VANCOUVER, March 19, 2019 /CNW/ - Trilogy Metals Inc.
(TSX/NYSE American: TMQ) ("Trilogy Metals", "Trilogy"
or the "Company") is pleased to provide an update on its project
activities. Preparations are already underway to prepare the
Bornite camp to accommodate the 2019 field programs on the
Company's 100%-owned Upper Kobuk Mineral Projects located in
Northwest Alaska. All amounts are
in US dollars.
Bornite Project
Following the Company's announcement on March 5, 2019 of the results from the
metallurgical program at the Bornite Project, the Company has now
completed an analysis on the copper and cobalt resource
incorporating the updated copper and cobalt metallurgical results
and the drill results from the 2017 and 2018 drill campaigns.
Results for the Bornite resource estimate show that at an open pit
cut-off grade of 0.5% copper and a below pit cut-off grade of 1.5%
copper, there is no significant change in the size and grade of the
current resource estimate at Bornite. These results also show
that at a below pit cut-off grade of 0.5% copper, there is the
potential for a significant increase in lower grade copper
mineralization. The 2017 and 2018 drilling campaigns at
Bornite were focused on the expansions of the known deposit and
many of the drill holes are still too widely spaced apart to be
included in an updated resource estimate. See Table 1 and 2
for the Company's current estimate of the copper and cobalt mineral
resources and the technical report titled "NI 43-101 Technical
Report on the Bornite Project, Northwest
Alaska, USA" with an effective date of June 5, 2018, released on July 20, 2018.
The 2019 program and budget of $9.2
million for Bornite will be mainly directed at i)
approximately 10,000 meters or 12 holes of infill and expansion
drilling in the deposit; ii) additional metallurgical work to
optimize copper recoveries and the determination of next steps for
the recovery of cobalt; and iii) initial engineering studies to
prepare Bornite for a preliminary economic assessment once the work
from the 2019 work programs are completed, including drill results,
metallurgical program updates, a resource update and ongoing
environmental baseline data collection.
Table 1: Estimate of Copper Mineral Resources for the Bornite
Deposit
Type
|
Cut-off
(Cu%)
|
Tonnes
(million)
|
Average
Grade
Cu
(%)
|
Contained
Metal
Cu
(Mlbs)
|
In-Pit
|
0.5
|
40.5
|
1.02
|
913
|
Total
Indicated
|
|
40.5
|
1.02
|
913
|
In-Pit
|
0.5
|
84.1
|
0.95
|
1,768
|
Below-Pit
|
1.5
|
57.8
|
2.89
|
3,683
|
Total
Inferred
|
|
141.9
|
1.74
|
5,450
|
(1)
|
Resources stated as
contained within a pit shell developed using a metal price of
US$3.00/lb Cu, mining costs of US$2.00/tonne, milling costs of
US$11/tonne, G&A cost of US$5.00/tonne, 87% metallurgical
recoveries and an average pit slope of 43 degrees.
|
(2)
|
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.
|
(3)
|
It is
reasonably expected that the majority of Inferred mineral resources
could be upgraded to Indicated mineral resources with additional
exploration.
|
Table 2: Estimate of Inferred Cobalt Mineral Resources for
the Bornite Deposit
Type
|
Cut-off
(Cu%)
|
Tonnes
(million)
|
Average
Grade
Co
(%)
|
Contained
Metal
Co
(Mlbs)
|
In-Pit
|
0.5
|
124.6
|
0.017
|
45
|
Below-Pit
|
1.5
|
57.8
|
0.025
|
32
|
Total
Inferred
|
|
182.4
|
0.019
|
77
|
(1)
|
Resources stated as
contained within a pit shell developed using a metal price of
US$3.00/lb Cu, mining costs of US$2.00/tonne, milling costs of
US$11/tonne, G&A cost of US$5.00/tonne, 87% metallurgical
recoveries and an average pit slope of 43 degrees.
|
Arctic Project
The Company has commenced preparations for the summer field
season at the Arctic Project. Specifically, the Company will
continue to advance engineering and environmental work in 2019 in
support of completing a feasibility study and preparing the Arctic
Project for permitting. The total budgeted amount for these
activities is estimated to be $7.0
million. The Company will undertake additional hydrological
and geotechnical work at the site along with water management,
tailings facility and waste rock containment analysis and design.
Additional metallurgical test work to verify ore hardness and
grinding characteristics is currently on-going with materials from
the project. The Company expects to complete the feasibility study
in the first half of 2020.
