at Okanihova Central, at Malachite Mountain and at Malachite Mountain North. No
significant mineralization was intersected at Okanihova Southwest, Olulilwa or at DOF West
(DOF Extension target).
Further work at Kunene is required to follow up on:
• the DOF mineralization (Co-Cu) intersected at DOF East (Table 1);
• vanadium-enriched horizons intersected at DOF East (Table 1);
• widespread copper mineralization over seven kilometers on the Okanihova Central
trend (Table 2) and
• widespread copper mineralization at Malachite Mountain (Table 2).
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The DOF and vanadium horizons require further testing along strike and down dip. The results
from drilling along the Okanihova lineament and at Malachite Mountain require further
evaluation in order to identify higher grade structures within the widespread low grade
mineralization encountered to date.
Remaining target areas (Figure 3) recommended for drilling are:
• Western magnetic and induced polarization (“IP”) anomalies;
• Northwestern sedimentary horizons delineated by airborne EM;
• Africa EM anomaly and
• Olulilwa Southwest EM anomaly
Lofdal and Epembe Metallurgical Test Work (Heavy Rare Earths and Ta-Nb)
The two most advanced projects in the Company’s portfolio are the Lofdal Heavy Rare Earth
Project and the Epembe Tantalum -Niobium Project. At Lofdal, a preliminary economic
assessment (“PEA”) was compl eted in 2014 and following completion of an environmental
impact assessment (“EIA”) in 2016 the project was provided with Environmental Clearance
Certificates from the Ministry of Environment and Tourism in 2017. Mineralization at the
deposit is dominated by xenotime which is highly enriched in heavy rare earths (most notably
terbium, dysprosium and yttrium). An application has been made for a mining licence which
remains pending.
Epembe hosts a well defined mineralized carbonatite dyke with over 11,000 m of drilling and
preliminary metallurgical studies completed to investigate processing options for the mineral
pyrochlore which hosts the tantalum-niobium-uranium-phosphate mineralization.
The Company has allocated a modest budget to focus on maximizing efficiencies of ore sorting
technologies to which both the xenotime and pyrochlore mineralizations are amenable.
Upfront sorting can provide significant benefits to operating and capital c osts by eliminating
internal waste from run-of-mine feed (“ROM”) thereby minimizing volumes to milling and
downstream chemical processing. The Lofdal PEA incorporated x-ray transmission (“XRT”)
sorting into the beneficiation flowsheet and made recommendati ons that x-ray fluorescence
(“XRF”) sorting be investigated as a further means of upgrading the ROM. Preliminary
investigations into the amenability of Epembe tantalum-niobium to XRT and XRF were also
positive.
In order to efficiently evaluate the sorting technologies, bulk samples were taken from both
deposits and first stage testing of selected particles at various size and grade ranges has been
completed (Figure 4). This data is needed to develop the sorting algorithms that will be used
in the bulk sample tests. The bulk samples (18 tonnes from Lofdal and 25 tonnes from
Epembe) have been delivered to the Light Deep Earth test facility in South Africa and sorter
tests will be conducted by Mentanza Metallurgical Laboratories using a Rados XRF sorter and
by IMS Engineering using a Steinert XRT sorter.
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Figure 4 – a) Rados XRF particle test unit with XRF analyser in lid can test static or multiple particles on rotating
disk at speeds to simulate full scale unit belt speeds b) rotating disk loaded with individual particles for analysis c)
Steinert XRT unit at IMS Engineering facility in Johannesburg also used for NMI particle tests
Results from the Rados XRF particle tests have concluded that both deposits are amenable to
full scale sorting and have recommended that algorithms be developed for Lofdal using
yttrium, iron, calcium and thorium, and for Epembe using niobium and iron. Previous test
work with Tomra Sorting Solutions in Germany confirmed the amenability of both Lofdal and
Epembe to upgrading with XRT sorting and the current test work with IMS will compare
efficiencies with Steinert XRT machines. The bulk samples will be coarse crushed and screened
to appropriate size limits for the respective machines by Light Deep Earth , pending delivery
to Mentanza and IMS for bulk sample testing.
Donald M. Bu rton, P.Geo. and President of Namibia Critical Metals Inc., is the Company’s
Qualified Person and has reviewed and approved this press release.
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 industr ies. The common
shares of Namibia Critical Metals Inc. trade on the TSX Venture Exchange under the symbol
“NMI”.
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.
Don Burton, 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 Rare Earths 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.
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