North River Share Discussion Threads

[yellowthroat] 05/5/2016 12:35

IF that the recent good spot by you there Crunch is right. Then perhaps it is just the weather at the moment but I am increasingly starting to think that the dark days of less than 0.10pence are well and truly behind us.

Specifically if the conditions have improved greatly in terms of the 'demands' over the licence, I cannot see North hanging around for too long, what with Phase One burning a hole in their pockets and the need to finally start securing up the future of cash-flows and so on, rather than relying on placings and raises to tread water.

Okay so ZINC still isn't where it was, but the actual mine wont start seriously producing for anther say 18 months, this isn't a concern though once the implied revenues are instilled on the balance sheet, this makes North ability to get bank funding's and loans a lot more credible at reasonable rates.

It means that we can secure to production without bothering the shareholders other than the essentials.

I cannot see North putting up too much of a fuss if they get reasonable demands rather than the lunacy of what was implied before.

I expect serious and hard lobbying and co-operation, after all we have guested the minister for mines and so on, it would be farcical for this not to go ahead in the Namibia interest, also we are far too small for the population to feel too aggrieved at alleged corporate manoeuvres and thus I think it should be SOONER rather than later that we get things moving.

Licence means its ours whatever happens and there appears to be at least FIVE years worth of quality ZINC in our areas.

The share price certainly now is starting to think so... we will see...

YT

[crunch123] 05/5/2016 08:03

So maybe RNS's about the licence on 26th May & 25th June (latter one could be earlier 'cos NRRP doesn't have to take the full 30 days to respond to Minister's counter proposals & we don't know the extent to which either party will disagree with the other's proposal although the conditions specify the scope for further engagement).

[crunch123] 05/5/2016 07:55

Based on the 'Additional conditions ML' documents the next two date deadlines we're looking at are:

25th May - is the deadline (30 days after 25th April's NRRP submission) for the Minister to propose amendments. Deadline says 'within 30 days' so could be before 25th May.

24th June - NRRP has 30 days to respond to Minister's counter proposals (assuming that there were counter proposals).

There's no stated time limit on the next phase which is that the Minister (if he disagrees with NRRP proposals) can specify the terms and conditions on which he is prepared to issue the licence. And, if it gets to that, assuming NRRP agrees with the terms there's again no deadline stated for such agreement (one would assume/hope NRRP would be quick) or indeed the actual issuance of the licence.

I'll have a guess at this August for the issue of the licence.

[yellowthroat] 04/5/2016 14:01

fly - ointment = Greenstone

--------

Well the £1mn raise hasn't happened yet and the talk is that several were interested in Phase Two including possibly Taurus Minerals.

The key this year will be participation across the board in Offtakes and stakes in the company through others, with perhaps it just being underwritten by GS.

We will know once the Financing talk becomes a bit more concrete. Also I saw an AIM stock raise monies above the current share price so they can still I hope place at 0.20pence for the £1mn if needed.

What really would make the situation fly is if Namib reply to NRRP's submission of late April with an acceptance or minor issuance of rules and North accept it and announce the licence.

A lot of confidence should fly from that... what with the predicted resource and implied NPV of costs V profits.

With of course another years worth of production coming into the mix.

I am hoping there will be a lot of investor interest in an actual company that is going into producing on the ZINC market. There should be investment interest and we are welcoming of any local participation. Come on Namibia you want out of poverty then use government or private monies to enhance value added job creation in your country.

Regards

YT

[chablard] 04/5/2016 09:06

I also look on these clauses as a more positive inclusion as I believed that it was previously thought that the minister was looking for a 30% smash and grab scenario. Now with just 5% of the company to be in Namibian hands. We do have , or did have , a Namibian shareholder in Mr Shali (?),that was paid in shares for his work and perhaps we can go further down this route. I am sure there are plenty of excellent Namibians that are experts in mining in their own country and would be an asset to the BOD compared to this bunch of useless suits we have at present (James excepted, I hope).
The 30% value added locally far as I can see just covers processing ore locally rathe than shipping raw. Fine.
Employing locals to aid poverty in the region. Fine. Already doing it and imagine it was always going to increase once things started to move towards production .
fly - ointment = Greenstone

[yellowthroat] 03/5/2016 16:18

NB : We are probably about six-eight weeks max away from the AGM and this and one or two other things will be hot topics.

