VANCOUVER, Oct. 27, 2016 /CNW/ - Trilogy Metals Inc.
(TSX, NYSE-MKT: TMQ) ("Trilogy Metals" or the "Company"), formerly
NovaCopper Inc., is pleased to announce drill results and provide a
project update from its 2016 summer field program at the Arctic
poly-metallic volcanogenic massive sulphide (VMS) deposit, part of
the Upper Kobuk Mineral Projects (UKMP) located in the Ambler
mining district of Northwest
Alaska. All amounts are in United
States dollars unless otherwise stated.
(Photo: http://photos.prnewswire.com/prnh/20161026/433065 )
The majority of this year's project budget of US$5.5 million was spent on a drilling program at
the Arctic Project that included 3,058 meters of drilling for
geotechnical, hydrological, waste rock characterization and
metallurgical studies as well as further resource definition. In
addition to the drilling program, a series of environmental studies
were conducted over the UKMP. The LiDAR survey that was incomplete
last year due to weather conditions was also completed during the
summer. This site investigation work will form the basis for
completing a future pre-feasibility study on the Arctic
deposit.
Highlights from the Drill Program
Based on a cut-off grade of 0.7% copper, significant zones of
high grade copper, gold, silver, lead and zinc mineralization were
intersected – including:
- AR16-0155 intersected three mineralized intervals, including
36.36 meters of 2.27% copper, 0.27 g/t gold, 25.3 g/t silver,
0.36% lead, and 2.54% zinc, and 8.48 meters of 6.14% copper,
1.32 g/t Au, 96.6 g/t silver, 1.93% lead, and 8.27% zinc;
- AR16-0148 intersected four mineralized intervals, including
21.22 meters of 3.79% copper, 0.85 g/t gold, 69.1 g/t silver,
0.99% lead, and 5.78% zinc;
- AR16-0150 intersected five mineralized intervals, including
16.60 meters of 5.40% copper, 0.20 g/t gold, 46.0 g/t silver,
1.23 % lead, and 6.69 % zinc; and
- AR16-0153 intersected 12.59 meters of 2.49% copper, 0.86 g/t
gold, 56.6 g/t silver, 2.17 % lead, and 9.64 % zinc.
"We are pleased to announce another highly successful and safe
field season at our high grade Arctic deposit. We had Zero
Loss Time Incidents, no environmental incidents and maintained a
high percentage of local NANA shareholder hire. We continue
to see exceptional high grades of copper, zinc and precious metals
reported for all in-fill drill holes. The results demonstrate
the continuity of multiple high grade zones of copper, zinc and
precious metals," stated Rick Van
Nieuwenhuyse, President and Chief Executive Officer for
Trilogy Metals. "By completing an array of studies, including
geotechnical for pit-slope stability, hydrology, waste rock
characterization, environmental and metallurgy, we continue to
advance Arctic towards a pre-feasibility level of study which will
demonstrate that Arctic is one of the highest grade, open pitable
copper deposits in the world. By having exposure to copper,
zinc and precious metals, the Company maintains its flexibility as
we advance this project up the value chain. Meanwhile, the Alaska
Industrial Development and Export Authority (AIDEA) continues to
advance permitting of the Ambler Mining District Industrial Access
Project (AMDIAP) – a road connecting the Ambler mining district to
a year-round port at Port
Mackenzie."
Trilogy Metals completed thirteen diamond drill holes for a
total of 3,058 meters of core. The 2016 drill program was designed
to collect data for geotechnical, hydrological, waste rock
characterization and metallurgical studies as well as further
resource definition.
Three drill holes representing 822 meters drilled were designed
to collect geotechnical and hydrological data within the proposed
Arctic open-pit as outlined 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 "2013 PEA") (see press release dated September 12, 2013). Two of these drill holes
encountered significant high grade mineralization, as reported in
Table 1, and one drill hole (AR16-0147) was outside of the resource
target area. Data collected from the geotechnical/hydrological
drill program will be used to support future open-pit mine design,
as well as waste rock characterization and resource definition.
