Trilogy Metals Provides Project Update
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News Release
Ambler Road Draft EIS Set for Release July 19, 2019 &
Trilogy Metals Provides Project Update
May 20, 2019 - Vancouver, British Columbia – Trilogy Metals Inc. (TSX/NYSE
American: TMQ) (" Trilogy Metals ”, “Trilogy” or the “Company”) is pleased to provide an
update on the Ambler access road and its project activities. The Company has now completed
preparations to open the Bornite camp to accommodate the 201 9 field programs on the
Company’s 100% -owned Upper Kobuk Mineral Projects located in Northwest Alaska. All
amounts are in US dollars.
Ambler Mining District Industrial Access Project
The Company continues to work closely with the Alaska Industrial Development and Export
Authority (“AIDEA”) who is permitting the Ambler road, and we have been in contact with the
various parties involved in the permitting of the Ambler Mining District Industrial Access Project
(“AMDIAP”). According to the Bureau of Land Management (“BLM”), which is the lead federal
agency, the permitting of the AMDIAP is moving along as scheduled. The Preliminar y Draft
Environmental Impact Statement (“EIS”) has been made available to all the cooperating
agencies, including: the Bureau of Land Management, the US Army Corps of Engineers, the US
Park Service, the US Department of Transportation, the US Coast Guard a nd the US Fish and
Wildlife Service , the Alaska Department of Natural Resources , the Alaska Department of
Environmental Conservation , the Northwest Arctic Borough , and several participating Tribal
entities.
According to the FAQ section of the BLM website for the Ambler Road Project or AMDIAP, the
draft EIS is expected to go out for public comment on July 19, 2019. A 45-day public comment
period is scheduled. Locations of the public meetings, including the ANLICA 810 hearings, are
to be determined. The Final EIS is scheduled to be complete October 31, 2019. Shortly after
the final EIS has been issued, the Company expects the BLM to issue the Record of Decision
for the Right-of-Way across federal BLM managed lands , and the Army Corps of Engineers to
issue the 404 Wetlands Dredge and Fill Permit as per the Clean Water Act.
Rick Van Nieuwenhuyse, President and CEO of Trilogy Metals commented, “ I am extremely
pleased at the progress that the BLM has made in permitting the AMDIAP and expect that all
the permitting activities should be completed before the end of 2019. The completion of the
federal EIS process for the A mbler Mining District Access Road represents a significant
milestone for the Company and is a demonstration of what Governor Dunleavy has stated
clearly many times : “Alaska is open for business.” We commend the BLM and other
participating Federal and State agencies in their efforts to remain on task and on schedule.”
The BLM is the lead federal agency for the Ambler Road project and is developing an
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Environmental Impact Statement under the National Environmental Policy Act to evaluate
whether or not to grant a right -of-way for the Ambler Road across BLM lands. The prop osed
project crosses state lands (61%) and Native corporation lands (15%), but also crosses federal
lands (24%) managed by the BLM and the National Park Service. AIDEA has submitted a
permit application to request right-of-way across BLM lands.
The AMDIAP is anticipated to provide surface access to the Ambler Mining District, long known
to contain significant deposits of copper, lead, zinc, gold and silver and specifically including
the Company’s Upper Kobuk Mineral Projects – Arctic and Bornite. The AMDIAP is modeled on
AIDEA’s successful DeLong Mountain Transportation System (“DMTS”), which includes an
industrial access road from the Red Dog Mine to the DMTS port. AIDEA worked with private
investors to finance construction of the DMTS industrial access road, and the costs of road
construction were paid back through tolls paid by the mine for use of the road. No State of
Alaska general funds were used to construct the DMTS and that is exactly what is anticipated
for the AMDIAP.
Ambler District Exploration Program
The Company has already commenced the $2 million exploration program along the 100 -
kilometer Ambler Volcanogenic Massive Sulphide (“VMS”) Belt funded equally by Trilogy and
South32 Limited (ASX, LSE, JSE: S32; ADR: SOUHY) (“South32”). Specifically, we are just
completing the district-wide VTEM and ZTEM geophysical surveys , which were flown on 200
and 400 meter line spacing over both the Cosmos Hills and the entire Ambler VMS Belt. Both
surveys are electromagnetic surveys that have been successful in identifying targets and
mineralization in VMS districts. The survey data is currently being processed to identify and
prioritize drill targets for follow up geologic mapping, soil geochemistry and drilling – including
on known historic resources previously identified along the 100-kilometer long belt (Figure 1).
Bornite Project
The 2019 program and budget of $9.2 million , funded entirely by South32 , for the Bornite
Project will be mainly directed at i) approximately 8,000 meters in 12 holes of infill and
expansion drilling on the Bornite deposit; ii) additional metallurgical work to optimize copper
recoveries and the determination of next steps for the recovery of cobalt; and iii) initial
engineering studies to prepare Bornite for a preliminary economic assessment once the work
from the 2019 work programs are completed , including drill results, metallurgical program
updates, a resource update and ongoing environmental baseline data collection. The 2019 drill
campaign is anticipated to begin in early June.
