NCO - Namibian Copper

CRRRRRRRASH!
NCO down 72% today, albeit on only 50,000 volume. One of the pitfalls of low cap, low liquidity stocks.
Could be a long, slow road back for NCO, holders have been stuck holding this due to suspension for quite a while.
Could lead to frustration selling.

On a side note they would hope to get that SP up quickly if they are going to cap raise.
Will we see director support here by buying on market at low levels?

springhill said:

CRRRRRRRASH!
NCO down 72% today, albeit on only 50,000 volume. One of the pitfalls of low cap, low liquidity stocks.
Could be a long, slow road back for NCO, holders have been stuck holding this due to suspension for quite a while.
Could lead to frustration selling.

On a side note they would hope to get that SP up quickly if they are going to cap raise.
Will we see director support here by buying on market at low levels?

Click to expand...

BOINGGGGGGG!
Oh the slings and arrows of outrageous fortune.

NCO back up 87.5% today, on 111,400 volume. One of the advantages of low cap, low liquidity stocks.
Timing is everything!

From NCO's quarterly

A further substantial upgrade in the mineral resources at Ongombo is expected within the next few weeks. In May 2012 a total of 30 historical boreholes at Ongombo were re-logged and re-sampled. After detailed logging the half core from the historical boreholes held at the Namibian Geological Survey core sheds in Windhoek was quartered and submitted to Genalysis in Johannesburg for SG determination and sample preparation. A total of 146.14m of half core was cut and re-sampled and a total of 330 samples were submitted for analysis. On completion Genalysis will undertake analysis of the pulps in Perth. The analytical results are expected in the next few weeks.

Because the recent logging and sampling program will provide new additional data from 16 historical boreholes which have not previously been incorporated into the geology model, Coffey will rebuild the geology model and re-estimate new mineral resources for Ongombo. A substantial upgrade in both the size of the resource and the status of the resource is anticipated. It is expected that the resource upgrade will be announced during the next quarter

ASX ANNOUNCEMENT

● All analytical results from the sampling program undertaken on the historical drillcore from the Ongombo project undertaken in May 2012 have been received.
● Copper-silver-gold intercepts Include:
Hole 123: 3.93m from 261.00m at 1.5%Cu, 6.5g/tAg and 0.3g/tAu
Hole 164A: 4.98m from 304.78m at 1.6% Cu, 8.2g/t Ag and 0.4g/t Au
Hole 168A: 5.50m from 329.56m at 1.6% Cu, 8.3g/t Ag and 0.4g/t Au
Hole 171A: 5.04m from 399.76m at 1.7% Cu, 11.0g/t Ag and 0.3g/t Au
● NCO has commissioned Coffey Mining in Johannesburg to remodel all the Ongombo data including the new data, with the intention of providing the company with a further upgrade in the mineral resources at Ongombo.
● Because the recent logging and sampling program provides new additional data from 16 historical boreholes, which have not previously been incorporated into the geology model, an upgrade in both the size of the resource and the JORC compliant status of the resource is anticipated.
● The resource upgrade is expected to be announced within the next few weeks.

Latest information proactiveinvestors has on NCO.
http://www.proactiveinvestors.com.a...opper-resource-upgrade-at-ongombo--33343.html

Namibian Copper (ASX: NCO) expects to deliver an upgraded Resource for its Ongombo Project in Namibia within the next few weeks after having received all the analytical results from the sampling program undertaken on the historical drillcore.
A total of 30 historical boreholes at Ongombo were re-logged and re-sampled, and a substantial upgrade in both the size and status of the Resource is expected.
Best intercepts include 3.93 metres at 1.5% copper, 6.5 grams per tonne (g/t) silver and 0.3g/t gold from 261 metres; 4.98 metres at 1.6% copper, 8.2g/t silver and 0.4g/t gold from 304.78 metres; 5.5 metres at 1.6% copper, 8.3g/t silver and 0.4g/t gold from 329.56 metres; and 5.04 metres at 1.7% copper, 11g/t silver and 0.3g/t gold from 399.76 metres.
Namibian Copper has now commissioned Coffey Mining in Johannesburg to remodel all the Ongombo data, including the new data, to provide a Resource upgrade.
An upgrade in both the size and status of the Resource is anticipated because the recent logging and sampling program provides new additional data from 16 historical boreholes that was not previously incorporated into the geology model.

