Ncmi Reports Final Assays FOR Infill Resource Drilling ON Lofdal Area 4 Dysprosium-Terbium Project IN Namibia, and Appoints Open Pit Specialist Qubeka FOR Detailed MINE Engineering and Design Study
Press Release
NCMI REPORTS FINAL ASSAYS FOR INFILL RESOURCE
DRILLING ON LOFDAL AREA 4 DYSPROSIUM-TERBIUM PROJECT
IN NAMIBIA, and APPOINTS OPEN PIT SPECIALIST QUBEKA
FOR DETAILED MINE ENGINEERING AND DESIGN STUDY
Halifax, Nova Scotia February 2, 2024 – Namibia Critical Metals Inc. (“Namibia Critical
Metals” or the “Company” or “NCMI”) (TSXV: NMI OTCQB: NMREF) is pleased to anno unce
that it received all laboratory assays of the RC drilling campaign for its PFS study on the large-
scale “Lofdal 2B-4” heavy rare earth project.
The final infill drilling campaign entailed 7 very deep (end of hole between 325 and 40 1
meters) reverse circulation boreholes for a total of 2,597 m in the Area 4 main deposit. Assays
were received from Actlabs, Canada. Highlights are:
• Continuation of the rare earth mineralization at depth was confirmed by all infill drill
holes in grade and width in accordance with the geological model.
• The last borehole drilled ( L4R0218) showed an increase in grade and width of the
heavy rare earth mineralization and confirmed that the rare earth mineralization is
open in southwesterly direction and at depth of the Area 4 main deposit.
• The Company appointed Qubeka, a Namibian consultancy specialised in surface mine
planning and engineering to develop the mine model and schedule for the planned
Lofdal mines “2B pit” and “4 pit”. Qubeka is highly recognized and produced mine plans
and engineering solutions e.g. for QKR’s Navachab, B2Gold’s Otjikoto and Osino’s Twin
Hill gold mines.
Darrin Campbell, President of Namibia Critical Metals stated:
“Another important milestone was reached, and I am very pleased to see the boxes
systematically getting ticked for the PFS of our expanded project “Lofdal 2B-4”. With the drill
data already at The MSA Group I’m looking forward to an updated Mineral Resource Statement
towards the end of February this year, and a kick-off of the detailed mine planning for both,
the planned Area 4 and Area 2B pits by the internationally highly recognized Namibian
consultancy Qubeka.”
1“TREO” refers to total rare earth oxides plus yttrium oxide; “HREO” refers to heavy rare earth oxides plus yttrium oxide; “hea vy
rare earths” as used in all Company presentations comprise europium (Eu), gadolinium (Gd), terbium (Tb), dysprosium (Dy),
holmium (Ho), erbium (Er), thulium (Tm), ytterbium (Yb), lutetium (Lu) and yttrium (Y). Light rare earths comprise lanthanum
(La), cerium (Ce), praseodymium (Pr), neodymium (Nd) and samarium (Sm).
Final infill drilling program at Area 4 deposit
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”. Resource infill drilling was completed in November 2023.
The drilling campaign entailed 7 boreholes with the cost-efficient reverse circulation (RC)
method. In total of 2,597 meters were drilled with the deepest borehole reaching a depth of
401 m.
Logging of the drill core confirmed the geological model of structural zones acting as fluid
channels and controlling intensity, pinching and swelling as well as splaying of the wide
mineralized zones.
Mineralized intercepts are summarized in Table 1. The intercepts were generally selected
based on an assumed cut-off of 0.1% TREO1 as previously used in the PEA “Lofdal 2B-4” (see
press release on 14 Nov 2022).
The intercepts partly include a significant number of samples with <0.1% TREO in order to
reflect the width of the mineralized zone potentially forming consecutive ore blocks (see
sections in Figures 2 to 8) in a large -scale open pit operation. By including lower grade
mineralization, the combined mineralized intervals may reach more than 100 m length in total
as for example in borehole L4R0218 with 7 mineralized intercepts with a combined length of
127 m between 95 m and 391 m depth (for details see Table 1).
