North River Share Discussion Threads

[yellowthroat] 21/3/2016 12:55

Crunch,

The RNS mentions that a lot is on hold until the licence and the issue over NEEE is cleared up and therefore current spending is on a drilling campaign which a lot of posters were actually calling for over a number of months.

Therefore we cannot be critical IMO of the company spending current monies on drilling to achieve these excellent results.

The company as a rule, burns through £1-1.5mn pounds every six to nine months depending on what sorts of administration is still being performed and so on in these more straight-laced times for the companies money belt.

We are due more capital to continue if they want to keep the monies raised by the USD $4mn for purposes of the pre-engineering and Feed and so on, which GS have stipulated is the current case.

Martin French had to raise these sorts of amounts every six months or so, so whilst I agree with your sentiments it is not really a surprise nor too much of a massive concern in the long run.

In terms of the number of shares I have also been reading articles and agreeing to an extent with the case that AIM companies are more about growth and turning dreams into productive reality than the actual number of shares in issue.

Yes this does contradict slightly what I have said in the past and I admit that, it is an interesting counter argument when assessing the true value of the share price.

I think of the most importance is getting to production and revenues and the rest comes later, that would be worth about 0.50pence for the shares in the next year. Of course depending on GS intentions and so on.

Regards

YT

[yellowthroat] 21/3/2016 12:48

North River Resources Plc

21 March 2016

North River Resources plc / Ticker: NRRP / Index: AIM / Sector: Mining

North River Resources plc ("North River" or the "Company")

Project update and latest Namib resource drilling results: high grade hits including an intersection of 57.1 metres (true width 8.5 metres) at 28.6% zinc

North River Resources plc, the AIM quoted resource company, wishes to provide the early results from the ongoing underground diamond drilling at its flagship Namib Project in Namibia together with an update on project activities.

Highlights

- Initial drill results from the Northern Orebody show significant intersection of mineralisation

- An outstanding high grade intersection of 57 metres (true width 8.5 metres) at 28.6% zinc, extending mineralisation 80 metres below level 5 in the North
- 3,800 metre drilling programme progressing well towards completion at end of June 2016
- 5 Level development tunnel over 95% complete

- Other project workstreams remain on hold pending clarity on the timing and conditions attaching to both the Mining Licence and the proposed Namibian broad based empowerment legislation
- Working capital fundraising required shortly

High grade intersections indicate continued mineralisation below the existing North orebody

Drilling is currently being undertaken from the 5 Level development drive below the current North resource to test the extensions at depth of these ore envelopes. The drilling campaign also envisages infill and extension drilling in the existing Southern resource.

Further to the drilling results announced on 12 February 2016, the Company wishes to provide initial results from its 3,800 metre drilling campaign. 14 holes totalling 1,472 metres have been drilled by the Company's own Kempe U3-9BQ together with a larger Diamec 262 rig under contract. Eight holes have been reported in Table 1 below. A further three holes are awaiting assay results and three holes are awaiting sampling. The Kempe is being used to search for shallower targets up to 80m below the modelled envelopes while the more powerful Diamec rig is used for drill holes up to 200m deep. The drilling campaign is targeted for completion by end of June 2016.

Significant mineralisation was intersected in four holes:
- NLDD067: 57.1m (true width of 8.5 metres) at 28.6% zinc and 33g/t silver(*) ;

- NLDDK074: 3.0m (true width of 1.5 metres) at 35.0% zinc and 11.9m (true width of 6.0 metres) at 20.8% zinc;

- NLDDK075: 8.7m (true width of 4.0 metres) at 19.5% zinc and 3.0m (true width of 2.0 metres) at 12.2% zinc; and

- NLDDK076: 3.6m (true width of 1.3 metres) at 9.8% zinc, 2.6% lead and 42g/t silver, plus 8.1m (true width of 2.5 metres) at 6.7% zinc, 7.6% lead and 101g/t silver

(*) Silver results are provisional, awaiting QAQC checks

Assays are awaited for 3 additional holes (NLDD068, NLDD069 and NLDDK077). All these holes visually indicate mineralised intercepts with preliminary XRF Niton analysis supporting high grade massive sulphide mineralisation.

The early results from the drilling campaign indicate the continuation of mineralisation 80 metres below the existing Northern part of the orebody, providing support for the Company's confidence in delivering an increased resource estimate for the Namib project following completion of the drilling campaign. As would be standard practise, all grade intercepts will be critically evaluated as part of the update to the Mineral Resource Estimate in due course, to ensure that lower angle drill intercepts returned (those with very high intercept lengths relative to true widths) do not bias the resulting grade estimation.

The information in this release that relates to Exploration Results is based on information compiled by Mr. Galen White, Principal Geologist of CSA Global (UK) Ltd and a Competent Person who is a Fellow of the Australasian Institute of Mining and Metallurgy (FAusIMM). Mr White has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr. White consents to the inclusion in this release, of matters based on his information, in the form and context which it appears.

