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PDAC INVESTOR PRESENTATION March 2013
TSXV: KBT
NAMIBIA
Significant copper region
Stable, democratic and mining friendly*
9% of GDP
8,000 Namibians employed
37.5% tax rate
3% royalty rate
Well supported government and local partnership model
Track record of success
*Namibia Central Bureau of Statistics and Transparency International, 2010 2
ONE OF THE WORLD’S MOST PROSPECTIVE COPPER REGIONS
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4 Source: Mineral Deposits of Southern Africa, Geological Society of South Africa
EXPLORING FOR THE NEXT TSUMEB
24.7 Million tonnes
90+ Years of production
5.5% Cu 11.8% Pb 171 g/t Ag
WELL POSITIONED
5 mining licenses
5 prospecting licenses covering ~ 2200 km2
3 past producing mines (Cu, Ag, Pb, Zn, V)
Historical deposits and new discoveries
Infrastructure: power, water, roads, rail access
Mill and concentrator with replacement value of more than $100M
On Walvis Bay Corridor with proximity to smelter at Tsumeb and Port at Walvis Bay
*Namibia Central Bureau of Statistics and Transparency International, 2010
Kombat
Walvis Bay
Tsumeb
Windhoek
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Paved Road Rail
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REGIONAL GEOLOGY
Otavi
KOMBAT
Tsumeb
0 40km
23S 23S
17E
WINDHOEK
N 17
30’E
19 30’S
Karoo Dyke – olivine dolerite
Tschudi & Kombat Fms – feldspathic sandstone, slate
Tsumeb Subgroup – dolostone, limestone, mixtite Abenab Subgroup – dolostone, limestone, marl, shale Nabis, Askevold & Varianto Fms – quartzite, meta-andesite, agglomerate, mixtite
Grootfontein Basement Complex – granite, gneiss, mafic schist
LEGEND
Adapted after Galloway
Otavi Mountainland; situated on northern Carbonate Platform of the Damara Orogen
Late Proterozoic to early Phanerozoic (500-550Ma) complex deformation 2 phases of folding generally EW to NE metamorphism; lower greenschist
(prehnite-pumpellyite in some areas)
Kombat is situated on the northern flank of the canoe-shaped Otavi Valley Syncline; a double-plunging syncline with the northern limb dipping at 20-75o to the south. The southern limb is overturned.
KOMBAT
Berg-Aukas – Zn, Pb, V stratabound lenses brecciated pipe-like stratabound with north-south trending, steeply dipping lenses
or ore-filled fractures Tsumeb – Cu, Pb, Zn, Ge breccia pipe single largest known deposit of germanium over 200 mineral types and type location for over 50 Tschudi – Cu, Py metal precipitation by replacement of epigenetic py Kombat – Cu, Pb, (Zn), Ag enigmatic?
MAIN BASE METAL TYPES IN OTAVI MOUNTAINLAND
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MINE GEOLOGY
= Dolomitic units of the Huttenberg Fm Slates, phyllites of the Kombat Fm
= Mineralized zone (projected) showing axis of elongation
Fault Zone Kombat monocline trend (projected to surface)
(Adapted from J. Deane after Innes and Chaplin (1986) and C. and S. Galloway 1985)
Asis Ost
E900 Kombat East
Kombat Central
Kombat West
Asis West
Asis Far West
AsisAsisAsisAsis
N
7860
00m
E
7800
00m
E
7818000mN
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IDEALIZED KOMBAT CROSS SECTION
Monoclinal Structure
Stockwork Zone
Phyllite (Kombat Fm)
Unconformity
Dolomitic Phases of Huttenberg Fm
Otavi Valley Sandstone
Fe-Mn Oxide Silicate Assemblage
Massive Ore
Legend
(looking East)
Adapted after Galloway
Recruited Geological Team Re-assessed historical work and data Commenced exploration and drilling programs and
identified targets on mining licenses and EPLs Completed mechanical survey of mill and
concentrator including power supply requirements and delivery options
Advanced discussions with NamWater on off-take Advanced discussions with Epangelo and other
strategic partners Strengthened Board and Management
MILESTONES
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KOMBAT COPPER TECHNICAL TEAM
Technical Advisors
Robert Friesen, P.Geo. 45+ years of experience worldwide in underground and open pit mining operations, mine area exploration, and the development of projects from pre-feasibility through production.
