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Trigon Metals

Trigon Metals

Building A Mid-Tier African Copper Producer

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lftfield

TRIGON METALS AGREES OFFTAKE AND PROJECT FINANCE TERMS AND PROVIDES UPDATE ON PROJECT RESTART ACTIVITIES

26 October 2017 by lftfield

HIGHLIGHTS

  • Offtake for 100% of annual production from the Kombat mine for up to 20,000mt of copper.
  • Financing facility of up to US$7.7 million for the Kombat mine production start up.
  • Project restart activities well underway to achieve commencement of production by mid2018.
  • Infill drilling program complete as first step in updating current Mineral Resource estimate that will be basis for feasibility study.
  • Environmental permitting process on track for application in early 2018.

Trigon Metals Inc. (TSX-V: TM) (“Trigon” or the “Company”) is pleased to announce that it, together with its 80% owned subsidiary, Manila Investments (Pty)
Ltd (“Manila”), has agreed terms with a major international trading house for copper concentrate offtake from the Company’s Kombat mine in Namibia and a financing facility to fund operations restart activities in order to commence with open pit mining.

Copper Concentrate Offtake
Trigon and Manila have agreed offtake terms with a major international trading house to buy 100% of the annual production from the Kombat mine up to a total of 20,000mt of contained copper.

This represents the anticipated life of mine production from the open pit in the Kombat Central and East areas, based on the Mineral Resource estimate as reported in the National Instrument 43-101 technical report entitled “NI 43-101 Technical Report on the Kombat Copper Project, Namibia” dated May 31, 2017 (the “Technical Report”). The Technical Report constitutes a preliminary economic assessment and is available under the Company’s profile on SEDAR at www.sedar.com and on the Company’s website at www.trigonmetals.com.

The terms of the offtake are subject to various conditions precedent, including final due diligence and approvals from the trader.

Financing Facility
In conjunction with the offtake, the trader will provide a financing facility to Manila of up to US$7.7 million (the “Facility”) to refurbish the concentrator at the Kombat mine, to upgrade infrastructures and for working capital purposes to bring the Kombat open pit mine into production.

Trigon will act as guarantor for the Facility, and security will include first ranking charges and security interest over all present and future property and assets of Manila.The terms of the Facility are subject to various conditions precedent, including final due diligence and approvals from the trader.

Stephan Theron, President and CEO of Trigon, commented: “The financing and offtake arrangements represent a major milestone for Trigon and Manila in re-starting the Kombat mine. We are pleased to be partnering with a major international trader in this exciting venture, which should ensure that we can meet our 2018 production restart goals.”

Restart Activities
The Company is concurrently progressing various workstreams regarding its strategy to bring the Kombat mine back into production and is targeting the commencement of open pit mining by mid2018. The Company does not have a current feasibility study and is not basing its decision to restart mining activities on any estimated mineral reserves or on a feasibility study regarding the economic or technical feasibility of the Kombat project. Historically, projects that are
re-commenced prior to the mining company completing a feasibility study have a much higher risk of economic or technical failure. Estimates regarding production levels, development timetable and economic feasibility in respect of the Kombat mine are based on internal management forecasts and are inherently uncertain and subject to continued refinement.

Drilling Program
The drilling program focused on the Kombat Central and East areas targeted by the Company for open pit mining is complete, with 48 holes or an aggregate of 2,200 meters having been drilled in this first stage program, the primary aim of which is to upgrade the current Mineral Resource from the Inferred category to Measured and Indicated Mineral Resources.

Final assay results are expected to be received by the end of November 2017, following which the information will be utilized to remodel and upgrade the current Mineral Resource as set out above. The updated Mineral Resource is expected to be finalized by December 2017 and will form the basis for the feasibility study on the surface mining areas as referred to below.

The Company further plans to undertake an additional drilling program to extend the current Mineral Resource. This three phase program comprises an additional 34 holes, with an aggregate of 1,437 meters to be drilled.

Feasibility Studies
The Company intends to initiate a feasibility study on the surface mining areas and a pre-feasibility design on the Asis Far West underground mine during November 2017. The studies are anticipated to take six months to complete, during which period refurbishment of the mill and concentrator can commence to facilitate timelines for commencement of open pit mining and the processing of ore therefrom. The Company does not currently have a feasibility study in respect of the Kombat mine and production restart activities are based on internal management forecasts.

