Trilogy Metals Announces Approved Program and Budget for the Ambler Access Project
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News Release
Trilogy Metals Announces Approved Program and Budget for the
Ambler Access Project
February 7, 20 22 - Vancouver, British Columbia – Trilogy Metals Inc. (TSX/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
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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 $17 6 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 vocatio nal 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 route s 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.
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• 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 o f 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 feasibilit y 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 Ac cess 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
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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, 20 19, 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 polymetalli c 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.
Company Contacts
Patrick Donnelly
Vice President, Corporate Communications & Development
604-630-3569
604-638-8088 or 1-855-638-8088
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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 Alask a
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 r isks, 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
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uncertainties disclosed in the Company’s Annual Report on Form 10 -K for the year ended November 30, 20 20 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.