TORONTO, Nov. 19, 2019 – Trigon Metals Inc. (TSX-V: TM) (“Trigon” or the “Company”) is pleased to announce that it has entered into a non-binding Memorandum of Understanding (“MOU”) to acquire a 100% interest in the Silver Hill Project (“Silver Hill” or the “Project”) in Morocco (the “Proposed Transaction”).
The Proposed Transaction is centered around the Silver Hill Project, a 16km2 property in the Anti-Atlas region of Morocco, already home to Africa’s major silver mines (Imiter, Zgounder). Morocco is well-known to be a favourable jurisdiction for mining, with an established industry producing at a rate of approximately 40 million tonnes of minerals per year. Morocco produces 90% of the world’s supply of phosphates, and extracts copper, cobalt, gold silver and zinc. Morocco is a friendly business environment with a strong mining history, but very little systematic modern exploration.
Locally referred to as, Aourir N’kort (Silver Hill in the Berber language), early basic surface exploration of the Project shows that it is a high-grade exploration project showing mineralization at high grades distributed over a wide surface area. Ancient slags grading 2.5% Cu are distributed widely across one third of the concession surface, indicating a history of very ancient mining and primitive metal recovery. The presence of historical mine shafts measuring less than 20 metres in depth demonstrate that historical activity only concerned the superficial part of the mineralization and that the potential at depth remains high. Trigon is optimistic that this project and its accompanying team will emerge as a new source of growth, excitement for the Company, and value for its shareholders.
The main structure of interest (Structure 1) is a shallow dipping zone of an assumed true thickness ranging from 1 to 3 metres that has been traced and worked laterally for more than 5km. Two other worked structures have been identified on the Project that appear to be repeats of the mineralization lower in the geological sequence. Each has returned high grades of copper (1.1% to 12.1% Cu), but lower silver values (up to 250-270g/t).
The local partners (the Vendors) made use of a small under-powered drill and were not able to drill through all of the mineralized sequence, however intercepts of high copper and silver were recorded in the shallow holes (1m at 9.35% Cu and 623g/t Ag or 4m at 3.67% Cu and 263 g/t Ag at 35m depth).
Structure 1 – Upper Mineralized Level
|Sample ID||Cu%||Ag g/t|
Structure 2 – Middle Mineralized Level
|Sample ID||Cu%||Ag g/t|
Structure 3 – Lower Mineralized Area
|Sample ID||Cu%||Ag g/t|
The potential quantities and grades above are conceptual in nature. There has been insufficient exploration to define a mineral resource and it is uncertain if a mineral resource will be delineated.
In order to close the Proposed Transaction, Trigon must pay to the Vendors CAD$500,000 in cash and issue such number of common shares equal to CAD $750,000. On the one-year anniversary of closing the Proposed Transaction, Trigon must pay to the Vendors an amount of CAD$400,000 in cash and issue such number of shares equal to CAD $250,000. Once an independent NI 43-101 compliant mineral resource estimate has been completed at the Project showing at least 100,000 tonnes of contained copper, Trigon shall issue such number of shares equal to CAD $1,250,000 to the Vendors.
In addition, a finder fee of 5% of the cash and share consideration must be paid in cash by Trigon to an arm’s length person. The finder’s fee shall be paid concurrently with the payments to the Vendors, as described above.
“We are excited to introduce another high-grade copper asset to Trigon’s portfolio. New areas of copper production are important as production declines from the Andean resources on which the world has come to depend for the last 30 years. We aim to explore and develop new copper resources in mining-friendly African jurisdictions. Strong silver grades at Silver Hill fit nicely with the Kombat mine, our asset in Namibia, where silver is already a meaningful by-product credit,” commented Jed Richardson, Trigon President & CEO.
The Proposed Transaction is subject to further due diligence by Trigon, the parties negotiating and entering into a definitive agreement and obtaining of the necessary regulatory approvals, including approval of the TSX Venture Exchange.
Technical information in this news release has been reviewed and approved by Willem Kotze, P.Geo, a “Qualified Person” as defined under National Instrument 43-101. The data presented in this news release was found to coincide with the laboratory test report by Office National des Hydrocarbures et des Mines (ONHYM), Morocco.
Trigon Metals Inc.
Trigon is a publicly traded Canadian exploration and development company with its core business focused on copper operations in Namibia, one of the world’s most prospective copper regions, where it has substantial assets in place. The Company continues to hold an 80% interest in five mining licenses in the Otavi Mountain lands, an area of Namibia widely recognized for its high-grade copper deposits. Within these licenses are three past producing mines including the Company’s flagship property, the Kombat Mine.
For further information, contact:
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This news release may contain forward-looking statements. These statements include statements regarding investment in and financing for the Company and the Kombat operations, the MOU, the Company’s ability to obtain adequate financing, the Company’s ability to closed the Proposed Transaction, the prospectivity of the Project, the Company’s ability to explore the Project and produce a NI 43-101 mineral resource estimate, the Company’s strategies and the Company’s abilities to execute such strategies, the Company’s ability to restart the Kombat operations, the Company’s expectations for the Kombat operations, and the Company’s future plans and objectives. These statements are based on current expectations and assumptions that are subject to risks and uncertainties. Actual results could differ materially because of factors discussed in the management discussion and analysis section of our interim and most recent annual financial statements or other reports and filings with the TSX Venture Exchange and applicable Canadian securities regulations. We do not assume any obligation to update any forward-looking statements, except as required by applicable laws.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.