VANCOUVER, Jan. 16, 2020 /CNW/ - Trilogy Metals Inc.
(TSX/NYSE American: TMQ) ("Trilogy Metals" or the
"Company") is pleased to provide an update on its current corporate
and project activities.
Joint Venture Agreement with South32 Limited
On December 19, 2019 the Company
and its Joint Venture partner, South32 Limited (ASX, LSE, JSE: S32;
ADR: SOUHY) ("South32"), announced that South32 had exercised its
option to acquire a 50% interest in a joint venture company ("Joint
Venture") that will own the Upper Kobuk Mineral Projects ("UKMP")
located in northwest Alaska.
Trilogy Metals will contribute all of its assets associated with
the UKMP and South32 will contribute approximately US$145 million to the Joint Venture.
Establishment of the Joint Venture is expected to occur in
February 2020 and follows an initial
exploration partnership between South32 and Trilogy Metals over
three field seasons to advance both parties' geological
understanding of the UKMP.
The Company will provide more details on the Joint Venture's
planned work program and 2020 exploration activity following its
formation. To view the December 19,
2019 press release please go to
https://trilogymetals.com/news/2019/south32-and-trilogy-metals-to-form-upper-kobuk-mineral-projects-joint-venture.
Drilling Highlights – Arctic Project
The Company is also pleased to announce final assay results from
the geotechnical and hydrological drill program completed at the
Arctic poly-metallic volcanogenic massive sulphide ("VMS") deposit
(the "Arctic Project"), part of the UKMP located in the Ambler
Mining District of Northwest
Alaska.
The 2019 Arctic field season was comprised of advanced
engineering and environmental work in support of Trilogy Metals'
feasibility study for the Arctic Project and permitting. These
results will be incorporated into the study which is expected to be
completed in the first half of 2020. Following its formation, the
Joint Venture intends to undertake further work programs and
studies for the Arctic Project.
Geochemical assay results from the geotechnical and hydrological
drill program are shown below.
At a cutoff grade of 0.5% copper equivalent* the results from
the new assay results at the Arctic Project are as follows:
- AR19-164 intersected two mineralized intervals of:
-
- 5.8 metres with a copper equivalent grade of 4.54%
(1.45% copper, 6.24% zinc, 0.83% lead, 0.28 g/t gold and 32.20 g/t
silver); and
- 16.4 metres with a copper equivalent grade of 7.80%
(5.09% copper, 4.82% zinc, 0.53% lead, 0.47 g/t gold and 47.09 g/t
silver).
- AR19-165A intersected one mineralized interval of:
-
- 1.8 metres with a copper equivalent grade of 2.97%
(1.66% copper, 1.87% zinc, 0.34% lead, 0.52 g/t gold and 18.87 g/t
silver).
- AR19-166 intersected five mineralized intervals of:
-
- 5.1 metres with a copper equivalent grade of 6.70%
(2.95% copper, 6.22% zinc, 1.47% lead, 0.75 g/t gold and 51.07 g/t
silver);
- 9.5 metres with a copper equivalent grade of 6.74%
(4.12% copper, 4.78% zinc, 0.46% lead, 0.48 g/t gold and 40.61 g/t
silver);
- 1.6 metres with a copper equivalent grade of 7.84%
(2.71% copper, 10.13% zinc, 2.02% lead, 0.25 g/t gold and 56.36 g/t
silver);
- 6.5 metres with a copper equivalent grade of 3.22%
(1.68% copper, 2.12% zinc, 0.41% lead, 0.47 g/t gold and 35.65 g/t
silver); and
- 8.6 metres with a copper equivalent grade of 7.51%
(3.62% copper, 6.81% zinc, 0.84% lead, 0.87 g/t gold and 56.00 g/t
silver).
- AR19-167 intersected one mineralized interval of:
-
- 3.0 metres with a copper equivalent grade of 3.63%
(2.40% copper, 2.60% zinc, 0.10% lead, 0.10 g/t gold and 16.92 g/t
silver).
- AR19-169 intersected one mineralized interval of:
-
- 14.4 metres with a copper equivalent grade of 3.70%
(2.20% copper, 2.61% zinc, 0.33% lead, 0.30 g/t gold and 24.20 g/t
silver).
- AR19-170 intersected two mineralized intervals of:
-
- 13.7 metres with a copper equivalent grade of 6.24%
(3.36% copper, 5.52% zinc, 0.74% lead, 0.33 g/t gold and 39.19 g/t
silver); and
- 7.1 metres with a copper equivalent grade of 7.17%
(5.27% copper, 2.57% zinc, 0.02% lead, 0.91 g/t gold and 38.75 g/t
silver).
- AR19-171 intersected one mineralized interval of:
-
- 16.6 metres with a copper equivalent grade of 6.30%
(3.69% copper, 4.24% zinc, 0.85% lead, 0.45 g/t gold and 51.14 g/t
silver).