Four drill holes representing 1,030 meters drilled were designed
to collect metallurgical samples to support a metallurgical test
work program currently underway. As expected, all four
metallurgical drill holes encountered significant high grade
mineralized intercepts, as reported in Table 1. Data collected from
the metallurgical drill program will also be used to support waste
rock characerization and resource definition.
Six drill holes representing 1,206 meters drilled were designed
to evaluate vertical and lateral continuity of the high grade
polymetallic copper, gold, silver, lead and zinc mineralization,
and support upgrading and expanding inferred resources to measured
and indicated resource classification within the area of the
proposed Arctic open-pit. The Company is pleased to announce that
all six infill holes encountered mineralized intervals consistent
with previous drilling conducted within the resource area on the
property. Significant mineralized intervals of high-grade
mineralization are reported in Table 1. These drill results, along
with ongoing engineering and environmental studies described below,
will be used to support a pre-feasibility study on the Arctic
deposit.
Environmental Program
Trilogy Metals conducted an aquatics survey, avian survey,
habitat survey, archaeological survey, and wetlands delineation
survey, and continued ongoing baseline environmental data
collection in 2016.
An aquatics survey of rivers and creeks over the UKMP included
identification of fish species present and tissues metals
testing. An avian survey over the UKMP was conducted in May to
identify bird nest locations, with a follow-up survey in July to
measure fledging success. A habitat survey was completed in
conjunction with the wetlands survey and will be used to inform
future biological surveys. Approximately 2,400 acres were surveyed
for archaeological resources in or around the potential Arctic
open-pit and facilities locations. Approximately 2,900 acres of
wetlands were delineated using techniques approved by the Army
Corps of Engineers.
Table 1: Arctic Deposit Significant Drill Results
Hole ID
|
From (m)
|
To (m)
|
AI1
(m)
|
Cu %
|
Au g/t
|
Ag g/t
|
Pb %
|
Zn %
|
CuEq2
%
|
AR16-0146
|
113.15
|
118.80
|
5.65
|
5.77
|
0.89
|
73.7
|
1.58
|
8.68
|
10.23
|
AR16-0146
|
140.40
|
143.25
|
2.85
|
3.19
|
0.88
|
51.5
|
0.33
|
1.66
|
4.94
|
AR16-0146
|
153.65
|
160.35
|
6.70
|
1.33
|
0.10
|
28.4
|
0.52
|
2.01
|
2.47
|
AR16-0146
|
200.75
|
212.10
|
11.35
|
2.19
|
0.18
|
15.6
|
0.20
|
3.08
|
3.45
|
AR16-0146
|
218.50
|
219.65
|
1.15
|
0.98
|
0.14
|
25.2
|
0.66
|
4.14
|
2.78
|
AR16-0148
|
120.00
|
141.22
|
21.22
|
3.79
|
0.85
|
69.1
|
0.99
|
5.78
|
7.14
|
AR16-0148
|
148.60
|
150.65
|
2.05
|
3.34
|
0.67
|
77.1
|
1.76
|
7.23
|
7.33
|
AR16-0148
|
161.58
|
169.77
|
8.19
|
1.03
|
0.06
|
9.5
|
0.20
|
1.34
|
1.63
|
AR16-0148
|
188.05
|
198.34
|
10.29
|
1.42
|
0.63
|
