Trilogy Metals Provides Update on Project Activities
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News Release
Trilogy Metals Provides Update on Project Activities
March 19, 2019 - Vancouver, British Columbia – Trilogy Metals Inc. (TSX/NYSE
American: TMQ) (" Trilogy Metals ”, “Trilogy” or the “Company”) is pleased to provide an
update on its project activities. Preparations are already underway to prepare the Bornite camp
to accommodate the 2019 field programs on the Company’s 100%-owned Upper Kobuk Mineral
Projects located in Northwest Alaska. All amounts are in US dollars.
Bornite Project
Following the Company’s announcement on March 5, 2019 of the results from the metallurgical
program at the Bornite Project, the Company has now completed an analysis on the copper
and cobalt resource incorporating the updated copper and cobalt metallurgical results and the
drill results from the 2017 and 2018 drill campaigns. Results for the Bornite resource estimate
show that at an open pit cut -off grade of 0.5% copper and a below pit cut -off grade of 1.5%
copper, there is no significant change in the size and grade of the current resource estimate
at Bornite. These results also show that at a below pit cut-off grade of 0.5% copper, there is
the potential for a significant increase in lower grade copper mineralization. The 2017 and
2018 drilling campaigns at Bornite were focused on the expansions of the known deposit and
many of the drill holes are still too widely spaced apart to be included in an updated resource
estimate. See Table 1 and 2 for the Company’s current estimate of the copper and cobalt
mineral resources and the technical report titled “NI 43 -101 Technical Report on the Bornite
Project, Northwest Alaska, USA” with an effective date of June 5, 2018, released on July 20,
2018.
The 2019 program and budget of $9.2 million for Bornite will be mainly directed at i)
approximately 10,000 meters or 12 holes of infill and expansion drilling in the 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.
TSX, NYSE American
Symbol: TMQ
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Table 1: Estimate of Copper Mineral Resources for the Bornite Deposit
Type
Cut-off
(Cu%)
Tonnes
(million)
Average Grade
Cu (%)
Contained Metal
Cu (Mlbs)
In-Pit 0.5 40.5 1.02 913
Total Indicated 40.5 1.02 913
In-Pit 0.5 84.1 0.95 1,768
Below-Pit 1.5 57.8 2.89 3,683
Total Inferred 141.9 1.74 5,450
(1) Resources stated as contained within a pit shell developed using a metal price of US$3.00/lb
Cu, mining costs of US$2.00/tonne, milling costs of US$11/tonne, G&A cost of US$5.00/tonne,
87% metallurgical recoveries and an average pit slope of 43 degrees.
(2) Mineral Resources are not Mineral Reserves and 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.
(3) It is reasonably expected that the majority of Inferred mineral resources could be upgraded to
Indicated mineral resources with additional exploration.
Table 2: Estimate of Inferred Cobalt Mineral Resources for the Bornite Deposit
Type Cut-off
(Cu%)
Tonnes
(million)
Average Grade
Co (%)
Contained Metal
Co (Mlbs)
In-Pit 0.5 124.6 0.017 45
Below-Pit 1.5 57.8 0.025 32
Total Inferred 182.4 0.019 77
(1) Resources stated as contained within a pit shell developed using a metal price of US$3.00/lb
Cu, mining costs of US$2.00/tonne, milling costs of US$11/tonne, G&A cost of US$5.00/tonne,
87% metallurgical recoveries and an average pit slope of 43 degrees.
Arctic Project
The Company has commenced preparations for the summer field season at the Arctic Project.
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 is estimated to be $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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Ambler District Exploration Program
The Company will complete a $2 Million exploration program along the 100-kilometer Ambler
volcanogenic massive sulphide (“VMS”) Belt funded equally by Trilogy and South32. Th is
program will include a district-wide VTEM and ZTEM geophysical surveys flown on 200 and 400
meter line spacing over both the Cosmos Hills and the Amble r Belt . Both surveys are
electromagnetic surveys that have proven to be successful in identifying targets and
mineralization in VMS districts. This survey is expected to start in mid-April and be completed
by the beginning of May. The data will then be 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).
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
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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 Mineral 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.
Ambler Mining District Industrial Access Project
Over the last few months, the Company has been in contact with the various agencies 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 agency, the permitting of the
AMDIAP is moving along on schedule. The Preliminary Draft Environmental Impact Statement
(“EIS”) is expected to be made available to all the cooperating age ncies by the end of April
2019, including: the Bureau of Land Management, the US Army Corp of Engineers, the US Park
Service, the US Department of Transportation, the US Coast Guard and the US Fish and Wildlife
Service; State agencies – the Department of N atural Resources and the Department of
Environmental Conservation; the Northwest Arctic Borough; and several participating Tribal
entities. According to the BLM, the draft EIS is expected to go out for public comment during
the summer and be completed in the late summer/early fall 2019 with the final EIS expected
by the end of 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 Corp. of Engineers to issue the 404 Wetlands Dredge and Fill Permit as per the Clean
Water Act.
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 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.
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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, 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 mi neral resource estimates, the potential increase in copper
mineralization at the Bornite Project, costs of production, capital 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 success of exploration, development and mining activities,
permitting timelines, requirements for additional capital, government regula tion of mining operations, environmental
risks, unanticipated reclamation expenses; mineral reserve and resource estimates and the assumptions upon which
they are based; assumptions and discount rates being appropriately applied to the pre-feasibility stud y; 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 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 wea ther, 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 Mineral 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,
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as amended (“CIM Definition 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 the requirements of the United
States Securities and Exchange Commission (SEC), and resource and reserve information contained herein ma y 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 fi led with the SEC. Investors are cautioned not to
assume that all or any part of “measured” or “indicated resources” will ever 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 no t 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.