VANCOUVER, April 19, 2017 /CNW/ - Trilogy Metals Inc.
(TSX, NYSE-MKT: TMQ) ("Trilogy Metals" or "the Company") is pleased
to announce the results of a recently completed metallurgical test
work program using sample material from the Arctic deposit
collected during the 2016 field season. This metallurgical test
program was carried out as a follow-on program to confirm previous
metallurgical results completed in 2012 and in support of advancing
the project to a pre-feasibility study ("PFS") planned for
completion in Q1 2018.
Highlights – Recoveries and Concentrate Grades Improved from
Previous Study
- Copper recoveries improved from 87% to 92%
- Zinc recoveries improved from 87% to 88%
- Copper concentrate average grade remains high at
29%
- Zinc concentrate average grade improves from 56% to
60%
- In-pit geotechnical and hydrology studies are now completed
to a PFS level
The results demonstrate that excellent recoveries and clean
concentrates of copper and zinc can be generated from the
polymetallic copper-lead-zinc-gold-silver ores at Arctic.
Concentrates of copper recovered an average of 91.7% of the copper
and formed a concentrate averaging 28.7% copper metal. Concentrates
of zinc recovered an average of 87.8% of the zinc and formed a
concentrate averaging 60% zinc metal. Neither concentrate
contains significant deleterious penalty metals and are considered
excellent quality by world standards. The lead concentrate
contains significant precious metals and is still undergoing
further test work to determine optimal recoveries for lead, gold
and silver.
The Arctic deposit is a high-grade copper-zinc-lead volcanogenic
massive sulfide deposit which also contains significant amounts of
precious metals. The Company is proposing a 10,000 tonne per day,
open pit mining operation with a typical crush-grind-float flow
sheet producing significant tonnages of copper and zinc
concentrates and lessor lead concentrate containing significant
quantities of precious metals. The mineralized material from Arctic
has been shown to be amenable to traditional flotation methods for
the production of saleable base-metal concentrates. The results of
this recent test work program, completed by ALS Metallurgy of
Kamloops, Canada, were in-line
with previous results reported in the Company's National Instrument
43-101 - Standards of Disclosure technical report entitled
"Preliminary Economic Assessment Report on the Arctic Project,
Ambler Mining District, Northwest
Alaska" dated effective September 12,
2013 (the "PEA") (see press release dated September 12, 2013) and will support a PFS to be
completed in Q1, 2018.
Rick Van Nieuwenhuyse, President
and CEO of Trilogy Metals commented, "We are very pleased with the
results of this metallurgical test work program at Arctic.
Recoveries and concentrate grades for our two principle metals –
copper and zinc are excellent. We are currently conducting
additional test work to determine the optimal recoveries of our
three other metals – lead, gold and silver, and will report on that
work in due course. In combination with recently completed
structural, hydrological and geotechnical work, we are well poised
to kick-off the approved 2017 plan and budget and complete a PFS on
Arctic in Q1 of 2018. The PFS will demonstrate the true value of
the high-grade Arctic deposit which we expect will be the first in
a series of potential mines in the Ambler mining district. With the
recent announcement that the BLM has initiated the permitting
process on the AMDIAP; our recently announced option agreement with
South32 whereby they will fund a $10
million program at our Bornite deposit in 2017; and an
upswing in demand for copper and zinc, the Company is well
positioned to add value for shareholders by advancing development
of the Ambler mining district."
The revenue stream in the PEA (see figure 1 below) showed that
copper produced 60% of the revenue stream, with zinc contributing
21%, silver at 9% and gold at 6%. Lead was the least valuable
of the metals and is still undergoing further test work to
determine optimal recoveries for lead, gold and silver.
Neither the zinc nor the copper concentrates contain any
significant deleterious penalty metals and are considered excellent
quality by world standards.
Metallurgical Update
A total of four diamond drill holes were completed during the
2016 field program to provide whole core for sample materials in
this test work program. Drilling targeted the first seven years of
planned mine production from the Arctic deposit and provided 14
major mineralized intercepts for use in the test work program.
