VANCOUVER, Feb. 6, 2019 /PRNewswire/ - Trilogy
Metals Inc. (TSX/NYSE American: TMQ) ("Trilogy
Metals", "Trilogy" or the "Company") is pleased to announce a new
regional exploration budget of $2
million that is in addition to the previously announced 2019
programs and budgets of $16.2
million, increasing the exploration budget at the Company's
Upper Kobuk Mineral Projects ("UKMP") located in the Ambler Mining
District of Northwest Alaska for
2019 to $18.2 million. All
amounts are in US dollars.
Exploration Budget
Last December the Company's technical team held meetings in
Perth, Australia with
representatives of South32 Limited (ASX, LSE, JSE: S32; ADR: SOUHY)
("South32"). Subsequent to these meetings, additional discussions
took place in Vancouver resulting
in both Companies agreeing to increase exploration expenditures at
the UKMP by $2 million. The
additional $2.0 million has been
approved for regional or district exploration focused on
identifying and testing new drill targets within the Ambler
Volcanogenic Massive Sulphide ("VMS") Belt. The Company will
contribute $1 million to the UKMP
regional program and South32 will contribute the remaining
$1 million.
The $1 million that South32 is
contributing is in excess of the $30
million in option payments that South32 has already
contributed to maintain the option to form a 50/50 joint venture on
the UKMP (see the press release dated January 31, 2019 for more information on the
option agreement between Trilogy and South32).
Rick Van Nieuwenhuyse, President
and CEO of Trilogy Metals commented, "As an exploration geologist,
I am very excited that the Technical Committee and South32 have
agreed to equally fund a $2 million
exploration program along the Ambler VMS belt. The program
will include a VTEM airborne geophysical survey along the entire
belt. Follow-up ZTEM may be flown in certain areas.
High priority targets will be evaluated with follow-up
drilling. There are dozens of known VMS prospects along the
75 mile-long Ambler Belt including many with historic
resources. It is exciting to be drilling new exploration
targets again. We are confident that we can find additional
high-grade polymetallic resources along this prolific mineral
belt."
Ambler VMS Belt
The Ambler mining district is located on the southern margin of
the Brooks Range. Within this VMS belt, several deposits and
prospects (including the Arctic Deposit) are hosted in the Ambler
Sequence, a group of Middle Devonian to Early Mississippian,
metamorphosed, bimodal volcanic and volcaniclastic rocks with
interbedded siliceousclastic, graphitic, and calcareous
metasediments. The Ambler sequence occurs in the upper part of the
regional Anirak Schist. VMS-style mineralization is found along the
entire 110 km strike length of the district. In addition to the
Arctic Deposit, numerous other VMS-like occurrences are present on
the Trilogy Metals land package. The most notable of these
occurrences are the Dead Creek (also known as Shungnak), Sunshine, Cliff, Horse, and the
Snow prospects to the west of the Arctic Deposit and the Red, Nora,
Tom-Tom and BT prospects to the east (Figures 1 and 2).
1.
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Source: Anaconda
Copper Mining Company ("ACM"), ACM Internal Report, 1981
|
2.
|
Source: Kennecott
Mines Company ("KMC"), KCM Internal Report, 1985
|
3.
|
Source: Kennecott
Mines Company ("KMC"), KCM Internal Report, 1997
|
4.
|
Source: Bear Creek
Mining Company ("BCM"), BCM Progress Report, 1983
|
5.
|
Source: Kennecott
Mines Company ("KMC"), KCM Internal Report, 1997
|
6.
|
Source: North of 60
Mining News, September 7, 2018. The Sun project is 100%-owned by
Valhalla Metals Inc. Inferred resources have a great amount of
uncertainty as to their existence and as to whether they can be
mined legally or economically. It cannot be assumed that all or any
part of inferred resources will ever be upgraded to a higher
category. See "Cautionary Note to United States
Investors."
|
7.
|
"Arctic Project,
Northwest Alaska, USA, NI 43-101 Technical Report on
Pre-Feasibility Study". See the news release at https://Trilogy
PR February 20, 2018 and the technical report which is
available on the Company's website at
https://trilogymetals.com/assets/docs/2018-04-06-Arctic-NI-43-101-TechReport.pdf or
on the Company's profiles at www.sedar.com and
www.sec.gov.
|
A Qualified Person has not done sufficient work to classify
the above historical estimates (Smucker, Horse Creek, Sunshine,
Shungnak and BT) as current
mineral resources or mineral reserves. Trilogy is not treating
these historical estimates as current mineral resources or mineral
reserves, has not verified the above historical resource estimates
and is not relying on them. The historical estimates were prepared
prior to the adoption and implementation of National Instrument
43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101")
and do not use categories that conform to the current Canadian
Institute of Mining, Metallurgy and Petroleum Definition Standards
for Mineral Resources and Mineral Reserves. Additional work,
including drilling, would need to be carried out on these
historical resources to make them complaint with NI 43-101.
Generally, VMS belts host clusters of deposits that can range
from 1 million tonnes to over 100 million tonnes, and can contain
high-grade copper, zinc, lead and precious metals. Some of the most
prolific base-metal mineral belts in the world are within VMS
districts such as the Flin Flon Belt of northern Manitoba, the Iberian Pyrite Belt in
Spain and Portugal and the Noranda area of Quebec (Figure 3).
The Company is well financed to complete these programs.
With cash and cash equivalents at its fiscal year-end over
$20.0 million and the funding from
South32 of $10.2 million, the Company
has over $30.0 million to advance the
UKMP Projects. Trilogy also has 6.5 million warrants held by
large shareholders expiring on July 2,
2019, at an exercise price of $1.52 which is below the Company's current
trading price. Trilogy would receive an additional
$10 million with the full exercise of
the warrants.
*See the Company's
technical reports entitled "Arctic Project, Northwest Alaska, USA,
NI 43-101 Technical Report on the Pre-Feasibility Study" with an
effective date of February 20, 2018 and filed on April 6, 2018 and
"NI 43-101 Technical Report on the Bornite Project, Northwest
Alaska, USA" with an effective date of June 5, 2018 and filed on
July 20, 2018.
|
Inferred resources
have a great amount of uncertainty as to their existence and as to
whether they can be mined legally or economically. It cannot be
assumed that all or any part of inferred resources will ever be
upgraded to a higher category. See "Cautionary Note to United
States Investors."
|
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 and exploration activity, the
potential advancement of the AMDIAP, the Company's ability to find
additional resources at the UKMP and mining generally in
Alaska, 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. 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 pre-feasibility study; 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.
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SOURCE Trilogy Metals Inc.