UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event
reported): April 19, 2017
Trilogy
Metals Inc.
(Exact name of registrant as specified in its charter)
British Columbia |
001-35447 |
98-1006991 |
(State or other jurisdiction of incorporation) |
(Commission
File Number) |
(I.R.S.
Employer Identification Number)
|
Suite 1950, 777 Dunsmuir Street
Vancouver, British Columbia
Canada, V7Y 1K4
(Address of principal executive offices,
including zip code)
(604) 638-8088
(Registrant’s telephone number, including
area code)
N/A
(Former name or former address, if changed
since last report)
Check the appropriate box below if the Form
8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions
(see General Instruction A.2 below):
[_] Written communications pursuant
to Rule 425 under the Securities Act (17 CFR 230.425)
[_] Soliciting material pursuant to
Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
[_] Pre-commencement communications
pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.24d-2(b))
[_] Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.23e-4(c))
| Item 7.01 | Regulation FD Disclosure |
On April 19, 2017, Trilogy
Metals Inc. (the “Registrant”) issued a press release announcing the results of a metallurgical test work program and
the completion of a geotechnical and hydrogeological work program. A copy of the press release is furnished as Exhibit 99.1 to this
report.
In accordance with General
Instruction B.2 of Form 8-K, the information in this Current Report on Form 8-K, including Exhibit 99.1, shall not be deemed to
be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”),
or otherwise subject to the liability of that section, and shall not be incorporated by reference into any registration statement
or other document filed under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth
by specific reference in such filing.
Item 9.01 | Financial
Statements and Exhibits |
(d)
Exhibits
Exhibit
Number |
Description |
99.1 |
Trilogy Metals Announces Metallurgical, Geotechnical and Hydrogeological Results from the Arctic Deposit
|
SIGNATURES
Pursuant to the requirements
of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned
hereunto duly authorized.
Trilogy
Metals INC.
Dated:
April 19, 2017 | By: | /s/ Elaine Sanders |
| | Elaine M. Sanders, Chief Financial Officer |
Exhibit 99.1
Trilogy Metals Announces Metallurgical, Geotechnical
and Hydrogeological Results from the Arctic Deposit
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)
|
|
|
|
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 |
- |
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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.
View original content with multimedia: http://www.newswire.ca/en/releases/archive/April2017/19/c7568.html
%CIK: 0001543418
For further information: Rick Van Nieuwenhuyse, President
& Chief Executive Officer, rickvann@trilogymetals.com; Elaine Sanders, Vice President & Chief Financial Officer, elaine.sanders@trilogymetals.com;
604-638-8088 or 1-855-638-8088
CO: Trilogy Metals Inc.
CNW 07:00e 19-APR-17
This regulatory filing also includes additional resources:
ex991.pdf
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