Highly prospective geology
The Ongombo project currently hosts a JORC Resource of 7.25 million tonnes at 1.7% copper and 8g/t silver for 123,250 tonnes of contained copper and over 1.8 million ounces of contained silver, of which 2.53 million tonnes is in the higher confidence Indicated category.
The gossanous magnetite quartzite outcrops for sporadic intervals over a strike length of 4.7 kilometres.
Historical exploration includes more than 132 diamond drill holes and resulted in the definition of four individual ore shoots.
Mineralisation at Ongombo is hosted by amphibolites and associated magnetite-quartzites of the Matchless belt, which extends for 400 kilometres.
The belt is host to several volcanogenic-exhalative, stratiform and strata-bound cupriferous pyrite deposits containing subordinate and variable amounts of zinc, lead, silver and gold.
One of the main characteristics of all the deposits on the Matchless Belt is that they have mineralisation developed in shoots of very substantial length.
The neighbouring Otjihase mine has Resources defined over at least a 9 kilometre shoot length and the deposit may extend further.
The Matchless deposit to the southwest has shoots of several kilometres in length.
Evaluation of the geology and Resources at Ongombo suggest that this same characteristic is present at Ongombo.
The average grade of the 10 most important deposits in the Matchless Belt is 2.3% copper, with a range of 1.3% to 3.9% copper.
A total of 18 individual ore bodies have been identified including the Gorob, Matchless, Otjihase, Ongeama and Ongombo deposits.


Exploration target
Namibian Copper has previously outlined an exploration target of 17 to 23 million tonnes at 1.6% to 1.8% copper.
Providing exploration upside, the mineralisation is open down dip and along strike.
Known ore shoots widen at depth and have a strengthening grade, while possible parallel ore bodies exist down-dip.

Resource upgrade
Earlier this year the initial Resource at Ongombo was reclassified following a surface survey of the borehole collars.
Part of the Resource was upgraded to the higher confidence Indicated category.
Based on a 1% copper cut-off, the reclassified JORC Resource now includes an Indicated Resource of 4.72 million tonnes at 1.6% copper and 8g/t silver and an Inferred Resource of 2.53 million tonnes at 1.76% copper and 8g/t silver.

Strategic location
The Ongombo Project is situated in central Namibia, 22 kilometres northeast of the Otjihase copper mine.
It is located near to existing infrastructure including a rail connection to the Tsumeb smelter, recently refurbished by new owners Dundee Precious Metals, and the Walvis port.
Importantly, Namibia is a stable, mining-friendly jurisdiction where mining accounts for about 20% of the country’s gross domestic product.

High volume day for NCO comparitively speaking since the large price drop. A big chunk taken out at 5c at end of the day. News on the horizon? Only speculating of course.

Chart confirming volume spike. 415,000 of the 515,000 traded today occured after 3:59pm

NCO up 20% today at this point. Only 1 seller left on the board 70,000 @ 10c.
No news yet.

From NCO's quarterly

● All analytical results from the sampling program undertaken on the historical drillcore from the Ongombo project undertaken in May 2012 have been received.

● Copper-silver-gold intercepts Include:
Hole 123: 3.93m from 261.00m at 1.5%Cu, 6.5g/tAg and 0.3g/tAu
Hole 164A: 4.98m from 304.78m at 1.6% Cu, 8.2g/t Ag and 0.4g/t Au
Hole 168A: 5.50m from 329.56m at 1.6% Cu, 8.3g/t Ag and 0.4g/t Au
Hole 171A: 5.04m from 399.76m at 1.7% Cu, 11.0g/t Ag and 0.3g/t Au

● NCO commissioned Coffey Mining in Johannesburg to remodel all the Ongombo data including the new data, with the intention of providing the company with a further upgrade in the mineral resources at Ongombo.

● Mineral resources at Ongombo in Namibia have been significantly upgraded. At the 0.6% Cu cut-off the reclassified JORC compliant resource now includes an inferred resource of 3.75 million tonnes (Mt) at 1.70% Cu, 9g/t Ag and 0.32g/t Au, and a measured and indicated resource of 6.71 million tonnes (Mt) at 1.52% Cu and 8g/t Ag, for a total 10.46Mt at 1.59% Cu and 8g/t Ag.