Environmental Permitting
On September 25, 2017, the Company announced that it had received notification from the Minister of Environment and Tourism in Namibia that it had been awarded an Environmental Clearance Certificate for proposed exploration on the mining licences held by Manila. The clearance is valid for a period of three years from September 18, 2017.

The Company is currently engaged with its environmental consultant, SLR Environmental Consulting (Namibia) (Pty) Ltd, to secure the Environmental Clearance Certificate required for open pit mining and associated activities, as well as those needed for exploration activities for underground mining. The required specialist studies are planned to be completed by the end of November 2017, and application for the necessary permitting will be made in early 2018 after the
relevant Environmental Impact Assessment (“EIA”) reports have been reviewed by stakeholders.

Metallurgical Testwork
The results of metallurgical testwork commissioned on historic drill cores from the targeted open pit mining areas to evaluate ore grades and achievable recoveries used for the purposes of the preliminary economic assessment (“PEA”) have been positive. Further testing to optimize future comminution and flotation parameters is expected to be completed by January 2018 and will be used in the DFS referred to above.

Power
An application has been made to Namibian Power Corporation (Proprietary) Limited to increase the current power supply by 4.5MVA, in order to meet the requirements for the targeted mining and processing operations.

Highlights of the PEA
The PEA, highlights of which were published in the Technical Report, confirms that the Kombat operations, including both open pit and underground mining operations, have a best-estimated net present value (“NPV”) of US$72 million, and a robust internal rate of return of 45.5%, using a long term copper price of US$2.95/lb. The current copper price at US$3.17/lb is higher than these long term forecasts.

The PEA is based on Inferred Mineral Resources of 6.905 million tonnes at a grade of 2.78% copper, 1.14% lead and 19.11 g/t silver, and results in a combined open pit and underground life of mine of nine years at an average mined grade of 2.83% copper, producing 122,106 CuEq tons, at a C1 cash cost of US$1.33/lb.
The PEA was prepared by Minxcon (Pty) Ltd (“Minxcon”) and issued on May 26, 2017.

The PEA is preliminary in nature and includes Inferred Mineral Resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as Mineral Reserves, and there is no certainty that the PEA will be realized. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.

The Company’s phase 1 strategy of open pit mining to facilitate early cash flow generation is estimated to only require start-up capital of US$7.73 million.

Stephan Theron further commented: “The restart activities are in many instances proving better results than the assumptions used in the PEA, and in the current copper price environment we are extremely bullish about getting this project off the ground and back into production. We look forward to reporting further positive news to the market as we achieve our targets.”

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.

Trigon Metals Inc.
Trigon is a publicly traded Canadian exploration and development company with its core business focused on copper operations 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 licences in the Otavi Mountain lands, an area of Namibia widely recognized for its high‐grade copper deposits. Within these licences are three past producing
mines including the Company’s flagship property, the Kombat Mine.

For further information, contact:
Blake Hylands
Investor Relations +1 (416) 216 5445
Email: bhylands@trigonmetals.com
Website: www.trigonmetals.com

Cautionary Notes
This news release may contain forward‐looking statements. These statements include statements regarding the drilling program, the Company’s strategies and the Company’s abilities to execute such strategies, the Company’s ability to obtain financing, the Company’s ability to restart the Kombat operations, the Company’s expectations for the Kombat 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.

Filed Under: 2017, News

TRIGON COMMENCES DRILLING PROGRAM AT ITS KOMBAT MINE

4 October 2017 by lftfield

Toronto, Canada – October 4, 2017 – Trigon Metals Inc. (TSX‐V: TM) (“Trigon” or the “Company”) is pleased to announce that it has commenced its drilling program, as previously announced on September 5, 2017, with the first drill rig having been mobilized to site on October 3, 2017.

The drilling program is focused on the Kombat Central and East areas targeted by the Company for open pit mining, with the primary aim of the first stage of the program being infill drilling to upgrade the current Mineral Resources from the Inferred category to Measured and Indicated Mineral Resources. A total of 43 holes are planned for this phase, with an aggregate of 1,996 meters to be drilled. The infill drilling is anticipated to take approximately six weeks to complete.

