Hi there
Please find note from Fairfax below which has been published today on the back of news from the nuclear fuels update from North River Resources which has driven the share price up 5.43% to 1.35p.
The company has identified two nuclear fuel targets over EPL 3327 and EPL 3328 following completion of a horizontal loop electromagnetic (HLEM) survey over 200 line km - 150 km over 3327 and 50 km over 3328.
Additionally, three conditions precedents to the JV agreement between Extract Resources and North River as set out in 21 September 2010 have now been satisfied or waived.
The JV agreement enables NRR Energy a wholly owned subsidiary of North River to acquire a 50% interest in Brandberg Energy which holds Exclusive Prospecting Licences (EPL) for nuclear fuel at 3327 and 3328.
Fairfax analyst John Meyer said "The identification of targets at these licences is promising in this prospective uranium district and we look forward to the starting of the drill programme and news flow from results."
Kind regards
Lizzie
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North River Resources* (NRRP LN) 1.45p, mkt cap 10m - Update on Nuclear Fuels Agreement with Extract Resources
* North River Resources has announced that the three conditions precedents to the JV agreement between Extract Resources and North River as set out in 21 September 2010 have now been satisfied or waived.
* The JV agreement enables NRR Energy a wholly owned subsidiary of North River to acquire a 50% interest in Brandberg Energy which holds Exclusive Prospecting Licences (EPL) for nuclear fuel at 3327 and 3328.
* The licences are located near the old tin mining town of Uis in northwest Namibia.
* This will follow the payment of $800,000 by North River to Brandberg Energy within the next 4-6 weeks.
* The company have identified two nuclear fuel targets over EPL 3327 and EPL 3328 following completion of a horizontal loop electromagnetic (HLEM) survey over 200 line km - 150 km over 3327 and 50 km over 3328.
* The HLEM traverse lines were surveyed over 2 km initially and then reduced to 1 km to identify buried palaeochannels through an electromagnetic response.
* The most promising target areas identified using this methodology has been on EPL 3327.
* The priority target is "Orawab" - a paleochannel at 14 km long, between 100-1000 m wide and 50 m deep and a secondary target "Ringo" appears to include a less prominent but significant paleochannel to the southwest of Orawab.
This is 7 km long, 50-500 m wide and 30 m deep.
* A 1,100 m RC programme is planned to drill test both the Orawab and Ringo targets to confirm existence of the interpreted palaeochannels and determine whether any of material identified is uraniferous.
* Most of the drilling will focus on the Orawab target where 26 of 36 planned RC holes will test the 9 km central portion with sections 1.5 km apart and boreholes of between 10-75 m depth spaced at 200-400m apart along section lines.
http://www.northriverresources.com/
Conclusion: The identification of targets at these licences is promising in this prospective uranium district and we look forward to the starting of the drill programme and news flow from results.
Fairfax analysts visited the North River licenses this summer
* Fairfax acts as joint broker to North River Resources
North River Resources - Site visit notes
History: North River Resources (NRR) comes out of the old WAGE company with the addition of assets from Extract.
Extract management had elected to focus on their Rossing South Uranium project in jv with Kalahari Resources.
NAMIB lead / zinc mine
The Namib lead /zinc mine is North Rivers most advanced asset
The mine is developed down to 200m below surface and has substantial underground infrastructure.
Its closure towards the end of the Asian Crisis was like many, due to a combination of reduced cash flow from low metals prices and a long running lack of investment.
The failure of many mines and mining companies through the Asian Crisis in the late 1990s and a long term lack of investment in the sector has partially led to the situation today where metals prices are supported by a lack of supply as demand grows.
The key orebody at the Namib lead/zinc mine plunge steeply and continue at depth with much of the potential resource thought to be easy to reach from the existing infrastructure.
Despite the desert location, the lower levels have flooded through time and these are being slowly dewatered to enable better access.
Historic exploration indicates that a number of potentially similar lead/zinc orebodies lie along strike giving potential to expand beyond former mining rates and many years of potential mining.
Much of this has been barely explored.
North River have substantially cleaned up the mine site and are preparing the mine for its potential restart.
Management are evaluating the reconditioning of the shaft for ore haulage leaving the decline free for access and supplies.
The purchase of a 900cc diesel Polaris measurably speeds up access through the decline.
A new small-scale loader is also speeding up the cleanup process and there are plenty of voids for the storage of waste while the shaft is reconditioned.
The mine may best operate under traditional mining methods with stopes cut and pulled from drives at either end of the stope panel in each mining cycle.
This has proven simple and effective in past and is an efficient mining method for smaller high grade mines.
Formerly the small shaft pulled just 1t per hoist but a new head frame could manage significantly greater tonnage at higher speeds to enable more efficient operation.
The high grade nature of the ore at around 5-20% lead and 5-20% zinc is seen as carrying significant value and potential for repeating, similar orebodies at surface offers open cast potential for good cash flow generation.
Witvlei copper projects
The Witvlei licenses contain perhaps the best concentration of small copper deposits on the Kahalari copper belt.
There are 15 km of small projects along the licenses here.
Management are exploring the Malachite Pan, Witvlei Pos, Okasewa, Christiadore and Gemshokvley orebodies which all appear to offer economic potential at varying scales of operation.
Malachite Pan has an old shaft and extensive open trenches dug by former owners.
So far the Malachite Pan resource is shown to carry some 4.8mt of ore grading 1.3% cu at a cut off grade of 0.5%.
Silver grades of around 7g/t compliment the resource to give economic potential.
The original target here was for 250,000 t of contained copper although the target may now be reduced.
However new methods of exploration could uncover additional ore for larger scale operation.
The ore lies within a fanglomerate, sedimentary structure.
Stacked mineral horizons could be controlled by faulting rather than folding and mineralisation is seen along the veining in some core from later stage intrusion.
It is thought that the copper could have been leached out of early sediments by hot fluids with mineralisation deposited and concentrated in the sedimentary boundary where PH levels change.
Kopperberg
Kopperberg - a small copper concentrate mining opportunity, could give good cash flow from small plant to fund other, bigger things.
Project is right on the road and near power lines.
One farmer self floats and refines copper plates from high grade ores in the area.
This suggests that a small plant established at Kopperberg could attract third party ores for processing and could see further expansion beyond the present 17,000t of contained metal at the plant.
A small 4-5,000tpy copper mine could run for 4-5 years and provide significant cash flow for other larger operations.
Kopperberg ore lies at surface on a small but prominent mound.
Ore extends to around 30m below surface and should have a near zero strip ratio and very little dilution.
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