● The potential target size of conceptual exploration targets at Ongombo is estimated to be in the order of 10-12Mt at 1.6-1.8% Cu (the potential quantity and grade of this target is conceptual in nature, that there has been insufficient exploration to define a Mineral Resource and that it is uncertain if further exploration will result in the determination of a Mineral Resource).

● NCO will now proceed to a Scoping Study to evaluate the economics of developing Ongombo as a moderate-grade, stand alone operation producing copper gold silver concentrates.

Namibian Copper secures two year extension of Namibian exploration tenement
http://www.proactiveinvestors.com.a...n-of-namibian-exploration-tenement-38056.html

Namibian Copper has secured a two year extension of its exclusive prospecting licence (EPL 3238) for base, rare and precious metals exploration in Namibia.
The application for renewal was made with a request for nil area relinquishment as the advancement of the exploration indicates that the whole area is prospective for the potential addition of resource to the project.
Last October, with a 0.6% cut-off grade, the reclassified JORC compliant resource now includes an inferred resource of 3.75 million tonnes at 1.70% copper, 9 grams per tonne silver and 0.32 g/to gold.
It also includes a measured and indicated resource of 6.71 million tonnes at 1.52% copper, and 8 g/t silver for a total 10.46 million tonne resource.
A further 10-12 million tonnes at 1.6-1.8% as a conceptual target resource is envisioned.
A scoping study to assess the economic viability of developing a stand alone operation for producing copper, silver, and gold concentrates is currently underway.


The results of the scoping study or further exploration on the renewed tenement may be the only catalyst for any SP increase in NCO in the near future.
Talks of further acquisition months ago seems to have dried up, nothing heard on that front for a while.

Ongombo looks viable, raising the cash in this environment and with NCO's share price could be difficult and insanely dilutive.

Independent Scoping Study and Valuation of Ongombo

● Independent Scoping Study by Coffey Mining of Johannesburg, (“Coffey”) confirms viability of developing the Ongombo copper-silver-gold project (“Ongombo”) in Namibia.
● Ongombo is 80% Namibian Copper NL (“NCO”); 15% BEE partner Starlight Investment Holdings (Pty) Ltd; and 5% Avanti Resources Pty Ltd.
● A ten year mine plan producing an estimated 70,149 tonnes LOM copper is proposed in the Scoping Study based on a mineral inventory of 5.75M tonnes at 1.4% Cu, 7g/t Ag and 0.32g/t Au
• The mineral inventory is drawn from total JORC compliant Measured, Indicated and Inferred Resources of 10.46M tonnes
• Total Resources comprise Measured plus Indicated Resources of 6.71M tonnes @ 1.52% Cu; 8g/t Ag, and *0.32g/t Au. (*Au is Inferred); and Inferred Resources of 3.75M tonnes @1.70% Cu; 9g/t Ag, and 0.32g/t Au.
• Infill drilling of the Inferred resources and exploration within the additional conceptual exploration target which is estimated to be in the order of 10-12M tonnes at 1.6-1.8% Cu, would increase the life of mine (“LOM”) of the project beyond 10 years. The potential quantity and grade of the exploration target is conceptual in nature, that there has been insufficient exploration to define a Mineral Resource and that it is uncertain if further exploration will result in the determination of a Mineral Resource.
● The Scoping Study proposes a combination of conventional stope mining and room and pillar mining with a design mining tonnage of 720,000 tonnes per annum

Three economic options have been considered.
• An independent “stand alone” mine.
• Toll treatment
• An integration with a third party, where capital and infrastructure costs are reduced

● Assuming a discount rate of 12%, and exchange rates of 9.25N$:US$ and March 2013 copper prices prevail over the ten year period the discounted cashflow analysis provide NPV’s of US$23M for the “stand alone” option; US$34M for the toll treatment option, and US$36M for the integrated arrangement. At a discount rate of 5% the NPV’s are US$48M, US$57M, and US$60M, respectively.
● Assuming March 2013 metal prices are sustained, payback period of 4 years with IRR of 24% for the “stand alone” option, and 3 years with IRR of 38% for the toll treatment option, and 3 years with IRR of 39% for the integrated arrangement.
● Production costs are US$2.15/lb for the “stand alone” option, and US$1.77/lb for the toll treatment option and the integrated arrangement.
● Coffey concluded that the Ongombo deposit can be mined economically at a ±50% confidence level and that the project can be taken to the next development phase