Trigon Metals Announces Positive Mineral Resource Update and Corporate Update
TRIGON METALS ANNOUNCES POSITIVE MINERAL RESOURCE UPDATE AND CORPORATE
UPDATE
HIGHLIGHTS
Updated NI 43-101 compliant mineral resource estimate of 6.26 million tonnes of
Inferred Mineral Resources at a grade of 2.97% copper, 1.00% lead and 20.99 g/t silver.
The Mineral R esource estimate includes 2.41 million tonnes of shallow surface
accessible Inferred Mineral Resources at an average grade of 1.72% copper, 1.01% lead
and 3.61 g/t silver.
Upside potential still exists down dip from Asis West , w here underground exploration
has been limited to date.
Appointments of Mr. Brett Richards as Chairman of the board and Mr. Robert Schafer as
a director of the Company.
Toronto, Canada – April 20, 2017 – Trigon Metals Inc. (TSX -V: TM) (“Trigon” or the
“Company”) is pleased to announce an updated mineral resource estimate at its Kombat
Mine located in northern Namibia of Inferred Mineral R esources of 6.26 million tonnes
grading 2.97% copper, 1.00% lead and 20.99 g/t silver, at a cut-off grade of 0. 77% copper
equivalent for the surface accessible (open pit) portion and 1.4% copper equivalent cut-off
grade for the underground portion.
The updated mineral resource estimates, which include the Kombat West, Central and East,
Asis Far West, Asis Gap and Asis West areas as presented in detail in Table 1 below (the
“Updated Mineral Resource Estimate”), have been prepared and classified by Minxcon (Pty)
Ltd (“Minxcon”) in accordance with the reporting guidelines as set out in National
Instrument 43-101 - Standards of Disclosure for Mineral Projects (“NI 43-101”) as required
by the Canadian Securities Administrators.
The Kombat Mine is Trigon’s flagship property, having produced in excess of 12 million
tonnes at a grade of 2.62% copper, 1.55% lead and 18 g/t silver between 1962 and 2008.
The Kombat Mine assets form a solid foundation for growth and creation of shareholder
value, with near term production plans underway. The Company intends to make use of the
extensive existing infrast ructure to bring the Kombat Mine back into production , both in
terms of the near-term surface mining and ultimately the underground operations.
The previous m ineral resource estimate as at May 20, 2014 only covered the Asis Far West
area, representing a very limited section of the Kombat M ine’s potential. The Updated
Mineral Resource Estim ate covers all proposed current and historical mining areas at the
Kombat Mine. This provides management with optionality in terms of its strategic planning,
and the preliminary economic assessment (“PEA”) currently being undertaken by the
Company will provide an indication of the economic viability of various alternatives in this
regard.
Stephan Theron, President and CEO of Trigon, commented: “ The updated consolidated
mineral resource numbers have met our expectations and provide management with a
substantial base from which to grow Trigon into a mid -tier producer . We are pleased to
have achieved this early stage milestone, and look forward to reporting progress on the
implementation of the first phase of our strategic plan for near -term surface mining. We
would also like the welcome Bob Schafer to the board and Brett Richards as Chairman of the
board. Furthermore, we wish to thank Messrs. Nielson and Hoffman for their services to the
Company.”
The figure below illustrates the mineralised halos, which include the Kombat West, Central
and East, Asis West, Asis Gap and As is Far West areas. The colours have been utilized for
modelling purposes only to distinguish between the various orebodies.
The t able below is a summary of the U pdated Mineral Resource Estimate for the Kombat
Mine as at April 19, 2017.
Table 1 – Inferred Mineral Resource Estimate
Open pit (0.77% CuEq cut off)
Mine Section
Tonnes
(Mt) Density
Cu
(%)
Pb
(%)
Ag
(ppm)
Cu
(Tonnes)
Pb
(Tonnes) Ag (kg)
Kombat East 1,208 2,82 1,36 1,01 1,72 16 465 12 187 2 074
Kombat Central 0,848 2,82 1,79 0,33 6,90 15 135 2 767 5 848
Kombat West 0,354 2,88 2,76 2,63 2,20 9 785 9 303 780
Open pit Total 2,410 2,83 1,72 1,01 3,61 41 385 24 257 8 702
Underground (1.4% CuEq cut off)
Mine Section
Tonnes
(Mt) Density
Cu
(%)
Pb
(%)
Ag
(ppm)
Cu
(Tonnes)
Pb
(Tonnes) Ag (kg)
Kombat East 0,024 2,87 1,90 2,94 0,61 459 708 15
Kombat West 0,104 2,91 2,79 4,15 3,27 2 899 4 307 339
Kombat Total 0,128 2,90 2,63 3,92 2,77 3 358 5 015 354
Asis West 2,475 2,88 4,05 1,28 32,36 100 214 31 735 80 078
Asis Gap 0,166 2,83 2,35 0,35 21,15 3 909 590 3 514
Asis Far West 1,082 2,85 3,42 0,10 35,81 37 000 1 036 38 763
Asis Total 3,723 2,87 3,79 0,90 32,86 141 122 33 361 122 355
Underground Total 3,851 2,87 3,75 1,00 31,86 144 480 38 376 122 709
Total Open Pit
and
Underground Total 6,261 2,85 2,97 1,00 20,99 185 865 62 632 131 411
Notes:
