Trigon Metals Inc. has announced a major operational shift at its Kombat mine in Namibia, achieving a critical milestone in its underground operations. Over a 30-day period, the company has mined an average of 980 tonnes of ore per day, surpassing the threshold set out in its streaming agreement with Sprott Private Resource Streaming and Royalty (B) Corp. and Sprott Mining Inc. This milestone was contractually required to be met by 31 October 2025, but Trigon has exceeded this benchmark 13 months ahead of schedule, a significant achievement for the company.
The milestone, which required sustained production of 900 tonnes per day, was achieved earlier than expected. As a result, the company has made the strategic decision to pause its open-pit operations at the Kombat mine by the end of September 2024. The decision to focus on underground mining was driven by several key factors, including the successful recommissioning of the underground mine, which reached commercial production on 23 May 2024, and the significantly higher-grade ore from underground operations compared to open-pit mining.
The capacity of Kombat’s milling plant, which is limited to 1,000 tonnes per day, has also influenced the company’s strategy. This constraint has led to the prioritisation of higher-grade underground ore, which offers better returns than open-pit ore. To offset any potential shortfalls in production, Trigon will utilise existing lower-grade stockpiles while underground mining ramps up to full steady-state production.
Notably, the mining contractor for the open-pit operations has been informed of the planned pause, and demobilisation is set for the end of September 2024.
Strategic Pivot Towards Underground Mining
The pivot towards underground operations represents a clear focus on maximising efficiency and profitability. The open-pit mining activities, although essential in the earlier phases of the Kombat mine’s recommissioning, have now become less attractive due to the grade differential between the two mining methods. Underground operations have demonstrated their ability to produce higher-grade ore, which aligns with the company’s strategic focus on sustainable, long-term profitability.
The company’s decision to pause open-pit mining, while retaining flexibility with lower-grade stockpiles, positions it well to navigate the challenges posed by current milling capacity limitations. It also allows Trigon to optimise its resource allocation, ensuring that the most valuable ore is prioritised for processing.
Outlook for Trigon Metals
Trigon Metals has made considerable strides in recommissioning the Kombat mine, with underground mining now the cornerstone of its operations. The achievement of this key production milestone marks a new chapter for the company, underscoring its ability to exceed operational targets and deliver value to its stakeholders. As Trigon continues to optimise its underground operations, the focus will remain on expanding production and enhancing profitability.
The successful pivot to underground operations may also prompt further strategic reviews of how the company utilises its resources, especially in light of the substantial grade differential between open-pit and underground ore. With the Kombat mine’s milling capacity serving as a limiting factor, Trigon’s management will need to carefully balance production with infrastructure capabilities to ensure sustainable growth.
