Namibia Critical Metals Commences Final In-Fill Drilling for the Expanded “Lofdal 2B-4” Heavy Rare Earth Project
Press Release
Namibia Critical Metals Commences Final In-Fill Drilling for the
Expanded “Lofdal 2B-4” Heavy Rare Earth Project
Halifax, Nova Scotia January 31, 2023 – Namibia Critical Metals Inc. (“Namibia Critical
Metals” or the “Company” or “NMI”) (TSXV: NMI OTCQ: NMREF) is pleased to announce that
it has commenced resource in-fill drilling as part of the Pre -Feasibility Study (PFS) at the
significantly expanded “Lofdal 2B-4” Heavy Rare Earth Project.
A final drill program was worked out by the Company with support by The MSA Group to
increase the level of resource categories as required for the PFS for the expanded project
“Lofdal 2B-4”. Phase 1 of the resource drilling campaign has commenced at the end of January
2023 and aims at drilling of 35 RC holes for a total of 4,930 m in Area 4 until mid-March 2023.
A Phase 2 campaign of 4 RC holes of 310 m length each is planned to conclude RC drilling for
PFS by end of March 2023.
Four in-fill boreholes are planned at Area 2B to obtain samples across the planned pit “2B”
for variability test work at SGS Lakefield. Variability tests will conclude metallurgical test work
to conduct flotation and hydrometallurgical processing on pilot plant scale.
Further, the Company completed a geotechnical drilling campaign on 15th December 2022. A
total of 7 holes for 1,326 m was drilled in the hanging walls of the planned pits “2B” and “4”
to take samples for geotechnical testing. The geotechnical studies are contracted to SRK
Consulting (South Africa) (Pty) Ltd. in Johannesburg and are planned to be completed by end
of March 2023.
The Lofdal deposit has the potential for significant production of dysprosium and terbium, two
of the most valuable heavy rare earth elements , and is targeting to become a long term,
sustainable supply of heavy rare earths.
Darrin Campbell, President of Namibia Critical Metals stated:
“Our team is excited to get back to drilling at Lofdal after our incredibly successful 2020 drill
campaign which delivered a six-fold increase to our maiden resource. The goal of this drill
campaign is to move more of the established resource to the measured and indicated
categories for our Pre-Feasibility Study “2B-4” which is under way. Over the next few months,
we will also be evaluating ramping up production from 2 million tonnes TREO per annum run-
of mine in the current PEA “2B-4” to 3 million tonnes.
I expect the next year to be one of the most impactful periods in our corporate development
as we continue to accelerate pilot plant testing through feasibility to production.”
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About Namibia Critical Metals Inc.
NMI is developing the Tier-1 Heavy Rare Earth Project, Lofdal , a globally significant deposit
of the heavy rare earth metals dysprosium and terbium. Demand for these critical metals
used in permanent magnets for electric vehicles, wind turbines and other electronics is driven
by innovations linked to energy and technology transformations. The geopolitical risks
associated with sourcing many of these metals has become a repeated concern for
manufacturers and end users. Namibia is a proven and stable mining jurisdiction.
The Lofdal Project is fully permitted with a 25-year Mining License and is under a Joint Venture
Agreement with Japan Organization for Metals and Energy Security (JOGMEC).
The Company filed a robust updated PEA for “Lofdal 2B -4” on November 14, 2022, with a
post-tax NPV of USD$ 391 million and an annual IRR of 28% with a capital expenditure of
USD$207 million. The project is projected to generate a life of mine nominal cash flow of
USD$699 million post-tax over a 16-year mine life.
About Japan Organization for Metals and Energy Security (JOGMEC) and the JV
JOGMEC is a Japanese government independent administrative agency which seeks to secure
stable resource supplies for Japan. JOGMEC has a strong reputation as a long term, strategic
partner in mineral projects globally. 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 Earth s
metals suite to the Japanese industry.
Namibia Critical Metals owns a 95% interest in the Lofdal project with the remaining 5% held
for the benefit of historically disadvantaged Namibians. The terms of the JOGMEC joint
venture agreement with the Company stipulate that JOGMEC provides C$3,000,000 in Term
1 and C$7,000,000 in Term 2 to earn a 40% interest in the Lofdal project. Term 3 calls for a
further C$10,000,000 of expenditures to earn an additional 10% interest. JOGMEC can also
purchase another 1% for C$5,000,000 and has first right of refus al 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 26% carried working interest upon payment of C$5,000,000 to JOGMEC for the dilution
protection. To date, JOGMEC, has approved funding Term 1 and 2 expenditures totaling
C$8,875,000.
Other exploration projects : 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 the Twin Hills deposit. At the Erongo Gold Project, stratigraphic equivalents to the meta-
sediments hosting the Osino gold discovery at Twin Hills have been identified and exploration
is progressing over this highly prospective area. The Grootfontein Base Metal and Gold
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Project has potential for magmatic copper-nickel mineralization, Mississippi Valley-type zinc-
lead-vanadium mineralization and Otjikoto -style gold mineralization. Interpretation of
geophysical data and regional geochemical soil sampling have identified first gold targets.
Rainer Ellmies, PhD, MScGeol, EurGeol, AusIMM and Vice President of Namibia Critical Metals
Inc., is the Company’s Qualified Person and has reviewed and approved this press release.
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.
Darrin Campbell, President
Tel: +01 (902) 835-8760
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.