1224 - 130 Queens Quay East
FORM 51-102F3
MATERIAL CHANGE REPORT
Item 1 Name and Address of Company
Trigon Metals Inc.
1224 - 130 Queens Quay East
Toronto, ON M5A 0P6
Item 2 Date of Material Change
December 14, 2021
Item 3 News Releases
A news release was issued by Trigon Metals Inc. (“Trigon” or the “Company”) on December 14, 2021,
in respect of the material change and was disseminated through the facilities of Globe Newswire and
filed on SEDAR.
Item 4 Summary of Material Changes
The Company announced an updated National Instrument 43-101 compliant Mineral Reserve estimate
and feasibility study for the open pit mine at the Kombat project in Namibia (“Kombat”).
Item 5 Full Description of Material Changes
Full description of material change attached hereto as schedule “A”
Item 6 Reliance on subsection 7.1(2) of National Instrument 51-102
Not applicable.
Item 7 Omitted Information
Not applicable.
Item 8 Executive Officer
Jed Richardson
President & Chief Executive Officer
Tel: (647) 276-6002
Item 9 Date of Report
December 16, 2021
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SCHEDULE “A”
TRIGON REPORTS MINERAL RESERVE AND UPDATED
FEASIBILITY STUDY FOR THE KOMBAT OPEN PIT
TORONTO, December 14, 2021 – Trigon Metals Inc. (TSX -V: TM) (“Trigon” or the
“Company”) announces an updated National Instrument 43 -101 compliant Mineral
Reserve estimate and feasibility study for the open pit mine at the Kombat project in
Namibia (“Kombat”).
Kombat Open Pit Mineral Reserve Estimate
In 2018, the Co mpany published a Mineral Reserve estimate for the Kombat open pit,
together with a feasibility study on the open pit project. The Mineral Resource estimate
for Kombat was updated in 2020 and again on August 3, 2021, based on the confirmatory
resampling pr ogram undertaken in early 2021. At that time, as the updated Mineral
Resource estimate differed from the estimate used for the 2018 feasibility study, the
Company moved the Kombat open pit back to a Mineral Resource estimate stage, as the
Mineral Reserves, technical, engineering and economic studies had to be redone to align
with the updated Mineral Resources.
The Mineral Resource estimate for Kombat (open pit and underground) as updated on
August 3, 2021 is set out in the table below.
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:
1. 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.
2. The underground Mineral Resource is based on a cut-off grade of 1.5 % CuEq.
3. The CuEq (copper equivalent) is based on copper and silver only (excludes lead).
4. Commodity prices used for the cut-off grades: Cu = USD 9,100/t, Pb = USD 2,500/t, and Ag = USD 27/oz.
5. Historical mine voids have been depleted from the Mineral Resource.
6. Mineral Resources are reported as total Mineral Resources and are not attributed.
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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.
A new feasibility study has now been completed on the Kombat open pit, and an updated
Mineral Reserve estimate for the open pit is set out below.
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:
1. The Mineral Reserve estimation includes only diluted Indicated Mineral Resources which have been converted to Probable
Mineral Reserves.
2. No Inferred Mineral Resources have been included in the Mineral Reserve estimation.
3. Mineral Reserve estimation stated at a cut-off of 0.65% Cu.
4. 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.
5. The Pb in the Mineral Reserve estimation under current offtake agreement will not contribute to revenue but will carry a
penalty.
6. The Mineral Reserves are reported as total Mineral Reserves and are not attributed.
As set out above, although the Kombat underground Mineral Resource estimate does
contain resources in the Indicated category, only the open pit M ineral 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.
Feasibility Study
Production and Processing
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.
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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
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.
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
The table below summarises the turnover and costs from the open pit mine, per recovered
copper equivalent pound.
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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
Kombat Open Pit Restart
The restart of the open pit mine at Kombat is reaching its final stages, with open pit mining
having resumed in October 2021, in order to produce run of mine for the commissioning
of the processing plant in December 2021. The refurbishment of the plant is almost
complete with long lead equipment items currently being installed. The project remains
on track for first production of copper concentrate in early 2022.
Updated Production Guidance
The Company provides updated production forecasts based on the latest Mineral
Resource and Reserve estimates for both the open pit and underground projects of 3,500
tons for 2022 (open pit only), increasing to 14,000 tons by 2024, with the re -
commissioning of the underground mine and the doubling of the current capaci ty of the
processing plant.
Jed Richardson, Trigon’s CEO, commented, “As we reach the culmination of the process
to restart the open pit mine, we will now start focusing on the second phase of the Kombat
project, being the re -opening of the historic higher grade, long life underground mine,
which is where we see the significant potential for this project and for Trigon to grow into
a mid-tier copper producer.”
