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 25, 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 25, 2017, Trilogy
Metals Inc. (the “Registrant”) issued a press release announcing an updated mineral resource for the Arctic Deposit.
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 Mineral Resource Update for 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 26, 2017 | By: | /s/ Elaine Sanders |
| | Elaine M. Sanders, Chief Financial Officer |
Exhibit 99.1
Trilogy Metals Announces Mineral Resource Update for
the Arctic Deposit
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"). |
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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.
View original content: http://www.newswire.ca/en/releases/archive/April2017/25/c4377.html
%CIK: 0001543418
For further information: Company Contacts: 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 25-APR-17
This regulatory filing also includes additional resources:
ex991.pdf
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