What are Kombat’s production plans for the next year?

Trigon, the company behind Kombat, is currently in the construction phase, aiming to produce the first concentrates before the end of 2021. The initial production will come from an open-pit operation, with a projected annual copper production of 4,000 metric tons. While there are higher-grade resources underground, the operation will begin as an open-pit mine. Trigon has been collaborating with Xinhai for two years, and they will continue to supply flotation cells and filter presses as equipment suppliers for Kombat.

The generated cash flow will be utilized for financing drilling campaigns at Trigon’s Moroccan project and further resource exploration at Kombat, which saw a seven-fold increase last year with the acquisition of the Copper King Extension.

How does the acquisition of Copper King land add value to the Kombat project?

The acquisition of the Copper King Extension enhances the value of the Kombat project significantly. The existing resource at Kombat spans a 4.2 km strike-length. With the acquisition, Trigon gains an additional 30 km of prospective land on the same structural strike-length in the Otavi Valley. This addition encompasses approximately 5,600 hectares of exploration ground, where 14 different copper showings have been identified. This means that the estimated 750,000 metric tons of copper in the existing resources could be just a fraction of the total copper potential in the asset.

What makes Namibia an attractive mining investment destination, and how does it compare to Morocco?

Namibia is an appealing mining investment destination due to its well-developed infrastructure, skilled workforce, and political stability. The country has a mature mining jurisdiction with transparent processes for permitting and environmental regulations. There are no hidden mining super taxes or substantial financial burdens that could jeopardize the profitability of projects, setting Namibia apart from some other African mining destinations. Trigon has been recruiting professionals for its projects in Namibia and has been impressed by the quality of applicants available in the country.

On the other hand, Morocco is considered a relatively untapped mining destination with less experience in modern mining methods. However, it offers exceptional geological potential and hosts various metals and minerals. Morocco is emerging as a mining country of interest, particularly since it does not impose royalties, and Trigon owns 100% of its project there.

How is Trigon creating value for investors with the Silver Hill project?

Trigon acquired the Silver Hill project in September 2020. It is a 16 km2 property located in the Anti-Atlas region of Morocco. The Atlas and Anti-Atlas Mountains share similarities with the mineral-rich Atacama Desert, indicating Morocco’s potential to gain global attention in the mining sector in the future. Trigon’s current focus is on drilling and conducting geophysical and geochemical work over the next few months. The company sees the potential for Silver Hill to become another high-value asset, attracting further exploration and development attention to Morocco.

Could you provide more information about Trigon’s balance sheet structure?

Presently, Trigon has no debt and approximately CA$3 million in cash reserves. The company is working towards securing an offtake agreement, which would allow it to take on debt against future copper deliveries, providing a means to finance its production activities. Trigon has chosen to finance the Kombat operation through offtake agreements instead of relying on Chinese credit facilities, mainly due to the scale of the operation. Chinese credit facilities are more relevant for larger projects.

How is Trigon Metals perceived by investors?

Trigon’s work in Morocco has garnered increased attention for the company, thanks to the presence of silver alongside copper in its projects. The company is well-positioned considering the current tightness in the copper market, and shareholders are pleased with the exposure to copper and the potential cash flow in the coming years.

Trigon maintains its identity as an explorer in the market, prioritizing exploration even as production begins. The cash flow generated from production will be reinvested to enhance exploration activities, creating value through the discovery of new deposits in Namibia and Morocco.

Do you have a final message for our international readers?

Trigon represents a unique opportunity, benefiting from exceptional mining jurisdictions both geologically and politically. As production commences amid a favorable copper price environment, it is an opportune time to consider becoming a shareholder. The company’s exploration heritage continues to shape its business model, with a focus on creating value through the discovery of new deposits in Namibia and Morocco. Shareholders stand to gain significant benefits from Trigon’s strategic approach to exploration and development.