The metallurgical flow sheet envisions a truck and shovel
open-pit mining operation followed by a traditional
crush-grind-float processing facility. Grinding test work completed
on the 14 mineralized intercepts confirmed the material to be soft
to moderate in terms of Bond Work Index characterization. Bond Ball
Mill work index averaged 7.6kWhr/tonne, with a maximum value of
10.3 and minimum value of 5.3.
A composite sample of approximately 600 kilograms was prepared
from the mineralized intercepts and used for metallurgical
concentration test work. This composite sample was used in bench
scale testing to confirm the performance of the previously defined
flotation process; as well, a large volume of the sample was
processed in a pilot plant to provide sufficient volumes of a
copper-lead bulk concentrate to complete detailed copper and lead
separation test work. A flowsheet of the Arctic flotation process
is shown in Figure 2.
Metallurgical test work, as shown in Table 1, reflects good
recovery and upgrading of copper, lead and zinc values. The Arctic
deposit contains talc, a naturally hydrophobic mineral. Talc is
recovered via flotation prior to base metals flotation. Copper and
zinc losses associated with the talc concentrate are less than one
percent of the overall base metals. Copper and zinc concentrates as
defined in this test work program are considered to be excellent in
terms of concentrate grades. The lead concentrate which contains
significant precious metals will be subject to further economic
analysis and possibly additional metallurgical testing for the
recovery of precious metals.
Table 1: Arctic Deposit – Overall Metallurgical Performance
(Bulk Sample)
|
|
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Grades
|
Metal
Recoveries
|
|
|
|
|
|
|
|
|
|
|
|
Product
|
Cu
|
Pb
|
Zn
|
Au
|
Ag
|
Cu
|
Pb
|
Zn
|
Au
|
Ag
|
|
%
|
%
|
%
|
g/t
|
g/t
|
%
|
%
|
%
|
%
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Flotation
Feed
|
3.13
|
0.93
|
4.75
|
0.61
|
46
|
100
|
100
|
100
|
-
|
-
|
|
|
|
|
|
|
|
|
|
|
|
Pre-float
Conc.
|
0.20
|
0.15
|
0.27
|
0.06
|
5
|
0.8
|
2.0
|
0.7
|
-
|
-
|
|
|
|
|
|
|
|
|
|
|
|
Lead Conc.
|
2.72
|
23.8
|
1.32
|
7.12
|
933
|
2.4
|
76.9
|
0.9
|
63.4
|
59.4
|
|
|
|
|
|
|
|
|
|
|
|
Copper
Conc.
|
28.7
|
1.03
|
2.97
|
0.35
|
113
|
91.7
|
11.8
|
6.9
|
11.0
|
26.0
|
|
|
|
|
|
|
|
|
|
|
|
Zinc Conc.
|
0.79
|
0.24
|
60.0
|
0.44
|
24
|
1.8
|
1.8
|
87.8
|
-
|
-
|
|
|
|
|
|
|
|
|
|
|
|
Final
Tails
|
0.16
|
0.10
|
0.25
|
0.19
|
7
|
3.3
|
7.5
|
3.8
|
-
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Geotechnical & Hydrology Update
In spring of 2015, Trilogy Metals contracted SRK Consulting
(Canada) Inc. to initiate open pit
geotechnical and hydrogeological field investigations to achieve
prefeasibility level design for the Arctic Project. SRK's scope of
work consisted of three broad phases, spanning two years of staged
technical investigations.
- Phase 1 focussed on data collection by means of a field
investigation program tied to the Arctic 2015 and 2016 exploration
drilling programs. Geotechnical information collected from the
drilling programs included geotechnical rock mass classification
data from oriented drill core, testing of drill core for
laboratory-derived rock properties, and downhole acoustic and
optical televiewer surveying. Hydrogeological testing included
packer testing, installation and monitoring of new and existing
instrumentation within the proposed open pit area, airlift testing
and seepage surveys. As input for the engineering studies, SRK also
completed a structural geology study, and developed a fault model
based on field mapping, surface LiDAR data interpretation, drill
hole logging and a 3D geology model provided by Trilogy staff.
