VANCOUVER, Jan. 10, 2018 /PRNewswire/ - Trilogy
Metals Inc. (TSX/NYSE American: TMQ) ("Trilogy Metals"
or the "Company") is pleased to provide an update on metallurgical
test work results for samples from the In-Pit Resource area of the
Bornite Project, a part of the Company's Upper Kobuk Mineral
Projects ("UKMP") located in the Ambler mining district of
Northwest Alaska. The defined
In-Pit Resource contains 40.5 Mt of 1.02% Cu (indicated) and 84.1
Mt Cu (inferred) at 0.5% Cu cut-off grade. The objectives of
this test work are to demonstrate that the Bornite mineralized
materials are amenable to the production of high-grade copper
concentrates using traditional mineral processing techniques and to
determine the hardness and grindability of the mineralization.
Results demonstrate that a high quality, 30% copper concentrate
containing no deleterious metals can be produced. Furthermore,
grindability test work conducted indicates an average Bond Work
Index of 9.8kWhr/tonne, which is considered soft and therefore will
have low grinding costs and power consumption. Test work has been
completed at SGS Laboratories in Burnaby,
British Columbia, which is independent of Trilogy Metals.
Test work followed industry standard methods and procedures
commonly used for the design and development of copper recovery
processes, including hardness testing, floatation testing (lock
cycle testing) and assaying of metallurgical products.
Two HQ diamond drill holes were drilled in the Bornite deposit,
specifically to obtain representative material for use in
metallurgical testing. Five main metallurgical composites were
prepared from whole core obtained from this drilling and the
composite samples are outlined in Table 1.
Table 1 – Composite Samples
Composite
Name
|
Drill Hole and
Metres
|
Cu
|
Fe
|
Co
|
S
|
|
|
%
|
%
|
%
|
%
|
Composite
1
|
RC13-02321, 6.5m - 69.7m
|
1.11
|
7.72
|
0.02
|
8.29
|
Composite
2
|
RC13-0232, 69.7m
-137.2m
|
0.91
|
5.97
|
0.02
|
4.78
|
Composite
3
|
RC13-02302, 0.5m – 56.9m
|
0.96
|
6.01
|
0.02
|
4.99
|
Composite
4
|
RC13-0230, 118.2m -
179.5m
|
1.45
|
10.4
|
0.03
|
11.6
|
Composite
5
|
RC13-0230, 179.5m –
249.5m
|
1.02
|
9.12
|
0.02
|
10.2
|
1RC13-0232
was drilled due north at an angle of -60°.
|
2RC13-0230
was drilled due south at an angle of -77° from the same pad as
RC13-0232.
|
The Bornite deposit is hosted in dolomite and typically contains
approximately 5 to 15 percent total sulphide minerals including
pyrite, chalcopyrite, bornite and chalcocite. Mineralogical
evaluations conducted as part of this test work program show the
copper minerals to display a wide variety of grain sizes. A
majority of the copper mineralization is very well liberated at 100
microns, however, a minor fraction of the contained copper consists
as very fine-grained copper sulphide minerals occurring in pyrite
(5 to 15 percent of the overall copper). The copper rich
zones of the Bornite deposit do not typically contain significant
precious metals and nor do the concentrates. Penalty elements in
both the mineralized materials and copper concentrates are also low
and below levels of concern.
The mineralized materials were subject to grindability testing
to determine power requirements in grinding. The materials
were shown to be consistent with an average work index
determination (Bond Work Index) of 9.8kWhr/tonne. Of the 15
individual samples tested, the variance of work indices was very
low, with a minimum value of 8.8kWhr/tonne and a maximum value of
10.8kWhr/tonne. The Bornite materials are considered soft to
very soft in terms of grinding power requirements.
The production of copper concentrates from the Bornite materials
is based on traditional grinding and flotation processes and a
flowsheet is shown in Figure 1. Unit operations in this
flowsheet include crushing, grinding to approximately 100 microns,
rough flotation concentrate production, rough concentrate
re-grinding (10-15 microns) and flotation cleaning.
The expected metallurgical performance of the test samples is
summarized in the following Table 2 and is based on locked cycle
testing of the flowsheet shown in Figure 1. These results are
obtained with a consistent set of metallurgical parameters across
all test samples and are considered a significant improvement over
previous test results for the deposit.
Table 2 - Summary of Expected Metallurgical Performance -
Bornite Composite Samples
Composite
Name
|
Cu Feed
Grade
|
Copper
Recovery
|
Copper Conc.
Grade
|
|
%
Cu
|
%
|
%
Cu
|
Composite
1
|
1.11
|
90.4
|
30.3
|
Composite
2
|
0.91
|
87.0
|
24.3
|
Composite
3
|
0.96
|
89.7
|
25.6
|
Composite
4
|
1.45
|
91.6
|
33.5
|
Composite
5
|
1.02
|
90.9
|
28.0
|
Future metallurgical test work planned for the Bornite include
an evaluation of the potential to recover cobalt from zones which
are shown to be high in cobalt. Additional copper recovery
test work will cover a broader range of grades (0.2% to 2%) and
continue to be focused on the flowsheet and processing philosophy
shown in Figure 1.
Rick Van Nieuwenhuyse, President
and CEO of Trilogy Metals commented, "The metallurgical results
reported here continue to demonstrate that we can produce a high
quality copper concentrates of 24% to 33% containing no deleterious
metals. The soft work index means grinding and power costs
will be low relative to more traditional sources of copper from
harder porphyry deposits. We are also excited to continue
work on the cobalt. Cobalt occurs as carrolite and
cobaltiferous pyrite. Electron microprobe and metallurgical
work will be conducted during the winter months with the objective
of determining if the cobalt can be concentrated into a saleable
product. If it is determined that it can, then cobalt will be
added to the resource base as a potentially valuable metal which
could enhance the value of the possible Bornite ores".
Qualified Persons
The metallurgical 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.
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, the future operating or financial performance
of the Company, interpretation of drill results, planned
expenditures, the level of grinding and power costs, the potential
addition of cobalt to the resource base, 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 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. 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 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.