The mine life and production will be of interest to ourselves as well as the Namibians, as will the licence and if the Phase Two investors are coming on board to take part?

Several pieces could fall into place here and I am feeling reasonably confident as long as the above turns out to be the case.

Whilst a fall in ZINC today I did notice it had been chased up into the $1900's nicely a few days ago as well !

Certainly should not go un-noticed.

Hopefully these discussions will be quick and efficient so we can get on with it !

Here's hoping !

YT

[yellowthroat] 03/5/2016 16:10

Crunch, forgive me if wrong but I am reading this sub section as very positive in its directive.

The 5percent is 'owned by a Namibian or Namibian company.' It does not clearly state that this part should be expedited to a Namibian 'free'.

There is talk about 20percent management, not clear if they expect a seat on the board or not, clearly if the government or largish private body wants to buy twenty percent of the shares in the upcoming then they should feel free.

The largesse towards Namibians is one of jobs and local representation and also perhaps to encourage and assist with the working conditions and local housing et al of all the families and so on. How this works in practice is anyones guess!

If you look at fracking in the USA then whole towns have built up around the infrastructure associated with all the Fracking engineers getting paid circa $100k average to perform technically skilled jobs in that country.

Rather like the 1849 Gold Rush, it is the infrastructure and local towns that make a lot of the real money. The disturbing thing of course is that one US Death Valley was so named because most of the Miners their got ambushed by bandits and crooks and armed gangs !!!

I must point out this should not happen in Namib !!! LOL

Someone needs to show the Namib Socialist new government how local wealth is borne out when you let market forces lend a helping hand.

North has made it fully aware it wants as much Namib staff as possible and also local involvement at investment level.

The government needs to make sure its investors and locals are up to the task of coming on board. Business qualifications and experience usually helps the locals get employed !!!

In between the political sermon, I found this V good news BTW... LOL

Regards

YT

[crunch123] 03/5/2016 15:09

That should have read "months" not moths.

More seriously though on the Namibia Mining Ministry website they've got a document entitled "Additional conditions ML":

QUOTE

PART 4 – ADDITIONAL CONDITIONS (ML)
Before the Minister issue a mining licence, the applicant shall meet the following conditions:

8.
a) The applicant shall submit for the approval/disapproval by the Minister, its projected production profile for the first year, and for the next four years thereafter.
b) Once mining operations commence and where a value addition project(s) exist(s) locally, the applicant shall ensure that 30% of the final product from the mine is added value locally at commercial arm’s length transaction terms not less favourable than the applicants other customers.
c) Where such value addition project does exit locally, the applicant shall establish such value addition facility in Namibia. Where the applicant is unable to establish such facility in Namibia, the applicant shall show good cause of its inability to establish such facilities.
d) The applicant shall keep a production inventory and an updated resource statement at all times and shall make it available to the Minister or his/her representative upon request.

9. a) Within sixty [60] days of the applicant’s acceptance of the Notice of preparedness to grant, the applicant shall submit to the Minister a detailed description and proposal on the structure and composition for the company which has lodged the application.
(i) The management structure shall consist of a minimum 20% representation of historically disadvantaged Namibians.
(i) Atleast 5% of the company shall be owned by Namibian persons or by a company wholly owned by Namibians.

b) The proposal should address the Government’s objectives of poverty eradication by (i) providing an opportunity for Namibian participation, as well (ii) setting out a strategy to benefit the Namibian youth and women particularly from the disadvantaged groups and the poorest of the poor.
c) Within thirty [30] days of receipt of the proposal, the Minister shall have the right to propose amendments which he/she believes would enable the applicant to support the Government’s objectives for broad based empowerment and poverty eradication.

10. If the Minister believes that the mining licence being applied for and its associated project is economically significant for Namibia, and that the proposed structure of the applicant does not meet the Government’s objectives for broad based empowerment, the Minister shall have the right to in writing propose amendments to the applicant for the purposes of meeting the Government’s empowerment and poverty eradication objectives.

