VANCOUVER, BC, June 8, 2022
/CNW/ - Trilogy Metals Inc. (TSX: TMQ) (NYSE: TMQ)
("Trilogy" or the "Company") is pleased to announce that Ambler
Metals LLC ("Ambler Metals"), the joint venture operating company
equally owned by Trilogy and South32 Limited (ASX, LSE, JSE: S32;
ADR: SOUHY) ("South32"), has commenced mobilization for the
upcoming exploration field program at the Upper Kobuk Mineral
Projects ("UKMP") located in northwestern Alaska. The UKMP includes the Arctic
(volcanogenic massive sulphide, or "VMS") deposit ("Arctic"), the
Bornite (carbonate-hosted copper, or "CHC") deposit ("Bornite"),
and prospective adjoining mining claims.
On May 11, 2022, the owners of
Ambler Metals approved an updated summer field program resulting in
an overall fiscal 2022 budget of approximately US$26.2 million for the advancement of the UKMP.
The entire amount is fully funded by Ambler Metals and will consist
of a minimum 10,000 meters of diamond drilling with additional
meters contingent on drill performance, weather and approval of
supplementary budgets.
The 2022 exploration program is aligned with the strategy
developed by Trilogy and South32. Priorities are advancing Arctic
with additional infill drilling to further improve the confidence
in the resource and the completion of a geotechnical study to
further de-risk the project. Exploration outside of the Arctic
deposit will focus on discovering copper-rich satellite deposits
near Arctic, and in the Cosmos Hills and the Ambler Lowlands along
strike from Bornite (see Figure 1).
Preparations are underway with the mobilization of crews and
equipment in progress, and drilling is expected to commence in
early June. Major Drilling ("Major")
was awarded a multi-year contract to provide three diamond drill
rigs with crews. Major has experience at the UKMP from drill
campaigns in 2017, 2018 and 2019. The drill program is
helicopter-supported and is based out of Ambler Metals' expanded
90-person camp at Bornite.
Tony Giardini, President and CEO
of Trilogy, commented, "I am very excited that we will soon be
opening camp for the 2022 exploration program. We expect to
commence drilling by early June with first assay results being
available in early fall. The proposed exploration program will be
one of the largest programs in the history of drilling within the
Ambler Mining District and we expect that it will allow us to
expand our geological knowledge of this emerging world-class mining
district."
Richard Gosse, VP Exploration of
Trilogy, commented, "We are pleased with the collaboration between
South32, Ambler Metals and Trilogy geoscientists in developing this
year's exploration program. The team had numerous meetings to
interpret and discuss the results of last year's program and
they've come up with some very compelling targets and target areas,
ranging from reconnaissance targets to well mineralized prospects
that have never previously been drilled – that are a priority for
the Ambler Metals team to evaluate this summer."
Arctic Work Plan
Following last year's 4,100-meter (18-hole) infill,
metallurgical and geotechnical drill program, this year's program
involves a minimum 6,000 meters in 27 holes, as part of an
8,400-meter infill program to increase confidence from Indicated to
Measured in areas of the mineral resource block model that would be
mined during the first four years of production based on Trilogy's
Feasibility Study[†] mine plan and with the highest estimated
value (see Figure 2).
In addition, three to five holes totaling 500 to 750 meters are
planned to complete a geotechnical and hydrogeological assessment
of Arctic that SRK Consulting commenced last year.
Ambler Belt: VMS
Exploration
During the 2021 field season, geological mapping near Arctic
assisted in defining three shallow VMS targets that Ambler Metals
plans to drill this summer (see Figure 3). All three targets are
visible in the airborne electromagnetic ("EM") data acquired during
the 2019 Versatile Time Domain Electromagnetic ("VTEM") survey that
was recently reprocessed by Condor Geophysics. A first pass drill
program at the three targets will require a minimum of 1,100
meters.
- Riley Ridge – Located 2km NW of
Arctic. Conductor plate modelling defined a discrete conductor
approximately 100 to 200 meters from surface, beneath meta-rhyolite
and silicified graphite mica schist that are interpreted to be the
immediate hanging wall of the projected Arctic horizon. The
conductor is the easternmost in a string of VTEM anomalies that
trends for 6km across the COU target area that was mapped by Ambler
Metals last year.
- 98-9 – Located 3-4km NE of Arctic. The 98-9 prospect was
discovered by Kennecott in 1998 but has never been drilled.
Outcropping copper oxide mineralization occurs within a 50-meter
vertical thickness of folded and altered Ambler sequence in two
narrow gullies over 100 meters. Along strike to the south is a
moderate airborne EM anomaly that is +500 meters in length and
covered by alluvium. Kennecott completed three short soil lines
over the EM anomaly, which produced a moderately strong Cu-Zn-Pb
(+Ba-Cd-Au) anomaly. Further work was recommended, however
Kennecott ceased exploration in the belt later that year.
