VANCOUVER,
Nov. 9, 2017 /CNW/
- Trilogy Metals Inc. (TSX, NYSE-MKT:
TMQ) ("Trilogy Metals" or "the Company") has filed a
National Instrument 43-101 technical report with the Canadian
securities regulators relating to the Arctic Project which supports
the resource estimate previously announced on April 25, 2017 which is of sufficient quality to
support the Arctic pre-feasibility study ("PFS"). The
technical report is entitled NI 43-101 Technical Report on the
Arctic Project, Northwest Alaska,
USA and prepared by Bruce
Davis, Robert Sim and
Jeff Austin, all of whom are
"Qualified Persons" under NI 43-101 (the "Technical Report").
The Arctic Project is estimated to contain at a base case of 0.5%
copper equivalent cut-off grade, an in-pit indicated resource of
approximately 36 million tonnes of copper grading 3.07% (see Table
1) that are expected to form the basis for the PFS and the
Company's first reserves in the Ambler Mining District. The PFS is
on target to be released in the first quarter of 2018.
Rick Van Nieuwenhuyse,
President and CEO of Trilogy Metals, commented, "We are excited in
the progress made to date towards finalizing the pre-feasibility
study for our high-grade Arctic Project in Q1 2018. Arctic is
pretty special – we predict it will be one of the highest grade
open pit copper projects in the world. Arctic is also located
in the geographic center of a 100 Km long belt containing over two
dozen known grade polymetallic deposits and occurrences. It
is not hard to envision a central milling concept with the other
deposits potentially feeding the mill beyond the mine life at
Arctic. With the Ambler Mining District Industrial Access
Project ("AMDIAP") now in the formal permitting process and public
scoping meetings taking place, it is exciting to see the Ambler
Access Road finally taking shape."
Table 1. Estimate of Mineral Resources for the Arctic
Deposit
|
|
Average Grade:
|
Contained metal:
|
Class
|
M
tonnes
|
Cu %
|
Pb%
|
Zn%
|
Au g/t
|
Ag g/t
|
Cu Mlbs
|
Pb Mlbs
|
Zn Mlbs
|
Au koz
|
Ag Moz
|
Indicated
|
36.0
|
3.07
|
0.73
|
4.23
|
0.63
|
47.6
|
2,441
|
581
|
3,356
|
728
|
55
|
Inferred
|
3.5
|
1.71
|
0.60
|
2.72
|
0.36
|
28.7
|
131
|
47
|
210
|
40
|
3
|
- Base Case cut-off grade of 0.5% CuEq.
- Mineral Resources that are not Mineral Reserves 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. See "Cautionary Note to United States
Investors."
- Resources stated as contained within a pit shell
developed using metal prices of US$3.00/lb copper, US$0.90/lb lead, US$1.00/lb zinc, US$1300/oz gold, US$18/oz silver, mining costs of
US$3.00/tonne, milling and G&A
costs of US$35/tonne, metallurgical
recoveries of 92% for copper, 77% for lead, 88% for zinc, 63% for
gold, 56% for silver and an average pit slope of 43
degrees.
- Inferred resources have a great amount of uncertainty as
to whether they can be mined legally or economically. It is
expected that a majority of the inferred resources will be
converted to indicated mineral resources with continued
exploration.
The sensitivity of mineral resources, contained within the
resource limiting pit shell, is demonstrated by listing resources
at a series of cut-off thresholds as shown in Table 2.