Arctic Project
The Company is close to completing preparations for the summer field season at the Arctic
Project and expects to commence work in June 2019. Specifically, the Company will continue
to advance engineering and environmental work in 2019 in support of completing a feasibility
study and preparing the Arctic Project for permitting. The total budgeted amount for the se
activities for 2019 is $7.0 million. The Company will undertake additional hydrological and
geotechnical work at the site along with water management, tailings facility and waste rock
containment analysis and design. Additional metallurgical test work to verify ore hardness and
grinding characteristics is currently on -going with materials from the project. The Company
expects to complete the feasibility study in the first half of 2020.
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Figure 1. Location of Historic Resources at the Ambler VMS Belt
1. Source: Anaconda Copper Mining Company (“ACM”), ACM Internal Report, 1981
2. Source: Kennecott Mines Company (“KMC”), KCM Internal Report, 1985
3. Source: Kennecott Mines Company (“KMC”), KCM Internal Report, 1997
4. Source: Bear Creek Mining Company (“BCM”), BCM Progress Report, 1983
5. Source: Kennecott Mines Company (“KMC”), KCM Internal Report, 1997
6. Source: North of 60 Mining News, September 7, 2018. The Sun project is 100% -owned by Valhalla Metals
Inc. Inferred resources have a great amount of uncertainty as to their existence and as to whether they can
be mined legally or economically. It cannot be assumed that all or any part of inferred resources will ever be
upgraded to a higher category. See “Cautionary Note to United States Investors.”
7. “Arctic Project, Northwest Alaska, USA, NI 43-101 Technical Report on Pre-Feasibility Study”. See the news
release at https://Trilogy PR February 20, 2018 and the technical report which is available on the Company’s
website at https://trilogymetals.com/assets/docs/2018-04-06-Arctic-NI-43-101-TechReport.pdf or on the
Company’s profiles at www.sedar.com and www.sec.gov.
A Qualified Person has not done sufficient work to classify the above historical
estimates (Smucker, Horse Creek, Sunshine, Shungnak and BT) as current mineral
resources or mineral reserves. Trilogy is not treating these historical estimates as
current mineral resources or mineral reserves, has not verified the above historical
resource estimates and is not relying on them. The historical estimates were
prepared prior to the adoption and implementation of National Instrument 43 -101 -
Standards of Disclosure for Mineral Projects (“NI 43-101”) and do not use categories
that conform to the current Canadian Institute of Mining, Metallurgy and Petroleum
Definition Standards for Min eral Resources and Mineral Reserves. Additional work,
including drilling, would need to be carried out on these historical resources to make
them complaint with NI 43-101.
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Qualified Persons
Andrew W. West, Certified Professional Geologist, 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 and development 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 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
the Company's land package that spans a pproximately 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 Contact
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, potential permitting and development of the ADMIAP,
planned expenditures and the anticipated drilling, survey and other activity at the Company’s properties and the timing
thereof, the timing and the filing of updated reports on the Company’s projects, the future price of copper and cobalt,
the estimation of mineral reserves and mineral resources, the realization of mineral reserves and mineral resource
estimates, the potential increase in copper mineralization at the Bornite Project, costs of production, c apital
expenditures, costs and timing of the development of projects , are forward -looking statements. The metallurgical
results discussed in this press release should not be considered representative of other drilling results for the 201 9
drilling campaign. 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
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success of exploration, development and mining activities, permitting timelines, requirements for additional capital,
government regulation of mining operations, environmental risks, unanticipated reclamation expenses; mineral
reserve and resource estimat es and the assumptions upon which they are based; assumptions and discount rates
being appropriately applied to the pre-feasibility study; our assumptions with respect to the likelihood and timing of
the AMDIAP; capital estimates; prices for energy inputs, labour, materials, supplies and services the interpretation of
drill results, 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 o f 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, 201 8 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
This press release has 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 Canadian National Instrument 43-101
Standards of Disclosure for Minera l Projects (“NI 43 -101”) and the Canadian Institute of Mining, Metallurgy and
Petroleum (CIM)—CIM Definition Standards on Mineral Resources and Mineral Reserves, adopted by the CIM Council,
as amended (“CIM Definition Standards”). NI 43 -101 is a rule devel oped 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 herein 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 produce d 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 all or any part of “measured” or “indicated resources” will ev er be converted into “reserves”. 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. Under Canadian rules, estimated " inferred mineral
resources” may not form the basis of feasibility or pre-feasibility studies except in rare cases. 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 Trilogy Metals in compliance with NI 43-101 may not qualify as
"reserves” under SEC standards. Arctic does not have known reserves, as defined under SEC Industry Guide 7.
Accordingly, information concerning mineral deposits set forth herein may not be comparable with information made
public by companies that report in accordance with U.S. standards.