Kombat Copper Signs Agreement to Commence Scaled Mining at Kombat Mine
TORONTO, ONTARIO--(Marketwired - Dec. 4, 2015) - Kombat Copper Inc. (TSX VENTURE:KBT) ("Kombat Copper" or the "Company"), is pleased to announce that it has signed a Memorandum of Agreement (the "Agreement") with a Namibian based company to fast track scaled production of lead mineralization from the Kombat Mine. A due diligence period is in effect.
Bill Nielsen, President and CEO of Kombat Copper, commented: "This Agreement represents a positive step forward for the Company in what has been a challenging sector leading to a low commodity price environment. We will benefit from this partnership as we now have the potential to start generating income from the Kombat property as our partner starts a scaled mining approach while we support the project with our extensive infrastructure and knowledge of the Kombat deposit. It will also be setting the stage for the Company to be in a sound financial position to enter detailed technical engineering studies on other areas of the Kombat Mine. As well, this Agreement maintains activity on the mine site, facilitates our mining license and brings local employment and labour to the area."
Kombat Copper expects that its partner will focus on the Kombat East area looking at both underground and surface mining of known occurrences of significant lead mineralization. They will also be assessing the Gross Otavi deposit located 10 kilometers to the west of the Kombat Mine where a historic resource has been defined. The Kombat East area has shaft and ramp access, which will allow for a relatively quick start up of operations. The Kombat mill is to be refurbished by its partner to produce lead concentrates.
An assessment of 45 years of historic Kombat Mine documents has indicated that the Kombat East area of the Kombat Mine contains appreciable amounts of lead mineralization. This documentation also indicates that significant lengths of mineralization may be present and a low-grade lead envelope with copper and silver credits is interpreted to be present. Past drilling has revealed verifiable assays including Hole KE593 that intersected 67.0m averaging 2.36%Pb and 0.34%Cu, Hole KE557 that intersected 100.0m averaging 2.42%Pb and 0.33%Cu and hole KE556 that intersected 41.0m averaging 2.35%Pb and 0.32%Cu. Work is ongoing to determine the overall configuration and extent of the lead mineralization. Readers are cautioned that these historical records have been examined but not verified by a qualified person. Further work is required to verify that these historical assays are accurate.
The Agreement is structured so that it does not exploit Kombat Copper's core copper resource base and does not prohibit Kombat Copper from resuming full mining activities on the remainder of the deposit upon completion of technical and engineering studies with respect to copper resources.
The details of the Agreement will be provided upon completion of a definitive agreement, which the Company expects to negotiate in early 2016. It is being structured to provide monthly cash income to the Company, enabling all corporate costs in Namibia to be covered and for an aggressive revenue sharing model on the majority of production.
Qualified Person
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.
About Kombat Copper
Kombat Copper 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 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 800 m production shaft which was opened in 2006, two additional recently-operational shafts, three ramp systems, extensive underground workings, mine buildings, a tailings facility, a mill and concentrator. The Kombat Mine opened in 1962 and historically produced 12.46 million tonnes of ore grading 2.62% copper over a period of 45 years. It 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.
Cautionary Notes
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 drill program, possible mineralization and deposits, the anticipated timeline regarding future exploration work, availability of results and production, the Company's expectations regarding mineral resources, the Company's expectations regarding entering into a definitive agreement for production of lead mineralization from the Kombat Mine and potential development work and the Company's plans for the Kombat Mine, including its dewatering and any financial impact. 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.
Contact
Kombat Copper Inc.
Bill Nielsen
President and CEO
+1 (416) 861-1685
Kombat Copper Inc.
Rob Hopkins
Manager, Investor Relations
+1 (416) 861-5899
info@kombatcopper.com
www.kombatcopper.com