Trigon Metals is focusing on expanding its reserves and mine plan at Shaft #3 at the Kombat Mine as it opens up more working faces in an area with untapped extraction capacity.
On August 29, 2024, Trigon announced the drilling results from the new zone identified in Shaft #3 of the Kombat Mine.
Bringing in new ore from the second unused decline at Shaft #3 is expected to enable Trigon to ramp up extraction to support plant throughput, moving from 1,000 tpd to 2,000 tpd next year.
Full-year capital expenditures for the fiscal year ended March 31, 2025, are funding dependent and are projected to range from US$10 million to US$11 million.
The company plans to expand the mill’s throughput from 30,000 to 60,000 tonnes per month to cater to additional underground operations material.
Trigon Metals is also allocating $2.5 million to $3.5 million to exploration programs for reserve and resource replacement and other exploration prospects in and around Kombat’s existing infrastructure and landholdings in the Kombat Valley.
These areas are outside the proven and probable mine reserves estimates published in March 2024.
Mineralization in these areas was initially detected in surface drilling in 2023, and some historic drill work dates back to when Goldfields operated the mine.
Total volumes and tonnage for a mineral resource estimate have yet to be quantified.
Drilling is spaced to define a mineral resource estimate in the indicated mineral resource category.
Trigon Metals also continues its underground drilling operations, with approximately 3,500 meters planned by year-end.
In the September 30, 2024 quarter, Trigon achieved a key milestone at the Kombat Mine, mining an average of 980 tons of ore per day from underground operations over 30 days.
The company’s streaming agreement with Sprott Private Resource Streaming and Royalty Corp. and Sprott Mining Inc. includes a term requiring an average production of 900 tons per day from underground operations over 30 consecutive days by October 31, 2025.
Trigon achieved this target 13 months earlier than contractually required.
In the second quarter, copper production was 2,137,159 pounds at a C1 cash cost of $3.46 per pound of copper produced.
Trigon also produced 33,852 ounces of silver during the quarter.
Open pit ore contributed significantly to production in Q2, lowering the overall grade going into the mill.
This was compounded by delays in accessing higher-grade portions in the mine as dewatering was slowed.
The company’s decision to pause its open pit mining activities in September 2024 came into effect at the beginning of Q2, allowing focus on mining and milling higher grades underground.
This was due to the successful recommissioning of the underground mine with commercial production, declared on April 30, 2024, and the ability to mine 900 tons per day, averaged over 30 days.
It was also because of the underground mining operations’ significant grade differential and positive contribution compared to the open pit operations.
Current constraints on milling capacity at the Kombat Mine limit plant throughput to 1,000 tons per day, which leads to the preferential feeding of higher-grade underground ore.
The company can fill any shortfall by feeding existing lower-grade stockpiles until underground production is steady.
Following second quarter operating performance at the Kombat Mine, the company is revising its 2025 copper production guidance from 12,125,000 to 13,448,000 pounds of copper to 8,315,000 to 9,250,000.
The company has also reduced its expected mined and processed copper grades from 1.52% to 1.79%.
The company’s updated cost guidance for 2024 assumes a foreign exchange rate of 18 N$ per US$, a silver price of $30 per ounce, and a copper price of $4.33 per pound.
Trigon Metals COO Rennie Morkel says while this quarter presented some operational challenges, the company achieved a critical milestone by reaching its underground production target of 900 tons per day at the Kombat Mine, well ahead of schedule.
“This accomplishment de-risks the project and protects our balance sheet, positioning us for stronger performance moving forward,” Morkel says
Trigon Metals executive president Jed Richardson says as the company optimises underground operations and plans for mill expansion, they are confident in the ability to unlock the full potential of the Kombat Mine and deliver value.
“The company is exploring strategic options to sufficiently capitalize the operation and limit dilution for shareholders,” Richardson says.
