VANCOUVER, April 25, 2017 /CNW/ - Trilogy Metals Inc.
(TSX, NYSE-MKT: TMQ) ("Trilogy Metals" or "the Company") is pleased
to announce its Mineral Resource estimate on its high-grade copper
deposit at Arctic as of April 25,
2017.
HIGHLIGHTS
- In-fill drilling results in a 50% increase in resource
tonnes in the Indicated category at substantially the same
average grades as the previous estimate, and contains over 40% more
copper and zinc metal.
- At the ranges investigated, the resource is not sensitive to
cut-off grade (and assumed metal prices) - where a 300% increase in
cut-off grade results in less than a 1% decrease in contained
copper and zinc metal at higher average grades.
- At a base case 0.5% copper equivalent cut-off grade, the Arctic
deposit is estimated to contain in-pit Indicated Resources of
36.0 million tonnes at 3.07% copper, 4.23% zinc, 0.73% lead,
0.63 g/t gold and 47.6 g/t silver for 2.4 billion pounds of
contained copper and 3.4 billion pounds of contained zinc (see
Table 1 for details).
- At a base case 0.5% copper equivalent cut-off grade, the Arctic
deposit is estimated to contain in-pit Inferred Resources of 3.5
million tonnes at 1.71% copper, 2.72% zinc, 0.60% lead, 0.36 g/t
gold and 28.7 g/t silver (see Table 1 for details).
Rick Van Nieuwenhuyse, President
and CEO of Trilogy Metals commented, "We are very pleased to see
that in-fill drilling of the Arctic open pit has demonstrated both
continuity and expansion of the known mineralization and
successfully upgraded Inferred resources to the Indicated
classification. The updated resource has resulted in a 50%
increase in the Indicated tonnes containing approximately 40% more
metal when compared to the previous resource estimate in the
marketplace. Furthermore, the resource is not sensitive to
cut-off grade or metal prices at the ranges investigated, since a
300% increase in cut-off grade results in less than a 1% decrease
in contained metal at higher average grades. That is a robust
deposit."
Mr. Van Nieuwenhuyse continued,
"In combination with recently completed structural, hydrological,
geotechnical and metallurgical work, we are well poised to kick-off
the 2017 plan and budget, and complete a Pre-Feasibility study on
Arctic in Q1 of 2018."
Table 1. Estimate of Mineral Resources for the Arctic
Deposit
|
|
Average
Grade:
|
Contained
metal:
|
Class
|
M
tonnes
|
Cu
%
|
Pb%
|
Zn%
|
Au
g/t
|
Ag
g/t
|
Cu
Mlbs
|
Pb
Mlbs
|
Zn
Mlbs
|
Au
koz
|
Ag
Moz
|
Indicated
|
36.0
|
3.07
|
0.73
|
4.23
|
0.63
|
47.6
|
2,441
|
581
|
3,356
|
728
|
55
|
Inferred
|
3.5
|
1.71
|
0.60
|
2.72
|
0.36
|
28.7
|
131
|
47
|
210
|
40
|
3
|
- Base Case cut-off grade of 0.5% CuEq is highlighted in
table.
- Mineral Resources are not Mineral Reserves and do not have
demonstrated economic viability. There is no certainty that all or
any part of the Mineral Resources will be converted into Mineral
Reserves. See "Cautionary Note to United States Investors."
- Resources stated as contained within a pit shell developed
using metal prices of US$3.00/lb
copper, US$0.90/lb lead, US$1.00/lb zinc, US$1300/oz gold, US$18/oz silver, mining costs of US$3.00/tonne, milling and G&A costs of
US$35/tonne, metallurgical recoveries
of 92% for copper, 77% for lead, 88% for zinc, 63% for gold, 56%
for silver and an average pit slope of 43 degrees.
- Inferred resources have a great amount of uncertainty as to
their existence and whether they can be mined legally or
economically. It cannot be assumed that all or part of the Inferred
resources will ever be upgraded to a higher category.
The sensitivity of mineral resources, contained within the
resource limiting pit shell, is demonstrated by listing resources
at a series of cut-off thresholds as shown in Table 2.
Table 2. Sensitivity of Mineral Resources to Cut-off Grade
|
|
Average
Grade:
|
Contained
metal:
|
Cut-off CuEq%
|
M
tonnes
|
Cu
%
|
Pb%
|
Zn%
|
Au
g/t
|
Ag
g/t
|
Cu
Mlbs
|
Pb
Mlbs
|
Zn
Mlbs
|
Au
koz
|
Ag
Moz
|
Indicated
|
0.25
|
36.0
|
3.07
|
0.73
|
4.22
|
0.63
|
47.61
|
2,441
|
582
|
3,356
|
729
|
55
|
0.5
|
36.0
|
3.07
|
0.73
|
4.23
|
0.63
|
47.62
|
2,441
|
581
|
3,356
|
728
|
55
|
0.75
|
35.9
|
3.08
|
0.73
|
4.23
|
0.63
|
47.72
|
2,440
|
582
|
3,355
|
728
|
55
|
1.0
|
35.7
|
3.09
|
0.74
|
4.26
|
0.63
|
47.97
|
2,436
|
581
|
3,353
|
728
|
55
|
1.5
|
35.5
|
3.11
|
0.74
|
4.28
|
0.64
|
48.22
|
2,432
|
580
|
3,349
|
727
|
55
|
Inferred
|
0.25
|
3.8
|
1.58
|
0.56
|
2.52
|
0.34
|
26.76
|
133
|
47
|
212
|
42
|
3
|
0.5
|
3.5
|
1.71
|
0.60
|
2.72
|
0.36
|
28.69
|
131
|
47
|
210
|
40
|
3
|
0.75
|
3.0
|
1.93
|
0.65
|
3.04
|
0.36
|
31.99
|
129
|
44
|
203
|
35
|
3
|
1.0
|
2.5
|
2.29
|
0.73
|
3.52
|
0.37
|
37.04
|
124
|
39
|
192
|
29
|
3
|
1.5
|
2.3
|
2.46
|
0.76
|
3.71
|
0.39
|
39.32
|
122
|
38
|
184
|
28
|
3
|
Table 3 compares the new resource with the previous estimate
from July 2013. Main contributors to
the increase in resources are mostly due to:
- New drilling data added since 2013 has upgraded the majority of
previous Inferred to Indicated within the pit shell.