11. If the applicant is dissatisfied with the Minister’s counter-proposal, the applicant shall have thirty (30) days from the Minister’s counter-proposal to make representations in writing to the Minister, upon consideration of which the Minister shall in writing notify the applicant of the final terms and conditions on which the Minister is prepared to grant the mining licence to the applicant.

UNQUOTE

Note that:
- the gifting appears to be 5% (not 20%);
- no time limit stated for Minister's counter proposal.

[crunch123] 03/5/2016 14:42

Must be about time for another investor conference call - last one was 6 moths ago.

Also I note that the EPLs need renewing:
2902 expired on 17th April; &
5075 expires on Friday.

[chablard] 28/4/2016 18:55

Not quite sure what this has to do with North?????

[markten33] 26/4/2016 18:23

My best performing stock this month has been BODthey appear to be on the verge of a new discovery.Still a lot of running room to be gained

[yellowthroat] 26/4/2016 11:32

Difficult to make too much fresh comment out of today's announcements other than that the company is being informative about progress and on the ground issues within the stated region of when they had said they would advise.

Another hole of length and real width yielding a whopping 30plus percent ZINC is a real bonus to add to the kitty.

There should be at least one year more out of this to go to the financiers with, let alone the strategy of produce / drill / produce / drill which we hope will be analogous with normal mining practices on the African continent around this.

Honesty about the drilling implications, we are a small company with simple drills and is understandable. Cost implications I guess and the odd time delay.

The interminable wait for the market to see value continues. I guess we wont hear anything spectacular for another month or three but I think we have gotten used to that. Also don't see that there is any rush if the £1mn placing needs to happen anyways and the ZINC market whilst well improved is still below the measure that we would like to see it at for Offtakes maximum and optimum financing.

All in all a steady as she goes announcement with a carrot or two about continuing holes with very decent ZINC percentages.

YT

[chablard] 26/4/2016 08:42

North River Resources plc, the AIM quoted resource company, wishes to provide an update on its ongoing underground diamond drilling programme at its flagship Namib Project in Namibia.

Highlights

·     Drill results from the Northern Orebody continue to show significant intersection of mineralisation

·     A high grade intersection of 35.7 metres (true width of 9 metres) at 33.8% zinc adding further confirmation of mineralisation 80 metres below level 5 in the North

·     3,800 metre drilling programme progressing well, but time lost to date with lower than forecast rig availability is putting drill completion date of end June 2016 at risk

·     5 Level 300m development tunnel completed on schedule in March

Details of the current drilling programme

The drilling programme to test extensions at depth in the North and South orebodies of the Namib resource is in progress. The contracted Diamec rig continues to be used for longer drill holes (up to 200 metres) from the 5 Level development drive, below the current North resource, while the Company's own Kempe drill continues with shallower (up to 80 metres) infill and extension targets in both North and South.

Reliability issues with both drill rigs have put pressure on the scheduled completion of the campaign by end June 2016 but this is being addressed with improved maintenance capability on each shift and additional critical spares at site. Completion of the development of the tunnel on 5 level in late March will also provide unrestricted access and therefore improved operating time for the rigs from now on.

Further to the drilling results announced on the 12th February and 21st of March 2016, the Company advises that 18 holes, totalling 1,767 metres, have been drilled to date on this 3,800 metre campaign. The results of the first eight holes have been reported previously and a further three holes are reported in Table 1 below. The remaining holes are awaiting sampling or assay results.

Significant mineralisation was intersected in two holes, which are highlighted below:

·     NLDD069: 35.7m (true width of 9 metres) at 33.8% zinc

·     NLDDK077: 3.8m (true width of 1.5 metres) at 10.6% zinc and 5.8m (true width of 2 metres) at 12.2% zinc and 10.9% lead

Assays are awaited for 3 additional holes (NLDDK078, NLDDK079 and NLDD070).  These holes visually indicate mineralised intercepts, corroborated by XRF Niton analysis, but are expected to be at a lower grade since mineralisation is semi-massive and disseminated in some places. 

More generally, the results reported to date indicate a continuation of mineralisation 80 metres below the existing Northern part of the orebody, providing growing support for the Company's confidence in delivering an increased resource estimate for the Namib project following completion of the drilling campaign.

