VANCOUVER, BC, Feb. 7, 2022 /PRNewswire/ - Trilogy
Metals Inc. (TSX: TMQ) (NYSE American: TMQ) ("Trilogy" or the
"Company") is pleased to announce that the Alaska Industrial
Development and Export Authority ("AIDEA") has formally approved
the proposed plan and budget for the 2022 summer field season
activities and services of up to $30.8
million for the Ambler Access Project ("Ambler Access
Project" or "AAP"). The cost will be shared 50/50 by AIDEA
and Ambler Metals LLC ("Ambler Metals"), the joint venture
operating company equally owned by Trilogy and South32 Limited
(ASX, LSE, JSE: S32; ADR: SOUHY) ("South32"). All amounts are
in US dollars.
2022 Ambler Access Project Budget and Proposed Field
Work
The Board of AIDEA, a public corporation of the State of Alaska with the purpose to promote,
develop and advance the general prosperity and economic welfare of
the people of Alaska, has
authorized up to $15.4 million for
field season activities on the Ambler Access Project. These funds
will be matched by up to another $15.4
million from Ambler Metals under the terms of the Ambler
Access Development Agreement (the "Development Agreement") that was
approved by the AIDEA Board on February 10,
2021, and subsequently executed by both parties. Both
South32 and Trilogy have approved Ambler Metals portion of this
budget.
The $15.4 million amount that
Ambler Metals is contributing to this year's AAP budget is in
addition to the $28.5 million that
was approved by Trilogy and South32 for the 2022 program at the
Upper Kobuk Mineral Projects ("UKMP").
During the 2022 field season, AIDEA will be carrying out
additional work including, geotechnical investigations,
right-of-way surveys, environmental studies, road and bridge
engineering design work, and cultural resources work.
According to AIDEA, the AAP is expected to create thousands of
new jobs resulting in over $5 billion
in wages paid during the lifetime of the project and that the bulk
of the work force required for the construction, management and
maintenance of the road will be from the local communities. AIDEA
is already holding job fairs in the local communities with a
commitment to hire locally and benefit local villages.
Tony Giardini, President and CEO
of Trilogy, commented, "It has been over 10 years since Trilogy
formed its partnership with NANA Regional Corporation, Inc
("NANA"). This partnership has been a very productive and
fulfilling experience for all sides. Since that time, Trilogy and
now Ambler Metals, have been fully committed to our core values
which include respect for the environment, Iñupiaq and Athapaskan
subsistence cultures and the safety and wellbeing of all our
employees. We have always taken extreme pride on our commitment to
our native partners and have always worked hard to earn their
trust. We believe our unparalleled track record and strong
relationships with our local partners will ultimately prove to be
successful in the development of the AAP and the development of the
UKMP. Since 2004 to the formation of the Ambler Metals joint
venture we invested $147 million into
the UKMP. Subsequently, the joint venture invested $3.5 million and $22.6
million in 2020 and 2021, respectfully. Ultimately, there
has been approximately $176 million
invested in the Ambler Mining District over the years."
Simon Collins, Chief Development
Officer of South32, commented, "Our participation in the Ambler
Metals joint venture, which is studying the potential development
of the UKMP, is fully aligned with South32's aim of reshaping our
portfolio by increasing our exposure to the base metals that are
important in a low carbon future. In line with our company's
purpose and values, we are committed to progressing the UKMP in a
way that minimizes social and environmental impact and is based on
positive stakeholder relationships and the creation of
opportunities for local communities."
Ramzi Fawaz, President and Chief
Executive Officer of Ambler Metals, "We are looking forward to a
busy and productive 2022 field season. Ambler Metals will be
recruiting for over 60 direct hire positions, ranging from
geologists to heavy equipment operators. Additionally, there
will be approximately 50 positions hired through contractors
working for us. We are also pleased to announce that as part
of our workforce development plans, Ambler Metals will be kicking
off several vocational training programs involving participants
from the NANA and Doyon regions. This in addition to the very
successful scholarship program that Ambler has in place for
deserving NANA Shareholders studying for future careers in the
natural resources sector."
History of Ambler Access Project
- In 1980, President Jimmy Carter
signed the Alaska National Interest Lands Conservation Act
("ANILCA") into law. ANILCA sought to balance the state's natural
resource-based economy with environmental protection and preserve
Alaskans' unique ways of life.
- ANILCA established 10 new federal parks, preserves, and
monuments throughout Alaska while
guaranteeing certain rights of access for subsistence, hunting,
fishing, recreation, and other economic and social purposes. Access
to and from the Ambler Mining District for resource development is
guaranteed in Section 201(4) of ANILCA.
- In 2009, the Alaska Department of Transportation and Public
Facilities ("DOT&PF") began evaluating multiple road and
railroad routes that could provide access to the Ambler Mining
District. Access to the District was assessed for both east and
west alignments. As a result of these studies, a potential corridor
was identified that would connect the Dalton Highway to the Ambler
Mining District crossing the Gates of the Arctic National
Preserve.
- In 2013, the project was transferred from DOT&PF to AIDEA,
a public corporation of the State of
Alaska. AIDEA's purpose is to promote, develop and advance
the general prosperity and economic welfare of the people of
Alaska.
