VANCOUVER, Nov. 19, 2018 /PRNewswire/ - Trilogy
Metals Inc. (TSX/NYSE American: TMQ) ("Trilogy
Metals" or the "Company") is pleased to announce the second set of
copper and cobalt assay results from the 2018 summer 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. Assay results from these three holes comprise
approximately 2,888 meters from the 10,123-meter drill
campaign. Two of the three drill holes contain significant
copper mineralization and were designed as infill and extension
holes to the 300 to 400 meter step-out holes drilled by the
Company's previous round of drilling completed in 2017.
At a cutoff grade of 0.5% copper the results are as follows:
- RC18-0248 intersected five mineralized intervals of:
-
- 1.0 meter averaging 14.38% copper;
- 21.3 meters averaging 1.73% copper;
- 21.0 meters averaging 0.93% copper;
- 15.1 meters averaging 1.32% copper; and
- 4.9 meters averaging 2.97% copper.
- RC18-0249 intersected one mineralized interval of:
-
- 38.3 meters averaging 1.12% copper.
- RC18-0250 did not contain any significant mineralization.
On August 23, 2018, the Company
announced initial assay results from the first drill hole,
RC18-0247, from the Bornite Project. Subsequently, on October 9, 2018, the Company announced additional
assay results for four drill holes (RC18-0243, RC18-0244, RC18-0246
and RC18-0247).
Rick Van Nieuwenhuyse, President
and CEO of Trilogy Metals commented, "Out of the two dozen holes
that reached target depth that we drilled during the 2017 and 2018
programs, only one - hole RC18-0250, didn't hit significant
mineralization. All the other holes intersected good grades
over potentially mineable widths. In addition, we continue to
see a significant cobalt component to the mineralization. We are
still exploring for the edges of this Mount Isa/Central African
Copper belt look-alike system."
"Furthermore, I would also like to congratulate Governor-elect
Michael Dunleavy. The Governor-elect
held his first press conference at the Alaska Miners Annual
Convention where he emphasized that 'Alaska was open for business' and that he
'Wants to see more mines in Alaska'. We look forward to working with
Governor-elect Dunleavy, and his administration, to permit and
finance the Ambler Mining District Industrial Access Road and to
advance the Arctic and Bornite Projects towards production."
This year's program was comprised of 12 drill holes totaling
approximately 10,123 meters through a combination of infill and
expansion drill holes in and around the known deposit. The original
drilling campaign was budgeted to be 8,000 meters but was
subsequently expanded to 10,000 meters with the addition of two
more drill rigs. The 2018 program followed up on drilling completed
during the 2017 exploration program, which was one of the larger
programs in the history of drilling at the Bornite Project. During
2017, the Company drilled nine diamond drill holes comprising 8,437
meters to test the extension of the of the currently defined
resource†.
Additional drill results are anticipated to be released within
the next few weeks as they become available. The objective of
the 2018 drill campaign is to infill and expand the currently
defined open pit and underground mineral resources.
Results are presented in Table 1 at a cutoff grade
of 0.5% copper to be comparable with previous drill results
released by the Company. All the intersected widths are
normal to stratigraphy and therefore can be considered to be true
widths. Results at a more selective higher-grade cutoff of 1.5%
copper are also presented in Table 2 to show locally
higher-grade intervals. Table 3 shows drill hole
locations. Figure 1 shows the location of the
drill holes on a plan map and Figure 2 shows a
cross-section through drill hole RC18-0248 and Figure
3 shows a cross-section through drill holes RC18-0249.