33.9
|
0.46
|
2.37
|
3.06
|
AR16-0149
|
153.70
|
162.15
|
8.45
|
5.70
|
1.66
|
63.3
|
0.88
|
8.23
|
10.19
|
AR16-0149
|
184.00
|
186.08
|
2.08
|
0.91
|
0.12
|
7.7
|
0.03
|
0.52
|
1.24
|
AR16-0150
|
121.15
|
130.71
|
9.56
|
2.34
|
0.33
|
41.0
|
0.63
|
3.10
|
4.13
|
AR16-0150
|
138.34
|
151.64
|
13.30
|
2.89
|
0.62
|
48.0
|
0.61
|
4.37
|
5.31
|
AR16-0150
|
163.00
|
179.60
|
16.60
|
5.40
|
0.20
|
46.0
|
1.23
|
6.69
|
8.40
|
AR16-0150
|
187.30
|
193.00
|
5.70
|
4.53
|
0.12
|
33.8
|
1.22
|
6.14
|
7.17
|
AR16-0150
|
204.45
|
219.60
|
15.15
|
1.67
|
0.37
|
24.4
|
0.25
|
2.53
|
3.01
|
AR16-0151
|
38.84
|
42.13
|
3.29
|
2.82
|
0.20
|
29.6
|
0.07
|
1.80
|
3.83
|
AR16-0151
|
53.05
|
59.85
|
6.80
|
0.81
|
0.11
|
6.3
|
0.03
|
0.31
|
1.05
|
AR16-0152
|
143.55
|
146.30
|
2.75
|
2.80
|
0.40
|
31.6
|
0.67
|
3.17
|
4.56
|
AR16-0152
|
173.10
|
179.88
|
6.78
|
0.90
|
0.04
|
11.1
|
0.16
|
1.84
|
1.64
|
AR16-0152
|
220.02
|
224.38
|
4.36
|
3.20
|
2.38
|
35.1
|
0.06
|
1.23
|
5.54
|
AR16-0152
|
241.75
|
249.59
|
7.84
|
2.70
|
0.48
|
50.5
|
0.40
|
2.04
|
4.31
|
AR16-0153
|
52.02
|
64.61
|
12.59
|
2.49
|
0.86
|
56.6
|
2.17
|
9.64
|
7.20
|
AR16-0154
|
237.30
|
239.10
|
1.80
|
1.69
|
0.07
|
11.0
|
0.14
|
1.10
|
2.22
|
AR16-0155
|
138.42
|
146.90
|
8.48
|
6.14
|
1.32
|
96.6
|
1.93
|
8.27
|
11.12
|
AR16-0155
|
153.45
|
155.41
|
1.96
|
1.62
|
0.24
|
26.2
|
0.64
|
2.52
|
3.01
|
AR16-0155
|
163.18
|
199.54
|
36.36
|
2.27
|
0.27
|
25.3
|
0.36
|
2.54
|
3.59
|
AR16-0156
|
180.86
|
189.47
|
8.61
|
5.05
|
0.42
|
76.3
|
1.01
|
5.66
|
8.17
|
AR16-0157
|
120.28
|
122.18
|
1.90
|
3.15
|
1.65
|
79.8
|
2.09
|
6.37
|
7.65
|
AR16-0158
|
52.85
|
56.93
|
4.08
|
0.85
|
0.08
|
18.0
|
0.64
|
3.05
|
2.20
|
AR16-0158
|
65.45
|
67.60
|
2.15
|
8.76
|
1.58
|
108.0
|
1.42
|
6.38
|
13.33
|
Footnotes to Drill
Interval Table:
|
1.
|
AI = Continuous
Assayed Interval (meters).
|
2.
|
Copper equivalent
(CuEq) calculations use metal prices assumptions of $2.90/lb for
copper, $1,300/oz for gold, $22.70/oz for silver, $0.90/lb for lead
and $0.85/lb for zinc. Copper equivalent calculations reflect gross
metal content and have not been adjusted for metallurgical
recoveries.
|
3.
|
Results are core
intervals and not true thickness; true widths have not been
determined for the above intercepts but are believed to be
representative of actual drill thicknesses.
|
4.
|
Significant interval
defined as a minimum of 1.0 meter Cu interval with average grade
>0.7% Cu.
|
5.
|
Cutoff grade of 0.7%
Cu.
|
6.
|
Internal dilution up
to five meters of <1.0% Cu.
|
7.
|
Intervals of <1.0
meter not reported
|
8.
|
Some rounding errors
may occur.
|
On-going baseline environmental data collection included
maintenance of three hydrologic gauging stations and one
meteorological station. Surface water quality samples were
taken from sixteen surface water locations and analyzed for a full
suite of parameters including total and dissolved metals.
