Kombat Copper Inc.

TSX VENTURE : KBT


Kombat Copper Inc.

May 20, 2014 17:00 ET

Kombat Copper Releases Initial Mineral Resource Estimate

- Initial NI 43-101 Inferred mineral resource estimate is 1.7 million tonnes grading 1.93% Copper and 16 g/t Silver, completed on a very limited section of the mine's potential.

- Historical data reveal numerous opportunities to increase mineral resources with additional drilling.

- Additional historic resources in the rest of the Kombat Mine and along strike are yet to be assessed.

- Mining License and operating permit for the Kombat Mine is secured.

TORONTO, ONTARIO--(Marketwired - May 20, 2014) - Kombat Copper Inc. (TSX VENTURE:KBT) ("Kombat Copper" or the "Company") has completed its initial NI 43-101 Inferred mineral resource estimate for the Kombat Mine Project located in north central Namibia of 1.7 million tonnes grading 1.93% Cu and 16 g/t Ag. The current mineral resource estimate is presented in Table 1. A technical report will be filed under the Company's profile on SEDAR within 45 days of this release.

The Kombat Mine is a former producing copper mine that opened in 1962 and closed in 2008 with historical production of 12 million tonnes grading between 2.5% and 3.0% copper with additional credits for lead and silver. It has been mined over a strike length of 3.5 kilometers. Figure 1 shows the longitudinal projection of the Kombat Mine workings and the location of this initial mineral resource.

The initial Inferred mineral resource estimate was defined using the existing historic surface and underground drill holes from the Asis Far West part of the Kombat Mine Property. The Kombat technical team is still reviewing the extensive historical database, which now includes in excess of 7,000 drill holes, and they have identified significant opportunities to increase mineral resources with additional infill and expansion drilling.

Bill Nielsen, President and CEO of Kombat Copper commented; "This initial Inferred resource estimate at Asis Far West will allow us to continue with the preliminary economic studies focused on restarting the Kombat Mine operation. We are very excited not only with this initial resource estimate but the number of quality exploration targets we have been able to identify through the course of our data compilation of the Kombat properties."

Table 1: Asis Far West Inferred Resources at Various Copper Cut-Off Grades
Cut-Off Grade Tonnes Bulk Density Cu Pb Ag CuEq
Cu% (000's) t/m3 % % g/t %
Wireframe 2,967 2.82 1.39 0.17 12.6 1.58
0.25 2,938 2.82 1.40 0.16 12.7 1.59
0.5 2,729 2.82 1.48 0.15 13.2 1.67
1.0 1,679 2.83 1.93 0.13 15.9 2.15
1.5 787 2.85 2.71 0.13 20.3 2.98
2.0 439 2.86 3.51 0.10 26.2 3.83
2.5 286 2.88 4.19 0.09 30.7 4.56
3.0 206 2.89 4.76 0.09 34.7 5.18
3.5 155 2.90 5.27 0.09 38.8 5.73
4.0 114 2.91 5.82 0.09 42.8 6.33
4.5 78 2.92 6.53 0.09 48.1 7.10
5.0 54 2.94 7.32 0.09 55.7 7.97

Notes to Mineral Resource Estimate

  1. CIM definitions were followed for Mineral Resources.
  2. The Qualified Persons for this Mineral Resource estimate are: Richard Routledge, M.Sc. (Applied), P.Geo. and Eugene Puritch, P.Eng. of P&E Mining Consultants Inc.
  3. Mineral Resources are estimated by conventional 3D block modeling based on wireframing at a 0.5% CuEq cut-off grade and inverse distance cubed grade interpolation.
  4. CuEq is based on metal price only using the formula: CuEq = Cu% + (0.28* Pb%) + (0.0113* Ag g/t).
  5. Metal prices for the estimate are: US$3.43/lb Cu, US$0.95/lb Pb, US$26.47/oz Ag based on a two-year trailing average as of February 28, 2014.
  6. A variable bulk density of 2.79 tonnes/m3 or higher based on density weighting has been applied for volume to tonnes conversion. The "revised Tsumeb" formula was used for bulk density calculation where bulk density = 363 / (130-(0.874 * (Cu% + Pb%))).
  7. Mineral Resources are estimated from 1,307 m elevation to 677 m elevation, approximately 300 m depth to 947 m depth below surface.
  8. Mineral Resources are classified as Inferred based on drill hole spacing, geologic continuity and quality of data.
  9. A small amount of the resource may have been mined at the east end of the AFW zone but stope location and amount of material removed is uncertain.
  10. Mineral resources which are not mineral reserves do not have demonstrated economic viability. The estimate of mineral resources may be materially affected by environmental, permitting, legal, title, taxation, socio-political, marketing, or other relevant issues. There is no certainty that all or any part of the Inferred Mineral Resource will be upgraded to an Indicated or Measured Mineral Resource as a result of continued exploration.
  11. P&E recommends reporting resources at the 1%Cu block model cut-off grade.