- AR19-172 intersected one mineralized interval of:
-
- 16.1 metres with a copper equivalent grade of 1.71%
(1.07% copper, 1.15% zinc, 0.18% lead, 0.10 g/t gold and 9.08 g/t
silver).
* Assumptions used
for the copper equivalent calculation were metal prices in USD of
$2.90/lb copper, $1.10/lb zinc, $0.90/lb lead, $1,250/oz gold, and
$18/oz silver. The following equation was used to calculate copper
equivalence: CuEq = Copper (%) + (Zinc (%) x 0.379) +(Lead (%) x
0.310) + (Gold (g/t) x 0.629) + (Silver (g/t) x 0.009).
|
James Gowans, Interim President
and CEO of Trilogy Metals commented, "The latest drilling results
continue to demonstrate that not only is the Arctic Project one of
the highest grade known polymetallic base metal projects in the
world, but it is also incredibly consistent along strike and dip
regardless of where you drill at the project. We believe there is
the possibility of other "Arctic like" deposits being discovered
within the 100-kilometer long Ambler Mining District. Further
drilling by the Joint Venture is intended to test targets across
the UKMP."
At the Arctic Project and as described above, the Company
drilled ten holes comprising 2,422 meters of which eight holes were
sampled and sent off for assay analysis. Hole AR19-165 was lost due
to technical drilling issues and hole AR19-0168 did not intersect
base metal mineralization as it tested the south highwall and did
not target the mineralized zones. Drilling at Arctic during the
2019 field season was carried out to support mine design and the
collection of further geotechnical and hydrological
information. The material will be used for additional
metallurgical test work in the future.
The VMS-style mineralization at Arctic was discovered by Bear
Creek Mining Company in 1965 and is exposed on the east side of the
north trending Arctic Ridge. The rock units exposed are
typical of the Ambler Schist sequence and include quartz +/-
feldspar and chlorite +/- talc schist, graphitic and graphitic
quartz schist, and aphanitic and porphyritic meta-rhyolite
units. Massive and semi-massive sulphide mineralization,
consisting of chalcopyrite, sphalerite, galena, and
tetrahedrite/tennantite, occurs in 0.1 metre to 26-metre bands
generally at a contact between graphitic and quartz-chlorite +/-
talc schist.
Results for the 2019 drill program at Arctic are presented in
Table 1 at a cutoff grade of 0.5% copper equivalent.
All the intersected widths are close to normal to stratigraphy and
therefore can be considered to be true widths. Table 2
shows the 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 holes AR19-0164, and AR19-0166.
Figure 3 shows a cross-section through drill holes
AR19-0169, AR19-0170 and AR19-0171.
Table 1 - 0.5% Cu Eq cut-off* with maximum 3 m internal waste – Minimum 1.5 m interval
0.5%
CuEq
|
From
(m)
|
To
(m)
|
Length
(m)
|
Cu
(%)
|
Zn
(%)
|
Pb
(%)
|
Au
(g/t)
|
Ag
(g/t)
|
CuEq
(%)*
|
AR19-0164
|
148.77
|
154.54
|
5.77
|
1.45
|
6.24
|
0.83
|
0.28
|
32.20
|
4.54
|
161.27
|
177.68
|
16.41
|
5.09
|
4.82
|
0.53
|
0.47
|
47.09
|
7.80
|
AR19-0165A
|
125.11
|
126.95
|
1.84
|
1.66
|
1.87
|
0.34
|
0.52
|
18.87
|
2.97
|
AR19-0166
|
155.36
|
160.51
|
5.15
|
2.95
|
6.22
|
1.47
|
0.75
|
51.07
|
6.70
|
170.18
|
179.65
|
9.47
|
4.12
|
4.78
|
0.46
|
0.48
|
40.61
|
6.74
|
182.73
|
184.35
|
1.62
|
2.71
|
10.13
|
2.02
|
0.25
|
56.36
|
7.84
|
194.62
|
201.15
|
6.53
|
1.68
|
2.12
|
0.41
|
0.47
|
35.65
|
3.22
|
209.53
|
218.16
|
8.63
|
3.62
|
6.81
|
0.84
|
0.87
|
56.00
|
7.51
|
AR19-0167
|
197.21
|
200.25
|
3.04
|
2.40
|
2.60
|
0.10
|
0.10
|
16.92
|
3.63
|
AR19-0169
|
127.92
|
142.34
|
14.42
|
2.20
|
2.61
|
0.33
|
0.30
|
24.20
|
3.70
|
AR19-0170
|
137.77
|
151.49
|
13.72
|
3.36
|
5.52
|
0.74
|
0.33
|
39.19
|
6.24
|
253.33
|
260.43
|
7.10
|
5.27
|
2.57
|
0.02
|
0.91
|
38.75
|
7.17
|
AR19-0171
|
50.87
|
67.42
|
16.55
|
3.69
|
4.24
|
0.85
|
0.45
|
51.14
|
6.30
|
AR19-0172
|
178.49
|
194.54
|
16.05
|
1.07
|
1.15
|
0.18
|
0.10
|
9.08
|
1.71
|
* Assumptions used in
USD for the copper equivalent calculation were metal prices of
$2.90/lb copper, $1.10/lb zinc, $0.90/lb lead, $1,250/oz gold, and
$18/oz silver. The following equation was used to calculate copper
equivalence: CuEq = Copper (%) + (Zinc (%) x 0.379) +(Lead (%) x
0.310) + (Gold (g/t) x 0.629) + (Silver (g/t) x 0.009).