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 build on our confidence in the geological potential of the Namib project and I look forward to releasing further drilling results as we progress with the programme towards a larger resource base and longer mine life."

[chablard] 14/4/2016 16:29

Once again twice as many buys as sells but WTFDIK

[yellowthroat] 13/4/2016 11:14

Ged,

A lot of the negativity around ZINC came from the combination of China and the slump in oil prices.

A number of commodity funds were sold off to cover the damage of longs in the oil sector and we plummeted to around $1469 I think at one point. The price is holding around $1800 which is a significant improvement but some way off of the forecast $2400 to create the ROR of 50percent scenario.

The stability around oil has no doubt meant a suspension in the forced redemptions or profit taking of industrial metals ETFs and so on. Institutionals have I guess stopped haemorrhaging out of these type investments.

World demand for cars appears to be holding, ZINC is certainly a lot better than it was.

What we will need below $2000 is an extra year or two of resource to add to the pot. This secures a longer term cash-flow and hence more lee-way with pricing expectations, and obviously a longer window for any bank loans or off-takes agreements in advance to be more securely met.

JORC SHOULD be good in late June and the expectation will be that going forward the depths continue to see more veins like the lovely strike of 8metres wide with 28percent ZINC that we saw.

I would like to see a reassessment 'Monte Carlo' on the profitability at below $2000 ZINC and also incorporate one or two more years of ZINC metal.

The company and the financiers will be privy to this info in any case and the extra year or two and expectation should be v beneficial for future funding and profitability IMO.

EDIT : NB : Also with any additional NEEE added to the mix.

Regards

YT

[ged5] 12/4/2016 19:03

Just add "hxxp://www." to the beginning of the link.

I'm no longer prepared to pay their extortionate subscriptions for level 2 when one can get it far cheaper elsewhere. Inconvenient though to post a link.

[ged5] 12/4/2016 18:54

As shown in the chart above, zinc had a torrid 2015. It hit a six-and-a-half year low in mid-January at US$1,444.50/t due to continued oversupply and weak demand. The key to its rally (zinc was the best performing base metal over 1Q16) has been, as is traditional, a cut in supply. These cuts came in late 2015 came from Vedanta Resources (at its Lisheen mine in Ireland), MMG (the Century Mine in Australia), Nyrstar (suspending operations in North and Central America) and Glencore (which cut a third of its zinc output). These savage cuts are having a dramatic effect.
Dependent on what you read, supply will be cut by anything from 3.3% to 4.5% during 2016. Demand, though, is expected to be stable, rising up to 1% during the year. This even excludes any potential stimulus package from China, which I think is wise until we see exactly what, if anything, is on the table.
So, where do we go from here? Well, forecasts are in the region of US$1,830-2,000/t by the year end. This relatively reassuring outlook is giving confidence to a number of junior zinc projects around the world, including North River Resources† (LON:NRRP), which is currently drilling the northern zone of its Namib zinc mine deposit in Namibia. Look out for more newsflow from the company over the next few weeks as these results continue to come in. Also, let us know if you’d like to see its CEO, James Beams, who we have available for meetings.

proactiveinvestors.co.uk/columns/the-rfc-ambrian-metals-mining-and-oil-gas-overview/24734/in-the-news-north-river-resources-monument-mining-24734.html

[crunch123] 08/4/2016 13:09

Mack, I'd rather the share price got to 0.2+, otherwise there will be a share consolidation if there's an equity element in the impending fund raise.

[1mack] 08/4/2016 12:48

News by mid April? Wish they would capatalise on the nice rise

[carter1110] 07/4/2016 12:40

I was thinking the same thing

[chablard] 07/4/2016 11:08

Haha. Made me laugh. Not up to date with txt speech. (Funny cos I thought "soz" was your nick name,taken from when you were perhaps "sozzled " on occasions )

Yes let's hope that things come together here. I am concerned though about in what form and at what price to us the next funding round is achieved.

GL

[carter1110] 06/4/2016 18:58

Hi ChabsNo problem Soz was sorry Let's hope for some good news soon