Ambler District Exploration Program
The Company will complete a $2
Million exploration program along the 100-kilometer Ambler
volcanogenic massive sulphide ("VMS") Belt funded equally by
Trilogy and South32. This program will include a
district-wide VTEM and ZTEM geophysical surveys flown on 200 and
400 meter line spacing over both the Cosmos Hills and the Ambler
Belt. Both surveys are electromagnetic surveys that have
proven to be successful in identifying targets and mineralization
in VMS districts. This survey is expected to start in
mid-April and be completed by the beginning of May. The data
will then be processed to identify and prioritize drill targets for
follow up geologic mapping, soil geochemistry and drilling –
including on known historic resources previously identified along
the 100-kilometer long belt (Figure 1).
![Figure 1. Location of Historic Resources at the Ambler VMS Belt (CNW Group/Trilogy Metals Inc.) Figure 1. Location of Historic Resources at the Ambler VMS Belt (CNW Group/Trilogy Metals Inc.)](https://mma.prnewswire.com/media/837703/Trilogy_Metals_Inc__Trilogy_Metals_Provides_Update_on_Project_Ac.jpg)
1.
|
Source: Anaconda
Copper Mining Company ("ACM"), ACM Internal Report, 1981
|
2.
|
Source: Kennecott
Mines Company ("KMC"), KCM Internal Report, 1985
|
3.
|
Source: Kennecott
Mines Company ("KMC"), KCM Internal Report, 1997
|
4.
|
Source: Bear Creek
Mining Company ("BCM"), BCM Progress Report, 1983
|
5.
|
Source: Kennecott
Mines Company ("KMC"), KCM Internal Report, 1997
|
6.
|
Source: North of 60
Mining News, September 7, 2018. The Sun project is 100%-owned by
Valhalla Metals Inc. Inferred resources have a great amount of
uncertainty as to their existence and as to whether they can be
mined legally or economically. It cannot be assumed that all or any
part of inferred resources will ever be upgraded to a higher
category. See "Cautionary Note to United States
Investors."
|
7.
|
"Arctic Project,
Northwest Alaska, USA, NI 43-101 Technical Report on
Pre-Feasibility Study". See the news release at https://Trilogy
PR February 20, 2018 and the technical report which is
available on the Company's website at
https://trilogymetals.com/assets/docs/2018-04-06-Arctic-NI-43-101-TechReport.pdf or
on the Company's profiles at www.sedar.com and
www.sec.gov.
|
A Qualified Person has not done sufficient work to classify
the above historical estimates (Smucker, Horse Creek, Sunshine,
Shungnak and BT) as current
mineral resources or mineral reserves. Trilogy is not treating
these historical estimates as current mineral resources or mineral
reserves, has not verified the above historical resource estimates
and is not relying on them. The historical estimates were prepared
prior to the adoption and implementation of National Instrument
43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101")
and do not use categories that conform to the current Canadian
Institute of Mining, Metallurgy and Petroleum Definition Standards
for Mineral Resources and Mineral Reserves. Additional work,
including drilling, would need to be carried out on these
historical resources to make them complaint with NI 43-101.
Ambler Mining District Industrial Access Project
Over the last few months, the Company has been in contact with
the various agencies involved in the permitting of the Ambler
Mining District Industrial Access Project ("AMDIAP"). According to
the Bureau of Land Management ("BLM"), which is the lead agency,
the permitting of the AMDIAP is moving along on schedule. The
Preliminary Draft Environmental Impact Statement ("EIS") is
expected to be made available to all the cooperating agencies by
the end of April 2019, including: the
Bureau of Land Management, the US Army Corp of Engineers, the US
Park Service, the US Department of Transportation, the US Coast
Guard and the US Fish and Wildlife Service; State agencies – the
Department of Natural Resources and the Department of Environmental
Conservation; the Northwest Arctic Borough; and several
participating Tribal entities. According to the BLM, the draft EIS
is expected to go out for public comment during the summer and be
completed in the late summer/early fall 2019 with the final EIS
expected by the end of 2019. Shortly after the final EIS has been
issued, the Company expects the BLM to issue the Record of Decision
for the Right-of-Way across federal BLM managed lands and the Army
Corp. of Engineers to issue the 404 Wetlands Dredge and Fill Permit
as per the Clean Water Act.
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, planned expenditures and the
anticipated drilling, survey and other activity at the Company's
properties and the timing thereof, the timing and the filing of
updated reports on the Company's projects, the future price of
copper and cobalt, the estimation of mineral reserves and mineral
resources, the realization of mineral reserves and mineral resource
estimates, the potential increase in copper mineralization at the
Bornite Project, costs of production, capital expenditures, costs
and timing of the development of projects, are
forward-looking statements. The metallurgical results 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
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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SOURCE Trilogy Metals Inc.