Gerald Gauthier, P.Eng. 40+ years international experience in the mining industry building and operating open pit and underground mines.
Nathaniel Chouinard, P.Eng. 18+ years experience operating international mining and mineral processing projects. Specialty in Mining Engineering.
Tom Neelands, P.Geo. 35+ years experience as geologist within Canada and internationally. Three significant discoveries including FDN in Ecuador.
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Geological Team
Colin Russell, P.Geo. 25+ years exploration experience managing exploration programs from grassroots to advanced resource definitions.
Gwendal Madec, M.Sc. 10+ years Namibian experience focused on hydrogeology and resource definition campaigns.
Ralf Wartha, M.Sc. and Mineralogist 30 years Namibian resident. World recognized mineralogist with wide ranging Namibian experience.
Dr. Roger Laine, Ph.D. 35 years of international industry experience throughout the Americas, West & Central Africa and Europe, specializing in exploration, development, geostatistics and reserve estimating, underground and open-pit mining, grade and quality control.
SUBSTANTIAL ASSETS IN PLACE 12
1,200 Ha
5 Licenses
2019 Renewable
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Kombat
Harasib
Gross Otavi
MINING LICENSES
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50 YEARS OF MODERN MINING OPERATIONS
8.7Mt 3.1% Cu, 1.1% Pb, 26g/t Ag
NamPower
Facility
NamPower
Facility
Rail AccessRail Access
Flotation
Filtration
Flotation
Filtration
Rod/Ball MillsRod/Ball Mills
Diesel Power FacilityDiesel Power Facility
Jaw CrusherJaw Crusher
Thickening
Tanks
Thickening
Tanks
Ingress/Egress RampIngress/Egress Ramp
No 1 CrusherNo 1 Crusher
Secondary CrusherSecondary Crusher
Rod and Ball Crushers
Flotation and Filtration Circuits
Diesel Power Generators
Shaft Hoist
KOMBAT MINE: COMPLETE MINING FACILITY ESTIMATED $100 MILLION REPLACEMENT COST
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ADD TALBLE Of Historical production and the cashflow that came from the mill in a full yesr when everything was running smooth
EXAMPLE OF PRODUCTION AT KOMBAT MINE
Year Ore Milled (t) Cu (%) Pb (%) Ag (g/t)
1911–1925 4 957 17.8 * *
1985 332 088 4.00 1.42 32
1986 358 427 3.65 1.34 31
1987 325 153 3.88 1.29 30
1988 350 689 3.09 1.04 24
1989 233 970 1.82 0.36 32
1990 363 262 2.52 1.14 16
1991 409 279 3.13 0.93 22
TCL historic data, non-compliant * no data available
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FOCUSED ON DEFINITION OF NEW RESOURCE
800 m exploration shaft circa 2002
Total cost ~ $30M
Designed to provide underground access to AFW potential ore and facilitate economic resource definition
Significant reduction in exploration costs and timing compared to surface drilling
Significant hoisting and pumping capacity
Controllable water management
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WORLD CLASS EXPLORATION SHAFT
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CONFIRMATION OF HIGH-GRADE COPPER & SILVER
SIGNIFICANT ASSAYS FROM HISTORIC ASIS FAR WEST DIAMOND DRILLING RE-SAMPLING
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Hole From (m) To (m) Width (m) Cu (%) Ag (g/t)
AW90A 527.00 530.20 3.20 7.66 25.8
(includes) 528.00 529.00 1.00 21.60 72.5
AW90B 482.00 485.00 3.00 1.52 7.8
AW95C 598.00 605.00 7.00 * 34.7
(includes) 601.00 603.00 2.00 4.37 106.0
AW98C 705.30 715.00 9.70 1.60 *
(includes) 709.30 713.10 3.80 3.31 33.5
AW101A 735.00 745.00 10.00 8.09 124.1
(includes) 739.00 745.00 6.00 12.98 205.3
(includes) 741.00 742.00 1.00 29.70 457.0
