VANCOUVER, Oct. 9, 2018 /PRNewswire/ - Trilogy
Metals Inc. (TSX/NYSE American: TMQ) ("Trilogy
Metals" or the "Company") is pleased to announce the first set of
high-grade copper and cobalt assay 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. Sample results from these four holes comprise
approximately 3,871 meters from the recently completed 10,123 meter
drill campaign. All four drill holes contain copper
mineralization and were designed as infill 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:
- RC18-246 intersected three mineralized intervals of:
-
- 19.6 metres averaging 2.06% copper;
- 6.1 metres averaging 2.36% copper; and
- 7.6 metres averaging 1.04% copper.
- RC18-243 intersected one mineralized interval of:
-
- 2.0 metres averaging 2.23% copper.
- RC18-244 intersected one mineralized interval of:
-
- 20.4 metres averaging 0.83% copper.
- RC18-247 intersected two mineralized intervals of:
-
- 20.1 metres averaging 4.55% copper, including 16.4 meters
grading 5.34% Copper and 0.21% Cobalt (The results of this
mineralized interval were disclosed in the Company's press release
dated August 23, 2018); and
- 33.4 metres averaging 0.82% copper.
Rick Van Nieuwenhuyse, President
and CEO of Trilogy Metals commented, "We continue to see narrow
zones of high-grade copper and cobalt mineralization overlain by
broader zones of lower grade mineralization at Bornite. The
continuity of the mineralized envelop continues to impress.
With another eight holes of results due to come out over the next
several weeks, we will continue to release results as they become
available. After all results are in, we expect to complete an
updated resource estimate at Bornite in the first half of next
year."
The 2018 drilling budget of $10
million for Bornite this year was funded entirely by South32
Limited (ASX, LSE, JSE: S32; ADR: SOUHY) ("South32") and represents
the second $10 million payment under
the Option Agreement with South32 and maintains the Option
Agreement in good standing. In August
2018, South32 agreed to increase its contribution to this
year's Bornite drilling program by funding an additional
$800,000 to the Company for an
increased budget at Bornite totaling $10.8
million, which allowed the Company to expand drilling from
8,000 meters to 10,000 meters this summer. The additional
funding will reduce South32's 2019 minimum exploration budget
commitment of $10 million to
$9.2 million. For more
information on the Option Agreement see the Company's press release
on April 10, 2017 (https://Trilogy PR
April 10 2017).
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 metres but was
subsequently expanded to 10,000 metres 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
metres to test the extension of the of the currently defined
resource†.
Trilogy Metals has recently completed its summer exploration
drilling program at Bornite and geotechnical activities at its
Arctic Project. Additional drill results are anticipated to be
released regularly over the next couple of months 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
RC18-0246.
Table 1 - 0.5% Cu cut-off with maximum 3 m internal waste – Minimum 1.5 m interval
|
|
|
|
|
|
Hole
|
From
(m)
|
To
(m)
|
Length
(m)
|
Cu
(%)
|
Co
(%)
|
RC18-0243
|
479.56
|
483.11
|
3.55
|
0.65
|
0.02
|
548.16
|
550.18
|
2.02
|
2.23
|
0.01
|
715.77
|
717.65
|
1.88
|
0.60
|
0.01
|
851.63
|
853.63
|
2.00
|
0.53
|
0.02
|
RC18-0244
|
603.92
|
624.32
|
20.40
|
0.83
|
0.02
|
713.20
|
715.80
|
2.60
|
0.74
|
0.01
|
726.57
|
735.11
|
8.54
|
0.47
|
0.01
|
741.11
|
743.66
|
2.55
|
0.93
|
0.00
|
782.50
|
786.06
|
3.56
|
0.66
|
0.01
|
RC18-0246
|
664.16
|
666.23
|
2.07
|
0.90
|
0.02
|
699.06
|
718.64
|
19.58
|
2.06
|
0.01
|
723.80
|
725.66
|
1.86
|
0.52
|
0.01
|
731.23
|
738.49
|
7.26
|
0.76
|
0.00
|
750.33
|
756.40
|
6.07
|
2.36
|
0.02
|
763.50
|
766.33
|
2.83
|
0.88
|
0.00
|
776.93
|
784.56
|
7.63
|
1.04
|
0.02
|
790.42
|
792.82
|
2.40
|
0.55
|
0.01
|
838.75
|
840.34
|
1.59
|
0.62
|
0.00
|
RC18-0247
|
731.27
|
764.67
|
33.40
|
0.82
|
0.01
|
789.30*
|
809.40*
|
20.10
|
4.55
|
0.17
|
* Results for this
interval were previously released on August 23, 2018
|
Table 2 - 1.5% Cu cut-off with maximum 3 m internal waste – Minimum 1.5 m interval
|
|
|
|
|
|
Hole
|
From
(m)
|
To
(m)
|
Length
(m)
|
Cu
(%)
|
Co
(%)
|
RC18-0243
|
548.16
|
550.18
|
2.02
|
2.23
|
0.01
|
RC18-0246
|
703.70
|
713.09
|
9.39
|
3.45
|
0.01
|
751.95
|
756.40
|
4.45
|
2.78
|
0.02
|
RC18-0247
|
791.87*
|
808.27*
|
16.40
|
5.34
|
0.21
|
* Results for this
interval were previously released on August 23, 2018
|
Table 3 – Bornite Drill Hole Locations
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|
|
|
|
|
|
East
(m)
|
North
(m)
|
Elevation
(m)
|
Azimuth
|
Dip
|
RC18-0243
|
590217
|
7440723
|
258
|
206
|
-80
|
RC18-0244
|
590187
|
7440902
|
270
|
206
|
-80
|
RC18-0246
|
590875
|
7440488
|
350
|
220
|
-72
|
RC18-0247
|
590537
|
7440676
|
318
|
206
|
-80
|
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 bornite,
chalcocite mineralization observed in RC18-0247, RC18-0246, and
minorly within RC18-0244; and chalcopyrite dominating
mineralization observed in RC18-0243.
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. 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-metre minimum length, 2.5-metre maximum
length and 1.8-metre average sample length. Drill core recovery
averaged 87% overall and 94% 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 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 drill hole RC18-0247 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.