Now that the mining licence has been renewed for 10 years, Trigon Metals is aiming to start copper production before year-end at its flagship, 80%-owned Kombat project in Namibia.
“The renewal of our licence at Kombat marks a key milestone as we prepare to commence copper production by the end of the year,” president and CEO Jed Richardson said.
“With licences in hand, it is full speed ahead to become a revenue-generating company, capable of funding further exploration of our significant land holdings in both Namibia and Morocco.”
Kombat is in the Otavi Mountainlands and produced about 12.5 million tonnes of copper between 1962-2008 at a grade of 2.6%.
Initial capex for the restart was put at US$6.4 million in a 2018 feasibility study.
About 40% of that figure had been spent, Trigon said May, adding it had realised some “material cost savings”.
Trigon increased Kombat’s total resources by 456% last year, to 18 million tonnes at more than 1% copper in an open-pit and 20Mt underground grading 2.86%.
The company had C$3 million in cash in May.
Eric Sprott is a major shareholder with about 18% after taking part in another placement in September priced at 35c per unit.
Trigon shares (TSXV: TM) have spanned 13.5-54c over the past year and closed down about 9% yesterday to 35.5c, valuing it at $42.9 million (US$34.9 million).