VANCOUVER, Dec. 4, 2017 /CNW/ - Trilogy Metals
Inc. (TSX, NYSE American: TMQ) ("Trilogy Metals" or the
"Company") is pleased to announce additional results from this
summer's exploration diamond drilling program at the Bornite
Project, a part of the Company's Upper Kobuk Mineral Projects
("UKMP") located in the Ambler mining district of Northwest Alaska.
The recently completed 2017 Bornite exploration program included
a total of 9 drill holes comprising 8,437 meters. Note that
due to inclement weather, two holes (RC17-241 and 242) were stopped
before reaching target depth and cemented in preparation for
re-entry during the 2018 drill program. The focus of this year's
program was to target high-grade copper mineralization north and
east of the previously identified resources and to define the edges
of the mineralized system.
Sample results from the first three holes comprising 3,083
meters of the then in-progress drill campaign were released on
September 18, 2017 (https://Trilogy
PR Sep 18 2017). The initial three
drill holes showed thick and continuous intervals of copper
mineralization and represented up to 300 meter off-sets from the
Company's last round of drill holes completed in 2013, which shows
that the Bornite mineralized system continues to significantly
expand.
Results from 4 further drill holes (RC17-237; 238w; 239; and
240), comprising 4,321 meters and representing 300 to 400 meter
off-sets from the first three drilled holes, continue to show
significant intervals of high-grade copper. (See Figures 1 through 3 for cross sections of
the Bornite Project drilling and Figure 4 for a map of the 2017
drill holes). This year's drilling is also showing strong northwest
and northeast mineralization not previously recognized. (See Figure
5 - Grade Thickness Map).
At a cutoff grade of 0.5% copper, the results are as
follows:
- RC17-237 intersected two mineralized intervals totaling 30.5
meters averaging 0.73% copper;
- RC17-238W intersected four mineralized intervals totaling 32.4
meters averaging 1.03% copper;
- RC17-239 intersected three mineralized intervals totaling 50.6
meters averaging 1.36% copper; and
- RC17-240 intersected one mineralized interval totaling 25.1
meters averaging 0.96% copper.
Results are presented in Table 2 at a cutoff grade of
0.5% copper to be comparable with previous drill results released
by the Company. Results at a more selective higher grade cutoff of
1.0% copper are also presented in Table 3 to show locally
higher grade intervals.
Rick Van Nieuwenhuyse, President
and CEO of Trilogy Metals commented, "It was unfortunate that we
could not complete two of the planned holes due to weather, but
rest assured that we will complete these next year. The remaining
four drill holes represent very large step outs from all previous
drilling and demonstrate that the Bornite system continues to grow.
We have essentially doubled the size of the mineralized footprint
with an overall Bornite system now measuring 1500 meters by 2500
meters defined by a 50 Meter x % copper - that is 50 meters
averaging at least 1% copper or better (see Figure 5). In
particular, the grade x thickness map suggests NE and NW oriented
controls on higher grade mineralization. Structural studies are
ongoing with the voluminous amount of 3D structural data collected
over the course of the summer drill program. This work will be
focused on defining preferred mineralized corridors as defined by
vein and breccia orientations to develop a sense of ore and grade
controls. In addition, we continue to see significant cobalt
occurring as carrolite and cobaltiferous pyrite. Electron
microprobe and metallurgical work will be conducted during the
winter months with the objective of determining if the cobalt can
be concentrated into a saleable product. If it is determined that
it can, then cobalt will be added to the resource base as a
potentially valuable metal which could enhance the value of
Bornite".
Rick Van Nieuwenhuyse further
commented, "We are in the process of planning the 2018 program with
an estimated US$10 million budget.
One component of the program will include a seismic program to be
completed in the spring time when the ground is still frozen and
the daylight has returned. The balance of the program will be
directed at further in-fill and expansion drilling. The
bornite-chalcocite-chalcopyrite minerals at the Bornite Project
lend themselves well to forming a high-quality copper concentrate
with no deleterious materials".
Trilogy Metals has recently completed US$10 million exploration drill program at
Bornite was funded by South32 Limited per the agreement announced
on April 10, 2017 (https://Trilogy PR
April 10 2017). The program was
approved by a joint Trilogy-South32 Technical Committee and was
focused on drilling the extensions of mineralization last drilled
by the Company in 2013. South32 has until January 31, 2018 to elect to fund a second
US$10 million program.
Bornite Resource
In April of 2016, the Company announced an updated resource
estimate for the Bornite project of 5.5 Billion pounds of copper
inferred resource at a grade of 2.26% Cu and 913 Million pounds of
copper indicated resource at a grade of 1.02% Cu, based on the
Company's previous three field seasons of exploration drilling and
re-assaying of previously drilled core from Kennecott.
Additional information on the Bornite project can be found in the
Company's technical report titled "Amended NI 43-101 Technical
Report on the Bornite Project, Northwest
Alaska, USA" with an effective date of April 19, 2016 and a release date of October 12, 2017 available under the Company's
profile on SEDAR at www.sedar.com and EDGAR at www.sec.gov.