- Phase 2 undertook advanced geotechnical and hydrogeological
characterization and analyses, which resulted in the identification
of six relevant geotechnical design sectors for the planned open
pit.
- Phase 3 included kinematic analyses, numerical modelling of
representative pit sections and derivation of overall,
inter-ramp and bench scale slope design recommendations for each
geotechnical design sector.
Final inter-ramp angles per design sector vary depending on the
slope direction within the design sector, but in general are 26 to
56 degrees (see Figure 3). We are pleased to report that SRK
completed a final report documenting the structural, hydrological
and geotechnical work in February
2017 – this completes the work package to a Pre-feasibility
level of study.
Qualified Persons
The metallurgical information in this news release has been
prepared in accordance with Canadian regulatory requirements set
out in National Instrument 43-101 Standards of Disclosure for
Mineral Projects of the Canadian Securities Administrators ("NI
43-101") and supervised and reviewed by Jeffrey B. Austin, P.Eng., President, of
International Metallurgical and Environmental Inc., a "Qualified
Person" as defined in National Instrument 43-101 and the person who
oversees metallurgical developments for Trilogy Metals.
The 2015 and 2016 geotechnical and hydrological field
investigations, technical analysis and slope design recommendations
were completed by Qualified Persons employed by SRK Consulting
(Canada) Inc. of Vancouver, Canada. Bruce Murphy P.Eng., Principal Consultant with
SRK, is a Qualified Person as defined by National Instrument
43-101. Mr. Murphy has reviewed the geotechnical and hydrological
technical information in this news release and approves the
disclosure contained herein.
About Trilogy Metals
Trilogy Metals Inc., formerly NovaCopper Inc., is a metals
exploration company focused on exploring and developing the Ambler
mining district located in northwestern Alaska. It is one of the richest and
most-prospective known copper-dominant districts located in one of
the safest geopolitical jurisdictions in the world. It hosts
world-class polymetallic VMS deposits that contain copper, zinc,
lead, gold and silver, and carbonate replacement deposits which
have been found to host high grade copper mineralization.
Exploration efforts have been focused on two deposits in the Ambler
mining district - the Arctic VMS deposit and the Bornite carbonate
replacement deposit. Both deposits are located within the Company's
land package that spans approximately 143,000 hectares. The Company
has an agreement with NANA Regional Corporation, Inc., a Regional
Alaska Native Corporation that provides a framework for the
exploration and potential development of the Ambler mining district
in cooperation with local communities. Our vision is to develop the
Ambler mining district into a premier North American copper
producer.
Cautionary Note Regarding Forward-Looking
Statements
This press release includes certain "forward-looking
information" and "forward-looking statements" (collectively
"forward-looking statements") within the meaning of applicable
Canadian and United States
securities legislation including the United States Private
Securities Litigation Reform Act of 1995. All statements, other
than statements of historical fact, included herein, including,
without limitation, statements relating to the potential timing and
preparation of a PFS on the Arctic deposit, the future operating or
financial performance of the Company, planned
expenditures and the anticipated activity at the UKMP
Projects, and anticipated activity with respect to the AMDIAP, are
forward-looking statements. Forward-looking statements are
frequently, but not always, identified by words such as "expects",
"anticipates", "believes", "intends", "estimates", "potential",
"possible", and similar expressions, or statements that events,
conditions, or results "will", "may", "could", or "should" occur or
be achieved. These forward-looking statements may include
statements regarding perceived merit of properties; exploration
plans and budgets; mineral reserves and resource estimates; work
programs; capital expenditures; timelines; strategic plans; market
prices for precious and base metals; or other statements that are
not statements of fact. Forward-looking statements involve various
risks and uncertainties. There can be no assurance that such
statements will prove to be accurate, and actual results and future
events could differ materially from those anticipated in such
statements. Important factors that could cause actual results to
differ materially from the Company's expectations include the
uncertainties involving the need for additional financing to