Table 1 - 0.5% Cu cut-off with maximum 3 m internal waste
Hole
|
From
(m)
|
To
(m)
|
Length
(m)
|
Cu
(%)
|
Co
(%)
|
RC18-0248
|
351.42
|
352.45
|
1.03
|
14.38
|
0.03
|
476.25
|
493.45
|
17.20
|
0.82
|
0.01
|
507.42
|
514.50
|
7.08
|
0.81
|
0.01
|
626.97
|
648.24
|
21.27
|
1.73
|
0.01
|
653.66
|
660.35
|
6.69
|
0.93
|
0.01
|
669.40
|
684.48
|
15.08
|
1.32
|
0.01
|
689.73
|
693.57
|
3.84
|
1.16
|
0.00
|
698.79
|
719.80
|
21.01
|
0.93
|
0.01
|
723.20
|
733.89
|
10.69
|
0.81
|
0.01
|
746.09
|
751.03
|
4.94
|
2.97
|
0.08
|
802.28
|
808.50
|
6.22
|
0.83
|
0.02
|
RC18-0249
|
436.68
|
438.32
|
1.64
|
3.54
|
0.00
|
726.52
|
733.19
|
6.67
|
0.58
|
0.01
|
781.82
|
787.75
|
5.93
|
1.16
|
0.01
|
813.70
|
852.00
|
38.30
|
1.12
|
0.01
|
RC18-0250
|
315.16
|
317.66
|
2.50
|
0.74
|
0.00
|
Table 2 - 1.5% Cu cut-off with maximum 3 m internal waste
Hole
|
From
(m)
|
To
(m)
|
Length
(m)
|
Cu
(%)
|
Co
(%)
|
RC18-0248
|
351.42
|
352.11
|
0.69
|
21.08
|
0.04
|
482.89
|
484.02
|
1.13
|
2.00
|
0.02
|
630.02
|
641.75
|
11.73
|
2.25
|
0.01
|
645.07
|
647.00
|
1.93
|
1.98
|
0.03
|
672.00
|
678.18
|
6.18
|
2.04
|
0.01
|
691.73
|
693.57
|
1.84
|
1.51
|
0.00
|
709.57
|
711.50
|
1.93
|
2.42
|
0.02
|
723.20
|
725.20
|
2.00
|
1.54
|
0.01
|
746.09
|
750.27
|
4.18
|
3.36
|
0.09
|
802.28
|
806.82
|
4.54
|
0.92
|
0.02
|
RC18-0249
|
437.26
|
437.39
|
0.13
|
31.60
|
0.01
|
783.75
|
785.75
|
2.00
|
1.70
|
0.01
|
821.70
|
834.40
|
12.70
|
1.98
|
0.02
|
RC18-0250
|
No Significant
Mineralization
|
Table 3 – Bornite Drill Hole Locations
|
East
(m)
|
North
(m)
|
Elevation
(m)
|
Azimuth
|
Dip
|
RC18-0248
|
589883.00
|
7440798.93
|
228.27
|
206
|
-77
|
RC18-0249
|
590875.23
|
7440489.04
|
350.26
|
220
|
-90
|
RC18-0250
|
590940.01
|
7440422.92
|
350.76
|
206
|
-75
|
Mineralization within the Bornite deposit occurs as a series of
"Reefs" hosted by both the Upper and Lower Bornite Carbonate
sequences separated by generally unmineralized phyllite units. The
Cu-Co mineralization at Bornite occurs in three distinct carbonate
zones, the Upper Reef, the Lower Reef, and the South Reef.
All three zones were drill tested this year.
Mineralization is typically observed as breccia matrix
replacement and is generally dominated by chalcopyrite and
sometimes by bornite with chalcocite – particularly in the
higher-grade zones. Mineralization can also be observed as
vein and replacement zones containing chalcopyrite and
calcite/dolomite gangue. These styles of mineralization were
observed in all holes mentioned in this press release with
chalcopyrite, bornite, and chalcocite mineralization observed in
RC18-0248 and RC18-0249. Drill hole RC18-0250 contained very minor
chalcopyrite mineralization. Of particular interest, are two
narrow but high grade intervals in RC18-0248 (0.69m grading 21.08% Cu and 0.04% Co) and
RC18-0249 (0.13m grading 31.6%Cu, and
0.01% Co). These narrow high grade intervals are not vein
style mineralization but represent replacement style mineralization
along bedding.
