VANCOUVER, Jan. 16, 2018 /PRNewswire/ - Trilogy Metals
Inc. (TSX/NYSE American: TMQ) ("Trilogy Metals"
or the "Company") is pleased to announce additional in-fill drill
results and provide a project update from its 2017 summer field
program at the Arctic poly-metallic volcanogenic massive sulphide
("VMS") deposit, part of the Upper Kobuk Mineral Projects ("UKMP")
located in the Ambler mining district of Northwest Alaska.
All amounts are in United States
dollars unless otherwise stated.
The 2017 Arctic field program included 785.2 meters of diamond
drilling to collect representative sample material to conduct bulk
ore sorting studies for the Arctic deposit. An additional 273.8
meters of sonic drilling was completed to collect geotechnical,
hydrological, geothermal, and hydrogeological information for the
tailings management facilities and waste rock dump for the project
in support of the upcoming Pre-Feasibility Study ("PFS"). The PFS
results are anticipated to be released in Q1 2018.
Highlights from the Drill Program
Based on a cut-off grade of 0.5% CuEq, significant zones of
high grade copper, zinc, lead, gold, and silver mineralization were
intersected – including:
- AR17-0159 intersected four mineralized intervals, including
31.11 meters of 1.58% copper, 2.84% zinc, 0.69% lead, 0.38 g/t
gold, and 30.79 g/t silver, and 15.25 meters of 2.91%
copper, 4.34% zinc, 0.96% lead, 0.66 g/t gold, and 44.27 g/t
silver;
- AR17-0160 intersected four mineralized intervals, including
25.95 meters of 2.43% copper, 1.19% zinc, 0.16% lead, 0.59 g/t
gold, and 46.31 g/t silver, and 17.23 meters of 4.42%
copper, 5.32% zinc, 1.37% lead, 0.13 g/t gold, and 43.92 g/t
silver;
- AR17-0161 intersected two mineralized intervals, including
17.60 meters of 2.69% copper, 5.50% zinc, 1.14% lead, 0.66 g/t
gold, and 54.47 g/t silver, and 4.40 meters of 3.01% copper,
3.80% zinc, 0.95% lead, 0.54 g/t gold, and 50.90 g/t
silver;
- AR17-0162 intersected one mineralized interval, 6.75 meters
of 2.35% copper, 6.00% zinc, 1.57% lead, 0.71 g/t gold, and 43.27
g/t silver; and
- AR17-0163 intersected one mineralized interval, 6.48 meters
of 2.95% copper, 6.33% zinc, 1.40% lead, 0.84 g/t gold, and 44.23
g/t silver.
"These results from large diameter drill holes continue to
demonstrate that Arctic is an exceptional copper-zinc rich deposit.
Further engineering and environmental work completed this summer
will support completion of the Arctic Pre-feasibility Study by the
end of Q1, 2018. We expect this study will demonstrate that Arctic
is one of the highest grade, open pitable copper deposits in the
world. And it is located in a mining friendly jurisdiction in
the United States where both our
shareholders and stakeholders will be able to reap the benefits of
our efforts. Meanwhile, the Alaska Industrial and Export Authority
("AIDEA") continues to advance permitting of the Ambler Mining
District Industrial Access Project with the scoping process set to
be finalized by the end of January", stated Rick Van Nieuwenhuyse, President and CEO of
Trilogy Metals.
Trilogy Metals completed five PQ diamond drill holes for a total
of 785.2 meters of core (see Figure 1). This drill program was
designed to collect 2 tons of representative mill-feed material for
bulk ore sorting test work at the Steinert facility in Kentucky, USA, an independent facility. The
core was quartered for geochemical analysis, and the remaining core
shipped to ALS Minerals, in North
Vancouver, B.C., Canada, an
independent laboratory for coarse crushing and chemical
analysis. The core will be sent to the Steinert facility in
early 2018 for subsequent bulk ore sorting testing. The ore
sorting studies will be carried out after the PFS is released and
if determined to be advantageous to overall project, will be
incorporated in subsequent studies.
The Company is pleased to announce that all five holes
encountered mineralized intervals consistent with previous drilling
conducted within the resource area on the property. Significant
mineralized intervals of high-grade mineralization at a cutoff of
0.5% CuEq are reported in Table 1. These drill results, along with
ongoing engineering and environmental studies described below, will
be used to support the PFS on the Arctic deposit.
