Namibia Critical Metals Provides Update on Erongo Gold Project
Press Release
Namibia Critical Metals Provides Update on Erongo Gold Project
• Erongo gold project covers 606 km2 in the Navachab -Otjikoto gold belt in
proximity to Osino Resources Twin Hills gold discovery
• Priority target area underlain by favourable stratigraphy and structures
identified at Twin Hills
• Soil geochemical survey has collected 2,500 samples covering 30% of priority
target area, analyses pending; additional sampling planned
• Company continues to monitor and manage Namibian responses to Covid-19
and announces planned changes in senior management
Halifax, N ova Scotia March 26, 2020 – Namibia Critical Metals Inc. (“Namibia Critical
Metals” or the “Company”) (TSXV:NMI) today provided an update on progress of exploration
on its Erongo Gold Project (EPL 6440 ”Erongo”) located near the town of Karibib in central
Namibia. Erongo is one of three prospective gold projects in the company’s portfolio within
the emerging gold belt which hosts the Navachab and Otjikoto gold mines (Figure 1). The
Company is undertaking a regional geochemical soil survey at Erongo to assess the potential
for the discovery of orogenic/hydrothermal gold deposits similar to the nearby Navachab Gold
Mine which is operated by QKR and the Twin Hills discovery of Osino Resources Corp.
(“Osino”).
The Erongo Gold Project comprises 606 square kilometers situated 20 kilometers north of the
Navachab gold mine and 10 kilometers northwest of the Twin Hills discovery (Figure 2). The
project area is centered on the Erongo granitic intrusive complex which was emplaced into
the older metasedimentary rocks of the Damaran orogeny which host the gold mineralization
of interest at Navachab, Twin Hills and at the Otjikoto gold mine operated by B2 Gold which
is located 230 kilometers to the northeast.
Don Burton, President of Namibia Critical Metals stated “Most investor attention is
understandably focused on our heavy rare earth project at Lofdal where we have recently
entered into a joint venture with the Japan Oil, Gas and Metals National Corporation
(“JOGMEC”). However, an important aspect of the Company’s ass ets lies in the diversity of
the commodities within our portfolio. Given the increasing recognition of the significance of
Namibia’s emerging gold belt, it is an appropriate moment to direct more attention to the gold
potential in our Erongo, Otjiwarongo and Grootfontein projects.”
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Erongo Gold Exploration Program
The area of interest at Erongo lies along the northern limb of the Krantzberg anticline and is
underlain by metasedimentary rocks equivalent to the stratigraphy noted on the southern
limb of the anticline at Twin Hills, with associated structural features defined by airborne
magnetics (Figure 2). The area is largely covered by aeolian sands and/or calcrete with very
little outcrop. As Osino has successfully demonstrated, gold mineralization can be detected
by surficial geochemical sampling (soils and calcrete) in this environment. The discovery at
Twin Hills was announced in August 2019 (Osino Res ources company press release August
26, 2019) and Osino is working towards development of a maiden resource estimate as part
of a 20,000 meter drill program.
The Company has collected 2,500 soil samples to date on a systematic grid with a line spacing
of 200 meters and sample spacing of 100 meters over the central sector of the priority area
(Figure 2). These samples cover roughly 30% of the area of interest. Samples will be sieved
and analyzed by handheld XRF over the next 3-4 weeks prior to submission for gold analysis.
Selected samples will then be analyzed for gold using low level detection limits (down to 0.2
ppb Au) to define areas of interest. Results from gold analyzes are therefore expected in mid-
May and continuing sample coverage is planned to progress to the south.
Impact of Covid-19 to Operations
The Company continues to closely monitor recommendations from Namibian health
authorities and the World Health Organization concerning the mitigation of the Covid-19
pandemic. Current restrictions by the Namibian health authorities are being respected with
regards to operations in the Khomas and Erongo Regions (encompassing the Windhoek-
Swakopmund corridor) where travel restrictions have been implemented. This has affected
continued field activity at Erongo for the time being however operations at Lofdal in the
Kunene Region are continuing. The Company has completed the first four drill holes at
Lofdal and expects to report on first results in April.
Planned Changes in Management
The Company also announced today that Pine van Wyk will be stepping down as CEO of the
Company at the end of his current contract term on May 31, 2020. Donald Burton, the current
President of the Company will assume the responsibilities previously undertaken b y Mr. van
Wyk. Mr. van Wyk will be available to the Company on a consultancy basis after May 31 to
ensure a seamless transition of responsibilities.
Donald M. Burton, P.Geo. and President of Namibia Critical Metals Inc., is the Company’s
Qualified Person and has reviewed and approved this press release.
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Figure 1 – 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
Figure 2 – Erongo Gold Project (EPL 6440) showing area of priority soil sampling over meta-sediments on northern
flank of Krantzberg anticline. Twin Hills gold discovery in meta -sediments on southern flank of anticline. Airborne
magnetics in background is analytic signal response from government survey by Geological Survey of Namibia.
Twin Hills
Discovery
Gold occurrences from
government maps
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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 bat tery, electric vehicle and associated industries. The Company
also has significant land positions in areas favourable for gold mineralization.
The Lofdal Heavy Rare Earth Project is the Company’s most advanced project having
completed a Preliminary Econ omic Assessment in 2014 and full Environmental Impact
Assessment in 2017. An application has been made for a mining licence at Lofdal. The project
is now in joint venture with JOGMEC who are funding the current $3,000,000 drilling and
metallurgical program with the object of doubling the resource size and optimization of the
process flow sheet.
At the Erongo Gold Project, stratigraphic equivalents to the sediments hosting the recent
Osino gold discovery at Twin Hills have been identified but not yet sampled. Detailed soil
surveys are planned over this highly prospective area.
The Epembe Tantalum-Niobium Project is also at an advanced stage with a well-defined,
10 km long carbonatite dyke that has been delineated by detailed mapping with 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.
The Kunene Cobalt-Copper Project comprises a very large area of favorable stratigraphy
(“the DOF”) along strike to the west of the Opuwo Co -Cu-Zn 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 DOF style mineralization to the west, sediment -hosted cobalt and copper,
orogenic copper, and stratabound Mn and Zn-Pb mineralization.
Earlier stage projects include the Grootfontein Project which has potential for magmatic
Cu-Ni mineralization, Mississippi Valley -type Zn-Pb-V mineralization and Otjikoto -style gold
mineralization.
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.