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• Trigon announced that it made its first blast at the underground mine at the Kombat Mine, well ahead of schedule.
• This marks another key milestone for the Company as it opens a new mining front, lowering operational risk, and starts to unlock the substantial and high-grade underground resource.
• The average grade of the underground resource is more than double that of the open pit. See our initiation report for more details, here.
This morning, Trigon Metals Inc. (TM:TSXV) announced the commencement of operational training for the underground mine at the Kombat Mine well ahead of schedule, marked by the successful blasting of the first block on Feb 1. This news is highly positive as it highlights the Company’s ability to execute, beat targets, and will likely bring forward improved cashflows as the operation will be processing higher-grade underground ore sooner than expected. We were expecting this news to come in early Q2.
The Company stated that it will first focus on mining the higher-grade ore from the upper levels of the Asis West shaft complex and continue to accelerate the underground ramp-up over the next few months. We do not expect Trigon to report meaningful production from the underground in Q1 as much of the mined material will be stockpiled until underground operations are approaching commercial production. Additionally, we still await the underground feasibility study (expected this quarter) and anticipate that this will depict a highly profitable underground operation, as well as, provide more clarity into the mine plan over the next quarters and years. Once this is received, we will be able to more accurately estimate copper production and cashflows. We are maintaining our BUY rating and C$0.60/share target price on TM.
TM: First Underground Blast - Well Ahead of Schedule
What you need to know:• Trigon announced that it made its first blast at the underground mine at the Kombat Mine, well ahead of schedule.
• This marks another key milestone for the Company as it opens a new mining front, lowering operational risk, and starts to unlock the substantial and high-grade underground resource.
• The average grade of the underground resource is more than double that of the open pit. See our initiation report for more details, here.
This morning, Trigon Metals Inc. (TM:TSXV) announced the commencement of operational training for the underground mine at the Kombat Mine well ahead of schedule, marked by the successful blasting of the first block on Feb 1. This news is highly positive as it highlights the Company’s ability to execute, beat targets, and will likely bring forward improved cashflows as the operation will be processing higher-grade underground ore sooner than expected. We were expecting this news to come in early Q2.
The Company stated that it will first focus on mining the higher-grade ore from the upper levels of the Asis West shaft complex and continue to accelerate the underground ramp-up over the next few months. We do not expect Trigon to report meaningful production from the underground in Q1 as much of the mined material will be stockpiled until underground operations are approaching commercial production. Additionally, we still await the underground feasibility study (expected this quarter) and anticipate that this will depict a highly profitable underground operation, as well as, provide more clarity into the mine plan over the next quarters and years. Once this is received, we will be able to more accurately estimate copper production and cashflows. We are maintaining our BUY rating and C$0.60/share target price on TM.
Underlying
TRIGON METALS INC.
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Atrium Research Corporation
Atrium Research provides institutional quality issuer paid research on North American public equities using deep fundamental analysis. Our research reports are disseminated through Bloomberg, FactSet, Capital IQ, Reuters and many more, as well as through our social media and email distribution lists.
Ben Pirie
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