North River Resources (LON:NRRP) is nearing the start of exploration at its nuclear fuels interests in Namibia, while underground drilling at the Namib mine has begun.
North River has completed legal due diligence on Extract Resources' (ASX:EXT, TSE:EXT) subsidiary Brandberg Energy, which owns nuclear fuels licences EPL 3327 and EPL 3328, and the approval processes in Namibia are underway.
The parties have confirmed that they intend to involve a black economic empowerment (BEE) entity partner, but have agreed to waive the condition precedent that relates to it, to get maximum flexibility in identifying a suitable partner. A six month extension has been agreed with Extract to ensure all relevant conditions are complied with.
North River is about to commence an exploration programme to identify future drilling targets. The programme will consist of geophysical surveys on the nuclear fuels licence areas.
“We have made a great deal of progress with regard to our agreement with Extract, and are pleased to be reaching the stage at which we can commence a comprehensive exploration programme.
“We intend to instigate a geophysical survey in the coming weeks, with the objective of identifying prospective targets for follow-up drilling work and we remain extremely positive about the potential of these licence areas, which are located in a globally significant and highly prospective uranium district,” said managing director of North River, David Steinepreis.
Previous exploration by Extract has shown that the licenses have the potential to host secondary uranium deposits associated with palaeodrainages of the Orawab and Ugab ephemeral river systems.
Under the terms of the agreement signed between north River and Extract in September last year, North River’s subsidiary NRR Energy will subscribe for Brandberg shares worth US$800,000, so that each of Extract and NRR Energy will hold a 50 percent interest in Brandberg Energy.
In the event of a discovery on either EPL 3327 or EPL 3328, Extract has the right to increase its holding in Brandberg Energy to 65 percent by acquiring shares from NRR Energy at a 10 percent discount to the then prevailing market value.
Meanwhile, the company has commenced underground drilling at the previously producing Namib lead zinc mine following mine rehabilitation and surveying. The drill at Namib is established at level 6 and is initially targeting extensions to one of the ore shoots 100-200 metres below the current base of mining.
“We look forward to announcing the results of this drilling campaign once completed, as we evaluate additional extensions for follow-up confirmation drilling,” said Steinepreis.
Historical reports from Namib indicate unconfirmed grades of 5.2 percent lead, 6.5 percent zinc and 68 grammes per tonne (g/t) silver for the Junction ore body from limited historical drilling.
North River Resources is approximately 45 percent owned by AIM listed Kalahari Minerals (LON:KAH).
Shares in North River climbed 4 percent to 3.38 pence on the news.