To view Figure 1, please visit the following link: http://media3.marketwire.com/docs/kbt0520fig1.pdf.

The new mineral resource estimate compares favourably to the most recent historic resource. The previous historic resource for the Asis Far West area, put out by past operators in 2004, using only wide-spaced surface drilling results.

Additional historic resources in the confines of the Kombat Mine, immediately to the west of the area covered by the current resource estimate, amounts to 623,000 tonnes grading 2.72% copper and 27 g/t silver*. (*Referenced from Weatherly International PLC Annual Report, December 2010, Mineral Resources as at June 30, 2010. A qualified person has not done sufficient work to classify these historical estimates as current mineral resources or mineral reserves. Kombat Copper is not treating the historical estimates as current mineral resources or mineral reserves and the historical estimate should not be relied upon.)

Open zones remain undefined by sufficient drill density and are available for further resource expansion. The Company has identified numerous opportunities to further expand and upgrade the historic resources in order to grow on this initial mineral resource estimate. Remnant stopes and isolated mineralized drill intersections require further geological interpretation and additional detailed drilling to more fully define these resource opportunities.

Management believes there is significant potential to find additional mineralization in other parts of the Kombat Mine underground, at depth and along strike through additional detail surface and underground drilling and geological mapping. One drill hole established in the 1980's just off the west end of the Mining Licence, approximately 1,300 meters west from the Asis Far West shaft, intersected 10.72 meters @ 2.35% Cu and 33.38 g/t Ag. It is interpreted that the mineralized stratigraphy of interest is present for a significant strike length untested by past drilling.

Kombat Copper's plans for the remainder of 2014 include continued focus on the Asis Far West area of the Kombat Mine. Various studies on determination of production scenarios as well as estimated capital and operating costs are ongoing. Shaft, underground development and mill refurbishment studies are also being undertaken. The Company is also continuing its efforts to increase and improve estimated mineral resources within the mine environment.

Qualified Person

F. W. Nielsen, P.Geo., President and CEO of Kombat Copper, is the Qualified Person for the Company, who along with Eugene Puritch, P.Eng. and Richard Routledge, P.Geo. the Independent Qualified Persons, have all reviewed and approved the contents of this news release.

QA/QC

In P&E's opinion, results of the quality assurance/quality control program carried out by Kombat Copper for its 2012 re-sampling program indicate that the original assay data are not of industry accepted quality and there appears to have been a high bias in the original Kombat Mine laboratory assaying. The bias may have arisen from contamination at the sample preparation stage but may also have arisen through historic core sampling practice. The assay data may be used in an Inferred Resource estimate to permit evaluation of the project's potential, but extensive re-sampling of available AFW core for intervals within the Inferred Resource wireframes and assaying by commercial laboratories is necessary if the project is to advance to reserves estimation. For a Preliminary Assessment study, P&E recommends a review of the project sensitivity at lower grades/or lower revenues than indicated by the current Inferred Resource estimate.

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 (replacement value est. +$100MM) all supported by the Company's local town site. The Kombat Mine 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 the Kombat Mine.

In addition to mining licenses, the Company holds an 80% interest in five Exclusive Prospecting Licenses ("EPLs") covering an area of more than 2200 km2. The EPLs are located also within the copper-rich Otavi Mountainlands and are in close proximity to Tsumeb.

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 mineral resource estimate, the Company's plans for the Kombat Mine, its expectations for the Kombat Mine and the potential of the 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.

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