EBM will be Kombat Copper’s contractor and will essentially manage the refurbishment of the
local infrastructure as well as carry out development and mining of near surface mineralization at the Kombat mine in Namibia for a minimum period of three years.
Initial production at the Kombat mine is expected before the end of this year.
Kombat Copper is also discussing several other business opportunities associated with the Kombat mine property with EBM including the stockpiling and distribution of aggregate stone and sand material, important by-products of the mining operations to be run by EBM, which could potentially be sold to the local market.
Another possible opportunity is the reprocessing of tailings at the Kombat mine, however, further technical test work and studies will be required to determine if this is economically viable.
“Kombat has an extensive database and significant local infrastructure that will allow for a relatively quick start up of mining and milling operations at the Kombat mine with our contractor EBM Mining Namibia,” says Kombat Copper president and CEO Paul Bozoki.
“The management of EBM Mining Namibia has extensive contract mining experience in Southern Africa and the company feels that this relationship will be financially beneficial to both parties. This work will no doubt have a ripple effect with positive economic implications in the local region.
“Kombat Copper shares this positive news with its local partners, Epangelo Mining and Havana Investments in contributing to the economy of Namibia,” says Bokozi.
Commencement of mining
Newly established Windhoek-based EBM has a management team with extensive experience in small-scale mining operations around Southern Africa.
Initial mining by EBM of near surface mineralisation will focus on the Kombat East and Kombat Central areas and EBM will also be assessing the Gross Otavi deposit located 12 km to the west of the Kombat mine where a historic resource had been defined.
The Kombat East and Kombat Central areas have shaft and ramp access, which will allow for a relatively quick start up of operations. Under the agreement, the Kombat mill will be refurbished by EBM to produce both lead and copper concentrates. Kombat Copper through its Namibian subsidiary, Manila Investments, will hold any export permits.
Kombat Copper’s decision to mine the near surface mineralisation on the Kombat East and Kombat Central areas and produce any concentrate from such mining and processing is not based on a feasibility study or mineral resource/reserve with demonstrated economic viability.
Kombat Copper warns that it has decided to put certain areas of the Kombat mine into production without first establishing mineral resources or mineral reserves, supported by a technical report and/or feasibility study. Such production may not be economically feasible and historically such projects have a much higher risk of economic or technical failure, the company notes.
The MOA is structured so that it does not exploit Kombat Copper’s core copper resource base located in the Asis West and Asis Far West zones 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 mineral resources. It is being structured to provide up front monthly payments to the company with an attractive profit sharing component in the event the operation is profitable.
Additional details on the MOA will be provided upon completion of the definitive agreement, which is expected in the near term.
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