Trigon Metals Announces Positive Feasibility for its Kombat Asis West Underground Mine
Trigon Metals Announces Positive Feasibility for its Kombat Asis West
Underground Mine
TORONTO--(BUSINESS WIRE)--March 4, 2024--Trigon Metals Inc. (TSX-V: TM, OTCQB:
PNZTF) ("Trigon" or the "Company") is pleased to announce the results of the feasibility study
undertaken on its Kombat Asis West underground mine in Namibia (the “Feasibility Study”).
The Feasibility Study was prepared by SRK Consulting South Africa (Pty) Ltd (“SRK”) in
accordance with Canadian Securities Administrators' National Instrument 43-101 Standards of
Disclosure for Mineral Projects ("NI 43-101").
The Feasibility Study incorporates both the currently operational open pit mine at Kombat as
well as the restart of the historic Asis West underground mine. Please note that all financial
figures in this press release are in United States dollars, unless otherwise noted.
Highlights
• Significant Mineral Reserves and production,
• Strong financial metrics,
• Defined Project Capital requirement, and
• Derisked operational and production profile.
Jed Richardson, Chairman, commented “I am pleased with the efforts of our team and the
collaboration with SRK on the completion of the study. The projected returns validate our efforts
and expectations for the Kombat Mine. We look forward to even stronger valuations as we
develop through the conversion of more of our Indicated Mineral Resources to Reserves, the
development of Asis Far West and exploration of the Copper King Extension."
A summary of operating and financial metrics from the Feasibility Study are presented in Table
1 below.
Table 1: Kombat Mine – Operating and Financial Metrics
Description Unit Total/average over LoM Asis West
underground Open pit
Copper price USD/lb 4.00
Silver price USD/oz 25.00
Life of mine Years 5.8 5.8 2.4
Run of mine kt 2 385 1 635 750
RoM grade - Copper % 2.46% 3.16% 0.93%
RoM grade - Silver g/t 17.5 22.9 5.7
Processing recovery - Copper % 92% 93% 88%
Processing recovery - Silver % 85% 86% 76%
Concentrate production kt 195 171 24
Recovered product - Copper Mlb 120 106 14
Recovered product - Silver kg 35 451 32 143 3 308
C1 cash cost/lb USD/lb 2.19
AISC/lb USD/lb 2.59
Project capex USDm 40.6
NPV10% (pre tax) (100%) USDm 116.0
IRR10%(pre tax) % 285%
NPV10% (after tax) (100%) USDm 77.8
IRR10%(after tax) % 235%
Note
Run of mine excludes 13.0 kt at 0.83% Cu sitting in stockpile.
C1 cost: direct costs, which include costs incurred in mining and processing (labour, power,
reagents, materials) plus local G&A, and freight, realization and selling costs, and mineral
royalties.
ASIC: All In Sustaining Costs, including sustaining capital.
Certain project capital has already been incurred and this is included in the assessed
loss/unredeemed capital reported by Trigon at February 2024.
Kombat Mine Overview
Trigon holds six active mineral licences related to the Kombat mine: the four mining licenses of
Asis West, Asis Far West, Asis Ost and Gross Otavi and two exclusive prospecting licenses. The
project areas are situated in the Otjozondjupa Region, Grootfontein Magisterial District of the
Otjozondjupa Region, Namibia, between the towns of Otavi, 37 km to the west and Grootfontein,
45 km to the east.
Trigon commenced with open pit mining in early 2023, and dewatering of the historic Asis West
underground complex (which comprises two vertical shafts, No. 1 shaft and No. 3 shaft, and a
decline ramp) in August 2023. In February 2024, Trigon announced the commencement of
operational training for the commencement of underground mining.
Mineral Resources and Mineral Reserve Estimates
Mineral Resources
The Mineral Resource Statement presented represents the third Mineral Resource evaluation
prepared for the Kombat Mine project in accordance with NI 43-101 by Minxcon (Pty) Ltd (an
independent consulting company) commissioned by Trigon to undertake this work. The Mineral
Resources have been independently reviewed by SRK and reported using updated techno-
economic factors.
Mineral Resources are shown in Tables 2 to 4 below. Mineral Resources are reported inclusive
of any Mineral Reserves that may be derived from them.