Thereafter, the Company plans to undertake a further drilling program to expand the current Mineral Resource. This three phase program comprises an additional 34 holes, with an aggregate of 1,437 meters to be drilled. The full drilling program and protocols for the drilling, sampling and QA/QC have been designed by
Minxcon (Pty) Ltd to ensure compliance with database requirements for resource modelling purposes.

Stephan Theron, President and CEO of Trigon, commented: “Trigon continues to achieve its
targeted milestones in moving forward towards production. We look forward to the results of the
drilling program in the next few weeks.”

Trigon Metals Inc.
Trigon is a publicly traded Canadian exploration and development company with its core business focused on copper operations 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 licences in the Otavi Mountain lands, an area of Namibia widely recognized for its high‐grade copper deposits. Within these licences are three past producing
mines including the Company’s flagship property, the Kombat Mine.

For further information, contact:
Blake Hylands
Investor Relations +1 (416) 216 5445
Email: bhylands@trigonmetals.com
Website: www.trigonmetals.com

Cautionary Notes
This news release may contain forward‐looking statements. These statements include statements regarding the drilling program, the Company’s strategies and the Company’s abilities to execute such strategies, the Company’s ability to obtain financing, the Company’s ability to restart the Kombat operations, the Company’s expectations for the Kombat 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.

Filed Under: 2017, News

Trigon Receives Environmental Clearance Certificate for Exploration

25 September 2017 by lftfield

Toronto, Canada – September 25, 2017 – Trigon Metals Inc. (TSX-V: TM) (“Trigon” or the “Company”) is pleased to announce that it has received the environmental approvals required to commence with exploration on the area targeted for open pit mining at the Company’s Kombat project located in northern Namibia (“Kombat”).

The Company has received notification from the Minister of Environment and Tourism in Namibia that it has been awarded an Environmental Clearance Certificate for proposed exploration on the mining licences held by Manila Investments (Pty) Ltd, an 80% owned subsidiary of Trigon. The Environmental Clearance Certificate is valid for a period of three years commencing September 18, 2017.

The Company will now commence with its infill drilling program, focused on the Kombat Central and East open pit mining areas, with the objective of upgrading the current Mineral Resources from the Inferred category to Measured and Indicated Mineral Resources. Please see the Company’s press release dated September 5, 2017 for further details regarding the drilling program.

The Company is continuing its discussions with several potential offtake partners in order to assess the opportunities for marketing its product when production has recommenced.

Stephan Theron, President and CEO of Trigon, commented: “We are extremely pleased to announce yet another milestone in the process of bringing Kombat back into production. The outlook for the copper market remains strong and we are well placed to participate in this upside.”

Trigon Metals Inc.
Trigon is a publicly traded Canadian exploration and development company with its core business focused on copper operations 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 widely recognized for its high-grade copper deposits. Within these licences 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: spyros@pinnaclecapitalmarkets.ca
Website: www.trigonmetals.com

Cautionary Notes
This news release may contain forward-looking statements. These statements include statements regarding environmental approvals, the planned drilling program, the Company’s strategies and the Company’s abilities to execute such strategies, the Company’s ability to restart the Kombat operations, the Company’s expectations for the Kombat 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.

Filed Under: 2017, News

Trigon Metals Initiates Project Restart Activities and Surface Drilling Program

5 September 2017 by lftfield

Toronto, Canada – September 5, 2017 – Trigon Metals Inc. (TSX-V: TM) (“Trigon” or the “Company”) is pleased to announce that it has initiated various operations restart activities at the Company’s Kombat project located in northern Namibia (“Kombat”), including a drilling program.

Restart activities

The Company is concurrently progressing various workstreams regarding its strategy to bring the Kombat Mine back into production.

The Company has engaged an environmental consultant to assist with securing the environmental permits required for open pit mining, as well as those needed for exploration activities for underground mining, which is the second phase of the Company’s strategic plan for operations at Kombat.

Metallurgical testwork has been commissioned on historic drill cores from the open pit mining areas to evaluate ore grades and achievable recoveries, as well as to optimize future comminution and flotation parameters. Initial test results should be available within the next month.

The Company is also engaged in advanced discussions with several potential offtake partners and is assessing various opportunities for marketing its product when production has recommenced.

