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): March 5, 2019
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 1150, 609 Granville Street
Vancouver, British Columbia
Canada, V7Y 1G5
(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))
Indicate by check mark whether the registrant is an emerging
growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities
Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth
company [_]
If an emerging
growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with
any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. [_]
Item 7.01 |
Regulation FD Disclosure |
On
March 5, 2019, Trilogy Metals Inc. (the “Company”) issued a press release announcing additional copper-cobalt metallurgical
results for the Bornite Project. 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 |
Press Release, dated March 5, 2019, announcing additional copper-cobalt metallurgical results for the Bornite Project. |
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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.
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TRILOGY METALS INC. |
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Dated: March 5, 2019 |
By: |
/s/ Elaine Sanders |
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Elaine Sanders, Chief Financial Officer |
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Exhibit 99.1
Trilogy Metals Announces Additional Copper-Cobalt
Metallurgical Results for the Bornite Project
VANCOUVER, March 5, 2019 /CNW/ - Trilogy
Metals Inc. (TSX/NYSE American: TMQ) ("Trilogy Metals", "Trilogy" or the "Company") is
pleased to announce the release of additional copper and cobalt metallurgical results for the Bornite Project located in the highly
prospective Ambler mining district of northwest Alaska.
Highlights of the 2018/2019 Bornite Metallurgical
Program
- Nine individual metallurgical
samples have been evaluated for the recovery of copper and cobalt and the production of saleable copper concentrates.
- Results are consistent
with previous test results and significantly expand the metallurgical database for the project.
- Hardness testing of the
nine composites shows the materials are of soft to moderate hardness, with an average Bond Work Index of 8.94 kWhr/tonne.
- Copper recoveries ranged
from 80.2 to 94.5 percent and averaged 89.7 percent for eight of the nine composites.
- Copper concentrate grades
ranged from 24.5 to 34.5 percent copper and averaged 27.6%.
- Copper concentrate quality
is shown to be very good with low levels of penalty elements.
- Cobalt has been shown to be readily recoverable to a pyrite
concentrate with grades of this concentrate in the range of 700 to 4500g/t cobalt. Plans are being made for the next stage of work
to determine the optimal method to recover cobalt from the pyrite concentrate.
Rick Van Nieuwenhuyse, President and CEO of
Trilogy Metals commented, "These initial metallurgical test results continue to demonstrate that conventional processing technology
is expected to produce a clean, very high-quality, copper concentrate over a wide range of typical open pit and underground copper
grades. Further optimization work is planned. I also note that we are very pleased with the first pass cobalt results which show
that the Bornite Project could recover between 50% and 70% of the contained cobalt to a high-quality pyrite concentrate. The next
steps include finding out if the cobalt concentrate can be further processed into a saleable product. Finally, the grinding test
work shows that the mineralized material at Bornite is soft to moderate which translates to potentially lower power requirements
during the crushing and grinding stages of the feedstock. This could have positive implications for the operating costs at Bornite."
Nine metallurgical composite samples were prepared
by Trilogy Metals from materials obtained from drilling at the Bornite Project during 2017 and 2018. Each of these test samples
were approximately 60 to 120 kilograms in mass and represented approximately 30 to 100 meters of drill core. Test samples characteristics
are summarized in Table 1. Composite samples 1 to 6 were obtained from a zone deemed to be within an open-pit resource,
while the composite sample from 7 to 9 were from a higher-grade underground resource.
Table 1. Composite Metallurgical Samples
from the Bornite Project
Test Sample |
Drill Hole |
Intercept(s) (m) |
Cu (%) |
Co (g/t) |
S (%) |
Open Pit Samples |
|
|
|
|
|
Composite 1 |
RC12-0211 |
308-365 |
1.60 |
531 |
5.56 |
Composite 2 |
RC11-0186 |
12-47 |
1.02 |
290 |
10.4 |
Composite 3 |
RC13-0229 |
51-81 |
1.06 |
183 |
8.12 |
Composite 4 |
RC13-0218 |
282-287, 314-337 |
2.20 |
741 |
5.2 |
Composite 5 |
RC11-0182 |
165-247, 267-290 |
1.87 |
408 |
4.06 |
Composite 6 |
RC11-0186 |
145-253 |
0.82 |
170 |
4.35 |
Underground
Samples |
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|
|
|
|
Composite 7 |
RC13-0224 |
480-488, 630-722 |
2.06 |
306 |
7.5 |
Composite 8 |
RC12-0214 |
498-525, 543-565 |
3.12 |
651 |
6.76 |
Composite 9 |
RC12-0216 |
671-726 |
4.49 |
311 |
6.8 |
Test work has been completed under contract
at ALS Metallurgy of Kamloops, B.C., during the time period November 2018 to January 2019. ALS Metallurgy is a ISO 9001 certified
laboratory facility. Test work at ALS Metallurgy conformed to standard testing procedures including standard grinding characterization
test work, flotation process simulation test work, including locked cycle tests and assaying of all metallurgical products by certified
assayers. Consistently observed results, when comparing mineralogical analysis, direct assaying of feed samples and detailed metallurgical
accounting verify metal distributions reported and the results contained herein.
Each of the nine composite samples were subjected
to Bond Work Index determinations. The average Bond Work index value is 8.94kWhr/tonne, which indicates the materials are
soft to moderate in terms of grindability. Bond Work Index values were shown to be within a tight range, with the maximum
value of 10.3kWhr/tonne and a minimum value of 7.8kWhr/tonne observed in the data set. This data is consistent with previously
obtained grindability data in other test work programs for the Bornite Project.
