Trilogy Metals Files New Technical Report for the Arctic Resource
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News Release
Trilogy Metals Files New Technical Report for the Arctic Resource
November 9, 2017 - Vancouver, British Columbia – Trilogy Metals Inc. (TSX,
NYSE-MKT: TMQ) ("Trilogy Metals” or "the Company”) has filed a National Instrument
43-101 technical report with the Canadian securities regulators relating to the Arctic Project
which supports the resource estimate previously announced on April 25, 2017 which is of
sufficient quality to support the Arctic pre-feasibility study (“PFS”). The technical report is
entitled NI 43-101 Technical Report on the Arctic Project, Northwest Alaska, USA and
prepared by Bruce Davis, Robert Sim and Jeff Austin, all of whom are “Qualified Persons”
under NI 43-101 (the “Technical Report”). The Arctic Project is estimated to contain at a
base case of 0.5% copper equivalent cut-off grade, an in-pit indicated resource of
approximately 36 million tonnes of copper grading 3.07% (see Table 1) that are expected to
form the basis for the PFS and the Company’s first reserves in the Ambler Mining District.
The PFS is on target to be released in the first quarter of 2018.
Rick Van Nieuwenhuyse, President and CEO of Trilogy Metals, commented, “We are excited
in the progress made to date towards finalizing the pre-feasibility study for our high-grade
Arctic Project in Q1 2018. Arctic is pretty special – we predict it will be one of the highest
grade open pit copper projects in the world. Arctic is also located in the geographic center
of a 100 Km long belt containing over two dozen known grade polymetallic deposits and
occurrences. It is not hard to envision a central milling concept with the other deposits
potentially feeding the mill beyond the mine life at Arctic. With the Ambler Mining District
Industrial Access Project (“AMDIAP”) now in the formal permitting process and public
scoping meetings taking place, it is exciting to see the Ambler Access Road finally taking
shape.”
Table 1. Estimate of Mineral Resources for the Arctic Deposit
Average Grade: Contained metal:
Class M
tonnes Cu % Pb% Zn% Au g/t Ag g/t Cu Mlbs Pb Mlbs Zn Mlbs Au koz Ag Moz
Indicated 36.0 3.07 0.73 4.23 0.63 47.6 2,441 581 3 ,356 728 55
Inferred 3.5 1.71 0.60 2.72 0.36 28.7 131 47 210 40 3
• Base Case cut-off grade of 0.5% CuEq.
• Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. There is no
certainty that all or any part of the Mineral Resources will be converted into Mineral Reserves. See
“Cautionary Note to United States Investors.”
• Resources stated as contained within a pit shell developed using metal prices of US$3.00/lb copper,
US$0.90/lb lead, US$1.00/lb zinc, US$1300/oz gold, US$18/oz silver, mining costs of US$3.00/tonne,
milling and G&A costs of US$35/tonne, metallurgical recoveries of 92% for copper, 77% for lead, 88% for
zinc, 63% for gold, 56% for silver and an average pit slope of 43 degrees.
• Inferred resources have a great amount of uncertainty as to whether they can be mined legally or
economically. It is expected that a majority of the inferred resources will be converted to indicated mineral
resources with continued exploration.
TSX, NYSE-MKT
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The sensitivity of mineral resources, contained within the resource limiting pit shell, is
demonstrated by listing resources at a series of cut-off thresholds as shown in Table 2.
