Report
FREE
• TM announced a key production milestone, having mined 980tpd over a 30-day period, surpassing a threshold in the Sprott streaming agreement.
• This news de-risks the project as Trigon is no longer required to convert the principal advance into a loan (more detail below).
• As a result of the highly successful underground mining operations, the Company has decided to pause the open pit and only process high-grade underground ore.
• Two weeks ago, we interviewed management, watch it here.
This morning, Trigon Metals Inc. (TM:TSXV) announced the operation has reached a key underground production milestone, having mined an average of 980tpd over 30 consecutive days. This milestone is key as per the terms of the streaming agreement with Sprott, ensuring that Trigon is not required to convert the principal advance pursuant to the stream agreement into a loan. Additionally, Trigon announced it has made the decision to pause its open pit mining services as there is more than enough mill feed from the higher-grade underground operations. We are maintaining our BUY rating and target price of C$3.50/share on TM.
For context, back on October 24, 2022, Trigon closed the silver streaming deal with Sprott Private Resource Streaming and Royalty (B) Corp and Sprott Mining Inc. (Sprott) for US$37.5M. As per the terms of the agreement, by exceeding an average production of 900tpd from its underground operations over a period of 30 consecutive days, Trigon is no longer required to convert the principal advanced pursuant to the steam agreement into a loan. This threshold was required to be met by October 31, 2025, and has been met over a year earlier, showcasing the Company’s ability to successfully initiate and ramp underground production.
The Company also announced following the recent success from its underground operations, that it plans to pause its open pit mining activities as of the end of September 2024. This decision was made for a few reasons, but primarily because the 980tpd for 30 consecutive days from the underground is just under the current milling capacity of 1,000tpd and it is far more profitable for the Company to process the much higher-grade underground ore (more than double than the open pit) as well, the copper production will increase. Trigon believes it can continue to ramp underground production beyond 1,000tpd, especially over the longer term as it defines a more robust resource through the so far successful ongoing underground drill program.
TM: Underground Mining Outperforms – Open Pit Pauses
What you need to know:• TM announced a key production milestone, having mined 980tpd over a 30-day period, surpassing a threshold in the Sprott streaming agreement.
• This news de-risks the project as Trigon is no longer required to convert the principal advance into a loan (more detail below).
• As a result of the highly successful underground mining operations, the Company has decided to pause the open pit and only process high-grade underground ore.
• Two weeks ago, we interviewed management, watch it here.
This morning, Trigon Metals Inc. (TM:TSXV) announced the operation has reached a key underground production milestone, having mined an average of 980tpd over 30 consecutive days. This milestone is key as per the terms of the streaming agreement with Sprott, ensuring that Trigon is not required to convert the principal advance pursuant to the stream agreement into a loan. Additionally, Trigon announced it has made the decision to pause its open pit mining services as there is more than enough mill feed from the higher-grade underground operations. We are maintaining our BUY rating and target price of C$3.50/share on TM.
For context, back on October 24, 2022, Trigon closed the silver streaming deal with Sprott Private Resource Streaming and Royalty (B) Corp and Sprott Mining Inc. (Sprott) for US$37.5M. As per the terms of the agreement, by exceeding an average production of 900tpd from its underground operations over a period of 30 consecutive days, Trigon is no longer required to convert the principal advanced pursuant to the steam agreement into a loan. This threshold was required to be met by October 31, 2025, and has been met over a year earlier, showcasing the Company’s ability to successfully initiate and ramp underground production.
The Company also announced following the recent success from its underground operations, that it plans to pause its open pit mining activities as of the end of September 2024. This decision was made for a few reasons, but primarily because the 980tpd for 30 consecutive days from the underground is just under the current milling capacity of 1,000tpd and it is far more profitable for the Company to process the much higher-grade underground ore (more than double than the open pit) as well, the copper production will increase. Trigon believes it can continue to ramp underground production beyond 1,000tpd, especially over the longer term as it defines a more robust resource through the so far successful ongoing underground drill program.
Underlying
TRIGON METALS INC.
Provider
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
Other Reports on these Companies
Other Reports from Atrium Research Corporation
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.