SWAPO United, SWAPO Victorious, Now hard work...
   

Get Involved

Sign Up Donate Networking Have Your Say


Join my SWAPO online community, to share your vision of a better Namibia, participate in discussion forums, and receive regular updates by e-mail.Make your voice heard: Tell the world about your views and suggestions. Write to newspapers, call in to talk shows, share your experiences of the first fifteen years of freedom, and how working together we can do more.


 

Kombat Copper (V.KBT) aims for Namibia mine restart in two years

The following is a Stockhouse Q&A interview with Kombat Copper Inc. (TSX: V.KBT, Stock Forum) Cief Executive Officer, CEO, Bill Nielsen.

Question: What is the investment case right now for Kombat Copper?

Kombat has refocused its efforts on defining a near surface resource located in close proximity to the existing Kombat infrastructure. We believe this approach will bring the Kombat Mine into production sooner and at a lower capital and operating costs by concentrating on an open pit mining scenario.

Question: What sets you apart from the competition in the copper exploration sector?
Answer: A Mining Licence as well as the Mill and Mine assets that remain on the Kombat property are really what set us apart from other explorers. The Kombat Mine was in operation up until 2007 and the existing machinery and equipment really only require modest refurbishment to get back to working order. This is what will drive us towards production faster than any other explorer who would need to build these facilities as part of their preproduction deliverables.

Question: Do you think the Copper market is on the rise?
Answer: The general consensus is that the copper market is on the rise because of declining production and inventory while demand remains the same. This will eventually cause a supply shortage which should position near-term copper producers, like Kombat, to hit the market with production at a time when prices should be back near all-time highs.

Question: Can you also give us some context in terms of describing the region that you are working in?

Answer:The Kombat Mine is located in the Otavi Mountain Region in Northern Namibia and has been described as one of the world s most prospective copper mining regions.

In close proximity to Kombat is Weatherly International s recently commissioned Tschudi Mine, with reserves of 22.5 million tonnes of 0.87% copper. We are also 50 km south of Tsumeb, which houses Dundee Precious Metals Inc.'s (TSX: T.DPM, Stock Forum) copper smelting facility. The region is easily accessible by rail and highway and is in close proximity to a deep-seaport in Walvis Bay. Namibia is also a stable and mining supportive country.

Question: You have said that you want to fast track the Kombat Mine to production. How do you plan to achieve that goal?

Answer: With infrastructure already in place and a focus on an open pit mine scenario, which we are continuing prove as feasible with our current drilling program, we believe it would be possible to get the mine into operation in less than two years time.

Question: How much copper do you think the mine can produce during its first five years in operation?
Answer: We don t have enough information from our near surface drilling program at this point to estimate final production statistics, but I can say we are confident that our average production rate estimate of 1,100 Tonnes Per Day is right on track.

Question: What do the lastest results released so far from the 34-hole drill program tell about how quickly you can establish a near-surface resource and get production up and running soon?
Answer: From our results released to date, we continue to gain understanding of the near surface mineralization and have interpreted that there are at least two distinct mineralized horizons over an appreciable strike length of at least 1.5 km. In the past this area was largely unexplored as previous operators focused on underground resources.

We are now becoming more confident that we will be able to ultimately release an updated mineral resource to include this higher grade near surface material, which is significantly easier and cheaper to mine.

Question: What are the major goals that you hope to achieve in 2015?
Answer: Our main goal for 2015 is to complete this drill program, perform a second phase of drilling and issue an updated mineral resource. We re also starting to concentrate on the preliminary engineering work to determine what the best course of action is to get the mine back into production. And finally, we hope to get the underground workings into a database that will allow for 3D projections of the mine site which will aid our exploration and engineering efforts going forward.

Question: Why is your management team an asset to your plans?
Answer: The Kombat team continues to be very well balanced. With my background and experience as a professional geologist and Justin Reid s (Executive Chairman) banking background, we are well positioned to complete our geological goals while also having connections with some of the best financial advisers on Bay St. As well, our On-Site Project Manager, Amy Tizzard, does an excellent job keeping operations moving forward, handling huge amounts of data and keeping costs in line.

Plus our local staff are invaluable in that their knowledge of past production and events help us on a day to day basis in understanding the mines history.

Question: How much cash does the company have right now?
Answer: We currently have a cash position of $700,000.

Question: Does the company plan to tap the market for any more funding in the near future?
Answer: It s clear we will have to do more fundraising in the near future to complete a second phase of drilling as raising funds in the earlier part of the year proved to be challenging.
However, with copper prices on the rise, we re more confident that raising funds should be relatively straightforward. Plus we ve already seen some very positive movement in our valuation.Answer: We currently have a cash position of $700,000.

Question: Does the company plan to tap the market for any more funding in the near future?
Answer: It s clear we will have to do more fundraising in the near future to complete a second phase of drilling as raising funds in the earlier part of the year proved to be challenging. However, with copper prices on the rise, we re more confident that raising funds should be relatively straightforward. Plus we ve already seen some very positive movement in our valuation. We also have warrants that could be exercised if we can get the stock price to move which we hope will happen on the news generated from the recently completed drill program.

Question: What is your top priority for the summer?
Answer: Primarily, we will be focused on analysing and reporting on the further results from the remaining drill holes from this drill program. From the results, we will also be planning a second phase of drilling to obtain the required density to support a mineral resource.

We also anticipate getting more historic data converted into a format so it can be displayed in 3D to give a fuller picture of the results.





CONTACTS

SWAPO Headquarters Mandume Strt
Windhoek, Katutura