Table 2. Sensitivity of Mineral Resources to Cut-off Grade
Average Grade: Contained metal:
Cut-off
CuEq%
M
tonnes Cu % Pb% Zn% Au g/t Ag g/t Cu Mlbs Pb Mlbs Zn Mlbs Au koz Ag Moz
Indicated
0.25 36.0 3.07 0.73 4.22 0.63 47.61 2,441 582 3,356 729 55
0.5 36.0 3.07 0.73 4.23 0.63 47.62 2,441 581 3,356 728 55
0.75 35.9 3.08 0.73 4.23 0.63 47.72 2,440 582 3,355 728 55
1.0 35.7 3.09 0.74 4.26 0.63 47.97 2,436 581 3,353 728 55
1.5 35.5 3.11 0.74 4.28 0.64 48.22 2,432 580 3,349 727 55
Inferred
0.25 3.8 1.58 0.56 2.52 0.34 26.76 133 47 212 42 3
0.5 3.5 1.71 0.60 2.72 0.36 28.69 131 47 210 40 3
0.75 3.0 1.93 0.65 3.04 0.36 31.99 129 44 203 35 3
1.0 2.5 2.29 0.73 3.52 0.37 37.04 124 39 192 29 3
1.5 2.3 2.46 0.76 3.71 0.39 39.32 122 38 184 28 3
• Base Case cut-off grade of 0.5% CuEq is highlighted in table.
Mineral resource estimates are made from a 3D block model based on geostatistical
applications using commercial mine planning software (MineSight® v11.60-2). The block
model has a nominal block size measuring 10 x 10 x 5 m and utilizes data derived from 152
drill holes in the vicinity of the Arctic deposit. The resource estimate was generated using
drill hole sample assay results and the interpretation of a geological model which relates to
the spatial distribution of copper, lead, zinc, gold and silver. Interpolation characteristics
were defined based on the geology, drill hole spacing, and geostatistical analysis of the data.
The effects of potentially anomalous high-grade sample data, composited to two metre
intervals, are controlled by limiting the distance of influence during block grade
interpolation. The grade models have been validated using a combination of visual and
statistical methods. The resources were classified according to their proximity to the sample
data locations and are reported, as required by NI 43-101 (as defined herein), according to
the 2014 CIM Definition Standards for Mineral Resources and Mineral Reserves. Model
blocks estimated by three or more drill holes spaced at a maximum distance of 100 metres
are included in the Indicated category. Inferred blocks are within a maximum distance of
150 metres from a drill hole. The estimate of Indicated and Inferred mineral resources is
within a limiting pit shell derived using projected technical and economic parameters.
A copy of the Technical Report is available on the Company’s website at
www.trilogymetals.com and under the Company’s profiles on SEDAR at www.sedar.com and
EDGAR at www.sec.gov.
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Qualified Persons
Mr. Bruce Davis, FAusIMM, the president of BD Resource Consulting Inc., and Mr. Robert
Sim, P.Geo., of Sim Geological Inc., have reviewed the technical information related to the
Arctic deposit in this news release and approve the written disclosure contained herein.
Messrs Davis and Sim are independent "qualified persons", within the meaning of National
Instrument 43-101- Standards of Disclosure for Mineral Projects (“NI 43-101”).
Neither Bruce Davis of BD Resource Consulting Inc., nor Robert Sim of Sim Geological Inc.,
nor any associates employed in the preparation of the Arctic Project resource estimation
have any beneficial interest in Trilogy Metals. Messrs Davis and Sim are not insiders,
associates, or affiliates of Trilogy Metals. The information in this press release is not
dependent upon any prior agreements concerning the conclusions to be reached, nor are
there any undisclosed understandings concerning any future business dealings between
Trilogy Metals and Messrs Davis and Sim who were retained by Trilogy Metals to prepare the
Arctic Project resource estimate and are to be paid a fee for their work in accordance with
normal professional consulting practices.
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 located 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 carbonate replacement deposits which have been
found to host high grade copper 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.
Company Contacts
Rick Van Nieuwenhuyse Elaine Sanders
President & Chief Executive Officer Vice President & Chief Financial Officer
604-638-8088 or 1-855-638-8088
# # #
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 related to the timing of completion of
the PFS, anticipated activity and development at Arctic and the Ambler Access Road 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
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uncertainties involving 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, 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 Technical Report have 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 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 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 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.