Trilogy Metals Provides Update on Project Activities
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News Release
Trilogy Metals Provides Update on Project Activities
May 29, 2018 - Vancouver, British Columbia – Trilogy Metals Inc. (TSX/NYSE
American: TMQ) (“Trilogy Metals” or the “Company”) is pleased to provide an update on its
project activities. Preparations are underway at the Bornite camp to accommodate the 2018
field programs on the Company’s 100%-owned Upper Kobuk Mineral Projects located in
Northwest Alaska. All amounts are in US dollars.
Arctic Project
On February 20, 2018, the Company announced the results of the pre-feasibility study for the
Arctic Project and on April 6, 2018 filed a Nation al Instrument 43-101 technical report titled
“Arctic Project, Northwest Alaska, USA, NI 43-101 Technical Report on Pre-Feasibility Study”.
See the news release at https://Trilogy PR Feb 20 2018 and the technical report which is
available on the Company’s website at www.trilogymetals.com or on the Company’s profiles
at www.sedar.com and www.sec.gov.
The Board of Directors has recently approved a $6.7 million budget to advance the Arctic
Project towards feasibility and permitting. The focus of the Arctic work program for the
remainder of the year, is to be on geotechnica l and hydrological engi neering studies at the
Project’s proposed waste and tailings sites wi th the objective to ad vance the engineering
design for these facilities to a feasibility level of study. A number of geotechnical and
hydrological drill holes are to be completed to support this effort. The Company also expects
to gather extensive environmental data for a variety of studies to support the submission of
a mine permit application in 2019.
Bornite Project
A $10 million budget for Bornite, funded under the Option Agreement with South32 Limited
(“South32”), was approved earlier this year by the Company’s Board of Directors and the
Trilogy-South32 Technical Committee. Early in December 2017, South32 committed to fund
the $10 million towards the 2018 budget for the Bornite Project. The funds, which represent
the second $10 million payment under the Opti on Agreement and maintains the agreement
in good standing, were fully re ceived in January 2018. For more information on the Option
Agreement see the Company’s press release on April 10, 2017 ( https:/Trilogy PR April 10
2017).
This year’s program will include approximately 8,000 meters of drilling in a combination of in-
fill and expansion drill holes in and around the known deposit. The 2018 program will follow
up drilling completed during the 2017 explorat ion program which was one of the larger
programs in the history of drilling at the Born ite Project. During 2017, the Company drilled
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nine diamond drill holes comprising 8,437 meters to test the extension of the of the currently
defined resource†. These holes represented 300 and 400 meter step outs and defined a
minealized footprint measuring 1,500 meters by 2,500 meters defined by a 50 Meter %
copper - that is 50 meters averaging at leas t 1% copper or better (see Figure 1 - Grade x
Thickness Map). The 2017 drill holes were too fa r apart for resource estimation purposes,
although every hole did encounter significant mineralization. The 2018 drill program will in-
fill and expand on the 2017 drill program. See 2017 drill results announced on September 18,
2017 and December 4, 2017 ( https://Trilogy PR Sep 18 2017 and https://Trilogy PR Dec 4
2017). The first two drill rigs for the 2018 program have already arrived at camp with drilling
expected to begin in early June. A third drill rig is expected to arrive during the second week
of June and begin drilling shortly thereafter. In addition, a 12-line kilometer 2D seismic
survey commenced in early May. This seismic survey is designed to track the massive sulfide
zones as well as basement and other structures to assist with exploration targeting. The
seismic program is expected to be completed in mid-June with data processing and evaluation
taking place in July and August.
On May 3, 2018, the Company announced that work had been initiated to estimate a cobalt
resource for the Bornite Project. Preliminary results from our on-going metallurgical studies
on the cobalt mineralization so far have demonstrated consistent and well distributed cobalt
mineralization. Therefore, based on the results, the Company has already commenced work
on a cobalt resource estimate, which, when co mpleted, would be in addition to the copper
resource for the Bornite deposit. Work so fa r has been focused on examining metallurgical
products from both the in-pit resource area and the higher-grade below-pit copper resource
area at Bornite along with petrographic and mi croprobe work. Results are expected to be
released shortly.
Ambler Mining District Industrial Access Project (AMDIAP)
The Alaska Industrial Development and Expo rt Authority (“AIDEA”) submitted permit
applications for the AMDIAP, a proposal for the construction and operation of a 211-mile (340
Km) long all-season controlled-access industrial road connecting the Am bler Mining District
with the Dalton Highway.
On April 30, 2018, the Bureau of Land Mana gement (“BLM”) released the Ambler Road
Environmental Impact Statement Scoping Summary Report (see BLM’s website at
https://BLM's AMDIAP Website). Permitting of the AMDIAP under the National Environmental
Policy Act (“NEPA”) Environmental Impact Statement (“EIS”) process has now concluded the
“Scoping Phase” of permitting and has moved to the “Draft EIS Phase”. Per the BLM’s website,
the Draft EIS is scheduled for the end of March 2019.
Approximately 20 miles of the proposed AMDIAP road crosses lands managed by the National
Park Service (“NPS”). The Al aska National Interest Lands Conservation Act (“ANILCA”)
requires that right-of-way access be permitted across NPS lands for this project. In addition,
ANILCA directs that an Environmental and Econ omic Analysis (“EEA”) be prepared for the
right-of-way across NPS lands in order to: 1) determine a preferred road alignment, and 2)
develop appropriate terms and conditions for the right-of-way permit. Two alternative routes
are being considered: North Route and South Route. The NPS has published the following
Project Schedule indicating completion of the Final EEA by Winter 2018 on their website at
† See the latest resource statement in the report ti tled “Amended NI 43-101 Technical Report on the
Bornite Project, Northwest Alaska, USA” released on October 12, 2017 with an effective date of April
19, 2016 on the Company’s website at www.trilog ymetals.com and on the Company’s profile at
www.sedar.com and www.sec.gov.
