|By Marketwired .||
|January 16, 2014 01:50 PM EST||
TORONTO, ONTARIO -- (Marketwired) -- 01/16/14 -- Kombat Copper Inc. ("Kombat Copper" or the "Company") (TSX VENTURE:KBT) is rapidly taking steps to determine the cost and schedule for bringing the former producing Kombat Mine, located in northern Namibia, back into production.
Extensive data related to past production and resource drilling is being compiled and Southern African consulting groups have been approached to scope out the requirements for a technical report. This will enable the Company to formulate a time line and budget to get the Asis Far West sector of the Kombat Mine into production. This study is to be completed in the second quarter of 2014. Based on the conclusions of that study, the Company plans to undertake a detailed budget, plan and schedule including but not limited to technical feasibility studies, detailed engineering, permitting and other aspects of putting the deposit into commercial production including, shaft and underground rehabilitation, additional resource drilling, processing plant overhaul and other improvements. A resource estimate is the first priority. Essentially, the study will serve as a blueprint for the re-development of the property and will determine if further exploration is required to define or upgrade a mineral resource. It will also define what permitting is required and what further technical studies need to be undertaken.
The Asis Far West area of the property was drilled from surface in the 1980s and a number of significant copper intersections were reported over a strike length in excess of 650 meters, including 10.0 metres at 8.05% copper and 9.0 metres at 2.67% copper. Subsequently it was decided to sink a shaft 800 meters to the upper limits of the favorable stratigraphy. A large diameter, 800 meter deep production shaft was competed in 2006 and limited underground workings were established. A limited amount of underground drilling was carried out with intersections including 18.0 metres at 3.53% copper and 6.15% copper over 8.0 metres. Unfortunately, economic conditions and a heavy inflow of water in to the mine to the east (not interconnected with Asis Far West) forced a shutdown of commercial operations at Kombat Mine and the operation has been on a care and maintenance basis ever since.
Kombat Copper is looking to define a minimum of 4-5 million tonnes of copper mineralization averaging between 2.5% and 3.5% copper in the Asis Far West Zone. (The potential quantities and grades that are the target of the Company's planned future exploration are based on previous drilling, planned surface and underground drilling (10,000-20,000m) and sampling of underground workings conducted on the property and are conceptual in nature. There has been insufficient exploration to define a mineral resource for the property. It is uncertain if further exploration will result in the target being delineated as a mineral resource.)
Bill Nielsen, the President and CEO of Kombat Copper, stated, "Very recent geological investigations have indicated that a significant re-interpretation of the geological model and emplacement of copper mineralization at Kombat Mine is being formulated. This new understanding can have long-term implications on the Company's exploration and mining outlook. We still have several kilometers of strike length to explore on our mining license and believe that the favorable stratigraphic horizon hosting significant copper mineralization is present to the west where a 1980's drill hole intersected 1.68 metres assaying 11.7% copper and 151.48 g/t silver."
Kombat Copper is also looking at the feasibility of expanding the current milling facility from a 1,100 tonne per day operation to something larger that would allow for improved economies of scale. Past operators looked at an area for potential open pit mining and this blended with underground material could justify a mill expansion. Other operators in the area have intersected significant copper mineralization that could also be used as custom mill feed, which may help improve project economics.
The Company's on-site manager and staff have maintained the Kombat Mine, including all its facilities and town site for the past six years. Their commitment to the upkeep of the facilities is expected to save the Company significant amounts of capital in the future.
Kombat is studying the viability of disposing of non-core assets such as the potential mining of material from the tailings containment area resulting from past mining. A number of groups have approached the Company with respect to re-processing what has been estimated to be 10.6 million tonnes of material (Weatherly 2007). Detailed drilling of the stacked tailings in 2012 indicated that the upper 15 meters of the dump (total height 25-26 meters) contains material assaying 0.25% to 0.30% copper, based on the average of the established regularly spaced drill holes. (The Company is not treating historical estimates as current mineral resources. A Qualified Person has not done sufficient work to classify the historical work as a current mineral resources estimate. Additional work will be required to verify historical work completed at the Kombat Mine).
2014 Upcoming Events
Kombat Copper will be attending the Vancouver Resource Investment Conference, January 19-20th, Mining Indaba Africa in Cape Town February 3-6th and at PDAC March 1-2. The Company looks forward to updating its shareholders and interested investors in person at these conferences.
Investor Relations Manager Appointment
Kombat Copper announces that it has appointed Mr. Robert Hopkins as Manager, Investor Relations effective January 1, 2014. Mr. Hopkins will be paid a base salary of $1,300 per month and has been granted 50,000 stock options at $0.13 expiring on January 2, 2019 as part of his compensation. These stock options will vest over a period of 12 months in four equal installments with the first installment vesting three months from the date of grant. Mr. Hopkins shall not be engaged in any market-making activities and does not currently hold any securities or convertible securities in the Company other than those listed above.
About Kombat Copper
Kombat Copper (TSX VENTURE:KBT) is a publicly traded Canadian exploration and development company with its core operations focused on copper resources in Namibia, one of the world's most prospective copper regions, where it has substantial assets in place with significant exploration upside.
The Company holds an 80% interest in five mining licenses in the Otavi Mountainlands, an area of Namibia particularly known for its high-grade copper deposits. Within these licenses are three past-producing mines including the Company's flagship property: the past-producing Kombat Mine. The Kombat mine's extensive infrastructure includes an 800m production shaft which was opened in 2006, three recently-operational shafts, ramp systems, extensive underground workings, mine buildings, a tailings facility, a mill and concentrator all supported by the Company's local town site. The Kombat mine originally opened in 1962 and historically produced approx. 8.7 million tonnes of ore grading 3.1% copper and is linked to vital existing infrastructure, including power, water, roads, and rail with close proximity to the port of Walvis Bay and to one of only five commercial-grade smelters in Africa located in Tsumeb, located 100 road kilometers away from Kombat.
In addition to mining licenses, the Company holds an 80% interest in five Exclusive Prospecting Licenses ("EPL's") covering an area of more than 2200 km2. The EPL's are located also within the copper-rich Otavi Mountainlands and are in close proximity to Tsumeb.
F. W. Nielsen P.Geo, is a "qualified person" as such term is defined in National Instrument 43-101 and has reviewed and approved the technical information and data included in this press release.
Neither 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.
This news release may contain forward-looking statements. These statements include statements regarding the Company's plans for the Kombat Mine, its expectations for the Kombat Mine and the expected effect on the Company's financial and operating results. These statements are based on current expectations and assumptions that are subject to risks and uncertainties. Actual results could differ materially because of factors discussed in the management discussion and analysis section of our interim and most recent annual financial statements or other reports and filings with the TSX Venture Exchange and applicable Canadian securities regulations. We do not assume any obligation to update any forward-looking statements, except as required by applicable laws.