Table 2. Sensitivity of Mineral Resources to Cut-off
Grade
|
|
Average Grade:
|
Contained metal:
|
Cut-off
CuEq%
|
M
tonnes
|
Cu %
|
Pb%
|
Zn%
|
Au g/t
|
Ag g/t
|
Cu Mlbs
|
Pb Mlbs
|
Zn Mlbs
|
Au koz
|
Ag Moz
|
Indicated
|
0.25
|
36.0
|
3.07
|
0.73
|
4.22
|
0.63
|
47.61
|
2,441
|
582
|
3,356
|
729
|
55
|
0.5
|
36.0
|
3.07
|
0.73
|
4.23
|
0.63
|
47.62
|
2,441
|
581
|
3,356
|
728
|
55
|
0.75
|
35.9
|
3.08
|
0.73
|
4.23
|
0.63
|
47.72
|
2,440
|
582
|
3,355
|
728
|
55
|
1.0
|
35.7
|
3.09
|
0.74
|
4.26
|
0.63
|
47.97
|
2,436
|
581
|
3,353
|
728
|
55
|
1.5
|
35.5
|
3.11
|
0.74
|
4.28
|
0.64
|
48.22
|
2,432
|
580
|
3,349
|
727
|
55
|
Inferred
|
0.25
|
3.8
|
1.58
|
0.56
|
2.52
|
0.34
|
26.76
|
133
|
47
|
212
|
42
|
3
|
0.5
|
3.5
|
1.71
|
0.60
|
2.72
|
0.36
|
28.69
|
131
|
47
|
210
|
40
|
3
|
0.75
|
3.0
|
1.93
|
0.65
|
3.04
|
0.36
|
31.99
|
129
|
44
|
203
|
35
|
3
|
1.0
|
2.5
|
2.29
|
0.73
|
3.52
|
0.37
|
37.04
|
124
|
39
|
192
|
29
|
3
|
1.5
|
2.3
|
2.46
|
0.76
|
3.71
|
0.39
|
39.32
|
122
|
38
|
184
|
28
|
3
|
- Base Case cut-off grade of 0.5% CuEq is highlighted in
table.
Mineral resource estimates are made from a 3D block model
based on geostatistical applications using commercial mine planning
software (MineSight® v11.60-2). The block model has a nominal block
size measuring 10 x 10 x 5 m and utilizes data derived from 152
drill holes in the vicinity of the Arctic deposit. The resource
estimate was generated using drill hole sample assay results and
the interpretation of a geological model which relates to the
spatial distribution of copper, lead, zinc, gold and silver.
Interpolation characteristics were defined based on the geology,
drill hole spacing, and geostatistical analysis of the data. The
effects of potentially anomalous high-grade sample data, composited
to two metre intervals, are controlled by limiting the distance of
influence during block grade interpolation. The grade models have
been validated using a combination of visual and statistical
methods. The resources were classified according to their proximity
to the sample data locations and are reported, as required by NI
43-101 (as defined herein), according to the 2014 CIM Definition
Standards for Mineral Resources and Mineral Reserves. Model blocks
estimated by three or more drill holes spaced at a maximum distance
of 100 metres are included in the Indicated category. Inferred
blocks are within a maximum distance of 150 metres from a drill
hole. The estimate of Indicated and Inferred mineral resources is
within a limiting pit shell derived using projected technical and
economic parameters.
A copy of the Technical Report is available on the
Company's website at www.trilogymetals.com and under
the Company's profiles on SEDAR at www.sedar.com and EDGAR at
www.sec.gov.
Qualified Persons
Mr. Bruce Davis, FAusIMM,
the president of BD Resource Consulting Inc., and Mr. Robert Sim, P.Geo., of Sim Geological Inc., have
reviewed the technical information related to the Arctic deposit in
this news release and approve the written disclosure contained
herein. Messrs Davis and Sim are independent "qualified
persons", within the meaning of National Instrument 43-101-
Standards of Disclosure for Mineral Projects ("NI
43-101").
Neither Bruce Davis of BD
Resource Consulting Inc., nor Robert
Sim of Sim Geological Inc., nor any associates employed in
the preparation of the Arctic Project resource estimation have any
beneficial interest in Trilogy Metals. Messrs Davis and Sim are not
insiders, associates, or affiliates of Trilogy Metals. The
information in this press release is not dependent upon any prior
agreements concerning the conclusions to be reached, nor are there
any undisclosed understandings concerning any future business
dealings between Trilogy Metals and Messrs Davis and Sim who were
retained by Trilogy Metals to prepare the Arctic Project resource
estimate and are to be paid a fee for their work in accordance with
normal professional consulting practices.
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 related to the timing of completion
of the PFS, anticipated activity and development at Arctic and the
Ambler Access Road 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 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 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.