Drilling program

An infill drilling program is focused on the Kombat Central and East open pit mining areas with the primary aim being to upgrade the current Mineral Resources from the Inferred category to Measured and Indicated Mineral Resources. A total of 43 holes are planned for this program, with an aggregate of 1,996 meters to be drilled. Thereafter, the Company plans to undertake additional drilling to: (i) increase the current open pit Mineral Resource within the current pit boundaries, (ii) drill the gap between the Central and East pits, which is outside of the existing pit boundaries, and (iii) test potential to the north and west of these areas. The three phase drilling program to extend the current Mineral Resource comprises a further 34 holes, with an aggregate of 1,437 meters to be drilled.

The drilling program and protocols for the drilling, sampling and QA/QC have been designed by Minxcon (Pty) Ltd to ensure compliance with database requirements for resource modelling purposes.

It is the Company’s intention to mobilize drills to site on a contract basis as soon as possible, with the infill drilling anticipated to take approximately 6 weeks from mobilization to complete.

Stephan Theron, President and CEO of Trigon, commented: “These are all exciting steps for Trigon in completing the first phase of its operational strategy, re-starting open pit mining at Kombat. We are bullish on the copper market and believe that a re-start of Kombat is well timed in current market conditions.”

Stock options

Trigon has granted a total of 275,000 stock options to certain consultants of the Company pursuant to the Company’s stock option plan. The stock options may be exercised at a price of $0.35 per option for a period of five years from the date of grant. This grant of options is subject to the approval of the TSX Venture Exchange.

Trigon Metals Inc.

Trigon is a publicly traded Canadian exploration and development company with its core business focused on copper operations 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 widely recognized 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:
Website: www.trigonmetals.com

Cautionary Notes

This news release may contain forward-looking statements. These statements include statements regarding the planned drilling program and Mineral Resource estimate, the Company’s strategies and the Company’s abilities to execute such strategies, the Company’s ability to restart the Kombat operations, the Company’s expectations for the Kombat operations, the Company’s future plans and objectives, and the grant of stock options. 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.

Filed Under: 2017, News

Letter of Consent NI 43-101 Technical Report on the Kombat Copper Project, Namibia

5 June 2017 by lftfield

[embeddoc url=”https://www.trigonmetals.com/site/wp-content/uploads/Letter-of-Consent-Trigon-Kombat-NI-43-101_5June2017-1.pdf” download=”all” viewer=”google”]

Filed Under: 2017, News

TRIGON METALS FILES NI 43-101 TECHNICAL REPORT INCLUDING EXECUTIVE SUMMARY OF PEA RESULTS CONFIRMING A POSITIVE NPV AND HEALTHY IRR OF 45.5% FOR THE KOMBAT OPERATIONS

5 June 2017 by lftfield

HIGHLIGHTS

  • Inferred Mineral Resources of 6.905 million tonnes at a grade of 2.78% copper, 1.14% lead and 19.11 g/t silver.
  • Positive NPV of US$72 million and an excellent internal rate of return of 45.5%.
  • Combined open pit and underground life of mine of nine years at an average mined grade of 2.83% copper, producing 122,106 CuEq tons.
  • C1 cash cost of $1.33/lb.
  • Total direct capital expenditure over the life of mine of US$67.21 million.
  • Phase 1 strategy of open pit mining to facilitate early cash flow generation only requiring start-up capital of US$7.73 million.

Toronto, Canada – June 5, 2017 – Trigon Metals Inc. (TSX-V: TM) (“Trigon” or the “Company”) is pleased to announce the filing of its National Instrument 43-101 compliant technical report (“the technical report”). This follows the Company’s press release issued on April 20, 2017 announcing an updated Inferred Mineral Resource estimate at the Company’s Kombat operations located in northern Namibia (“Kombat”).

In conjunction with the technical report, the Company has also completed a scoping level study on the Kombat operations, in the form of a preliminary economic assessment (“PEA”), the results of which are summarized in the technical report. The PEA confirms that the Kombat operations have a best-estimated net present value (“NPV”) of US$72 million and a robust internal rate of return of 45.5%.

Stephan Theron, President and CEO of Trigon, commented: “We are pleased to have completed the technical report and PEA in order to take the Company one step closer to its near-term strategy of open pit mining. The results of the work done have confirmed our internal evaluation of this attractive and exciting project and we look forward to moving the Company forward to production.”

