Technical Report and Resource Estimate on the Kombat Copper Project, Grootfontein District, Otjozondjupa Region, Namibia Latitud

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Technical Report and Resource Estimate on the Kombat Copper Project, Grootfontein District, Otjozondjupa Region, Namibia Latitud TECHNICAL REPORT AND RESOURCE ESTIMATE ON THE KOMBAT COPPER PROJECT, GROOTFONTEIN DISTRICT, OTJOZONDJUPA REGION, NAMIBIA LATITUDE 19o 42’ 35”S LONGITUDE 17o 42’ 09”E UTM Zone 33K 783301 m E 7818395 m S FOR KOMBAT COPPER INC. NI-43-101 & 43-101F1 TECHNICAL REPORT Eugene Puritch, P.Eng. Richard Routledge, P.Geo. Richard Sutcliffe, P.Geo., Ph.D. David Burga, P.Geo. Alfred Hayden, P.Eng. P&E Mining Consultants Inc., Report 287 Effective Date: May 20, 2014 Signing Date: July 4, 2014 TABLE OF CONTENTS 1.0 SUMMARY ............................................................................................................................1 2.0 INTRODUCTION AND TERMS OF REFERENCE ............................................................5 2.1 TERMS OF REFERENCE .........................................................................................5 2.2 SOURCES OF INFORMATION ...............................................................................5 2.3 UNITS AND CURRENCY ........................................................................................6 3.0 RELIANCE ON OTHER EXPERTS .....................................................................................8 4.0 PROPERTY DESCRIPTION AND LOCATION ..................................................................9 4.1 PROPERTY LOCATION ...........................................................................................9 4.2 PROPERTY DESCRIPTION AND TENURE .........................................................10 4.3 NAMIBIAN MINING REGULATIONS .................................................................12 4.3.1 Nature of Kombat Copper’s Interest ..........................................................13 4.4 ENVIRONMENTAL LIABILITIES AND PERMITTING .....................................13 5.0 ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE AND PHYSIOGRAPHY .............................................................................................................14 5.1 ACCESSIBILITY .....................................................................................................14 5.2 CLIMATE AND PHYSIOGRAPHY .......................................................................14 5.3 LOCAL RESOURCES AND INFRASTRUCTURE ...............................................14 6.0 HISTORY .............................................................................................................................16 7.0 GEOLOGICAL SETTING AND MINERALIZATION ......................................................19 7.1 REGIONAL GEOLOGY ..........................................................................................19 7.2 LOCAL GEOLOGY .................................................................................................20 7.3 PROPERTY GEOLOGY ..........................................................................................21 7.4 MINERALIZATION ................................................................................................23 8.0 DEPOSIT TYPES .................................................................................................................28 9.0 EXPLORATION...................................................................................................................30 10.0 DRILLING ..........................................................................................................................31 10.1 2013 SRK DRILLING AT ASIS FAR WEST DEPOSIT ......................................31 10.2 2013 DRILL CORE RESAMPLING PROGRAM AT ASIS FAR WEST DEPOSIT ...............................................................................................................31 10.3 2014 DRILL CORE RESAMPLING PROGRAM FROM ASIS FAR WEST TO EAST OF THE ASIS WEST AREA ...............................................................32 10.4 2012 GROSS OTAVI DRILLING .........................................................................33 11.0 SAMPLE PREPARATION, ANALYSES AND SECURITY ...........................................35 11.1 HISTORIC CORE SAMPLE PREPARATION AND ANALYSIS AT KOMBAT MINE LABORATORY .......................................................................35 11.2 SAMPLE RECEIVING ..........................................................................................35 11.3 SAMPLE PREPARATION ....................................................................................35 11.4 SAMPLE ANALYSIS ............................................................................................36 11.5 SRK 2013 CAMPAIGN .........................................................................................37 12.0 DATA VERIFICATION ....................................................................................................38 12.2 QUALITY ASSURANCE/QUALITY CONTROL PROGRAM ..........................41 12.2.1 Performance of Certified Reference Materials ..........................................41 12.3 PERFORMANCE OF BLANK MATERIAL ........................................................44 12.4 PERFORMANCE OF CORE DUPLICATES ........................................................45 12.5 QAQC FOR SRK DRILL HOLE ASSAYING ......................................................49 12.6 PERFORMANCE OF THE SRK BLANKS ..........................................................50 12.7 PERFORMANCE OF THE SRK REFERENCE STANDARDS ..........................51 12.8 PERFORMANCE OF PULP REPLICATES .........................................................53 13.0 MINERAL PROCESSING AND METALLURGICAL TESTING ..................................57 14.0 RESOURCE ESTIMATE ...................................................................................................59 14.1 AFW HISTORIC TONNAGE GRADE ESTIMATES ..........................................60 14.2 AFW DIAMOND DRILL HOLE DATABASE.....................................................60 14.3 DRILL HOLE SURVEYS ......................................................................................62 14.4 DOWN HOLE SURVEYS .....................................................................................62 14.5 ASSAY/ANALYTICAL DATABASE ..................................................................63 14.6 WIREFRAMES ......................................................................................................66 14.7 ASSAYS AND GRADE DISTRIBUTIONS .........................................................69 14.8 GRADE CAPPING .................................................................................................70 14.9 BULK DENSITY....................................................................................................75 14.10 SAMPLE LENGTHS AND ASSAY COMPOSITING ........................................76 14.11 VARIOGRAPHY ..................................................................................................77 14.12 BLOCK MODEL ...................................................................................................80 14.13 BLOCK MODEL GRADE INTERPOLATION ...................................................80 14.13.1 Search Strategy and Grade Interpolation ...............................................80 14.14 MINERAL RESOURCE CLASSIFICATION ......................................................83 14.15 MINERAL RESOURCE ESTIMATE ...................................................................84 14.16 BLOCK MODEL VALIDATION .........................................................................84 15.0 MINERAL RESERVE ESTIMATES.................................................................................86 16.0 MINING METHODS .........................................................................................................87 17.0 RECOVERY METHODS ...................................................................................................88 18.0 PROJECT INFRASTRUCTURE .......................................................................................89 19.0 MARKET STUDIES AND CONTRACTS ........................................................................90 20.0 ENVIRONMENTAL STUDIES, PERMITTING AND SOCIAL OR COMMUNITY IMPACT ............................................................................................................................91 21.0 CAPITAL AND OPERATING COSTS .............................................................................91 22.0 ECONOMIC ANALYSIS ..................................................................................................92 23.0 ADJACENT PROPERTIES ...............................................................................................93 24.0 OTHER RELEVANT DATA AND INFORMATION ......................................................94 25.0 INTERPRETATION AND CONCLUSIONS ....................................................................95 26.0 RECOMMENDATIONS ....................................................................................................97 26.1 RECOMMENDATIONS AND PROPOSED BUDGET........................................97 27.0 REFERENCES ...................................................................................................................99 28.0 CERTIFICATES ...............................................................................................................101 APPENDIX I. PRELIMINARY VARIOGRAPHY .................................................................106 LIST OF TABLES Table 1.1 AFW Inferred Resources at Various Copper Cut-Off Grades ................................ 4 Table 4.1 Licence Data .........................................................................................................
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