QA/QC Program
The drill program, sampling protocol and data verification were
managed by qualified persons employed by Trilogy Metals. The
diamond drill holes were typically collared at HQ diameter drill
core and reduced to NQ diameter during the drilling process.
Samples were collected using a 0.2-meter minimum length, 2.5-meter
maximum length and 1.7-meter average sample length. Drill core
recovery averaged 88% overall and 91% within the prospective
lithologies. The drill core was sawn, with half sent to ALS
Minerals in Fairbanks 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. Three
quality control samples (one blank, one standard and one duplicate)
were inserted into each batch of 20 samples. Results of the
control samples were reviewed by the qualified person and were all
within acceptable limits. Trilogy Metals will submit 5% of
the assay intervals from prospective lithologies to an independent
check assay lab.
Table 1 - 2017 Bornite drill hole locations
Drill
hole
|
East
(m)
|
North
(m)
|
Elev.
(m)
|
Azimuth
|
Dip
|
RC17-0234
|
590813
|
7441022
|
376.8
|
206
|
80
|
RC17-0235w
|
590398
|
7440826
|
322.1
|
206
|
80
|
RC17-0236
|
590157
|
7441086
|
275.9
|
206
|
80
|
RC17-0237
|
590340
|
7441470
|
271.9
|
206
|
80
|
RC17-0238w
|
589917
|
7440948
|
241.1
|
206
|
80
|
RC17-0239
|
590869
|
7440695
|
369.9
|
206
|
80
|
RC17-0240
|
590977
|
7441399
|
385.7
|
206
|
80
|
RC17-0241
|
590520
|
7441207
|
333.3
|
206
|
80
|
RC17-0242
|
589466
|
7440938
|
194.4
|
206
|
80
|
UTM North 4
coordinate system (meters), NAD83 Datum
|
Table 2 - 0.5% Cu Cut‐off with maximum 5m internal waste ‐ Minimum 5m interval
Hole
|
From
(m)
|
To
(m)
|
Length
|
Cu
(pct)
|
Co
(ppm)
|
Ag
(ppm)
|
Zn
(pct)
|
RC17-237
|
947.90
|
966.00
|
18.10
|
0.72
|
169
|
0.42
|
0.04
|
971.83
|
984.20
|
12.37
|
0.75
|
330
|
0.44
|
0.29
|
Total
of
|
30.47
|
0.73
|
234
|
0.42
|
0.14
|
RC17-238w
|
579.68
|
589.65
|
9.97
|
0.61
|
152
|
0.40
|
0.49
|
596.87
|
601.75
|
4.88
|
2.11
|
58
|
0.93
|
0.02
|
618.13
|
623.15
|
5.02
|
0.55
|
108
|
0.34
|
0.03
|
632.18
|
644.68
|
12.50
|
1.14
|
230
|
0.65
|
0.08
|
Total
of
|
32.37
|
1.03
|
161
|
0.57
|
0.19
|
RC17-239
|
844.61
|
860.84
|
16.23
|
1.04
|
72
|
0.46
|
0.02
|
877.84
|
886.06
|
8.22
|
1.67
|
459
|
0.26
|
0.01
|
892.73
|
918.87
|
26.14
|
1.46
|
201
|
0.24
|
0.00
|
Total
of
|
50.59
|
1.36
|
202
|
0.31
|
0.01
|
RC17-240
|
1168.24
|
1193.35
|
25.11
|
0.96
|
99
|
0.99
|
0.01
|
Table 3 - 1.0% Cu Cut‐off with maximum 5m internal waste ‐ Minimum 4m interval
Hole
|
From
(m)
|
To
(m)
|
Length
|
Cu
(pct)
|
Co
(ppm)
|
Ag
(ppm)
|
Zn
(pct)
|
RC17-238w
|
635.83
|
644.36
|
8.53
|
1.27
|
221
|
0.72
|
0.05
|
RC17-239
|
849.63
|
857.10
|
7.47
|
1.53
|
69
|
0.71
|
0.01
|
879.77
|
884.68
|
4.91
|
2.19
|
549
|
0.32
|
0.01
|
893.88
|
918.87
|
24.99
|
1.51
|
208
|
0.25
|
0.00
|
Total
of
|
37.37
|
1.60
|
225
|
0.35
|
0.01
|
RC17-240
|
1179.88
|
1185.20
|
5.32
|
2.278
|
57.188
|
1.441
|
0.018
|
Qualified Persons
Andrew W. West, Certified
Professional Geologist, Exploration Manager for Trilogy Metals
Inc., is a Qualified Person as defined by National Instrument
43-101. Mr. West has reviewed the technical information in this
news release and approves the disclosure contained herein.
About Trilogy Metals
Trilogy Metals 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, the future operating or financial performance
of the Company, interpretation of drill results, planned
expenditures and the anticipated activity at the UKMP Projects, 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 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. Under Canadian rules, estimated "inferred
mineral resources" may not form the basis of feasibility or
pre-feasibility studies except in rare cases. 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.