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https://www.nps.gov/gaar/learn/management/ambler-row.htm.
National Park Service – Project Schedule
Tentative Date Planning Phase
Fall 2017 – Winter 2018 Public Input & Public Scoping Meetings
Winter 2018 – Summer 2018 Prepare Draft EEA
Summer 2018 Public Meetings and Public Review of Draft EEA
Fall – Winter 2018 Prepare Final EEA
Winter 2018 Release Final EEA
Rick Van Nieuwenhuyse, Trilogy Metals Presid ent and CEO said: “We are pleased with the
progress being made by the Park Service an d BLM towards advancing the AMDIAP through
the Federal permitting (NEPA EIS) process. We look forward to continuing to work with AIDEA
and the Stakeholders in the regi on to ensure that this Priv ate Industrial Road meets and
exceeds everyone’s expectations to minimize potential impacts, and bring long term jobs and
other benefits to the region and to the State of Alaska. AMDIAP will greatly facilitate further
development in the Ambler Mining District.”
Figure 1 – MAP SHOWING GRADE X THICKNESS OF MINERALIZED INTERSECTIONS
USING A 0.3% Cu CUT-OFF GRADE
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Qualified Person
Andrew W. West, a Certified Professional Geologist, and the Exploration Manager for Trilogy
Metals Inc., is a Qualified Person as define d by National Instrume nt 43-101. Mr. West has
reviewed and verified the tec hnical 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-domina nt 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, go ld and silver, and carbonate
replacement deposits which ha ve been found to host high grade copper mineralization.
Exploration efforts have been focused on two de posits 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
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Cautionary Note Regarding Forward-Looking Statements
This press release includes certain "forward-looking inform ation” and "forward-looking
statements” (collectively "forward-looking stat ements”) 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 stat ements of historical fact,
included herein, including, without limitation, the expected drilling and other work to be
conducted at the Bornite Project and Arctic Project and the anticipated expenditures of
approved budgets, drilling for the 2018 progra m at the Bornite Project, the expected
announcement and timing of a cobalt resource at the Bornite Project, the focus and objective
of the Arctic Project work program, gathering of extensive environmental data at the Arctic
Project and the submission of a mine permit application in 2019, the AMDIAP EIS process and
schedule, the AMDIAP road meeting and exceeding expectations to minimize potential impacts
and bring long term jobs and other benefits to the region and the State of Alaska, the AMDIAP
greatly facilitating further development in the Ambler Mining District and the development of
the Ambler 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”, "be lieves”, "intends”, "estimates”, "potential”,
"possible”, and similar expressions, or statements that events, conditions, or results "will”,
"may”, "could”, or "should” occur or be ac hieved. These forward-l ooking statements may
include statements regarding perceived merit of properties; exploration plans and budgets;
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mineral reserves and resource estimates; work programs; capi tal 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 th ose anticipated in such statements. Important
factors that could cause actual results to diff er materially from the Company's expectations
include the uncertainties involving success of exploration, development and mining activities,
permitting timelines, requirements for addition al capital, government regulation of mining
operations, environmental risks, unanticipated reclamation expenses; mineral reserve and
resource estimates and the assumptions upon which they are base d; assumptions and
discount rates being appropriately applied to the PFS; 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 resu lts, the need for additional
financing to explore and develop properties and availability of financing in the debt and capital
markets; uncertainties involved in the interpre tation of drilling results and geological tests
and the estimation of reserves and resource s; the need for cooperation of government
agencies and native groups in the developmen t 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 su ch as accidents, equipment breakdowns, bad
weather, non-compliance with environmenta l 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 ex change rates; and other risks and uncertainties disclosed in
the Company’s Annual Report on Form 10-K for the year ended November 30, 2017 filed with
Canadian securities regulatory authorities and with the United States Securities and Exchange
Commission and in other Compan y reports and documents filed with applicable securities
regulatory authorities from time to time. Th e Company's forward-looking statements reflect
the beliefs, opinions and pro jections on the date the statements are made. The Company
assumes no obligation to update the forwar d-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 accord ance with the requirements of the securities
laws in effect in Canada, which differ from th e requirements of U.S. securities laws. Unless
otherwise indicated, all resource and reserv e estimates included in this press release have
b e e n p r e p a r e d i n a c c o r d a n c e w i t h C a n a d i a n N a t i o n a l I n s t r u m e n t 4 3 - 1 0 1 S t a n d a r d s o f
Disclosure for Mineral Projects (“NI 43-101”) and the Canadian Institute of Mining, Metallurgy
and Petroleum (CIM)—CIM Defini tion Standards on Mineral Resources and Mineral Reserves,
adopted by the CIM Council, as amended (“CIM De finition Standards”). 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 th e requirements of the
United States Securities an d 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 th e 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 stan dards normally do not permit the inclusion
of information concerning "measured mineral re sources”, "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.
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Investors are cautioned not to assume that a ll or any part of “measured” or “indicated
resources” will ever be converted into “reser ves”. 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 S EC 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 comp arable with information made
public by companies that report in accordance with U.S. standards.