Table 1: Significant Drill Intercepts – 2017 PQ Drill
Program
Hole
ID
|
From
(m)
|
To
(m)
|
Length
(m)
|
Cu
Eq
|
Cu
%
|
Zn
%
|
Pb
%
|
Au
g/t
|
Ag
g/t
|
AR17-0159
|
145.45
|
160.70
|
15.25
|
4.64
|
2.91
|
4.34
|
0.96
|
0.66
|
44.27
|
167.34
|
198.45
|
31.11
|
2.74
|
1.58
|
2.84
|
0.69
|
0.38
|
30.79
|
203.45
|
211.95
|
8.50
|
4.42
|
2.64
|
4.72
|
0.63
|
0.49
|
54.72
|
216.55
|
221.35
|
4.80
|
1.62
|
0.85
|
1.57
|
0.44
|
0.30
|
32.60
|
AR17-0160
|
116.25
|
121.04
|
4.79
|
7.95
|
5.93
|
6.19
|
0.75
|
0.56
|
60.53
|
133.54
|
140.67
|
7.13
|
8.21
|
6.61
|
4.66
|
0.81
|
0.53
|
76.38
|
156.00
|
173.23
|
17.23
|
6.20
|
4.42
|
5.32
|
1.37
|
0.13
|
43.92
|
214.80
|
240.75
|
25.95
|
3.08
|
2.43
|
1.19
|
0.16
|
0.59
|
46.31
|
AR17-0161
|
143.60
|
148.00
|
4.40
|
4.56
|
3.01
|
3.80
|
0.95
|
0.54
|
50.90
|
157.90
|
175.50
|
17.60
|
4.87
|
2.69
|
5.50
|
1.14
|
0.66
|
54.47
|
AR17-0162
|
26.90
|
33.65
|
6.75
|
4.76
|
2.35
|
6.00
|
1.57
|
0.71
|
43.27
|
AR17-0163
|
26.84
|
33.32
|
6.48
|
5.43
|
2.95
|
6.33
|
1.40
|
0.84
|
44.23
|
Footnotes to Drill
Interval Table:
|
•
|
Copper equivalent
(CuEq) calculations use metal prices assumptions of $3.00/lb for
copper, $1.00/lb for zinc, $0.90/lb for lead, $1,300/oz for gold,
and $18/oz for silver. Copper equivalent calculations are adjusted
for the expected metallurgical recoveries of 92% for copper, 88%
for zinc, 77% lead, 63% for gold, and 56% for silver.
|
•
|
Results are core
intervals and not true thickness; true widths have not been
determined for the above intercepts but are believed to be
representative of actual drill thicknesses.
|
•
|
Significant interval
defined as a minimum of 1.0 meter Cu interval with average grade
>0.5% CuEq.
|
•
|
Cutoff grade of 0.5%
CuEq.
|
•
|
Internal dilution up
to three meters of <0.5% CuEq.
|
•
|
Intervals of <1.0
meter not reported.
|
•
|
Core recovery
averaged 96%.
|
•
|
Minimum sample length
was 0.17m, average sample length was 2.4m overall and 1.7m within
mineralized zones.
|
•
|
Some rounding errors
may occur.
|
Table 2: 2017 Drill Hole Locations
Hole
ID
|
Easting
|
Northing
|
Elevation
|
Azimuth
|
Dip
|
Depth
|
AR17-159
|
613322
|
7453324
|
961
|
35
|
83
|
244.8
|
AR17-160
|
613331
|
7453073
|
922
|
8
|
85
|
255.1
|
AR17-161
|
612991
|
7452996
|
791
|
35
|
70
|
188.1
|
AR17-162
|
612943
|
7453417
|
815
|
35
|
70
|
50.9
|
AR17-163
|
612942
|
7453416
|
815
|
35
|
90
|
46.3
|
Coordinates are in
UTM Zone 4N (meters) coordinate system, NAD83 Datum.
|
Pre-Feasibility Study Update
Trilogy Metals completed 11 sonic drill holes (273.8 meters), 26
test pits, and 2 pump tests during the 2017 field season.
This program was developed to collect geotechnical,
hydrological, geothermal (permafrost), and hydrogeological
information for the various tailings management facilities and
waste rock dump areas for the Arctic project. Four of the
sonic drill holes were instrumented with thermistors, piezometers
and data loggers that will allow for long term baseline monitoring
information to be gathered that will be required for a future
permitting document.
On-going baseline environmental data collection included
maintenance of three hydrologic gauging stations and one
meteorological station. Surface water quality samples were taken
from several surface water locations and analyzed for a full suite
of parameters including total and dissolved metals. An
aquatics survey of rivers and creeks over the UKMP included
identification of fish species present and tissues metals testing.
An avian survey over the UKMP was conducted in May to
identify bird nest locations, with a follow-up survey in July to
measure fledging success.
The Company continues to advance the acid-base-accounting static
and kinetic test work at Arctic. Six on-site barrel samples were
successfully collected during all seasons of 2017 to support the
kinetics program. Maintenance and monitoring of all kinetic
tests continues into 2018.
Trilogy Metals is pleased to announce that the Pre-Feasibility
Study is on schedule and anticipated to be completed by the end of
the first quarter in 2018.
QAQC Program
The drill program, sampling protocol, and data verification were
managed by qualified persons employed by Trilogy Metals. The
diamond drill holes were drilled at PQ diameter drill core. Samples
were collected using a 0.17-meter minimum length, 5-meter maximum
length and 2.4-meter average sample length (1.7m through the mineralized zones). Drill core
recovery averaged 96% overall. 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 a quarter 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
an independent facility certified as ISO 9001:2008 and accredited
to ISO / IEC 17025:2005 from the Standards Council of Canada.
Results of the control samples were reviewed by a QP and were all
within acceptable limits. Trilogy Metals 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 and verified the technical
information in this news release and approves the disclosure
contained herein. The QP visually inspected all the mineralized
intervals used in the composites stated above and in addition
checked the assays values reported on the assay certificates versus
the values used for the composite calculations and found no
errors.
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, anticipated timing and results of the PFS, 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 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,
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.
SOURCE Trilogy Metals Inc.