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UPDATE - North River resource upgrade surprises by being higher than forecast

Last updated: 02:32 13 Dec 2013 AEDT, First published: 03:32 13 Dec 2013 AEDT

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--ADDS MANAGEMENT COMMENTS--

North River Resources (LON:NRRP) has posted a resource upgrade well in excess of its own internal forecasts for the Namib lead, zinc and silver project in Namibia.

Overall, it has increased by 129% to 1.53mln tonnes, with 917,000 tonnes added to the fresh ore resource. The company also unveiled a maiden tailings resource of 610,000 tonnes at 2.1% zinc.

There was also a substantial movement of resources from the inferred to indicated category. In fresh ore, indicated resources have increased from 80,000 tonnes to 659,000 tonnes.

The upgrade to the indicated resource pleased managing director Martin French the most.

“Indicated [resources] can be converted into reserves, which are the important thing if you are trying to get bank financing – it’s what everyone looks at,” he told Proactive Investors.

He says the company will have to raise more funds at some point as it looks to reach production before the end of next year.

The inventory of minerals includes 23,700 tonnes of lead, 65,000 tonnes of zinc and 1.48mln ounces of silver.

It hopes drilling currently underway will allow it to expand further the resource further.

Namib, previously mined between 1968 and 1991, is located 25 kilometres from the town of Swakopmund and 55 kilometres from the port of Walvis Bay.

French added: “This upgrade is in excess of our internal forecasts and puts us ahead of schedule in our resource expansion programme. 

“The new resource statement represents the achievement of a substantial milestone in our strategy to bring the Namib Project back into production.  

“We are hopeful that we will be able to convert a significant proportion of these resources into reserves in the coming months, as well continuing to drill for new resources on site.”

The shares jumped 12% to 0.67p each on Thursday.


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