Trigon Metals has mined an average of 980 tons of ore daily from its underground operations over 30 days.
The latest achievement is part of the October 2022 streaming agreement with Sprott Private Resource Streaming and Royalty (B) Corp. and Sprott Mining Inc.
The company has also announced that it will pause its open pit operations at Kombat Mine at the end of September 2024.
The reason for pausing the open pit operations is the successful recommissioning of the underground mine, with commercial production declared on May 23, 2024.
The other reason is the significant grade differential and positive contribution of the underground mining operations compared to the open pit operations.
The third reason is that the milling capacity constraint at the Kombat mine limits plant throughput to 1,000 tonnes per day, leading to higher-grade underground ore preferential feeding.
Trigon says it can fill any production shortfall by feeding off existing lower-grade stockpiles until underground production reaches full steady state.
The company has notified the open-pit mining contractor of the intended pause of open-pit mining activities and will demobilise from the operations by the end of September 2024.
Trigon Metals CEO Jed Richardson said this achievement reflects the ability to meet and surpass the feasibility study ramp-up targets and de-risks the Sprott streaming agreement.
According to Richardson, it also ensures that Trigon is not required to convert the principal advanced pursuant to the stream agreement into a loan.
“Exceeding the 900 tonnes per day average from the underground is a significant milestone for the company and a testament to the team’s dedication to delivering on our commitments.
“We are grateful to Tulela Mining and Construction, our open pit mining contractor, for their exceptional support and partnership over the last four years,” Richardson said.
Trigon Metals chief operations officer Rennie Morkel said they have faced significant challenges with the open pit, where stripping requirements have exceeded our forecasts.
Morkel said pausing open pit operations will immediately impact our operating costs, allowing us to focus on the higher-grade underground ore.
“This strategic shift enhances our ability to increase production while maintaining cost efficiency, ensuring a more sustainable and profitable operation moving forward,” Morkel said.