Phase 1 – Open Pit Mining
The Company remains focused on its phase 1 strategy of open pit mining in the Kombat Central and East areas to facilitate early cash flow generation. As set out below, the start-up capital required for first production of the open pit amounts to US$7.73 million, which includes: power, water and other infrastructure requirements; contractor mobilization and site establishment; refurbishment of the existing mill; studies and design and working capital. Although the capital cost of the mill refurbishment is expected to be financed by the proceeds from open pit mining; the mill is expected to be utilized for future underground operations long after the depletion of the open pit reserves.

Technical report
The updated Mineral Resource estimate reported on April 20, 2017 was in respect of the Kombat West, Central and East, Asis Far West, Asis Gap and Asis West areas. The Company is pleased to have subsequently included additional Inferred Mineral Resources at Gross Otavi, resulting in total Inferred Mineral Resources of 6.905 million tonnes at a grade of 2.78% copper, 1.14% lead and 19.11 g/t silver, as set out in detail in the table below.

Combined Inferred Mineral Resources for the Kombat Operations as at April 2017

Mine Section Tonnes (Mt) Density

(t/m3)

Cu (%) Pb (%) Ag (ppm) Cu (Tonnes) Pb (Tonnes) Ag (kg)
Kombat East 1,232 2.83 1.37 1.05 1.70 16,924 12 895 2,089
Kombat Central 0,848 2.82 1.79 0.33 6.90 15,135 2 767 5,848
Kombat West 0,458 2.89 2.77 2.97 2.44 12,684 13 610 1,119
Kombat Total 2,538 2.83 1.76 1.15 3.57 44,743 29,272 9,056
                   
Otavi Central 0,643 2.84 0.93 2.50 0.85 6,006 16,053 546
Otavi Total 0,643 2.84 0.93 2.50 0.85 6,006 16,053 546
                   
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
                   
Total Total 6,905 2.85 2.78 1.14 19.11 191,871 78,685 131,957

Notes:

  1. Historical mine voids have been depleted from the Mineral Resource.
  2. Historical mine voids were not available for Gross Otavi so the tonnage has been reduced by 1% for historical mining.
  3. Additional 7.5% porosity factor has been applied to Gross Otavi for the karst voids.
  4. The open pit Mineral Resource is declared to a depth of 150m with a CuEq cut off of 0.77%.
  5. The underground Mineral Resource (below 150m) is declared at a CuEq cut off of 1.4%.
  6. No tailings have been declared at a 0.4% Cu cut off (upside potential at 0.3% Cu cut-off).
  7. Densities for the hard rock material have been modelled.
  8. A geological loss of 15% has been applied to the Mineral Resource.
  9. All reported Mineral Resources are limited to fall within the property boundaries of the project area.
  10. Columns may not add up due to rounding.
  11. Inferred Mineral Resources have a large degree of uncertainty as to their existence and whether they can be mined economically. It cannot be assumed that all or any part of the Inferred Mineral Resource will be upgraded to a higher confidence category.

Preliminary Economic Assessment
The purpose of the PEA was to investigate the economic viability, upside potential as well as future exploration requirements of open pit and underground mining targeting the copper and lead resources at Kombat East, Kombat Central, Asis Far West, Asis West and Gross Otavi, taking into consideration mining methods, treatment methods and development of additional infrastructure. The PEA has been based on the total Inferred Mineral Resources as set out above.

Production and processing
The payable saleable product tonnes are illustrated in the graph below.

The combined open pits and underground mines have a potential life of mine (“LoM”) of nine years mining 4,418 kt at an average mined grade of 2.83% copper as set out in the table below.

Item Unit  PEA
Ore Tonnes Mined kt 4,418
Average Cu Grade Mined % 2.83%
Average Ag Grade Mined g/t 20.63
Total Cu Concentrate kt 420
Total 45% Pb Concentrate kt 30
Total Cu Metal Paid For by Smelter kt 108
Cu Payability (Including Refining) % 91.4%
Cu Payability (Including Refining and Treatment) % 79.9%
Total Silver Ounces Paid For by Smelter koz 2,443
LoM Years 9

Capital
The capital schedule for the Kombat operations for the life of mine is set out in the table below.  The start-up capital required for first production of the open pit amounts to US$7.73 million. Total direct capital expenditure over the life of mine is US$67.21 million (excluding contingencies and stay in business capital) with the peak capital expenditure during years 2021 and 2022.

