Very interesting conversation on the Ag credits and exploitation...

Very interesting conversation on the Ag credits and exploitation of the Border deposits.

I don't have a feel for the Ag extraction costs, which is why I have ignored the Kombat trend credits. But as Q has suggested, they should reduce the OPEX costs of mining and processing the Cu. It would be great if the company could provide some guestimates of the potential financials.

However, looking at the schedule of drilling results, they might have a cut-off grade of below 0.5% Cu even before taking account of Ag credits. If so, that suggests that a deposit achieving even the lower end of their exploration target for Guchab should make some producers green with envy. Isn't it the case that even the topsoil has that grade (5,000ppm).

Kombat Mine is capitalised at C$8.2m: http://web.tmxmoney.com/quote.php?qm_symbol=KBT

"On April 23, 2012, the Company [Kombat Mines] purchased through the acquisition of Manila Investments (Pty)
Inc., 80% of the mining assets commonly known as the Kombat mine which dates back to the early 1900's when copper ores were first extracted from high grade and near surface deposits.

These early discoveries resulted in the modernization of the project in the 1960’s with the addition of several shafts, a mill, and a concentrator which supported the mine during the period of 1962 – 2008, with production to 1981 reported at 5.53 million tonnes of ore grading 2.32% Cu,
1.94% Pb and 18 g/t Ag..."

It has recently gone to the market to raise C$3m. IF or when SBR gains a mining licence for Guchab, Kombat and its facilities (and 2,258 km2 licence areas in the Tsumeb) might be a sitting duck. By Q2 2014, by which time SBR may be preparing a mining application, Kombat would have spent a lot of its cash.

Just some idle thoughts and all speculation but it could be a cheap way to gain control of processing facilities (according to Kombat, the mill and concentrator have a replacement cost value of about C$100m).