|By Marketwired .||
|March 13, 2014 07:30 AM EDT|
TORONTO, ONTARIO -- (Marketwired) -- 03/13/14 -- Kombat Copper Inc. (TSX VENTURE:KBT) ("Kombat" or the "Company") has completed a review of historical work completed on its Exclusive Prospecting Licenses (EPLs) and is now formulating work programs to test the economic potential of these extensive land positions (5 EPLs covering 1,550 km2).
The Company's primary objective is to bring the former producing Kombat Mine back into production and significant efforts are being made to achieve this goal. Kombat has some very attractive exploration tenements in geologically favourable areas of Namibia and efforts are being implemented to explore these land positions for economically viable mineralization.
Kombat's most prospective exploration target is Kombat's strike extension to the west of Weatherly International's Tschudi deposit that is financed and being readied for production. Weatherly have reported resources of 50.1 Mt grading 0.86% Cu and open pit reserves of 22.7Mt grading 0.95% Cu. The ore will be processed using heap leach and Solvent Extraction - Electro Winning (SX-EW) for copper recoveries in the order of 85%. A total of 17,000 tonnes of copper is expected to be produced annually from the Tschudi deposit.
The Tschudi deposit is open at depth and along strike to the west with Kombat Copper retaining the land position to the north, south and west of this deposit. Historic soil sample results display a distinct copper anomaly associated with the favourable stratigraphic horizon on the Kombat ground to the west of the Tschudi deposit. It is known that the deposit dips on to Kombat's ground to the north but future exploration work will concentrate on the geochemical anomaly to the west, which can be extrapolated over a distance of 8-10 kilometers. It is Kombat's intent to drill test this horizon this year. Once environmental management plans are in place (expected at the end of Q1), this program can be implemented.
The Company is targeting a minimum of 7.0-10.0 million tonnes of near-surface oxide mineralization grading 0.75% to 1.0% copper. Based on the anomalous geochemical results determined from the database outline below and the proximity to Weatherly International's Tschudi deposit, the Company feels that this conceptual target is attainable. The potential quantity and grade is conceptual in nature. There has been insufficient exploration to define a mineral resource, and it is uncertain if further exploration will result in the target being delineated as a mineral resource.
Kombat has acquired a historical geochemical database consisting of thousands of soil samples that cover a significant portion of its three EPLs near the famous former producing Tsumeb Mine (30 million tonnes grading 4.3% Cu, 13.9% Pb/Zn, 95 g/t Ag, 50 g/t Ge). The results of this geochemical database are still being evaluated but a number of priority target areas have already emerged. These targets will be subjected to further ground work and will be drill-tested should the target ranking process dictate.
On its westernmost EPL 3943 (Figure 1), Kombat has defined a geological/structural setting that bares distinct similarities to the B2 Gold's Otjikoto Deposit (29 million tonnes grading 1.4 g/t Au) that they are currently readying for production by the end of 2014. Soil sampling by Kombat Copper on EPL 3943 in 2012 defined a distinct gold in soil response within the same geological sequence that hosts the B2 Gold deposit. Drill testing is warranted.
Grant of Options
Kombat has granted a total of 625,000 stock options to various directors and consultants of the Company in accordance with the Company's stock option plan. The options have an exercise price of $0.16 and will expire five years from the date of grant. The options will vest immediately. The grant of options remains subject to approval by the TSX Venture Exchange.
Engaging Transcend Resources Group
Kombat Copper has engaged Transcend Resource Group to provide investor relations services to the Company. Transcend is a well-known investor relations group that will assist Kombat Copper with investor communications and the dissemination of Company news and information. Kombat Copper has entered into a three-month contract with Transcend whereby Transcend will be paid $5,000 per month in consideration for such services. The contract is renewable at Kombat Copper's option.
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 1550 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., President and CEO of Kombat Copper, 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.
To view Figure 1: Kombat Copper's Namibian Land Position, please visit the following link: http://media3.marketwire.com/docs/933107_FIGURE1.pdf.