- East Dead Creek – Located 6km NW of Arctic. East Dead Creek was
discovered by Kennecott in 1998 while following up top ranked
airborne EM anomalies. At the time, alteration at East Dead Creek
was noted to be the most intense in the district outside of Arctic
and a soil survey outlined a 1.4km by 1km area of anomalous base
metal geochemistry. Due to weather and safety, Kennecott drilled
only one of their five drill targets at East Dead Creek – hole
98-3-01 collared uphill of sub-cropping gossan, encountered three 1
to 4.5-meter-thick zones of semi-massive sulphides with
chalcopyrite and sphalerite in the top 40 meters of the hole.
Conductor plate modelling of the VTEM data defined several strong
shallow conductors above a weakly conductive horizon interpreted to
be the graphitic schist intersected in the lower part of hole
98-3-01. Ambler Metals' first hole will be directed towards the
strongest of these shallow conductors, located about 600 meters up
dip of the semi-massive sulphides in hole 98-3-01.
In addition, Ambler Metals plans to conduct additional
geological mapping and soil sampling at several other VMS prospects
in the belt, including Ambler, Dead Creek, Sunshine and COU, as
well as at high-priority VTEM anomalies.
__________________________
|
†
|
"Arctic Feasibility
Study Alaska, USA NI 43-101 Technical Report" with an effective
date of August 20, 2020 and a release date of October 2,
2020
|
Cosmos Hills and the Ambler
Lowlands: CHC Exploration
Last year's exploration program for CHC, including soil
sampling, detailed structural mapping, relogging historical core,
trenching and two drill holes, outlined four areas for
drilling. This year, in addition to drilling, which is
expected to total about 2,400 meters, further detailed mapping and
soil sampling and a minimum 2,000 meters of trenching are planned
around Pardner Hill and the Bornite East target area.
- Bornite West – Last year, hole RC21-267, a scout hole located
2km west of Bornite, encountered low grade copper in Bornite
sequence carbonates. The intersection is encouraging as the hole
was sited about one kilometer along the projected NE trend of
mineralization at Pardner Hill, a 3km copper soil and rock
geochemical anomaly in rubble cropping dolostone. Follow up holes,
both up-dip and down-dip of hole RC21-267 are planned for this
year.
- Pardner Hill Zone – From 1961 to 1964, Kennecott defined a zone
of shallow stratabound copper mineralization over an area of
approximately 150 meters by 400 meters and varying from 5 meters to
35 meters in thickness. The zone which is open to the northwest,
west and southwest, will be tested with three holes this
summer.
- Pardner Hill North – An additional two scout holes located 250
to 500 meters to the NE of the Pardner Hill mineralized zone are
contingent on the results of the trenching program that will begin
in June.
- Ambler Lowlands – The second hole Ambler Metals drilled
targeting the Bornite sequence carbonates in 2021, hole ALL21-001,
was a stratigraphic hole located in the Ambler Lowlands, a
10-kilometer-wide glaciated valley separating Arctic and Bornite
that is virtually unexplored despite its proximity to these
deposits. Hole ALL21-001 was designed to redrill one of the only
two holes ever drilled in the valley – NANA-1, drilled in 1974,
which historical drill logs show intersected dolomitized carbonate
and carbonate breccia similar to the carbonates that host the
Bornite deposit. Unfortunately, hole ALL21-001 was lost at a depth
of 300 meters, above the expected depth of the Bornite sequence.
Ambler Metals proposes to re-enter and complete the hole this
summer contingent on drill production and weather.
Qualified Person
Richard Gosse, P.Geo., Vice
President Exploration for Trilogy, is a Qualified Person as defined
by National Instrument 43-101. Mr. Gosse has reviewed the
scientific and 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 which holds a 50 percent interest in Ambler Metals LLC,
which has a 100 percent interest in the Upper Kobuk Mineral
Projects 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 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 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 proposed 2022 field
exploration program at the UKMP; the merits of the UKMP; the
Company's ability to complete at least 10,000 meters of diamond
drilling at Arctic; the completion of a geotechnical study; the
Company's ability to de-risk the project; the commencement of
drilling in early June; the timing of the first assays; the size of
the Company's exploration program; the Company's targets for the
exploration program; the Company's ability to meet its targets; the
Company's ability to advance the project to a construction
decision; the Company's ability to complete a minimum of 6,000
meters in 27 holes and a 9,000 meter infill program; the future
conversion of Arctic resources from indicated to measured; the
completion of drilling to support the completion of a geotechnical
and hydrogeological assessment of Arctic; Amber Metals' plan to
conduct additional geological mapping and soil sampling; the
outcome of the Bornite West drilling; the start of and drilling
plans for the Pardner Hill trenching program; Ambler's ability to
re-enter and complete the stratigraphic hold located in the Amber
Lowlands; and the Company's ability to develop the Amber Mining
District into a premier North American copper producer 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 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, 2021 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.