- New drilling has identified additional resources and provides a
better understanding of the shape and location of mineralization in
the deposit.
To some degree, differences are also due to changes to the
geological interpretation of the mineralization domains, which now
capture more of the mineralization present in the deposit, as well
as minor changes to the optimization parameters used to generate a
resource-limiting pit shell, changes to the estimation strategy,
and changes to the reporting of resources at a 0.5% copper
equivalent cut-off in 2017 ($33 NSR
value) vs. $35 NSR in 2013.
Table 3. Comparison of Mineral Resources for the Arctic
Deposit
|
|
Average
Grade:
|
Contained
metal:
|
Resource
|
M
tonnes
|
Cu
%
|
Pb%
|
Zn%
|
Au
g/t
|
Ag
g/t
|
Cu
Mlbs
|
Pb
Mlbs
|
Zn
Mlbs
|
Au
koz
|
Ag
Moz
|
Indicated
|
April 2017
|
36.0
|
3.07
|
0.73
|
4.23
|
0.63
|
47.6
|
2,441
|
581
|
3,356
|
728
|
55
|
July
2013(1)
|
23.8
|
3.26
|
0.76
|
4.45
|
0.71
|
53.2
|
1,713
|
401
|
2,338
|
550
|
41
|
Inferred
|
April 2017
|
3.5
|
1.71
|
0.60
|
2.72
|
0.36
|
28.69
|
131
|
47
|
210
|
40
|
3
|
July
2013(1)
|
3.4
|
3.22
|
0.58
|
3.84
|
0.59
|
41.5
|
239
|
43
|
285
|
60
|
5
|
|
Note 1 – See the
Company's press release dated July 30, 2013 titled NovaCopper
Announces Positive Preliminary Economic Assessment for the Arctic
Open-Pit Polymetallic Project and the Preliminary Economic
Assessment Report on the Arctic Project, Ambler Mining District,
Northwest Alaska effective September 12, 2013 ("2013
PEA").
|
Mineral resource estimates are made from a 3D block model based
on geostatistical applications using commercial mine planning
software (MineSight® v11.60-2). The block model has a nominal block
size measuring 10 x 10 x 5 m and utilizes data derived from 152
drill holes in the vicinity of the Arctic deposit. The resource
estimate was generated using drill hole sample assay results and
the interpretation of a geological model which relates to the
spatial distribution of copper, lead, zinc, gold and silver.
Interpolation characteristics were defined based on the geology,
drill hole spacing, and geostatistical analysis of the data. The
effects of potentially anomalous high-grade sample data, composited
to two metre intervals, are controlled by limiting the distance of
influence during block grade interpolation. The grade models have
been validated using a combination of visual and statistical
methods. The resources were classified according to their proximity
to the sample data locations and are reported, as required by NI
43-101, according to the CIM Definition Standards for Mineral
Resources and Mineral Reserves. Model blocks estimated by three or
more drill holes spaced at a maximum distance of 100 metres are
included in the Indicated category. Inferred blocks are within a
maximum distance of 150 metres from a drill hole. The estimate of
Indicated and Inferred mineral resources is within a limiting pit
shell derived using projected technical and economic parameters.
Additional information on the known legal, political, environmental
and other risks that could materially affect the potential
development of the mineral resource can be found in the 2013
PEA.
Qualified Persons
Mr. Bruce Davis, FAusIMM, the
president of BD Resource Consulting Inc., and Mr. Robert Sim, P.Geo., of Sim Geological Inc., have
reviewed the technical information related to the Arctic deposit in
this news release and approve the written disclosure contained
herein as independent "qualified persons", within the meaning of
National Instrument 43-101, Standards of Disclosure for Mineral
Projects (NI 43-101).
Neither Bruce Davis of BD
Resource Consulting Inc., nor Robert
Sim of Sim Geological Inc., nor any associates employed in
the preparation of the Arctic Project resource estimation have any
beneficial interest in Trilogy Metals. These Consultants are not
insiders, associates, or affiliates of Trilogy Metals. The
information in this press release is not dependent upon any prior
agreements concerning the conclusions to be reached, nor are there
any undisclosed understandings concerning any future business
dealings between Trilogy Metals and the Consultants. The
Consultants were retained by Trilogy Metals to prepare the Arctic
Project resource estimate and are to be paid a fee for their work
in accordance with normal professional consulting practices.
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 mineral resource
estimate, future operating or financial performance of the
Company, anticipated activity at the UKMP Projects, the
potential timing and preparation of a PFS on the Arctic deposit,
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.