Trigon Metals Achieves Key Milestone in Underground Mining
Trigon Metals Inc. (OTCQB: PNTZF) is thrilled to report a major milestone in its mining operations. The company has successfully averaged 980 tonnes of ore per day from underground mining at the Kombat Mine in Namibia, maintaining this impressive rate over a continuous 30-day period. This achievement highlights the company's dedication to excellence and efficient resource management.
Remarkable Ore Production Milestone
This accomplishment not only meets but surpasses the performance targets laid out in the streaming agreement with Sprott Private Resource Streaming and Royalty (B) Corp. Under this agreement, Trigon was required to achieve an average production of 900 tonnes per day from its underground operations over a 30-day timeframe. Remarkably, Trigon accomplished this target a full 13 months ahead of the deadline. This early success greatly strengthens the company’s strategic position moving forward.
Focusing on Underground Mining Operations
With the success seen in underground operations, Trigon has decided to halt its open-pit mining activities at the Kombat Mine by the end of September 2024. Several reasons influenced this choice:
- The successful recommissioning of the underground mine, which began commercial production on May 23, 2024.
- The consistent ability to mine an average of 900 tonnes daily throughout the past month.
- The significant quality upgrades and benefits that come from underground ore compared to open-pit operations.
- Current milling capacity limits, which cap plant throughput at 1,000 tonnes per day, allowing a focus on higher-grade underground ore while maintaining lower-grade stockpiles.
In preparation for this shift, Trigon has informed the mining contractor handling the open-pit activities of the impending suspension, and they will complete demobilization by the end of September.
Leadership Reflections on Strategic Changes
Trigon's CEO and Executive Chairman, Jed Richardson, conveyed that this achievement reflects the company’s capability to surpass previous production expectations, thereby mitigating risks associated with the Sprott streaming agreement. This strong performance enables Trigon to avoid the necessity of converting capital advances from the streaming agreement into a loan. Jed also expressed his appreciation for Tulela Mining and Construction, a valued partner over the last four years, for their role in ensuring efficient operational performance.
Looking Ahead: Future Opportunities
Rennie Morkel, President and COO, provided insights into the operational changes, explaining that the company encountered challenges in the open-pit mining sector. The significant stripping ratio required was higher than initially anticipated. By pausing these operations, Trigon can immediately lower operating costs and focus more on the higher-value underground ore. This strategic decision enhances production capabilities while fostering overall cost efficiency, paving the way toward a more sustainable future for the company.
Updates on Company and Transfer Agent
Alongside the operational shifts, Trigon has appointed Odyssey Trust Company as its new registrar and transfer agent, effective immediately. This transition will centralize share transfers at Odyssey’s Toronto office, aiming to improve shareholder services.
About Trigon Metals Inc.
Trigon Metals Inc. is a publicly traded Canadian company engaged in exploration and development, concentrating on copper and silver assets in resource-friendly regions of Africa. With active operations in Namibia and Morocco, Trigon holds an 80% interest in five mining licenses situated in the Otavi Mountainlands, known for their rich copper deposits. The company is committed to exploring and redeveloping the historic Kombat Mine, which strengthens its growing presence in the mining sector.
Frequently Asked Questions
What recent milestone has Trigon Metals achieved?
Trigon Metals has reported an average production rate of 980 tonnes per day from its underground mining at the Kombat Mine.
When will Trigon halt open-pit mining operations?
The company expects to suspend open-pit operations by the end of September 2024.
What does the streaming agreement with Sprott require?
The agreement stipulated an average production of 900 tonnes per day from underground mining for 30 consecutive days.
Who is Trigon Metals' new transfer agent?
Odyssey Trust Company has taken over as the registrar and transfer agent for Trigon Metals, succeeding TSX Trust Company of Canada.
Where are Trigon's mining operations situated?
Trigon primarily operates its mining projects in Namibia and Morocco, focusing on the exploration and development of copper and silver resources.