explore and develop properties and availability of financing in the
debt and capital markets; uncertainties involved in the
interpretation of drilling results and geological tests and the
estimation of reserves and resources; the need for cooperation of
government agencies and native groups in the development and
operation of properties as well as the construction of the access
road; the need to obtain permits and governmental approvals; risks
of construction and mining projects such as accidents, equipment
breakdowns, bad weather, non-compliance with environmental and
permit requirements, unanticipated variation in geological
structures, metal grades or recovery rates; unexpected cost
increases, which could include significant increases in estimated
capital and operating costs; fluctuations in metal prices and
currency exchange rates; and other risks and uncertainties
disclosed in the Company's Annual Report on Form 10-K for the year
ended November 30, 2016 filed with
Canadian securities regulatory authorities and with the United
States Securities and Exchange Commission and in other Company
reports and documents filed with applicable securities regulatory
authorities from time to time. The Company's forward-looking
statements reflect the beliefs, opinions and projections on the
date the statements are made. The Company assumes no obligation to
update the forward-looking statements or beliefs, opinions,
projections, or other factors, should they change, except as
required by law.
Cautionary Note to United States Investors
The Arctic Preliminary Economic Assessment and the Bornite
Technical Report have been prepared in accordance with the
requirements of the securities laws in effect in Canada, which differ from the requirements of
U.S. securities laws. Unless otherwise indicated, all resource and
reserve estimates included in this press release have been prepared
in accordance with National Instrument 43-101 Standards of
Disclosure for Mineral Projects ("NI 43-101") and the Canadian
Institute of Mining, Metallurgy, and Petroleum Definition Standards
on Mineral Resources and Mineral Reserves. NI 43-101 is a rule
developed by the Canadian Securities Administrators which
establishes standards for all public disclosure an issuer makes of
scientific and technical information concerning mineral projects.
Canadian standards, including NI 43-101, differ significantly from
the requirements of the United States Securities and Exchange
Commission ("SEC"), and resource and reserve information contained
therein may not be comparable to similar information disclosed by
U.S. companies. In particular, and without limiting the generality
of the foregoing, the term "resource" does not equate to the term
"reserves". Under U.S. standards, mineralization may not be
classified as a "reserve" unless the determination has been made
that the mineralization could be economically and legally produced
or extracted at the time the reserve determination is made. The
SEC's disclosure standards normally do not permit the inclusion of
information concerning "measured mineral resources", "indicated
mineral resources" or "inferred mineral resources" or other
descriptions of the amount of mineralization in mineral deposits
that do not constitute "reserves" by U.S. standards in documents
filed with the SEC. Investors are cautioned not to assume that any
part or all of mineral deposits in these categories will ever be
converted into reserves. U.S. investors should also understand that
"inferred mineral resources" have a great amount of uncertainty as
to their existence and great uncertainty as to their economic and
legal feasibility. It cannot be assumed that all or any part of an
"inferred mineral resource" will ever be upgraded to a higher
category. Under Canadian rules, estimated "inferred mineral
resources" may not form the basis of feasibility or pre-feasibility
studies except in rare cases. Investors are cautioned not to assume
that all or any part of an "inferred mineral resource" exists or is
economically or legally mineable. Disclosure of "contained ounces"
in a resource is permitted disclosure under Canadian regulations;
however, the SEC normally only permits issuers to report
mineralization that does not constitute "reserves" by SEC standards
as in-place tonnage and grade without reference to unit measures.
The requirements of NI 43-101 for identification of "reserves" are
also not the same as those of the SEC, and reserves reported by the
Company in compliance with NI 43-101 may not qualify as "reserves"
under SEC standards. Accordingly, information concerning mineral
deposits set forth in this press release or the Bornite Technical
Report may not be comparable with information made public by
companies that report in accordance with U.S. standards.
SOURCE Trilogy Metals Inc.