North River CEO James Beams commented, "It is very pleasing to see our confidence in the further geological potential of the Namib project being borne out by these initial results from the drilling campaign carried out from the 5-level development drive. Whilst NLDD067 is only one drill hole, with a low angle to the trend of the intersection, the exceptional grade and consistency of mineralisation augurs well as we look to grow the resource base. I look forward to releasing further drilling results as we progress with the programme towards a larger resource base and longer mine life."

[crunch123] 21/3/2016 10:28

To get good financing terms we really need the licence in place first.
Because of the Board's 'full speed ahead' decision - which in my view wasn't wise - the proceeds of the last fund raise have been spent far too quickly.
Net result is that we're now likely to see a share consolidation accompanying the fund raise.

[nufcrichard] 21/3/2016 09:34

The project itself is good, we have known that for a long time and that is why we are all invested here.

The way the project has been run though, has been very poor. They haven't considered how to get the mine into production with the funds available. Lets hope they get some non-share issuance funding.

[chablard] 21/3/2016 09:06

All in all a pretty spectacular range of drill results RNS.

Pity it had to contain those 5 words . "Working capital fundraising required soon"

[pinky37] 19/3/2016 13:17

From memory James had said we would need funding by now. Wonder if the coffers are running dry and we need a cash injection from our mates at Greenstone?? Not one post for 2 weeks shows the current interest in Noventa Mark 2....

[1mack] 06/3/2016 08:48

You have to realise this project isnt a quick buck. If you want to invest short term you will likely get burnt. Or catch it lucky and make a profit like a few have. Im looking at the mid to long term and have a nice average that im now confortable with. Either way ill see this one till production or destruction.

Gla

[snowyflake] 05/3/2016 23:24

hi folks - .005 soon? Possible makeaprofit but with this one makealoss? A lot of people have sadly been burned.

[makeaprofit] 03/3/2016 20:12

This is going nowhere until the right people have been looked after. Seen it time and time again in Africa !!

[yellowthroat] 03/3/2016 17:11

Potential key events :

1. April 30 ish and the end of the 60 days which can be extended. Licence to be accepted or advised upon regards conditions.

2. June 1-30th likely resource improvement at JORC recognised level to encompass the recent infill and also the further exploratory drilling. This will include hopefully more of the blue sky from LEVEL 5 depths as well as the apparent exceedingly good central / junction and South.

--------

Meantime ZINC has improved to $1829 with Lead still around $1829.

ZINC has gained 300-400 dollars or so from the early year worries over China and the noise over oil and funds selling down commodity positions.

Hopefully there is something to report before April 30 unless the idea is significant better ZINC for the Phase two around mid-year and perhaps more investors looking to touch the commodities sector.

Will much happen March 3 to April 30 ?

Regards

YT

[nufcrichard] 26/2/2016 15:09

At least they accepted the notice.
If they hadn't have accepted it, it would have made the last 2+ years completely pointless!

It'll be interesting to see what happens in the next few months, but things are moving at least.

[makeaprofit] 26/2/2016 15:02

By hook or by CROOK the government WILL get their 20%!

[yellowthroat] 25/2/2016 12:27

One or two of my posts have mentioned the same thing, apologies. Here is a recap of the issues in my view around the new draft bill.

1. Mining is suffering in any case and big companies are tightening the capex considerably and not spending on new projects and so on. Meaning this is dangerous for the government that FLUs pointed out a while ago are struggling with their economics and finances.

2. The indigenous popn are not skilled enough in the main to run or work these companies themselves and it will be pointed out that all of these 'govt owned' resources as 26 says, could stay in the ground in the main !

3. Our board come from JP Morgan, Xstrata and Anglo American, Greenstone have $200mn to invest in African projects, not massive compared to a Glencore but enough to be a player and speaker on behalf of FDI.

4. The percentage could be reviewed, also local participation could be some sort of govt investment fund initiative that takes stakes on behalf of the popn as a whole. IE like with the Canadian Teachers Pension Fund or Norway Oil Fund.

It is not straightforward that FDI are too enamoured considering their isnt enough skilled Namibians in the first place and I think the govt underestimates its negotiating position, esp as I say with current mining macro.

The one thing against this is I think the people expected a socialist agenda during the election campaigns and therefore I think the govt is set on some sort of added expansion to the NEEE policy on Uranium.

Interesting if there is international comment on this. As I say the board here are ex big companies and the inference is that they are going into battle from the wording of the recent statement.

I think it is also a good idea for the company to consider another project removed from Namibia using NRRP as the base shell, retaining current shareholders already big stakes, especially directors and Greenstone's.

They could in some ways I guess as R states, to tell them to poke it on EPL2092 and look at alternatives that are going on the cheap at the moment elsewhere in the sub-saharan Africa.

Lots to ponder and it will be an experienced FTSE team plus high commission debating all these points.

Perhaps they should just use EPL 2092 as a base provider of Net cash-flow to use as debt vehicle for bigger expansion elsewhere? Over time the ZINC price and the longer term resource could guarantee revenues and cash-flows for future growth but moving away from Namibia ?

We will see what the company says on this !