The updated Mineral Reserve estimate has been prepared and classified by technical
consultants Minxcon (Pty) Ltd (“Minxcon”) in accordance with the reporting guidelines as
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set out in National Instrument 43-101 - Standards of Disclosure for Mineral Projects (“NI
43-101”) as required by the Canadian Securities Administrators. For further information
with respect to the key assumptions, parameters, risks, the mineral reserve estimate, data
verification, quality assurance and quality control (“QA/QC”) and other technical
information, please refer to the technical report.
A NI 43-101 technical report with respect to the Mineral Reserve estimate and Feasibility
Study will be filed under the Company’s profile on SEDAR within 45 days of this press
release.
Qualified Persons
Mr. D van Heerden (B Eng (Min.), MCom (Bus. Admin.), MMC, Pr.Eng. No. 20050318,
FSAIMM, AMMSA), Mr. U Engelmann (BSc (Zoo. & Bot.), BSc Hons (Geol.), Pr.Sci.Nat.,
MGSSA), and Mr. NJ Odendaal (BSc (Geol.), BSc (Min. Econ.), MSc (Min. Eng.),
Pr.Sci.Nat., FSAIMM, MGSSA) of Minxcon are all “qualified persons” as such term is
defined in NI 43- 101 and CIM definition standards and have reviewed and approved the
technical information and data included in this press release. Mr. van Heerden, Mr.
Engelmann and Mr. Odendaal are considered independent of Trigon.
Trigon Metals Inc.
Trigon is a publicly traded Canadian exploration and development company with its core
business focused on copper and silver holdings in mine-friendly African jurisdictions.
Currently the company has operations in Namibia and Morocco. In Namibia, the Company
holds an 80% interest in five mining licences in the Otavi Mountainlands, an area of
Namibia widely recognized for its high-grade copper deposits, where the Company is
focused on exploration and re-development of the previously producing Kombat mine. In
Morocco, the Company is the holder of the Silver Hill project, a highly prospective copper
and silver exploration project.
Cautionary Notes
This news release contains information with respect to certain Non-GAAP measures. These
measures are included because these statistics are key performance measures that
management may use to monitor performance. Management may use these statistics in
future to assess how the Company is performing to plan and to assess the overall
effectiveness and efficiency of mining operations. These performance measures do not have
a meaning within International Financial Reporting Standards ("IFRS") and, therefore,
amounts presented may not be comparable to similar data presented by other mining
companies. These performance measures should not be considered in isolation as a
substitute for measures of performance in accordance with IFRS.
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This news release may contain forward-looking statements. These statements include
statements regarding the Company’s Mineral Resources and Reserves, Feasibility Study, the
Company’s strategies and the Company’s abilities to execute such strategies, the Company’s
expectations for the Kombat operations, the Company’s ability to restart the Kombat
operations, the Company’s ability to obtain adequate investment and other financing, the
Company’s operations, the economic viability of mining at the Kombat Mine and the
Company’s future plans and objectives. These statements are based on current expectations
and assumptions that are subject to risks and uncertainties including, without limitation, risks
and uncertainties inherent to economic studies; risks and uncertainties relating to: history o f
losses; requirements for additional capital; dilution; loss of its material properties; interest
rates increase; global economy; no history of production; future metals price fluctuations,
speculative nature of exploration activities; periodic interruptions to exploration, development
and mining activities; environmental hazards and liability; industrial accidents; failure of
processing and mining equipment to perform as expected; labor disputes; supply problems;
uncertainty of production and cost estimat es; the interpretation of drill results and the
estimation of mineral resources and reserves; changes in project parameters as plans
continue to be refined; possible variations in ore reserves, grade of mineralization or recovery
rates may differ from what is indicated and the difference may be material; legal and
regulatory proceedings and community actions; accidents, title matters; regulatory
restrictions; permitting and licensing; volatility of the market price of Trigon common shares;
insurance; competition; currency fluctuations; loss of key employees; uncertainties and risks
inherent with doing business in a developing country, including, without limitation, war,
corruption, terrorism, political instability and the uncertainty of the rule of law; and other risks
of the mining industry. Actual results could differ materially because of factors discussed in
the management discussion and analysis section of our interim and most recent annual
financial statements or other reports and filings filed at www.sedar.com from time to time. We
do not assume any obligation to update any forward-looking statements, except as required
by applicable laws.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is
defined in the policies of the TSX Venture Exchange) accepts responsibility for the
adequacy or accuracy of this release.
For further information, contact:
Jed Richardson
+1 647 276 6002
Website: www.trigonmetals.com