Bornite Resource
The resource estimate utilized assay data from drill holes
completed by the Company between 2011 and 2013 and re-sampled
historic holes Kennecott drilled in the 1960s and 1970s. Assays
from historic Kennecott holes that were not re-sampled were also
used in the resource estimation. On June
5th, 2018 the Company announced an updated
resource estimate for the Bornite project of 5.5 billion pounds of
copper inferred resource at a grade of 1.74% Cu and 913 million
pounds of copper indicated resource at a grade of 1.02% Cu and
total inferred cobalt resources (in-pit and below-pit) of 182.4
million tonnes grading 0.019% Co for 77 million pounds of contained
cobalt. Trilogy Metals filed a National Instrument 43-101 technical
report in July 2018. See the Bornite Technical Report as well
as the Company's press releases dated June
5, 2018 (https://Trilogy PR June
5 2018) and the Company's press release on the filing of the
updated NI43-101 Technical Report for Bornite on July 20, 2018 (https://Trilogy PR July 20 2018).
QA/QC Program
The drill program, sampling protocol and data verification were
managed by qualified persons employed by the Company. Diamond drill
holes were typically collared at PQ or HQ diameter drill core and
reduced to HQ and NQ diameter during the drilling process. Samples
were collected using a 0.2-meter minimum length, 2.5-meter maximum
length and 1.9-meter average sample length. Drill core recovery
averaged 93% overall and 95% within the prospective lithologies.
Three quality control samples (one blank, one standard and one
duplicate) were inserted into each batch of 20 samples. 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. The
Company will submit 5% of the assay intervals from prospective
lithologies to an independent check assay lab.
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 and development
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 volcanogenic massive sulphide ("VMS")
deposits that contain copper, zinc, lead, gold and silver, and
carbonate replacement deposits which have been found to host
high-grade copper and cobalt 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, further drilling activity, the potential
advancement of the AMDIAP, the UKMP and mining generally in
Alaska, the timing and the filing
of updated reports on the Company's projects, the future price of
copper, the estimation of mineral reserves and mineral resources,
the realization of mineral reserve and mineral resource estimates,
the timing and amount of estimated future production, costs of
production, capital expenditures, costs and timing of the
development of projects, the likelihood and timing of the AMDIAP,
the potential future development of Bornite, the future operating
or financial performance of the Company, planned expenditures and
the anticipated activity at the UKMP Projects, are forward-looking
statements. The assay results from the drill holes discussed in
this press release should not be considered representative of other
drilling results for the 2018 drilling campaign. 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 success of exploration,
development and mining activities, permitting timelines,
requirements for additional capital, government regulation of
mining operations, environmental risks, unanticipated reclamation
expenses; mineral reserve and resource estimates and the
assumptions upon which they are based; assumptions and discount
rates being appropriately applied to the PFS; our assumptions with
respect to the likelihood and timing of the AMDIAP; capital
estimates; prices for energy inputs, labour, materials, supplies
and services the interpretation of drill results, 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,
2017 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 Canadian National Instrument 43-101 Standards of
Disclosure for Mineral Projects ("NI 43-101") and the Canadian
Institute of Mining, Metallurgy and Petroleum (CIM)—CIM Definition
Standards on Mineral Resources and Mineral Reserves, adopted by the
CIM Council, as amended ("CIM Definition Standards"). 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 all
or any part of "measured" or "indicated resources" will ever be
converted into "reserves". 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 Trilogy Metals in compliance with NI
43-101 may not qualify as "reserves" under SEC standards. Arctic
does not have known reserves, as defined under SEC Industry Guide
7. 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.
______________________
|
[†] See the latest
resource statement in the report titled "NI 43-101 Technical Report
on the Bornite Project, Northwest Alaska, USA" released on July 20,
2018 with an effective date of June 5, 2018 (the "Bornite Technical
Report") on the Company's website at www.trilogymetals.com and on
the Company's profile at www.sedar.com and www.sec.gov.
|
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SOURCE Trilogy Metals Inc.