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Kombat Mineral Resource

Mineral Resource
Feasibility Study

Mineral Resource

 

The Mineral Resource estimate for Kombat was updated in 2020 and again on August 3, 2021, based on the confirmatory resampling program undertaken in early 2021.

Combined Mineral Resource Estimation (Open Pit and Underground) as at 3 August 2021
MINERAL RESOURCE ESTIMATE CLASSIFICATION TONNES
CU PB AG
MT % % G/T
INDICATED 12.22 1.94 0.70 13.67
INFERRED 1.91 2.19 1.79 6.13

Notes:

  1. The open pit Mineral Resource is limited at depth of 160 m for Kombat and 150 m for Gross Otavi with a CuEq cut-off of 0.65% for Kombat and 0.77% for Gross Otavi.
  2. The underground Mineral Resource is based on a cut-off grade of 1.5 % CuEq.
  3. The CuEq (copper equivalent) is based on copper and silver only (excludes lead).
  4. Commodity prices used for the cut-off grades: Cu = USD 9,100/t, Pb = USD 2,500/t, and Ag = USD 27/oz.
  5. Historical mine voids have been depleted from the Mineral Resource.
  6. Mineral Resources are reported as total Mineral Resources and are not attributed.

The Indicated Mineral Resource estimate comprises 5.28Mt from the open pit, at a grade of 1.00% copper, and 6.93Mt from the underground at a grade of 2.66% copper.

Kombat Project Open Pit Mineral Reserve Estimation as at 3 August 2021
MINERAL RESERVE
CATEGORY		 DILUTED TONNES GRADE CONTENT
CU PB AG CU PB AG
MT % % PPM T T KG
PROBABLE 1.54 1.14 0.28 7.49 17,559 4,301 11,508
TOTAL 1.54 1.14 0.28 7.49 17,559 4,301 11,508

Notes:

  1. The Mineral Reserve estimation includes only diluted Indicated Mineral Resources which have been converted to Probable Mineral Reserves.
  2. No Inferred Mineral Resources have been included in the Mineral Reserve estimation.
  3. Mineral Reserve estimation stated at a cut-off of 0.65% Cu.
  4. The Ore Reserve estimation was completed using an average Cu price of USD7,054/t and average Ag price of USD20.15/oz over the life of mine.
  5. The Pb in the Mineral Reserve estimation under current offtake agreement will not contribute to revenue but will carry a penalty.
  6. The Mineral Reserves are reported as total Mineral Reserves and are not attributed.
Although the Kombat underground Mineral Resource estimate does contain resources in the Indicated category, only the open pit Mineral Resources have been considered in the Mineral Reserve conversion process at this stage, as the underground study work is still based on a Preliminary Economic Assessment level of confidence and requires additional work which will be undertaken as a second phase of the restart of the Kombat mine.

 

Underground Mineral Resource Estimate [CuEq Cut-off 1.50% (Pb not incl.)] as at August 3, 2021
Area Mineral Resource Estimate Classification Tonnes Cu Pb Ag
Mt % % g/t
Kombat East Indicated 0.10 1.69 1.55 11.50
Kombat Central 0.23 1.90 1.55 19.80
Kombat West 0.76 2.27 1.45 13.04
Asis West 5.53 2.79 0.87 20.78
Gap 0.32 2.25 0.18 11.58
Total Indicated 6.93 2.66 0.94 19.34
Kombat Central Inferred 0.01 2.02 2.74 0.01
Kombat West 0.13 5.01 10.53 0.06
Asis West 0.09 2.90 0.84 16.12
Gap 0.00 2.51 0.27 55.40
Asis Far West 1.04 2.55 0.36 9.11
Total Inferred 1.27 2.82 1.43 8.80

Note:

  1. The underground Mineral Resource is based on a cut-off grade of 1.5 % CuEq.
  2. The CuEq (copper equivalent) is based on copper and silver only (excludes lead).
  3. Commodity prices used for the cut-off grades: Cu = USD 9,100/t, and Ag = USD 27/oz.
  4. Historical mine voids have been depleted from the Mineral Resource.

  5. Mineral Resources are reported as total Mineral Resources and are not attributed.

Feasibility Study

 

Production and Processing

The Kombat open pit mine has a potential life of mine of 5 years, mining a total of 1.5Mt ore, at an average grade of 1.14% copper and 7.49 g/t silver.

ITEM UNIT KOMBAT
OPEN PIT WASTE TONNES MINED KT 10,488
OPEN PIT ORE TONNES MINED KT 1,536
STRIPPING RATIO TO:TW 6.83
TOTAL TONNES MINED KT 12,024
AVERAGE CU GRADE MINED % 1.14%
AVERAGE AG GRADE MINED G/T 7.49
AVERAGE CU RECOVERY % 91.9%
TOTAL 22% CU CONCENTRATE KT 73
LOM YEARS 5

 

Capital

The total start-up capital for the Kombat open pits, including the refurbishment of the plant, is USD10 million, including contingencies. All of the capital, excluding stay in business capital is spent in year 1, and the majority of this capital has already been spent in 2021 to date.

CAPITAL EXPENDITURE UNIT LOM YEAR 1
TOTAL MINING CAPITAL USDM 0.58 0.58
TOTAL PLANT CAPITAL USDM 10.82 9.01
TOTAL OTHER CAPITAL USDM 0.50 0.50
TOTAL DIRECT CAPITAL OVER LOM USDM 9.11 9.11
TOTAL SIB CAPITAL USDM 1.87 0.06
TOTAL CAPITAL CONTINGENCIES USDM 0.91 0.91
TOTAL COMBINED CAPITAL USDM 11.90 10.08

 

Revenue and Operating Costs

The table below summarises the turnover and costs from the open pit mine, per recovered copper equivalent pound.

NET TURNOVER USD/COPPER EQ. LB 3.46
MINE COST USD/COPPER EQ. LB 1.21
PLANT COSTS USD/COPPER EQ. LB 0.78
OTHER COSTS USD/COPPER EQ. LB 0.83
DIRECT CASH COSTS (C1) USD/COPPER EQ. LB 2.81
CAPEX USD/COPPER EQ. LB 0.36
PRODUCTION COSTS (C2) USD/COPPER EQ. LB 3.18
ROYALTIES USD/COPPER EQ. LB 0.10
CORPORATE OVERHEADS USD/COPPER EQ. LB –
FULLY ALLOCATED COSTS (C3) USD/COPPER EQ. LB 3.27
EBITDA* USD/COPPER EQ. LB 0.55

Trigon Metals