Trigon Revises Mine Plan to Optimize Production Based on New Information from Kavango Pit Mining, Namibia
Trigon Revises Mine Plan to Optimize
Production Based on New Information from
Kavango Pit Mining, Namibia
TORONTO--(BUSINESS WIRE)--August 2, 2022--Trigon Metals Inc. (TSX-V: TM) (“Trigon”
or the “Company”) announces revisions to its mine plan based on new information from mining
the Kavango Open Pit. As planned, initial mining has begun in the area of the Kavango Pit.
Management has noted marked improvements on grade control and recoveries, and are pausing
operations to focus the mine plan on this type of mineralization to reduce mine wide operating
costs at its Kombat Mine in Namibia.
Trigon Metals has elected to pause operations at the Kombat Mine in Namibia to optimize its
newly increased working capital by reconfiguring the mine plan to focus on higher grade and
more consistent orebodies drilled in the Kavango pit and Kombat trend mineralization. As
detailed in the update release dated July 7 (See Press Release “Trigon Provides Operational
Update”), stripping and mining has begun in the Kavango pit. As anticipated, the mineralization
in this area is of higher and more consistent grade. Owing to this new information, a decision has
been made to optimize the mine plan. Management will now utilize the operational pause to
focus the mine plan to exclusively operate from the Kavango pit and Kombat Trend
mineralization, as compared to the original strategy which would have employed Kavango ore to
supplement production from the central pit.
The revised mining plan should dramatically improve operating costs at the mine. The move to
take advantage of the higher grade and more consistent Kavango and Kombat trend
mineralization should take operating costs down to $2.60-$2.80/lb of copper, from the $3.30-
$3.50/lb forecasts from the original mining plan.
Commenting, Jed Richardson, President and CEO, “With our recent increase in working capital
via our streaming deal, we felt it not only prudent in the current lower copper price environment,
but desirable over the longer term, to make the mine more profitable over its open pit phase.
Although we need to delay full commercial production, we believe that our plans will increase
operating efficiency and shareholder returns.”
During the production pause, drilling will continue on the Kombat Trend to build a new mine
plan around the higher grade and more consistent mineralization discovered in this area. The
central pit mineralization has proven more costly to mine, as the veinlet nature of the
mineralization has made grade control difficult and costly to control. Mining in this area will be
economic at higher copper prices and the company is also exploring ore sorting techniques to
upgrade mill feed and reduce costs from the central pit. The pause will involve the retrenchment
of a portion of the mine and mill staff for Trigon and the mine contractor.
As a first target, the central pit mineralization was attractive due of its proximity to the mill and
what appeared to be lower strip ratio, however, the nature of the mineralization has proven to be
different than the main Kombat Trend. This appears to be the situation in Pit 1 (“Central Pit”)
and Pit 4. Pits 2 and 3 (“East 900”) are on the Kombat Trend and do not have the challenges that
Pit 1 and 4 have presented. The difference in the trends is a new understanding of the
mineralization brought to the fore by the recent work on Pit 5 (“Kavango pit”). The addition of
Pits 5 and 6, will give this iteration of the open pit the same four year mine life as the previous
plan but at more favourable operating costs. The plan to commence mining from the open pit and
gradually transition to underground ore beginning in 2024 remains unchanged.
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.
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 may contain forward-looking statements. These statements include statements
regarding Kombat Mine, the mine plan, the production pause, the Company’s strategies and the
Company’s abilities to execute such strategies, the Company’s expectations for the Kombat
project, 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:
Jed Richardson
+1 647 276 6002
Website: www.trigonmetals.com