YT

[yellowthroat] 25/2/2016 11:51

Okay 26 well it is worth bearing in mind. Something the company can point out is the moving of the goalposts whilst millions were spent in exploration.The project size might be relevant as this is aimed at those biggies that allegedly exploited diamond mining in the past and caused a stir.It isn't the govts greatest hour.It doesn't have an effect on long term goals but should harm the initial value to the Phase Two proposition.I would say don't underestimate the FDI opposition and international fallout on this mind. Also twenty percent is a damn big chunk and needs amending.Shame with the public sector collapsing in Namib they could have gone one of two ways. Open up to capitalism more, or try to nationalise the private foreign enterprise. Guess which way the fools jump !Maybe the law will be for post x date project explorations ?Typical socialist call ! Namibia will get intl fallout on this if so radical.Disasterous wording of their proposals so far.Negotiation on its way one would suspect !YT

[26 dollars in my hand] 25/2/2016 10:23

Yellow , African govenments don't buy stakes in assets that they already own.
They own the resource and may license NRR to mine it. But the indigenous shareholding will be free to the holder. ie NRR will have to put up 100% of the capital for 80% of the economic benefit.

[rampair] 25/2/2016 10:16

I don't necessarily think all hope of progress is gone, after all this licence has been in nigh on two years
- it would be unfair to keep legislating so you could not ever satisfy any criteria.

All it takes is a bit of creative thinking by the holders of the purse strings. - Putting in an extra project under the NRR name would achieve interest & show Namibia that we are not weak because of the single project.

A frustrating time for sure, but it's been like that! A couple more days will bring clarity.

R.

[yellowthroat] 24/2/2016 10:25

For me it would be perfect in this instance if the government Purchased a twenty percent stake and hence acted like an investor and true owner in the sense of risk and reward.It is an irony that the company and also GS (maybe) would probably bite the arm off of a shared risk investor.Alas I think someone said twenty percent wasn't even the debt / equity element for the Phase Two.However of course if Namib invested ten mill in the hope of making 30 mill down the line for its people ?Don't forget James reckons there is much more interest in second round funding completion by others.Current draft bill could have repercussions for govt if ignore FDI interest. Namibia has murmured about wanting to be open and obliging to business in the past.I guess elections screw things up. I don't know how taking this approach without paying for a slice of the cake is going to advance the country internationally.Is it clear they expect a piece or local investment groups or the govt will participate ?As I say the company will go into battle on this front.Still 80-90 percent of something is better than 100 percent of nothing !We have already guaranteed essential local employment which is struggling with job losses !Bloody bureaucrats !Company should point out how many will be employed and how high the extra skills need to be !YT

[makeaprofit] 24/2/2016 09:58

This is going nowhere now till some government minister get his free 20% on behalf of his poor people.

[rampair] 24/2/2016 09:30

A valid point Donk. Another project could re invigorate what has become a drawn out, expensive,
lesson in how not to approach a small hole in the ground!

.

[donk4] 24/2/2016 08:10

I have remained quiet for months since I sold out some time ago. In short the writing was on the wall for me with the 6th October 15 RNS which on conversion of the remaining loan notes held by Greenstone would bring a further flood of shares into Greenstone's hands i.e. dilution of their existing and other shareholders shareholdings.

But in hindsight trouble for this company occurred when Martin French struck the deal with Greenstone and Greenstone took a stake in the company. Some private equity investments work for personal shareholders; some do not.

What we know is that French had brought in Shali a local Namibian to drill at Namib and the consideration included shares in NRR. Now it is my understanding that Shali's concern may not have been the best drilling concern but as a local he was in effect a "partner" in the Namib project.

Now folks reread yesterday's RNS and especially the postscript. Concentrate on the concept of local partners - local Namibians not just white expats and foreign company investors.

What happened after the July Greenstone deal and the dust had settled? Shali was dumped - yes our local "partner" was dumped. We also know that French then left the company.

Further last year I was informed that a shareholder in the company had talked about NRR to a Namibian envoy in a foreign country in the hope of advancing the application for the mining licence. The envoy asked whether NRR had a local partner. Of course the answer was no. The cue was that a local partner might do a favour with the application for a licence.

I have my doubts whether the board can find a partner for Greenstone in the requisite time. Somehow I doubt it and it may be that it would not be acceptable to Greenstone IAE. If not that could be the end of Namib for the present in which case imo the company will need to find another project to bring into NRR.

Just my own opinion so DYOR.

[yellowthroat] 23/2/2016 23:51

NB : remember all make own decisions and I only offer my opinions for reading. I don't hold big money here now, however that shouldn't be a stumbling block, all investments are relative.No guarantees on AIM clearlyYT

[yellowthroat] 23/2/2016 23:47

Mack.Yes when I can which is when I have money which is how long is a piece of string.It helps if you have an income and not debts !Thanks to AIM since 2010 ish !Sodding market is a nightmare !Plenty of news for NRRP in the next few months, we will see.Definitely it is never plain sailing, hard bloody work ! RegardsYT