Mokambo Property (Zambia)

The Mokambo property is located in the famous Central African Copperbelt, Mufulira Mining District, Republic of Zambia (Zambia), Africa. The property is in an advanced stage of exploration and is one of the last known under-developed properties in the famous Central African Copperbelt, which contains world-class copper and cobalt mineral resources. ICS holds an option agreement to acquire up to 80% of the Mokambo Property. The Mokambo Property is a 403-hectare concession which is situated 15 kilometers from the City of Mufulira and approximately 40 kilometers north from Kitwe. The Mokambo property is at the northeastern side of the "Mufulira Syncline"(see Mufulira Syncline). Copper has been extracted on the southwestern side of the "Mufulira Syncline" at the famous Mufulira Mine, since 1933. It is owned by Mopani Mines PLC, a joint venture between Glencore, First Quantum and the Zambian government.

Thirty one (31) diamond drill holes were drilled in the central portion of the Mokambo Property up to the 1970's. A historic, non-compliant NI-43-101, Indicated Resource was estimated, by Geomin (a Romanian mining company), in 1973, down to 330 meters. They used a polygonal method to estimate the resource of 12 million tones, grading 1.72% sulphide copper. A further historic, non-compliant NI-43-101, Inferred Resource was estimated at 12 million tonnes grading 1.47% sulphide copper. The Company intends to make the historic, non-compliant estimate compliant with NI-43-101 as soon as possible. Disclosure of Historical Estimates under NI 43-101- The Source of the company’s estimates are from a feasibility study undertaken by  Geomin, a Romanian company  in 1976 - a qualified person has not done sufficient work to classify the historical estimate as current mineral resources or mineral reserves -  ICS is not treating the historical estimate as current mineral resources or mineral reserves as defined in sections 1.2 and 1.3 of 43-101 – the historical estimate should not be relied upon.

A success-contingent, two-stage exploration program has begun to initially define the oxide target mineral potential and then the sulphide mineral potential on the property. Phase I of the proposed exploration program would include:

• Secure the shaft site (Completed).
• Improve year round access to the concession (Completed).
• Meet with local residents (On-going).
• Obtain detailed data from historic drilling on the property (Completed).
• Define the concession boundary (On-going).
• Complete an initial environmental assessment report for the Zambian EnvironmentalCouncil (ZEA) and Mines Department (Completed). Complete an Environmental Impact Assessment with ZEA (On-going).
• Develop drill station roads (Completed).
• Initiate an oxide cap delineation drill program utilizing the drill station roads (On-going).

The scope and associated costs of Phase II of the program will be contingent on the results of Phase I. The program would include continued drilling of the oxide cap, if necessary and the drilling of the sulphide copper and other mineral potential.

The property is strategically located in highly prospective ground. The Company is presently drilling the oxide copper cap and other potential economic mineralization, common in all Copperbelt mines. This should add significantly to the mineral resources of the property.

History

The Mokambo Property and adjoining concessions have had substantial exploration programs completed on them, since 1929.

In 1970, a joint venture was established between the government of Zambia and the Socialist Republic of Romania to explore the area. Geomin (Romanian Foreign Trade Company for Mines, Oil and Geology – Bucharest), Romanian acquired Prospecting Licence (PL 51) and Exploration Licence (EL 3) and took control of the property. A program of 6 diamond drill holes was completed to fill in gaps from previous drill programs. Geological prospecting, hydrological and geotechnical drill surveys and several new trenches and pits were completed as part of this exploration program.

An exploratory shaft was constructed in 1974 on the Mokambo Property to further test the largest concentration of sulphide copper mineralization found by drilling. It was sunk to 125 meters and was originally designed to have four levels (120, 190, 260 and 330 meters) as well as an ore storage and loading pocket. This would have given the shaft an ultimate depth of 430 meters. During the construction of the 120-meter level, water-laidened faults were encountered which eventually flooded the mine in February 1975. A new preliminary feasibility study was completed by Geomin in 1976 but Mindeco (co-owners of the Mokambo by now) disagreed with the economic data in the study. The flooded shaft-event, along with a continuing low copper price and political unrest between Romania and Zambia eventually shut the operation down and the project was abandoned in 1977 (Mambwe, 1985).

NE side of the Mufulira Syncline

In 1987, Paragon Mines Limited (a Canadian-based junior mining company) took on the project but before work commenced, all 4 directors were tragically killed in a motor vehicle accident outside of Lusaka, Zambia.

The state-owned mining company ZCCM in 1992 carried out a feasibility study to try to amalgamate the Mokambo Property with the Mufulira Division of ZCCM but with impending privatization, the project was abandoned.

Between 1994 and 1997 two Zambian individuals acquired the property in the hope of re-starting the Mokambo Property but had inadequate capital to re-open the operation. They finally scavenged all the equipment on the property, thereby eliminating the value-added assets.

In 2005, North Western Plant Hire (NWPH) acquired the Mokambo Property by acquiring a Small-Scale Mining Licence (SML 235). Survey beacons (monuments) were installed and four trenches were hand dug in 2005. Only one of them was sampled due to lack of money for the project.

ICS Copper Systems Ltd. (ICS) signed a Heads of Agreement with NWPH on July 24th 2006, followed by an Option Agreement dated August 10, 2006 to develop the Mokambo Property.