Figure 1: Location of final seven drill collars for deep infill drilling at Area 4 and indication of the
sections in the following figures
3
Sampling, analysis and QAQC
1234 samples of average 1.8 kg per sample were collected at the drill rig’s cyclone (“A -
sample”) and submitted to Actlab’s preparatory laboratory in Windhoek, Namibia, in batches
of 200 to 300 samples. The samples were dried and crushed to 2 mm, split using a riffle
splitter and pulverised to 105 µm. Pulverised sub-samples were homogenised in a stainless -
steel riffle splitter and a 15 g sample and duplicate were drawn for analysis. The pulverised
sample aliquots were shipped to the ISO/IEC 17025 accredited Actlabs analytical facility in
Ancaster, Ontario, Canada. The samples were assayed using lithium metaborate-tetraborate
fusion and Inductively Coupled Plasma Mass Spectrometry (ICP-MS). Actlab’s analytical code
“8-REE” includes 45 trace elements, 10 major oxides, Loss on Ignition, and mass balance.
The samples were subjected to a quality assurance and quality control (QAQC) program
consisting of the insertion of blank samples, field duplicates and certified reference materials
at Lofdal and the preparation of a laboratory duplicate at the sample preparation facility in
Windhoek.
The Qualified Person , Dr Scott Swinden, is satisfied that the assay results are of sufficient
accuracy and precision for use in the future update of the Mineral Resource Estimation.
Figure 2: Section through the central part of Area 4 (location see on Figure 1) indicating the
mineralised intervals by display of TREO1 grades (grey bars) and Dy2O3 (color bands)
1“TREO” refers to total rare earth oxides plus yttrium oxide; “HREO” refers to heavy rare earth oxides plus yttrium oxide; “hea vy
rare earths” as used in all Company presentations comprise europium (Eu), gadolinium (Gd), terbium (Tb), dysprosium (Dy),
holmium (Ho), erbium (Er), thulium (Tm), ytterbium (Yb), lutetium (Lu) and yttrium (Y). Light rare earths comprise lanthanum
(La), cerium (Ce), praseodymium (Pr), neodymium (Nd) and samarium (Sm).
Figure 3: Section through the central part of Area 4 (location see on Figure 1) indicating the
mineralised intervals by display of TREO1 grades (grey bars) and Dy2O3 (color bands)
Figure 4: Section through the central part of Area 4 (location see on Figure 1) indicating the
mineralised intervals by display of TREO1 grades (grey bars) and Dy2O3 (color bands)
5
Figure 6: Section through the central-western part of Area 4 (location see on Figure 1) indicating
the mineralised intervals by display of TREO1 grades (grey bars) and Dy2O3 (color bands)
Figure 5: Section through the central-western part of Area 4 (location see on Figure 1) indicating
the mineralised intervals by display of TREO1 grades (grey bars) and Dy2O3 (color bands)
1“TREO” refers to total rare earth oxides plus yttrium oxide; “HREO” refers to heavy rare earth oxides plus yttrium oxide; “hea vy
rare earths” as used in all Company presentations comprise europium (Eu), gadolinium (Gd), terbium (Tb), dysprosium (Dy),
holmium (Ho), erbium (Er), thulium (Tm), ytterbium (Yb), lutetium (Lu) and yttrium (Y). Light rare earths comprise lanthanum
(La), cerium (Ce), praseodymium (Pr), neodymium (Nd) and samarium (Sm).
