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, 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 assets 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."
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 Resources 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 by 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.
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.
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 battery, 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 Economic 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 -
Don Burton, President
Tel: +01 (902) 835-8760
Fax: +01 (902) 835-8761
Email: Info@NamibiaREE.com
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.
SOURCE: Namibia Critical Metals Inc.