VANCOUVER, June 5, 2017 /CNW/ - Trilogy Metals
Inc. (TSX, NYSE-MKT: TMQ) ("Trilogy Metals" or
"the Company") is pleased to announce that it has engaged Ausenco
Engineering Canada Inc. ("Ausenco") to prepare the Arctic
pre-feasibility study ("PFS") technical report anticipated
to be complete in Q1, 2018. The Company has also engaged Amec
Foster Wheeler ("Amec") to complete mine planning and SRK
Consulting (Canada) Inc.
("SRK") to complete tailings and waste design, hydrology and
environmental studies.
Ausenco is a global diversified engineering, construction and
project management company providing consulting, project delivery
and asset management solutions to the resources, energy and
infrastructure sectors. Ausenco's experience in base metal and cold
weather projects ranges from conceptual, pre-feasibility and
feasibility studies for new project developments to brownfield
expansions with EPCM and EPC delivery. Ausenco is currently
engaged on a number of remote projects with similar characteristics
and opportunities to the Arctic project. Ausenco's office in
Vancouver, British Columbia,
Canada will coordinate the Arctic PFS.
"We are pleased to have assembled an excellent team to complete
our pre-feasibility study on the high-grade polymetallic Arctic
deposit. Ausenco, Amec and SRK are, all three, highly skilled
and reputable companies, and the individual team members at each of
these companies have decades of mining experience to draw on.
The Arctic project is the first of many exciting
opportunities in the Ambler mining district. While the Arctic
PFS gets underway with a budget of US$7.1
million, we will continue to explore our exciting Bornite
property with a budget of US$10
million. With a US$17
million total budget this year for exploration at Bornite
and the Arctic PFS, it will be a very busy and productive year
ahead for the Company. Major mining districts take time to
develop and we are fortunate to have long-term support through our
partnerships with NANA, AIDEA and South32, as well as continued
support from our large shareholders", says Rick Van Nieuwenhuyse, President and Chief
Executive Officer.
Arctic Pre-Feasibility Study
The Arctic deposit is a high-grade copper-zinc-lead volcanogenic
massive sulfide deposit which also contains significant amounts of
precious metals. The Company is proposing a 10,000 tonne per day,
open pit mining operation with a typical crush-grind-float flow
sheet producing significant tonnages of copper and zinc
concentrates and lessor lead concentrate containing significant
quantities of precious metals. The Company has recently provided
updated "PFS level" metallurgy, pit-slope stability and hydrology
information in our March 19, 2017
press release (https://Trilogy PR April
19 2017) and an updated resource estimate for Arctic on
March 25, 2017 (https://Trilogy PR
April 25 2017). This summer,
our consultants will work with our team members to complete the
site investigation work to determine the optimal location for the
mill and power plant, tailing and waste design, and other
supporting infrastructure and facilities. The Company had
previously released a National Instrument 43-101 - Standards of
Disclosure technical report entitled "Preliminary Economic
Assessment Report on the Arctic Project, Ambler Mining District,
Northwest Alaska" dated effective
September 12, 2013 (the "PEA")
(https://Trilogy PR September 12
2013). We expect the PFS to be completed in Q1, 2018.
Ausenco, who are independent from the Company, will coordinate and
work with our other consultants to provide engineering support and
an economic analysis, as well as author the Arctic PFS technical
report for the Company.
Qualified Persons
Andrew W. West, P.Geo.,
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 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
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, statements relating to the potential timing and
preparation of a PFS on the Arctic deposit, the future operating or
financial performance of the Company, planned
expenditures and the anticipated activity at the UKMP
Projects, are forward-looking statements. 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 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, 2016 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
The Arctic Preliminary Economic Assessment and the Bornite
Technical Report have 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 National Instrument 43-101 Standards of
Disclosure for Mineral Projects ("NI 43-101") and the Canadian
Institute of Mining, Metallurgy, and Petroleum Definition Standards
on Mineral Resources and Mineral Reserves. 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
therein 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 any
part or all of mineral deposits in these categories will ever be
converted into reserves. U.S. 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. It cannot be assumed that all or any part of an
"inferred mineral resource" will ever be upgraded to a higher
category. Under Canadian rules, estimated "inferred mineral
resources" may not form the basis of feasibility or pre-feasibility
studies except in rare cases. Investors are cautioned not to assume
that all or any part of an "inferred mineral resource" exists or is
economically or legally mineable. 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 the
Company in compliance with NI 43-101 may not qualify as "reserves"
under SEC standards. Accordingly, information concerning mineral
deposits set forth in this press release or the Bornite Technical
Report may not be comparable with information made public by
companies that report in accordance with U.S. standards.
SOURCE Trilogy Metals Inc.