TORONTO, ONTARIO–(Marketwired – June 30, 2016) – Kombat Copper Inc. (TSX VENTURE:KBT) (“Kombat Copper” or the “Company”) announces that, as a result of a review by staff of the Ontario Securities Commission, the Company is issuing the following news release to clarify the disclosure on the scaled production decision relating to the Kombat Mine.
In Kombat Copper’s news releases relating to the decision to use EBM Mining Namibia (“EBM”) as mining contractor, and in subsequent progress updates, it was reported that the Company, through its mining contractor, EBM, was moving towards scaled production at the Gross Otavi, Kombat East and Kombat Central areas of the Kombat Mine. Kombat Copper would like to clarify that there is currently no mineral resource estimate, mineral reserve estimate, or economic analysis to support the decision to mine the near surface mineralization on the Gross Otavi, Kombat East and Kombat Central areas or to produce any concentrate from such mining and processing. Kombat Copper has decided to put certain areas of the Kombat Mine into production without first establishing mineral resources or mineral reserves, or supported by a technical report and/or feasibility study. The Company cautions readers that production may not be economically feasible and historically these projects have a much higher risk of economic or technical failure.
However, it should be noted that the profit sharing structure of the agreement with EBM allows the Company to minimize the financial risks associated with these projects, the cost of production, including operating costs, the refurbishment of the Kombat Mill and related facilities, will be the responsibility of EBM while Kombat Copper is expected to receive a portion of the profits, if any, and there are no financial penalties to Kombat Copper if no profits are earned.
The mining areas of the Kombat Mine that Kombat Copper considers core to its own operations and are excluded from the EBM agreement remain the Asis West and Asis Far West zones, of which, Asis Far West has an initial inferred mineral resource of 1.7 million tonnes grading 1.93% Cu and 16 g/t Ag (2.15% Cu Eq.). Details of the inferred mineral resource can be found in the Company’s NI 43-101 technical report entitled “Technical Report and Resource Estimate on the Kombat Copper Project, Grootfontein District, Otjozondjupa Region, Namiba” (the “Technical Report”) dated June 4th, 2014. The Technical Report was prepared for Kombat Copper by P&E Mining Consultants Inc. and can be found at the Company’s website and under the Company’s profile at www.sedar.com.
F. W. Nielsen, P.Geo., a consultant and director of Kombat Copper, is the Qualified Person for the Company and has reviewed and approved the contents and dissemination of this news 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 continues to hold 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 Kombat Mine.
Kombat Copper has contracted EBM Mining Namibia to begin mining lead/copper mineralization at Kombat East, Kombat Central and potentially Gross Otavi within the year. Concentrates are expected to be produced at the Company’s production facilities, which are currently being refurbished by EBM. EBM is also evaluating opportunities to market aggregate stone and sand byproducts locally.
Neither the 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 possible mineralization and deposits, the agreement with EBM, the Company’s expectations regarding mineral resources, the Company’s determination of core assets, EBM’s ability to commence operations and operate the applicable portions of the Kombat Mine, the Company’s expectations regarding the production and sales of mineralization from the Kombat Mine and potential development work and the Company’s plans for the Kombat Mine including any financial impact and community 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.
Manager, Investor Relations