Figure 7: Section through the western part of Area 4 (location see on Figure 1) indicating the
mineralised intervals by display of TREO1 grades (grey bars) and Dy2O3 (color bands)
Figure 8: Section through the western part of Area 4 (location see on Figure 1) indicating the
mineralised intervals by display of TREO1 grades (grey bars) and Dy2O3 (color bands)
7
Table 1: Summary of mineralized intervals of the final RC infill drilling program at Lofdal Area 4
Hole ID X Y Z Hole inclination Hole azimuth From To Length TREO* HREO** Dy2O3
(°) (°TN) (m) (m) (m) % % ppm
L4R0212 470701 7753246 960 -75 345
134 136 2 0,40 0,06 54
and 236 250 14 0,25 0,22 213
including 240 247 7 0,40 0,38 366
and 270 300 30 0,16 0,05 45
L4R0213 470649 7753230 960 -70 345
51 53 2 0,30 0,05 52
and 112 114 2 0,54 0,05 47
and 234 241 7 0,24 0,09 86
and 252 279 27 0,16 0,07 64
including 277 279 2 0,34 0,28 264
and 288 331 43 0,15 0,10 100
including 289 293 4 0,25 0,21 210
L4R0214 470592 7753255 959 -75 345
and 21 23 2 0,61 0,12 114
and 174 179 5 0,21 0,07 67
and 221 227 6 0,51 0,47 427
and 272 274 2 0,14 0,09 77
and 282 317 35 0,17 0,07 64
including 288 291 3 0,47 0,12 108
and including 295 297 2 0,51 0,13 137
L4R0215 470369 7753124 964 -70 345
59 60 1 0,19 0,11 124
and 180 205 25 0,21 0,05 46
and 224 225 1 0,31 0,06 68
and 240 241 1 0,32 0,07 66
and 257 269 12 0,12 0,06 54
including 259 261 2 0,19 0,14 121
and 331 385 54 0,13 0,05 49
L4R0216 470262 7753124 966 -70 345
12 16 4 0,45 0,11 118
including 13 15 2 0,74 0,17 192
and 164 169 5 0,18 0,05 42
and 227 231 4 0,10 0,05 48
and 233 280 47 0,19 0,09 88
including 246 253 7 0,31 0,15 147
L4R0217 470168 7753087 969 -75 345
16 19 3 0,57 0,11 121
and 178 180 2 0,49 0,05 51
and 222 225 3 0,14 0,08 78
and 275 277 2 0,12 0,08 84
and 289 291 2 0,25 0,09 97
and 312 315 3 0,31 0,04 45
and 318 320 2 0,21 0,05 46
and 325 341 16 0,16 0,05 52
and 347 359 12 0,29 0,03 35
L4R0218 470016 7753083 973 -75 345
95 149 54 0,12 0,05 47
including 111 122 11 0,15 0,08 88
and 187 189 2 0,51 0,10 94
and 226 230 4 0,16 0,05 46
and 279 289 10 0,17 0,03 28
and 305 311 6 0,13 0,08 75
and 317 345 28 0,15 0,09 90
including 324 341 17 0,16 0,11 107
and 368 391 23 0,17 0,03 30
including 376 378 2 0,79 0,04 37
1“TREO” refers to total rare earth oxides plus yttrium oxide; “HREO” refers to heavy rare earth oxides plus yttrium oxide; “hea vy
rare earths” as used in all Company presentations comprise europium (Eu), gadolinium (Gd), terbium (Tb), dysprosium (Dy),
holmium (Ho), erbium (Er), thulium (Tm), ytterbium (Yb), lutetium (Lu) and yttrium (Y). Light rare earths comprise lanthanum
(La), cerium (Ce), praseodymium (Pr), neodymium (Nd) and samarium (Sm).
About Namibia Critical Metals Inc.
NCMI 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$698 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 suppl ies of natural resources for the benefit of the country’s economic
development.
Rare earth elements are of critical importance to Japanese industrial interests and JOGMEC
has extensive experience with all aspects of the sector. JOGMEC provided Lynas with
USD$250,000,000 in loans and equity in 2011 to ensure supplies of the Light Rare Earths
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$3,000,00 0 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 NCMI 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. NMI may elect to participate up to a maximum of 44% by funding pro rata after
the earn in period is completed.
To date, JOGMEC has completed Term 2 and earned a 40% interest by reaching the C$10
million expenditure requirement. JOGMEC has approved an additional C$ 3,050,000 budget
for Term 3 through to March 31, 2024. Total approved project funding to date is C$13,050,000
of the $20,000,000 Earn-In requirement to reach 50% interest.