1. Historical mine voids have been deleted from the Mineral Resource.
2. The open pit Mineral Resource is declared to a depth of 150m with a CuEq cut off of 0.77%.
3. The underground Mineral Resource (below 150m) is declared at a CuEq cut off of 1.4%.
4. Densities for the hard rock material have been modelled.
5. A geological loss of 15 % has been applied to the Mineral Resource.
The figure below illustrates the split corresponding to the Updated Mineral Resource
Estimate above with respect to the various project areas. The colours have been used to
differentiate the various areas as defined, and the black portions of the orebodies represent
those areas which have been mined out.
Geology and Mineralization
The Kombat Mine is located on the northern limb of the Otavi Valley Syncline , localized
immediately below the contact between dolostones of the Hüttenberg Formation and
phyllites of the overlying Kombat Formation of the Mulden Group.
A series of copper-lead deposits have been mined on the Kombat p roperty, localized along
the axial planes of one, or locally two, parasitic folds in the northern limb of the Otavi Valley
Syncline, immediately below the dolostone/phyllite contact. These parasitic folds, and the
lines of mineralized bodies, plunge shallowly to the west, flattening out in the vicinity of the
Asis Far West shaft.
The section between the Asis West and Asis Far West, known as the Asis Gap area, has been
modelled with the current database and a zone of mineralisation is included in the Updated
Mineral Resource Estimate. In addition to this the model also indicates there is potential for
a down dip extension of the Asis West mineralised zone. Lateral potential also exists at Asis
West and this target could possibly be accessed from 15 level.
Source Data
The work to complete the Updated Mineral Resource Estimate has been based primarily on
an analysis of the Company’s extensive database o f historical information , which has now
been computer modelled.
The Updated Mineral Resource Estimate has been defined using the existing historic surface
and underground drill holes . The historical database consist s of 1,991 diamond, reverse
circulation ( “RC”) and percussion drillholes of which 470 diamond and RC drillholes have
been utilised in the Updated Mineral Resource Estimate . Minxcon also made use of the
geological structural plans to assist with the structural interpretation in the construction of
the overall geological model.
Additional drilling campaigns will be required to upgrade the Inferred Mineral R esource to
an Indicated Mineral Resource. This infill drilling will help with interpreting the project
geology and increasing confidence in the model. Further exploration drilling will be required
for identification of possible lateral and down dip extensions of the mineralization.
Resource Criteria and Assumptions
The Updated Mineral Resource Estimate has been classified in accordance with the
requirements as set out in NI 43-101.
Minxcon utilised Leapfrog software to construct the mineralisation halos and final
wireframes for the Ordinary Kriging estimation process , which was conducted in Datamine
Studio 3. Inverse Distance to the power of 2 was utilised for the tailings Resource.
The classification of the Updated Mineral Resource Estimate was completed based on the
geological complexity, estimation performance, number of drill samples, quality of data, drill
hole spacing and sample distribution.
Minxcon has classified the entire Updated Mineral Resource Estimate as Inferred Mineral
Resource based on the above criteria . Additional drilling will be required to upgrade the
Updated Mineral Resource Estimate from the Inferred category to an Indicated category.
Cut off grades
The Updated Mineral Resource Estimate is constrained by assumptions about economic cut-
off grades.
The Updated Mineral Resource Estimate was divided into a surface accessible section and
an underground section. The surface accessible section was declared to a depth of 150 m at
a 0.77% copper equivalent cut-off. This depth was delineated by optimizing the resource in
NPV Scheduler. The underground resource below 1 50m was declared at a calculated pay
limit of 1.4% copper equivalent. The parameters used were commodity prices of US$3.00/lb
for copper and US$1.00/lb for lead. The processing recoveries for copper and lead were
deemed to be 94% and 80%, respectively. A total mining (inclusive of processing) cost of
US$82/tonne was used for the underground pay limit calculation.
