Kombat Mineral Resource
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:
- 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.
- The underground Mineral Resource is based on a cut-off grade of 1.5 % CuEq.
- The CuEq (copper equivalent) is based on copper and silver only (excludes lead).
- Commodity prices used for the cut-off grades: Cu = USD 9,100/t, Pb = USD 2,500/t, and Ag = USD 27/oz.
- Historical mine voids have been depleted from the Mineral Resource.
- 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:
- The Mineral Reserve estimation includes only diluted Indicated Mineral Resources which have been converted to Probable Mineral Reserves.
- No Inferred Mineral Resources have been included in the Mineral Reserve estimation.
- Mineral Reserve estimation stated at a cut-off of 0.65% Cu.
- 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.
- The Pb in the Mineral Reserve estimation under current offtake agreement will not contribute to revenue but will carry a penalty.
- 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:
- The underground Mineral Resource is based on a cut-off grade of 1.5 % CuEq.
- The CuEq (copper equivalent) is based on copper and silver only (excludes lead).
- Commodity prices used for the cut-off grades: Cu = USD 9,100/t, and Ag = USD 27/oz.
- Historical mine voids have been depleted from the Mineral Resource.
-
Mineral Resources are reported as total Mineral Resources and are not attributed.
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. 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. The table below summarises the turnover and costs from the open pit mine, per recovered copper equivalent pound.Feasibility Study
Production and Processing
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
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
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