Trilogy Metals Engages Consultants for Arctic Pre-Feasbility Study
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News Release
Trilogy Metals Engages Consultants for Arctic Pre-Feasbility Study
June 5, 2017 - Vancouver, British Columbia – Trilogy Metals Inc. (TSX, NYSE-MKT:
TMQ) ("Trilogy Metals” or "the Company”) is pleased to announce that it has engaged
Ausenco Engineering Canada Inc. (“Ausenco”) to prepare the Arctic pre-feasibility study
(“PFS”) technical report anticipated to be complete in Q1, 2018. The Company has also
engaged Amec Foster Wheeler (“Amec”) to complete mine planning and SRK Consulting
(Canada) Inc. (“SRK”) to complete tailings and waste design, hydrology and environmental
studies.
Ausenco is a global diversified engineering, construction and project management company
providing consulting, project delivery and a sset management solutions to the resources,
energy and infrastructure sectors. Ausenco’s experience in base metal and cold weather
projects ranges from conceptual, pre-feasibility and feasibility studies for new project
developments to brownfield expansions with EPCM and EPC delivery. Ausenco is currently
engaged on a number of remote projects with similar characteristics and opportunities to
the Arctic project. Ausenco’s office in Vancouver, British Columbia, Canada will coordinate
the Arctic PFS.
“We are pleased to have assembled an excellent team to complete our pre-feasibility study
on the high-grade polymetallic Arctic deposit. Ausenco, Amec and SRK are, all three, highly
skilled and reputable companies, and the in dividual team members at each of these
companies have decades of mining experience to draw on. The Arctic project is the first of
many exciting opportunities in the Ambler mi ning district. While the Arctic PFS gets
underway with a budget of US$7.1 million, we will continue to explore our exciting Bornite
property with a budget of US$10 million. Wi th a US$17 million total budget this year for
exploration at Bornite and the Arctic PFS, it will be a very busy and productive year ahead
for the Company. Major mining districts take time to develop and we are fortunate to have
long-term support through our partnerships with NANA, AIDEA and South32, as well as
continued support from our large shareholders”, says Rick Van Nieuwenhuyse, President
and Chief Executive Officer.
Arctic Pre-Feasibility Study
The Arctic deposit is a high-grade copper-zi nc-lead volcanogenic massive sulfide deposit
which also contains significant amounts of precious metals. The Company is proposing a
10,000 tonne per day, open pit mining operation with a typical crush-grind-float flow sheet
producing significant tonnages of copper and zinc concentrates and lessor lead concentrate
containing significant quantities of precious metals. The Company has recently provided
updated “PFS level” metallurgy, pit-slope stability and hydrology information in our March
19, 2017 press release (https://Trilogy PR April 19 2017) and an updated resource estimate
for Arctic on March 25, 2017 ( https://Trilogy PR April 25 2017 ). This summer, our
consultants will work with our team members to complete the site investigation work to
determine the optimal location for the mill and power plant, tailing and waste design, and
other supporting infrastructure and facilitie s. The Company had previously released a
National Instrument 43-101 - Standards of Disclosure technical report entitled "Preliminary
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Economic Assessment Report on the Arctic Pr oject, Ambler Mining District, Northwest
Alaska" dated effective September 12, 2013 (the "PEA") (https://Trilogy PR September 12
2013). We expect the PFS to be completed in Q1, 2018. Ausenco, who are independent
from the Company, will coordinate and work with our other consultants to provide
engineering support and an economic analysis, as well as author the Arctic PFS technical
report for the Company.
Qualified Persons
Andrew W. West, P.Geo., 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 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 lo cated in one of the safest geopolitical
jurisdictions in the world. It hosts world- class polymetallic VMS deposits that contain
copper, zinc, lead, gold and silver, and carb onate replacement deposits which have been
found to host high grade copper mineralizati on. Exploration efforts have been focused on
two deposits in the Ambler mining distri ct - the Arctic VMS deposit and the Bornite
carbonate replacement deposit. Both deposi ts 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 deve lopment 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.
Company Contacts
Rick Van Nieuwenhuyse Elaine Sanders
President & Chief Executive Officer Vice President & Chief Financial Officer
[email protected] el [email protected]
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 potential timing and
preparation of a PFS on the Arctic deposit, 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 the need
for additional financing to explore an d 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
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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, 2016
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
The Arctic Preliminary Economic Assessment and the Bornite Technical Report have been prepared in accordance
w i t h t h e r e q u i r e m e n t s o f t h e s e c u r i t i e s l a w s i n e f f e c t i n C a n a d a , w h i c h d i f f e r f r o m t h e r e q u i r e m e n t s o f U . S .
securities laws. Unless otherwise indicated, all resource and reserve estimates included in this press release have
been prepared in accordance with National Instrument 43-101 Standards of Disclosure for Mineral Projects ("NI
43-101”) and the Canadian Institute of Mining, Metallurgy, and Petroleum Definition Standards on Mineral
Resources and Mineral Reserves. 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 therein 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 no t 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 any part or all of mineral deposits in these categories will ever be converted into
reserves. U.S. 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. It cannot be
assumed that all or any part of an "inferred mineral resource” will ever be upgraded to a higher category. Under
Canadian rules, estimated "inferred mineral resources” may not form the basis of feasibility or pre-feasibility
studies except in rare cases. Investors are cautioned not to assume that all or any part of an "inferred mineral
resource” exists or is economically or legally mineable. 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 the Company in compliance with NI 43-101 may not qualify as "reserves” under
SEC standards. Accordingly, information concerning mineral deposits set forth in this press release or the Bornite
Technical Report may not be comparable with information made public by companies that report in accordance
with U.S. standards.