VANCOUVER, May 20, 2019 /PRNewswire/ - Trilogy
Metals Inc. (TSX/NYSE American: TMQ) ("Trilogy
Metals", "Trilogy" or the "Company") is pleased to provide an
update on the Ambler access road and its project activities. The
Company has now completed preparations to open the Bornite camp to
accommodate the 2019 field programs on the Company's 100%-owned
Upper Kobuk Mineral Projects located in Northwest Alaska. All amounts are in US
dollars.
Ambler Mining District Industrial Access Project
The Company continues to work closely with the Alaska Industrial
Development and Export Authority ("AIDEA") who is permitting the
Ambler road, and we have been in contact with the various parties
involved in the permitting of the Ambler Mining District Industrial
Access Project ("AMDIAP"). According to the Bureau of Land
Management ("BLM"), which is the lead federal agency, the
permitting of the AMDIAP is moving along as scheduled. The
Preliminary Draft Environmental Impact Statement ("EIS") has been
made available to all the cooperating agencies, including: the
Bureau of Land Management, the US Army Corps of Engineers, the US
Park Service, the US Department of Transportation, the US Coast
Guard and the US Fish and Wildlife Service, the Alaska Department
of Natural Resources, the Alaska Department of Environmental
Conservation, the Northwest Arctic Borough, and several
participating Tribal entities.
According to the FAQ section of the BLM website for the Ambler
Road Project or AMDIAP, the draft EIS is expected to go out for
public comment on July 19, 2019.
A 45-day public comment period is scheduled. Locations
of the public meetings, including the ANLICA 810 hearings, are to
be determined. The Final EIS is scheduled to be complete
October 31, 2019. Shortly after
the final EIS has been issued, the Company expects the BLM to issue
the Record of Decision for the Right-of-Way across federal BLM
managed lands, and the Army Corps of Engineers to issue the 404
Wetlands Dredge and Fill Permit as per the Clean Water Act.
Rick Van Nieuwenhuyse, President
and CEO of Trilogy Metals commented, "I am extremely pleased at the
progress that the BLM has made in permitting the AMDIAP and expect
that all the permitting activities should be completed before the
end of 2019. The completion of the federal EIS process for the
Ambler Mining District Access Road represents a significant
milestone for the Company and is a demonstration of what Governor
Dunleavy has stated clearly many times: "Alaska is open for business." We commend
the BLM and other participating Federal and State agencies in their
efforts to remain on task and on schedule."
The BLM is the lead federal agency for the Ambler Road project
and is developing an Environmental Impact Statement under the
National Environmental Policy Act to evaluate whether or not to
grant a right-of-way for the Ambler Road across BLM lands. The
proposed project crosses state lands (61%) and Native corporation
lands (15%), but also crosses federal lands (24%) managed by the
BLM and the National Park Service. AIDEA has submitted a
permit application to request right-of-way across BLM lands.
The AMDIAP is anticipated to provide surface access to the
Ambler Mining District, long known to contain significant deposits
of copper, lead, zinc, gold and silver and specifically including
the Company's Upper Kobuk Mineral Projects – Arctic and
Bornite. The AMDIAP is modeled on AIDEA's successful DeLong
Mountain Transportation System ("DMTS"), which includes an
industrial access road from the Red Dog Mine to the DMTS port.
AIDEA worked with private investors to finance construction of the
DMTS industrial access road, and the costs of road construction
were paid back through tolls paid by the mine for use of the road.
No State of Alaska general funds
were used to construct the DMTS and that is exactly what is
anticipated for the AMDIAP.
Ambler District Exploration Program
The Company has already commenced the $2
million exploration program along the 100-kilometer Ambler
Volcanogenic Massive Sulphide ("VMS") Belt funded equally by
Trilogy and South32 Limited (ASX, LSE, JSE: S32; ADR: SOUHY)
("South32"). Specifically, we are just completing the
district-wide VTEM and ZTEM geophysical surveys, which were flown
on 200 and 400 meter line spacing over both the Cosmos Hills and
the entire Ambler VMS Belt. Both surveys are electromagnetic
surveys that have been successful in identifying targets and
mineralization in VMS districts. The survey data is currently
being processed to identify and prioritize drill targets for follow
up geologic mapping, soil geochemistry and drilling – including on
known historic resources previously identified along the
100-kilometer long belt (Figure 1).
Bornite Project
The 2019 program and budget of $9.2
million, funded entirely by South32, for the Bornite Project
will be mainly directed at i) approximately 8,000 meters in 12
holes of infill and expansion drilling on the Bornite deposit; ii)
additional metallurgical work to optimize copper recoveries and the
determination of next steps for the recovery of cobalt; and iii)
initial engineering studies to prepare Bornite for a preliminary
economic assessment once the work from the 2019 work programs are
completed, including drill results, metallurgical program updates,
a resource update and ongoing environmental baseline data
collection. The 2019 drill campaign is anticipated to begin
in early June.
Arctic Project
The Company is close to completing preparations for the summer
field season at the Arctic Project and expects to commence work in
June 2019. Specifically, the Company
will continue to advance engineering and environmental work in 2019
in support of completing a feasibility study and preparing the
Arctic Project for permitting. The total budgeted amount for these
activities for 2019 is $7.0 million.
The Company will undertake additional hydrological and geotechnical
work at the site along with water management, tailings facility and
waste rock containment analysis and design. Additional
metallurgical test work to verify ore hardness and grinding
characteristics is currently on-going with materials from the
project. The Company expects to complete the feasibility study in
the first half of 2020.
Figure 1. Location of Historic Resources at the Ambler VMS
Belt
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.
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, potential permitting and
development of the ADMIAP, planned expenditures and the anticipated
drilling, survey and other activity at the Company's properties and
the timing thereof, the timing and the filing of updated reports on
the Company's projects, the future price of copper and cobalt, the
estimation of mineral reserves and mineral resources, the
realization of mineral reserves and mineral resource estimates, the
potential increase in copper mineralization at the Bornite Project,
costs of production, capital expenditures, costs and timing of the
development of projects, are forward-looking statements. The
metallurgical results discussed in this press release should not be
considered representative of other drilling results for the 2019
drilling campaign. 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, 2018 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.