SIGNIFICANT ASSAYS FROM HISTORIC ASIS FAR WEST DIAMOND DRILLING RE-SAMPLING
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Hole From (m) To (m) Width (m) Cu (%) Ag (g/t)
AW105E 878.00 883.00 5.00 * 4.1
(includes) 880.00 882.00 2.00 1.70 4.8
AW105G 711.00 720.00 9.00 1.84 23.2
(includes) 714.00 718.80 4.80 2.93 39.2
AW108A 850.00 858.00 8.00 * 10.4
(includes) 854.00 856.00 2.00 2.73 26.5
AW114 1081.00 1088.80 7.80 * 8.6
(includes) 1082.00 1084.00 2.00 0.80 12.5
AW118B 876.00 885.30 9.30 * 10.9
(includes) 878.40 881.00 2.60 1.09 19.0
SIGNIFICANT EXPLORATION UPSIDE 22
PRICE INCREASE SINCE 2009
225% Copper
IMPROVED MINERAL ECONOMICS
95% 140% 67%
Zinc Lead Silver
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Paved Road Rail
5 Exclusive Prospecting Licenses
2,258 Km2
Cu, Ag, Pb, V Highly prospective exploration region
EXCLUSIVE PROSPECTING LICENSES
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HIGHLY-PROSPECTIVE TARGETS IDENTIFIED
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Domingo targets are situated on the southern limb of the well-known Tsumeb syncline
Heckers breccia is a silicified breccia, with malachite and chalcocite
Target is the contact zone down dip of the Domingo showing on the south limb of the Tsumeb syncline
DOMINGO PROSPECT
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Domingo Hecker’s Breccia
Domingo
Tschudi underground mine historically produced Cu and Ag. Presently planning for opencast mining.
*Resources: 45Mt ore @ 0.8% Cu and 10g/t Ag.
Ore was shipped to nearby smelter in Tsumeb.
Located in the prospective Tschudi area are nearby old workings producing Cu-V; Karavatu, Bobos and !Uris.
* historical, non 43-101 compliant
TSCHUDI EXTENSION TARGET
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Area of interest to be explored
1. Complete verification drilling and historical re-evaluation study to define economics of deposit
2. Prove and expand the existing resource from exploration targets within the AW and AFW mine area
3. Evaluate Gross Otavi and Harasib mining licenses
4. Advance existing EPL exploration with specific targets identified on known historical mineralisation
5. Capitalize on opportunities to acquire additional EPLs
6. Monetize redundant equipment to fund exploration
7. Economic evaluation of tailings
8. Acquisitions and strategic partnerships
2013 OBJECTIVES
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MANAGEMENT & DIRECTORS
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Strategic Consultants Duane Parnham • +12 years African experience
• Successful track-record of developing projects
Knowledge Katti • Identifies strategic resources
• Forms partnerships with capital/expertise and host countries
Alex Helmel Director and President Scott Kelly Director & Executive VP Amish Patel Director & CFO Mike Slater Director & Corporate Secretary Rick Vaive Director Tom Neelands Director Nathaniel Chouinard Director
Item Share Information
Symbol TSXV: KBT
Share Price $0.22
Basic Shares 82,295,047
Warrants** 33,561,031
Options 4,250,000
FD Shares 119,806,078
Market Capitalization ~$18.1M
CAPITAL STRUCTURE *
30 *All values as at Feb 28 2013 ** Warrant proceeds on exercise of $25.5 million
One of the world’s most prospective copper regions
Opportunity to materially increase resources
Significantly improved mineral economics
Experienced exploration team in place
Focus on resource definition and exploration potential
Excellent infrastructure
Unparalleled partnerships and local support
Access to capital and talent
WHY INVEST?
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