Mineralogical analysis of each of the nine
composites was completed, indicating that a majority of the copper mineralization occurred as chalcopyrite, with minor amounts
of bornite and variable pyrite levels within the test samples. Composite 2 was shown to contain a significant amount of oxide
copper minerals, likely from surface weathering, as this composite is a near surface intercept. Mineralogical analysis also
showed liberation at a target primary grind size of approximately 100 microns which should be suitable to support the copper recovery
process. Cobalt values in the Bornite Project materials are shown to be intimately associated with cobaltiferous pyrite.
The flowsheet used for the recovery of copper
in this test work program is consistent with previous test work (For more information on the previous metallurgical work at Bornite
please see the press release dated January 10, 2018 at www.trilogymetals.com) on the project and the Bornite Project database is
consistent in terms of the metallurgical process requirements under which all samples have been tested. Primary grind requirements
are in the range of 90-120 microns and re-grind requirements for copper upgrading is in the range of 20-30 microns. In order
to produce a cobalt-rich concentrate a pyrite flotation stage was added to recover pyrite from the copper flotation tailings and
the pyrite concentrate was subsequently cleaned to produce a pyrite cleaner concentrate. The flowsheet used in the test work
program, including both the copper and cobalt flotation stages is shown in Figure 1. The Bornite Project metallurgical
flowsheet is shown in Figure 2.
Flotation test results were based on locked
cycle testing which simulates the performance of a copper recovery process and best represents the expected metallurgical performance
of the test materials. Metallurgical performance for each of the nine composites is shown in Table 2 and the location
of the drill holes from which the metallurgical samples were derived from is shown in Table 3.
Table 2. Summary of Metallurgical Test Results
Sample No. |
Cu Concentrate Grade (Cu %) |
Cu Recoveries (%) |
Co Concentrate Grade (g/t) |
Co Recoveries (%) |
Open Pit Samples |
|
|
|
|
Composite 1 |
25.8 |
88.6 |
3,249 |
71.1 |
Composite 2* |
16.7* |
75.6 |
995 |
65.8 |
Composite 3 |
25.0 |
87.8 |
698 |
59.8 |
Composite 4 |
27.2 |
88.3 |
4,470 |
59.7 |
Composite 5 |
29.8 |
89.3 |
2,743 |
49.2 |
Composite 6 |
26.4 |
80.5 |
990 |
51.7 |
Underground Samples |
|
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|
Composite 7 |
24.0 |
94.1 |
1286 |
49.3 |
Composite 8 |
34.2 |
94.7 |
1426 |
34.1 |
Composite 9 |
28.5 |
94.1 |
4157 |
59.0 |
*Note: Composite 2 is shown to be a surface-weathered sample, containing significant copper oxide products. |
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Figure
1. - Bornite copper flowsheet showing pyrite flotation and upgrading (CNW Group/Trilogy Metals Inc.)
Table 3. Drill Hole Information for Metallurgical
Test Work
Drill Hole |
Length (m) |
UTM Grid |
East (m) |
North (m) |
Elevation (m) |
Azimuth |
Dip |
RC11-0182 |
454.0 |
NAD83_04N |
589565 |
7440228 |
228.3 |
277 |
-62 |
RC11-0186 |
474.8 |
NAD83_04N |
589113 |
7439746 |
260.4 |
86 |
-60 |
RC12-0211 |
696.5 |
NAD83_04N |
590463 |
7440392 |
265.5 |
325 |
-80 |
RC12-0214 |
742.5 |
NAD83_04N |
590122 |
7439957 |
281.5 |
0 |
-90 |
RC12-0216 |
801.5 |
NAD83_04N |
590585 |
7440462 |
291.5 |
0 |
-90 |
RC13-0218 |
365.8 |
NAD83_04N |
589251 |
7439968 |
216.6 |
78 |
-73 |
RC13-0224 |
880.4 |
NAD83_04N |
589966 |
7440766 |
237.2 |
0 |
-90 |
RC13-0229 |
164.6 |
NAD83_04N |
589086 |
7439418 |
279.0 |
0 |
-90 |
Concentrates from the locked cycle testing
were analyzed for minor elements and average values for key minor elements are summarized in Table 4 below.
Table 4. Summary of Copper Concentrate Quality
|
Cu (%) |
As (%) |
Sb (%) |
Zn (%) |
Hg (g/t) |
Cd (g/t) |
Average Bornite Cu
Concentrate |
27.6 |
0.07 |
0.03 |
1.4 |
9.0 |
54.0 |
Qualified Persons
The scientific and technical information in
this news release has been prepared in accordance with Canadian regulatory requirements set out in National Instrument 43-101 Standards
of Disclosure for Mineral Projects of the Canadian Securities Administrators ("NI 43-101") and supervised, reviewed and
verified by Jeffrey B. Austin, P.Eng., President, of International Metallurgical and Environmental Inc., a "Qualified
Person" as defined in National Instrument 43-101 and the person who oversees metallurgical developments for Trilogy Metals.
Mr. Austin is independent of Trilogy Metals Inc, and has been involved in the planning, observation and reporting all test work.
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, the prospectivity
of the Ambler mining district, the Company's plans for additional optimization work, the production results of conventional copper
processing technology, recovery rates, the potential for lower power requirements and the associated impact on operating costs
at the Bornite Project and the Company's expectations based on the results of metallurgical testing , are forward-looking statements.
The metallurgical results from the drill holes discussed in this press release should not be considered representative of other
drilling results for the 2019 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 pre-feasibility study; our assumptions with respect
to the likelihood and timing of the Ambler Mining District Industrial Access Project ("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, 2018 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.
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For further information: Company Contact: Patrick Donnelly,
Vice President, Corporate Communications & Development, patrick.donnelly@trilogymetals.com, 604-630-3569; 604-638-8088 or 1-855-638-8088
CO: Trilogy Metals Inc.
CNW 07:25e 05-MAR-19
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