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March 2016
MODERN MINING
17
MINING News
Kombat Copper Inc, which is listed on theTSX-V
and owns the Kombat copper mine in northern
Namibia, has signed a definitive agreement
with EBMMining Namibia to carry out develop-
ment and mining of lead/copper mineralsation
at Kombat while also commencing the refur-
bishment of the mine infrastructure and
production facilities. Production is expected to
commence within the year.
EBM will begin operations in the Kombat
East and Kombat Central areas of the Kombat
mine for a three-year term. Kombat Copper’s
core areas of Kombat West, Asis West and Asis
Far West are excluded. EBM will also focus on
the lead-enriched Gross Otavi deposit located
12 km to the west of Kombat.
EBM has committed to mak ing an
investment to refurbish certain necessary com-
ponents and infrastructure, which will benefit
Kombat Copper in the future. Kombat Copper
will have the right to acquire all the installed
components and infrastructure at the end of
the three-year contract for a nominal N$1 and
does not have to invest any capital up front.
Profits will be split equally between Kombat
Copper and EBM. Kombat Copper has agreed
to reimburse up to 50 % of EBM’s capital invest-
ment from 50 % of its profit share. EBMwill pay
Kombat Copper signs agreement with EBM Mining
operating costs directly. To maintain
control, Kombat Copper will collect the
proceeds from the sale of materials and
then pay EBM its contracting fee.
EBM will source local skilled and
non-skilled labour and will utilise local
suppliers and contractors, whenever
possible, from the Kombat region. In its
role as contractor, EBMwill be managing
the hiring process to support operations.
Paul Bozoki, President and CEO of
Kombat Copper, commented: “We are
extremely pleased to have finalised this
landmark agreement with EBM Mining
Namibia. Kombat will now be able to
realise its goal of restarting operations
at the Kombat mine with an experienced
and respected contractor. This relation-
ship is expected to not only support the
company with a steady stream of cash,
but it is also a great win for the local
economy as we anticipate an increase
in trade with our local merchants in the
town and surrounding areas.”
Positive PEA on Tulu
Kapi gold project
AIM-listed KEFI Minerals, which is developing
the Tulu Kapi gold project in western Ethiopia,
reports positive results from its Preliminary
Economic Assessment (PEA) of the under-
ground mining potential underneath the
planned open pit.
KEFI anticipates starting development of
the underground mine after Tulu Kapi has
begun generating positive cash flows from the
open-pit mine and repaying its development
finance, with a view to introducing under-
ground production around the third year of
the open-pit operation.
The PEA indicates that the total produc-
tion of Tulu Kapi (combining the open-pit
mine and underground mine) could approxi-
mate 150 000 oz/a. This production capacity
would result in aggregate net operating cash
flow of around US$100 million per annum
with KEFI’s share of the estimated project NPV
being US$150 million, assuming a gold price of
US$1 250/oz and an 8 % discount rate.