Table 2: Open Pit Mineral Resource Statement for Kombat Mine as at 29 February 2024
Area
Mineral
Resource
Category
Tonnes
(Mt)
Density
(t/m3)
Grade Content
Cu (%) Pb (%) Ag (g/t) Cu (t) Pb (t) Ag (kg)
Kombat East
Indicated
2.26 2.79 0.92 0.36 6.01 20 760 8 064 1 593
Kombat Central 0.87 2.78 1.07 0.13 9.32 9 294 1 167 148
Kombat West 0.01 2.98 1.95 4.69 17.43 268 645 10
Total Indicated 3.14 2.79 0.97 0.31 6.98 30 322 9 876 1 751
Gross Otavi Inferred 0.54 2.85 0.74 2.27 1.15 3 943 12 186 615
Total Inferred 0.54 2.85 0.74 2.27 1.15 3 943 12 186 615h
Notes:
1. A Mineral Resource is not a Mineral Reserve, and there is no guarantee that all or part of
the Mineral Resource will be converted to a Mineral Reserve
2. The Mineral Resources have been depleted with historical mining pit shells and
underground voids
3. The Mineral Resources are reported within an optimised pit shell, based on the techno-
economic factors disclosed above
4. The Kombat Mineral Resources are reported above a 0.53% Cu cut-off, and the Gross
Otavi Mineral Resources above a 0.60% CuEq cut-off
5. Mineral Resources are reported as total Mineral Resources and not attributable to Trigon
6. Mineral Resources are reported inclusive of any Mineral Reserves that may be derived
from them
7. The Gross Otavi Mineral Resources include geological losses of 15%, depletion for
unknown historical development of 1% and reduced by a porosity factor by 7.5%
Table 3: Underground Mineral Resource Statement for Kombat Mine at 29 February 2024
Area
Mineral
Resource
Category
Tonnes
(Mt)
Density
(t/m3)
Grade Content
Cu (%) Pb (%) Ag (g/t) Cu (t) Pb (t) Ag (kg )
Kombat East
Indicated
0.36 2.81 1.44 1.23 9.23 5 219 4 443 3 346
Kombat Central 0.85 2.81 1.55 0.86 12.55 13 173 7 299 10 664
Kombat West 1.18 2.83 1.90 1.30 11.26 22 393 15 319 13 255
Asis West 7.53 2.82 2.38 0.80 18.02 179 213 60 603 135 707
Gap 0.50 2.79 1.89 0.16 9.90 9 529 822 4 990
Total Indicated 10.42 2.82 2.20 2.20 16.11 229 527 88 486 167 962
Kombat East
Inferred
0.00 2.83 1.45 1.79 13.64 0 0 0
Kombat Central 0.01 2.88 2.02 2.74 0.01 187 254 0
Kombat West 0.13 3.68 5.00 10.50 0.08 6 377 13 399 11
Asis West 0.12 2.82 2.49 0.71 13.74 2 946 846 1 628
Gap 0.01 2.79 1.64 0.17 32.79 229 24 458
Asis Far West 1.53 2.79 2.15 0.37 7.99 32 763 5 703 12 196
Total Inferred 1.80 2.84 2.37 1.13 7.96 42 503 20 226 14 293
Notes:
1. A Mineral Resource is not a Mineral Reserve, and there is no guarantee that all or part of
the Mineral Resource will be converted to a Mineral Reserve
2. The Mineral Resources have been depleted with historical mining underground voids
3. The Mineral Resources are reported above a 1.2% CuEq cut-off
4. Mineral Resources are reported as total Mineral Resources and not attributable to Trigon
5. Mineral Resources are reported inclusive of any Mineral Reserves that may be derived
from them
6. No geological losses are applied
Table 4: Total Mineral Resource statement for Kombat Mine as at 29 February 2024
Source
Mineral
Resource
Category
Tonnes
(Mt)
Density
(t/m3)
Grade Content
Cu (%) Pb (%) Ag (g/t) Cu (t) Pb (t) Ag (kg)
Open Pit Indicated 3.14 2.79 0.97 0.31 6.98 30 322 9 876 1 751
Underground 10.42 2.82 2.20 2.20 16.11 229 527 88 486 167 962
Total Indicated 13.56 2.81 1.92 1.76 14.00 259 849 98 362 169 713
Open Pit Inferred 0.54 2.85 0.74 2.27 1.15 3 943 12 186 615
Underground 1.80 2.84 2.37 1.13 7.96 42 503 20 226 14 293
Total Inferred 2.33 2.85 1.99 1.39 6.39 46 446 32 412 14 908
Notes:
1. A Mineral Resource is not a Mineral Reserve, and there is no guarantee that all or part of
the Mineral Resource will be converted to a Mineral Reserve
2. The Mineral Resources have been depleted with historical mining underground voids
3. The underground Mineral Resources are reported above a 1.2% CuEq cut-off. The
Kombat open Pit Mineral Resources (All indicated) are reported above a 0.53% Cu cut-
off, and the Gross Otavi open Pit Mineral Resources (All Inferred) above a 0.60% CuEq
cut-off
4. Mineral Resources are reported as total Mineral Resources and not attributable to Trigon
5. Mineral Resources are reported inclusive of any Mineral Reserves that may be derived
from them
6. No geological losses are applied at Kombat. The Gross Otavi Mineral Resources include
geological losses of 15%, depletion for unknown historical development of 1% and
reduced by a porosity factor by 7.5%
Mineral Reserves
The open pit Mineral Reserves as set out in Table 5 are limited to the Ore Capping open pits,
which are situated in the Kombat East and Central areas. The LoM pit has been excluded due to
interference with current underground infrastructure. The open pit Mineral Reserve is declared at
the RoM stockpile as a reference point.