|
Table 2 – Arctic Drill Hole Locations
Hole
|
East
(m)
|
North
(m)
|
Elevation
(m)
|
Azimuth
|
Dip
|
Length
(m)
|
AR19-0164
|
613111
|
7452991
|
825
|
80
|
-80
|
182
|
AR19-0165A
|
613182
|
7453348
|
911
|
315
|
-65
|
222
|
AR19-0166
|
613111
|
7452991
|
825
|
0
|
-90
|
300
|
AR19-0167
|
613341
|
7453448
|
986
|
45
|
-65
|
271
|
AR19-0169
|
613335
|
7452909
|
915
|
100
|
-85
|
200
|
AR19-0170
|
613335
|
7452910
|
914
|
0
|
-90
|
351
|
AR19-0171
|
613508
|
7452944
|
947
|
120
|
-65
|
282
|
AR19-0172
|
613341
|
7453448
|
986
|
0
|
-90
|
240
|
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 and drilled to depth HQ for the
Arctic holes, except for holes AR19-0166 and AR19-170, which were
collared PQ. Samples were collected using a 0.13-metre
minimum length, a 2.5-metre maximum length and a 1.36-metre average
sample length. Drill core recovery averaged 97% for Arctic core.
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 is an
independent facility certified as ISO 9001:2008 and accredited to
ISO / IEC 17025:2005 from the Standards Council of Canada. The assay and QA/QC results were
reviewed by a third-party consultant, GeoSpark Consulting Inc. of
Nanaimo, British Columbia, and in
their opinion shows overall good quality for silver, copper, lead,
and gold analyses. The Company submitted 5% of the mineralized
assay intervals to an independent check assay lab.
Arctic Feasibility Study
Trilogy Metals continues to progress its Arctic feasibility
study which is being prepared by Ausenco Engineering Canada Inc.
and John Wood Group PLC based on drill results and studies
completed prior to formation of the Joint Venture. Trilogy Metals
expects to release its Arctic feasibility study by the end of first
half 2020, in advance of further work programs and studies planned
to be completed by the Joint Venture.
Ambler Mining District Industrial Access Project
("AMDIAP")
On October 29, 2019 the comment
period closed for the AMDIAP Draft Environmental Impact Statement
("EIS"). The Bureau of Land Management ("BLM"), which is the lead
agency, is now incorporating the comments into the final
EIS. The BLM is expected to provide an update on the timing of
the completion of the final EIS soon. The Company wishes to express
its sincere appreciation to the BLM for making progress on the EIS
process. For more information on the permitting process for the
AMDIAP please go to BLM Ambler Road.
Additional Staking of State Claims in the UKMP
In October 2019, Trilogy staked an
additional 465 (443 160-acre claims and 22 40-acre claims)
Alaska state mining claims
adjacent to our existing mining claim block to bring the total
mining claims on state land to approximately 75,082 hectares
(185,533acres), an increase of 66%. The total land package,
including the Bornite Lands, is now approximately 172,675 hectares
(426,690 acres) as seen in Figure 4. These lands will form part of
the assets to be contributed by Trilogy Metals to the Joint
Venture.
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 and scientific
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 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
172,636 hectares. On December 19,
2029 South32 Ltd., which is a globally diversified mining
and metals company, exercised its option to form a 50/50 joint
venture with Trilogy. 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 Company's ability to discover additional
"Arctic like" deposits in the Ambler Mining District and the timing
and status of the Arctic feasibility study, the timing and updates
regarding the joint venture are forward-looking statements. The
assay results disclosed in this press release should not be
considered representative of other drilling results for future
drilling campaigns. 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.
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, permitting timelines, requirements for
additional capital, government regulation of mining operations,
environmental risks, unanticipated reclamation expenses, 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; the need for cooperation of government
agencies and native groups in the development and operation of
properties; the need to obtain permits and governmental approvals;
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.
View original content to download
multimedia:http://www.prnewswire.com/news-releases/trilogy-metals-provides-update-on-project-activities-300988052.html
SOURCE Trilogy Metals Inc.