Drilling at Trigon Metals’ (TSXV: TM) Kombat copper-silver mine in north-central Namibia has hit new, high-grade mineralization close to past producing areas, the company reported Tuesday. Its shares rose.
Highlight holes include KWO-217 which cut 5 metres grading 11.21% copper and 117.89 grams silver per tonne, KWO-218 that cut 8 metres at 2.55% copper and 18.65 grams silver, and KWO-221 which cut 9 metres grading 3.93% copper and 56.13 grams silver. Those holes, part of a 3,500-metre resource upgrade program, were drilled from 105 metres depth on level 3 in Shaft 1, to the north-east and south-west of their closest historical intercepts, Trigon said.
“Even with 45 years of mining history at Kombat, the deposit continues to surprise us with new high-grade ore — even adjacent to old developments,” Trigon CEO and executive chairman Jed Richardson said in a release. “There is tremendous value in this mine yet to be realized in our market capitalization.”
Trigon restarted production at Kombat in 2022. The 15-year-life mine is expected to produce 12.1 million to 13.4 million lb. of copper next year grading 1.95% to 2.3%.
Trigon shares gained 3.4% to C$0.90 on Tuesday morning in Toronto, valuing the company at C$40.2 million. Its shares traded in a 52-week range of C$0.61 to C$1.28.
Copper prices have been on an upswing since late September, and traded for $4.38 per lb. on Tuesday morning. Kombat, one of a handful of copper mines in Namibia, was historically among the top producers of the critical mineral in the southern African country, producing 12.5 million tonnes of ore grading 2.62% copper, 1.55% lead, and 18 grams silver per tonne between 1962 and 2008.
Other drill highlights include KWO-194, which cut 2 metres at 4.36% copper and 22.27 grams silver, and KWO-198 that cut 4 metres grading 2.83% copper and 49.75 grams silver. Both holes were drilled from 120 metres depth in level 5, and pierced the nearest historical intercepts from 80 metres and 84 metres, respectively.
Kombat hosts 2.4 million probable tonnes grading 2.4% copper and 17.4 grams silver for 58,704 tonnes copper and 41,726 kg silver in open pit, underground and stockpiled resources, according to a February update.
Kombat is located about 360 km north of the capital Windhoek, and just south of Dundee Precious Metals’ (TSX: DPM) Tsumeb polymetallic smelter.