Table 5: Open Pit Mineral Reserve Statement for Kombat Mine as at 29 February 2024
Area
Mineral
Reserve
Category
Tonnes
(Mt)
Grade Content
Cu
(%)
Ag
(g/t)
Cu
(t)
Ag
(kg)
Kombat East Probable 0.75 0.93% 5.7 6 953 4 299
Total Probable 0.75 0.93% 5.7 6 953 4 299
Notes:
1. The Mineral Reserves have been depleted with historical mining pit shells and
underground voids.
2. The Mineral Reserves are reported within pit designs and scheduled.
3. The Kombat Mineral Reserves are reported above a 0.56% Cu cut off.
4. Mineral Reserves are reported as total Mineral Reserves and not attributable to Trigon.
5. The Mineral Reserve statement excludes 13.0 kt at 0.83% Cu sitting in stockpile.
The Mineral Reserves for the underground mining schedule are set out in Table 6 below. The
Mineral Reserves are reported at the point where the ore is fed into the processing plant.
Table 6: Kombat Asis West Underground Mineral Reserve as at 29 February 2024
Area
Mineral
Reserve
Category
Tonnes
(Mt)
Grade Content
Cu Ag Cu Ag
(%) (g/t) (t) (kg)
Asis West Probable 1.64 3.16% 22.8 51 643 37 393
Total Probable 1.64 3.16% 22.8 51 643 37 393
Notes:
1. Applied a dilution factor 0.5 m envelope of ore below cut-off in the stopes.
2. Applied an overbreak of 5% in waste development.
3. Lashing or mucking loss of blasted material in the stopes at 2%.
4. Applied a cut-off of 1.5% Cu ore.
5. The Mineral Reserve estimates are declared at the shaft head.
6. Cu metallurgical recovery applied is 93%.
7. The declaration is according to CIM Standards.
The combined Mineral Reserves for the Kombat mine are set out in Table 7 below.
Table 7: Kombat Combined Mineral Reserve as at 29 February 2024
Area
Mineral
Resource
Category
Tonnes
(Mt)
Grade Content
Cu Ag Cu Ag
(%) (g/t) (t) (kg)
Asis West Underground Probable 1.64 3.16% 22.8 51 643 37 393
Open pit Probable 0.75 0.93% 5.7 6 953 4 299
Stockpile Probable 0.01 0.83% 2.5 108 33
Total Probable 2.40 2.40% 17.4 58 704 41 726
Open Pit Mining Notes:
1. The Mineral Reserves have been depleted with historical mining pit shells and
underground voids.
2. The Mineral Reserves are reported within pit designs and scheduled.
3. The Kombat Mineral Reserves are reported above a 0.56% Cu cut-off.
4. Mineral Reserves are reported as total Mineral Reserves and not attributable to Trigon
Underground Notes:
1. Applied a dilution factor 0.5m envelope of ore below cut-off in the stopes.
2. Applied an overbreak of 5% in waste development.
3. Lashing or mucking loss of blasted material in the stopes at 2%.
4. Applied a cut-off of 1.5% Cu ore.
5. The Mineral Reserve estimates are declared at the point where the ore if fed into the
plant.
6. Cu metallurgical recovery applied is 93%.
7. The declaration is according to CIM Standards.
8. Mineral Reserves are reported as total Mineral Reserves and not attributable to Trigon
Qualified Person
The technical information presented in this press release has been reviewed and approved for
disclosure by [Andrew McDonald CEng MIMMM FSAIMM, SRK Principal Engineer and
Competent Valuator, Jaco van Graan, Pr Eng MSAIMM, SRK Associate Partner and Principal
Mining Engineer, Mark Wanless Pr.Sci.Nat FGSSA MGASA, SRK Partner and Principal
Geologist and Joseph Mainama PrEng MSAIMM, SRK Partner and Principal Mining Engineer]
who are Qualified Persons as defined by NI 43-101.
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.
The complete NI 43-101 technical report associated with the Feasibility Study and updated
mineral resources and reserves estimates (the “Technical Report”) will be available on SEDAR+
at www.sedarplus.ca under the Company’s issuer profile, as well as the Company’s website at
www.trigonmetals.com within 45 calendar days.
Cautionary Notes
This news release may contain forward-looking statements. These statements include statements
regarding the Kombat Mine, the mineralization of the Kombat Mine, the timing and results of
economic studies including the Feasibility Study, the economic viability of the Kombat Mine,
mineral resources and mineral reserves estimates, ability to realize on projected economic
estimates, timing of receipts of permits and approvals, future exploration and development plans
and results 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.
Non-IFRS measures
The Company has included certain non-IFRS measures in this press release. The Company
believes that these measures provide investors an improved ability to evaluate the underlying
performance of the Company’s projects. The non-IFRS measures are intended to provide
additional information and should not be considered in isolation or as a substitute for measures
of performance prepared in accordance with IFRS. These measures do not have any
standardized meaning prescribed under IFRS, and therefore may not be comparable to other
issuers.
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
Jed Richardson
+1 647 276 6002
Website: www.trigonmetals.com