Trigon Metals Inc has produced its first copper concentrates at the Kombat Mine in Namibia after 14 years of closure.
The Africa-focused miner said the concentrate produced exceeded the expectations of management, demonstrating that the combination of new equipment from Xinhai and refurbished equipment from the historic operation are operating well.
“The feed material for this initial production was suboptimal lower grade ore, while grind size, residence times and reagent use are being optimized, but satisfactory copper grades were achieved approaching 20% copper and over 600 g/t silver, well ahead of expectation at this stage of start-up,” said Trigon.
The Kombat Mine started operations in 1962, but was forced to shut down in 2008 due to mismanagement and underground flooding.
Trigon said production will continue as it targets its first shipment at the end of the month, with full commercial production expected to be declared in March.
“Production continues, building up to first concentrate shipments toward the end of this month, January 2022. A declaration of full commercial production is forecast for March 2022, as the mine production ramps up and systems are optimized.”
The development at Kombat Mine, comes as the listed company also announced a N$23.3 million (C$2 million) private placement financing closing on or about January 20, 2022 and remains subject to a number of conditions, including receipt of all necessary regulatory approvals, including the approval of the TSX Venture Exchange.
“The Company intends to use the net proceeds from the Offering for the recommencement of mining at the Kombat mine and for working capital and general corporate purposes.”
In October, Trigon Metals Inc also entered into a credit agreement with IXM SA for a US$5 million project finance facility, of which it has already drawn down US$2.5 million, to provide the next tranche of funding required for the restart of the Kombat Mine.
IXM has signed an agreement with Trigon Namibia to acquire 100% of the production from the Kombat open pit mine.
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, with an 80% interest in five mining licences in the Otavi Mountainlands, where the company is focused on exploration and re-development of the previously producing Kombat Mine.
