Trigon Metals Announces Achievement of Key Mining Milestone — Underground Mining Operations Averaging 980 tpd of Ore Over 30-day Rolling Period at Kombat Mine, Namibia
Trigon Metals Announces Achievement of Key Mining Milestone —
Underground Mining Operations Averaging 980 tpd of Ore Over 30-day
Rolling Period at Kombat Mine, Namibia
TORONTO--(BUSINESS WIRE)--September 19, 2024--Trigon Metals Inc. (TSX-V: TM;
OTCQB: PNTZF) (“Trigon” or the “Company”) announces that it has reached a key milestone,
having mined an average of 980 tonnes of ore a day from its underground operations over a 30
day period and that it will pause its open pit operations at the end of September 2024 at the
Company's Kombat mine in Namibia.
Trigon has achieved a key milestone as required pursuant to the terms of the streaming
agreement with Sprott Private Resource Streaming and Royalty (B) Corp. and Sprott Mining Inc.
by exceeding average production of 900 tonnes per day from its underground operations over 30
consecutive days (see press release dated October 24, 2022). This threshold was required to be
met by October 31, 2025 and has been met by Trigon 13 months earlier than contractually
required.
Following the success from its underground operations, Trigon has made the decision to pause
its open pit mining activities with effect from the end of September 2024, based on the following
supporting factors:
1. The successful recommissioning of the underground mine with commercial production
declared on May 23, 2024,
2. Ability to mine 900 tonnes per day average over a 30 day period,
3. The significant grade differential and positive contribution of the underground mining
operations when compared to the open pit operations, and
4. The current milling capacity constraint at the Kombat mine limits plant throughput to
1,000 tonnes per day, which in turn leads to the preferential feeding of higher-grade
underground ore. The Company is able to fill any production shortfall through feeding of
existing lower-grade stockpiles until such time as underground production reaches full
steady state.
The mining contractor for the open-pit operations has been notified of the intended pause of open
pit mining activities and will demobilise from the operations by the end of September 2024.
Jed Richardson, CEO and Executive Chairman of Trigon, commented, “This achievement not
only reflects our ability to meet and surpass the feasibility study ramp-up targets but also de-risks
the Sprott streaming agreement, ensuring that Trigon is not required to convert the principal
advanced pursuant to the stream agreement into a loan. Exceeding the 900 tonnes per day
average from the underground is a significant milestone for the Company and a testament to the
team's dedication to delivering on our commitments. We are grateful to Tulela Mining and
Construction, our open pit mining contractor, for their exceptional support and partnership over
the last four years.”
Rennie Morkel, President and COO of Trigon, commented, “We’ve faced significant challenges
with the open pit, where stripping requirements have exceeded our forecasts. Pausing open pit
operations will have an immediate positive impact on our operating costs, allowing us to focus
on the higher-grade underground ore. This strategic shift enhances our ability to increase
production while maintaining cost efficiency, ensuring a more sustainable and profitable
operation moving forward.”
Qualified Person
The technical information presented in this press release has been reviewed and approved for
disclosure by Fanie Müller, P.Eng, VP Operations of Trigon, who is a Qualified Person as
defined by NI 43-101.
Change of Transfer Agent
Trigon also announces the appointment of Odyssey Trust Company (“Odyssey”) as the
Company’s registrar and transfer agent. Odyssey will now be responsible for all transfers of
Trigon’s shares through their office in Toronto rather than TSX Trust Company of Canada,
which has resigned at the Company’s request. Shareholders need not take action in respect of the
change in transfer agent and register.
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.
Cautionary Notes
This news release may contain forward-looking statements. These statements include statements
regarding the Sprott Financing agreement, operating costs, the Company’s strategies and the
Company’s abilities to execute such strategies, the Company’s expectations for the Kombat
mine, the operations at the Kombat mine, the economic viability of the Kombat mine, the
Company’s expected production, the Company’s ability to comply with the terms of the stream
agreement, the impact of pausing open-pit operations and the Company’s future plans and
objectives. These statements are based on current expectations and assumptions that are subject
to risks and uncertainties. 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 with the TSX Venture Exchange and applicable Canadian
securities regulations. 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.
Contacts
For further information, contact:
+1 (647) 276-6002 x 1127
Website: www.trigonmetals.com