Capital Expenditure US$m over LoM
East and Central Open Pit Mining Capital 1,51
Gross Otavi Open Pit Mining Capital 0,72
Underground Mining Capital 25,96
Asis Far West Development Cost – Capitalized 12,63
Asis West Development Cost – Capitalized 15,42
Total Direct Mining Capital 56,23
Plant Capital  
Open Pit Plant Capital 2,97
Underground Plant Expansion Capital 3,90
Tailings Storage Facility 0,24
Total Direct Plant Capital 7,11
Other Non-Direct Capital  
Corporate Overhead 1,00
Environmental Licensing and Permitting 0,30
Pre-Feasibility Study and NI43-101 (Reserve) 0,21
Feasibility Study and NI43-101 Update 0,35
Surface Exploration 0,35
Underground Exploration 1,66
Total Other Non-Direct Capital 3,87
Total Direct Capital over LoM 67,21

 

Operating costs and commodity prices

Direct cash costs (C1) for the Kombat operations consist of plant and mining operating costs, concentrate transport costs, treatment costs and refining costs. Other cash costs (C3) include corporate overheads and the Namibian revenue royalty of 3%. Kombat has an all-in sustainable cost of US$109/milled tonne that equates to US$1.77/copper equivalent pound (“CuEq lb”). The turnover, cost and earnings numbers are displayed in the tables below per milled tonne and per recovered copper equivalent pound.

Item Unit PEA
Milled Tonnes kt 4,418
Net Turnover US$/Milled tonne 172
Mine Cost US$/Milled tonne 34
Plant Costs US$/Milled tonne 12
Other Costs US$/Milled tonne 35
Direct Cash Costs (C1) US$/Milled tonne 81
Capex US$/Milled tonne 20
Production Costs (C2) US$/Milled tonne 101
Royalties US$/Milled tonne 5
Corporate Overheads US$/Milled tonne 3
All-in Sustainable Costs (C3) US$/Milled tonne 109
All-in Sustainable Cost Margin % 36%
EBITDA* US$/Milled tonne 83
EBITDA Margin % 48%
Item Unit PEA
Copper Equivalent Tonnes Tonnes 122,106
Net Turnover US$/CuEq lb 2.82
Mine Cost US$/CuEq lb 0.56
Plant Costs US$/CuEq lb 0.20
Other Costs US$/CuEq lb 0.57
Direct Cash Costs (C1) US$/CuEq lb 1.33
Capex US$/CuEq lb 0.31
Production Costs (C2) US$/CuEq lb 1.64
Royalties US$/CuEq lb 0.08
Corporate Overheads US$/CuEq lb 0.05
All-in Sustainable Costs (C3) US$/CuEq lb 1.77
EBITDA US$CuEq lb 1.36

Using the discounted cash flow method to calculate the NPV and the intrinsic value (fundamental value based on the technical inputs, and cash flow projection that creates an NPV) in real terms, the Kombat operations have a best-estimated net present value of US$72 million at a real discount rate of 11.02%, a payback period of less than 5 years and an internal rate of return of 45.5%.

The following commodity price forecasts were used in the discounted cash flow model in the PEA.

Item Unit 2018 2019 2020 2021 Long-term
Silver US$/oz 17.42 17.76 18120 18.14 18.16
Copper US$/tonne 5,624 5,510 5,628 5,733 6,507
Copper US$/lb 2.55 2.50 2.55 2.60 2.95
Lead US$/tonne 2,193 2,071 2,006 1,930 1,878
Lead US$/lb 0.99 0.94 0.91 0.88 0.85

The PEA is preliminary in nature, and it includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves. There is no certainty that the preliminary economic assessment will be realized.

The technical report entitled “NI 43-101 Technical Report on the Kombat Copper Project, Namibia”, dated May 31, 2017, was prepared for Trigon by Minxcon (Pty) Ltd (“Minxcon”), and is available under the Company’s profile on SEDAR at www.sedar.com and on the Company’s website at www.trigonmetals.com.

Board Update
The Company announces the resignation of Mr. James Xiang as a director of the Company, effective immediately. The Company would like to thank Mr. Xiang for his contributions to the Company.

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.

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:
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 First Tranche, the expected use of proceeds of the First Tranche 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.

This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”) or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.

Filed Under: 2017, News

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