Upside Potential and Plans
Management believes there is potential to find additional mineralization at depth and along
strike through further detailed surface and underground drilling, particularly down dip from
the Asis West mineralization. The Company is considering further work in this regard in the
medium term. In the near-term, the Company’s plan remains to focus on surface resources
in the Kombat Central and East areas and to commence with surface mining to facilitate
early cash flow generation.
QA/QC
A technical report will be filed under the Company’s profile on SEDAR within 45 days of this
press release. For further information with respect to the key assumptions, parameters,
risks, the mineral resource estimate, data verification, QA/QC and other technical
information with respect to the Kombat Mine, please refer to the technical r eport, when
available.
Qualified Person
Mr. Uwe Engelmann (BSc (Zoo. & Bot.), BSc Hons (Geol.), Pr.Sci.Nat. No. 400058/08, MGSSA)
of Minxcon, is a "qualified person" as such term is defined in NI 43- 101 and has reviewed
and approved the technical information and data included in this press release. As a director
of Minxcon, Mr. Engelmann is considered independent.
CORPORATE UPDATE
The Company announces the resignations of Messrs. Mike Hoffmann and Bill Nie lson from
the board of directors of the Company , and the appointment of Mr. Robert Schafer as a
director. Mr. Brett Richards, currently a director of Trigon, will replace Mr. Justin Reid as
Chairman. All changes are effective immediately. The Company has granted 100, 000
options to Mr. Richards and 150,000 options to Mr. Schafer pursuant to its stock option
plan. The options may be exercised at a price of $0.29 per o ption for a period of five years
from the date of grant. The grant of options remains subject to the approval of the TSX
Venture Exchange.
Mr. Schafer is a Registered Professional Geologist with more than 30 years ’ international
experience identifying, evaluating and structuring transactions for mineral deposits globally .
Mr. Schafer has worked in more than 70 countries, including Russia, Australia, Afghanistan,
China, central Asia, India, and most countries in Afr ica and South America. He is the
immediate past-president of the Prospectors & Developers Association of Canada and a past
president of the Canadian Institute for Mining, Metal lurgy and Petroleum (CIM), as well as
an active member of the Society for Mining , Metallurgy and Exploration (SME) in the USA,
where he served on its board for more than a decade. Mr. Schafer is also a member of the
board of directors for both the Canadian Mining Hall of Fame and National Mining Hall of
Fame in the USA. Mr. Schafer is the recipient of the William Lawrence Saunders Gold Medal
from AIME and the Daniel C. Jackling Award from SME for career achievements, two of the
highest mining recognitions in the US A. Mr. Schafer earned his Bachelor’s and Master’s
degrees in Geology at Miami University (Ohio); completed course work and research toward
a Ph.D. in Geology; and earned a second Master’s degree in Mineral Economics at the
University of Arizona. In addition, he completed the Executive MBA program at Stanford
University. Mr. Schafer is a is a Certified Corporate Director (ICD.D), a Fellow of the CIM and
the Society of Economic Geologists, and a Registered Professional Geologist in the States of
Wyoming and Utah.
The board of directors would like to thanks Messrs. Hoffmann and Mr. Nielson for their
contributions to the Company.
Trigon Metals Inc.
Trigon is a publicly traded Canadian exploration and development company with its core
operations focused on copper resources in Namibia, one of the world’s most prospective
copper regions, where it has substantial assets in place with significant upside. The
Company continues to hold an 80% interest in five mining licenses in the Otavi Mountain
lands, an area of Namibia particularly known for its high -grade copper deposits. Within
these licenses are three past producing mines including the Company’s flagship property,
the Kombat Mine.
For further information, contact:
Spyros Karellas
Investor Relations +1 (416) 433-5696
Email: [email protected]
Website: www.trigonmetals.com
Cautionary Notes
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.
This news release may contain forward -looking statements. These statements include
statements regarding the Updated Mineral Resource Estimate , the Company’s strategies
and the Company’s abilities to execute such strategies , the Company’s ability to restart the
Kombat Mine, the Company’s expectations for the Kombat Mine , the economic viability of
surface mining at the Kombat Mine, the timing of completion of the technical report and the
PEA, the results of the technical report and PEA, merger and acquisition opportunities, the
impact of changes to the Company’s board of directors, the grant of stock options and the
Company’s future plans and objectives. These statements are based on current expectations
and assumptions that a re 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 TS X 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.