The Company continues to advance the acid-base-accounting static
and kinetic test work at Arctic. Continuous down-hole samples were
collected from this year's drill program to support static testing
coverage over the Arctic deposit. On-site barrel sampling was
successfully completed in the spring and fall of 2016 to support
the kinetics program, and in August we achieved the 40-week
milestone for the parallel laboratory humidy cells; maintenance and
monitoring of all kinetic tests will continue into 2017.
Quality Control and Data Verification
The drill program, sampling protocol and data verification were
managed and overseen by qualified persons employed by Trilogy
Metals. Thirteen diamond drill holes were drilled at HQ and NQ
diameter drill core by Boart Longyear of South Jordan, Utah. Samples in mineralized
core were collected using a 0.2-meter minimum length, 5.0-meter
maximum length and 1.4-meter average sample length. Samples in
un-mineralized core were collected using 0.2-meter minimum length,
5.0-meter maximum length and 3.2-meter average sample length. Drill
core recovery averaged 94% with overburden. Three quality control
samples (one blank, one standard and one duplicate) were inserted
into each batch of 20 samples. The drill core was either sawn or
shipped as whole core, with samples sent to ALS Minerals,
Fairbanks, Alaska for sample
preparation and the sample pulps forwarded to ALS's North Vancouver facility for analysis. ALS
Minerals in North Vancouver, B.C.,
Canada, is a facility certified as
ISO 9001:2008 and accredited to ISO / IEC 17025:2005 from the
Standards Council of Canada.
Qualified Person
Erin Workman, P.Geo, Director of
Technical Services and an employee of Trilogy Metals, is a
Qualified Person as defined by National Instrument 43-101. Ms.
Workman has reviewed the scientific and technical information in
this news release and approves the disclosure contained herein. Ms.
Workman has reviewed the results of the drill program and confirmed
that all procedures, protocols and methodologies used in the drill
program conform to industry standards.
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, which 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.
The mineral resource estimate which forms the basis of the 2013
PEA considers diamond drill holes drilled by different operators
during the period 1965 to 2011. The mineral resource for the Arctic
Project is supported by 43 core holes (approximately 13,500 m)
drilled by NovaCopper and its former parent company NOVAGOLD
Resources Inc. ("NOVAGOLD") and 92 core holes (approximately 17,600
m) drilled by previous owners Kennecott, and/or a Kennecott
subsidiary. The 2013 PEA was based on Indicated mineral resources
totaling 23.8 million tonnes grading 3.26% copper, 0.71g/t gold,
53.2 g/t silver, 0.76% lead and 4.45% zinc, and Inferred resources
totaling 3.4 million tonnes grading 3.22% copper, 0.59 g/t gold,
41.5 g/t silver, 0.58% lead and 3.84% zinc. The 2013 PEA is
preliminary in nature, includes inferred mineral resources that are
considered too speculative geologically to have economic
considerations applied to them that would enable them to be
characterized as mineral reserves, and there is no certainty that
the preliminary economic assessment will be realized. The 2013 PEA
was prepared by Tetra Tech of Vancouver,
Canada and the full technical report is available on SEDAR,
EDGAR and on the Company's website. The 2013 PEA describes the
potential technical and economic viability of establishing a
conventional open-pit copper-zinc-lead-silver-gold mine-and-mill
complex for the Project. The 2013 PEA, evaluated on a 100% basis,
yielded a Net Present Value at 8% of $928
million and $537.2 million on
a pre-tax and post-tax basis, respectively using base case metal
price assumptions of $2.90/lb for
copper, $1,300/oz for gold,
$22.70/oz for silver, $0.90/lb for lead and $0.85/lb for zinc. Mineral resources that are not
mineral reserves do not have demonstrated economic
viability.
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, are forward-looking statements
including but not limited to anticipated activities at the UKMP,
achieving a pre-feasibility level of study at Arctic at some point
in the future, and anticipated permitting activities with respect
to the AMDIAP by AIDEA. 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. 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 and infrastructure; 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,
2015 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
This press release has 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
herein 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 herein may not be comparable with information
made public by companies that report in accordance with U.S.
standards.
SOURCE Trilogy Metals Inc.