- AIDEA undertook the project with the goal of forming a
public-private partnership to finance, construct, operate and
maintain the controlled industrial access road. The project
approach is modeled on AIDEA's successful DeLong Mountain
Transportation System ("DMTS"), which includes a 52-mile industrial
access road from the Red Dog Mine to the DMTS shallow-water port.
AIDEA worked with private industry to develop the DMTS industrial
access road and the costs of road construction were paid back
through tolls on road use.
- According to AIDEA, during the scoping period (which was
extended from 90 days to over 330 days), the United States Bureau
of Land Management ("BLM") held 15 public hearings in 13
communities and received more than 7,200 written comments.
Subsequently, after the draft EIS was released in August 2019, the BLM held an additional 18
hearings in rural communities, hearings in two hub communities
(Anchorage and Fairbanks), and a hearing in Washington, D.C. The BLM received an
additional 29,000 written comments to the draft EIS which were
scrutinized and incorporated into the final EIS. AIDEA has stated
that the development and production of the the Joint Record of
Decision ("JROD") and the Final Environmental Impact Statement
("FEIS"), which cost almost $5
million, was an extraordinarily high-quality and
comprehensive analysis report, which, in their opinion, far
surpasses the BLM's legal obligations.
- On July 23, 2020, the Company
announced that the BLM issued the JROD and the FEIS for the AAP.
Subsequently, a Section 404 Permit, which is governed by the Clean
Water Act ("CWA"), was issued by the United States Army Corp. of
Engineers ("USACE") to AIDEA.
- Lawsuits were filed shortly thereafter by a coalition of
national and Alaska environmental
non-government organizations in response to the BLM's issuance of
the JROD for the Ambler Access Project. Subsequently NANA, AIDEA,
Ambler Metals and the State of
Alaska applied for and were granted intervenor status in the
litigation.
- On January 6, 2021, BLM, the
National Park Service and AIDEA signed Right-of-Way agreements
giving AIDEA the ability to cross federally owned and managed lands
along the route for the Ambler Access Project approved in the JROD.
The authorizing documents with the two agencies are the final
federal permits required for the Ambler Access Project.
- On February 10, 2021, AIDEA
entered into the Development Agreement, a long-term agreement with
Ambler Metals for shared pre-development costs of the Ambler Access
Project. The Development Agreement is an agreement between AIDEA
and Ambler Metals to contribute up to $35
million each for feasibility and permitting activities of
the Ambler Access Project through the end of December 2024.
- During the second quarter of 2021, AIDEA signed a land access
agreement with Doyon Limited to conduct feasibility and permitting
activities to advance the Ambler Access Project and in September 2021 AIDEA signed a land access
agreement with NANA to conduct similar activities.
- In October 2021, the Northwest
Arctic Borough Assembly passed a resolution in support of the
Ambler Access Project.
- On October 27, 2021, the federal
defendants, which include the BLM, the USACE, United States
Department of the Interior, the National Park Service and the
United States Department of Transportation were granted a 60-day
stay with respect to each of the lawsuits. The stay was granted
through November 29, 2021.
- Throughout 2021, the Ambler Access Project made significant
progress achieving multiple land access milestones, including
rights-of-way ("ROW") between AIDEA, the National Park Service ,
and BLM as well as an AIDEA-Doyon land access agreement and an
AIDEA-NANA land access permit.
- The agreement and permit with Doyon and NANA, respectively, are
effective until December 31, 2024.
Note that these are not ROW agreements. Project resources were
added to advance the project through Final Feasibility and
Permitting, including a dedicated program manager, external
communications manager, and a team of contractors to complete nine
critical scopes of work.
- On January 21, 2022, the federal
defendants filed a request for an additional 30-day extension.
About Trilogy Metals
Trilogy Metals Inc. is a metal exploration and development
company which holds a 50 percent interest in Ambler Metals LLC
which has a 100 percent interest in the Upper Kobuk Mineral
Projects ("UKMP") in Northwestern
Alaska. On December 19, 2019,
South32, a globally diversified mining and metals company,
exercised its option to form a 50/50 joint venture with Trilogy.
The UKMP is located within the Ambler Mining District which 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 a land
package that spans approximately 181,387 hectares. Ambler Metals
has an agreement with NANA Regional Corporation, Inc., an Alaska
Native Corporation that provides a framework for the exploration
and potential development of the Ambler Mining District in
cooperation with local communities. Trilogy's 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 relating to the permitting and
construction of the AAP, the timing and benefits of the AAP and the
merits of the UKMP 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. 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 whether the Alaska Industrial
Development and Export Authority will build the AAP; the impact of
the COVID-19 pandemic; success of exploration activities,
permitting timelines, requirements for additional capital,
government regulation of mining operations, environmental
risks, prices for energy inputs, labour, materials, supplies
and services, uncertainties involved in the interpretation of
drilling results and geological tests, unexpected cost increases
and other risks and uncertainties disclosed in the Company's Annual
Report on Form 10-K for the year ended November 30, 2020 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.
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SOURCE Trilogy Metals Inc.