Trilogy Metals Provides Update on Project Activities
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News Release
Trilogy Metals Provides Update on Project Activities
September 7, 2021 - Vancouver, British Columbia – Trilogy Metals Inc. (TSX/NYSE
American: TMQ) (“Trilogy” or the “Company”) is pleased to provide an update on the summer
field activities currently being managed by Ambler Metals LLC (“Ambler Metals”), the joint
venture operating company equally owned by Trilogy and South32 Limited (ASX, LSE, JSE:
S32; ADR: SOUHY) (“South32”) at the Upper Kobuk Mineral Projects (“UKMP”) located in
Northwestern Alaska.
The exploration camp opened in May in preparation for the start-up of drilling in June at the
Arctic Project. The drilling contract or deployed three diamond drill rigs in June to focus on a
total of 7,600 meters of planned drilling at Arctic with most of the drilling targeting infill areas
to improve the confidence of the Mineral Resources, and geotechnical and metallurgical drill
holes to further de -risk the project. An additional 7,000 meters of exploration drilling was
planned at targets near the Arctic deposit and elsewhere in the Ambler Mining District.
Drilling productivity at the project is behind schedule due to adverse weather conditions in the
district and challenges in fully staffing the exploration program. As a result, Ambler Metals is
unlikely to achieve the drill meters planned at Arctic for this field season. Notwithstanding, the
lower-than-expected drilling productivity, Ambler Metals has recovered sufficient mineralized
material to complete the planned metallurgical program at Arctic. Also, all the planned
geotechnical drilling was completed at the Arctic Project. The Company does not expect the
shortfall in the drilling program to influence the permitting and development timeline of the
Arctic Project.
In consultation with joint-venture owners Trilogy and South32, Ambler Metals will keep the
camp open longer than originally planned to complete as much of the regional drilling program
as possible. Timing of camp closure this season will be weather dependent.
In response to the slower drilling this season, Ambler Metals has also redeployed some of the
geological staff at site to focus on regional mapping and soil sampling around satellite deposits
near the Arctic Project and at the Bornite Project. Information gathered during this season will
assist with future exploration activi ties including identifying drill targets for next year’s field
season.
Tony Giardini, President and CEO of Trilogy, commented, “We are pleased that we are able to
achieve our primary objectives which include the completion of the metallurgical drilling
program at Arctic and the advancement of the pre-permitting activities for Arctic. We are now
well into our regional drilling program with two drills following up on targets within the Ambler
Belt and the greater Bornite area. We are looking forward to seeing the regional drilling results
which should be available within the next couple of months and in commencing mine permitting
once we have completed the permitting preparedness review.”
TSX, NYSE American
Symbol: TMQ
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Arctic Project
Technical activities at the Arctic Project commenced in early June with initial work focused on
infill drilling to further improve the confidence of the Mineral Resources from the Indicated to
Measured category. In addition, metallurgical drilling was conducted at the project . Most of
this drilling has consisted of large diameter PQ -size (96-mm diameter) core which allows for
the extraction of large sample-sized material.
As of August 28th, 18 holes were completed comprising 4,129 meters of core. All the core has
been logged and sampled with results expected to be announced later this year. Drilling is now
complete at Arctic for the season.
Regional Exploration
Ambler Metals has relocated two of the drill rigs from the Arctic Project to the regional drilling
program, where 2,325 meters have been drilled in six holes as of Sept ember 6th. Regional
drilling is focused on near Arctic (Arctic Hub) exploration targets, with the goal of discovering
nearby copper-rich satellite deposits around Arctic East and Southeast Arctic, within a 3 to 5-
kilometer radius of the Arctic deposit. Drilling was completed at the Arctic East target and a
second drill has been moved from Arctic to investigate other targets within the UKMP, including
Snow and the Ambler Lowlands.
In additional to the regional drill program, geologists have carried out regional geological
mapping within the Ambler volcanic massive sulphide (“VMS”) belt. Traverses were completed
along creeks within the Center of the Universe prospect, the DH prospect, and in Jackass Creek
(between the DH and Cliff prospects), the Bud -Sunshine-West Dead Creek prospect cluster,
Dead Creek, Pipe, and the Nora prospects.
Also, geochemical soil sampling is ongoing within the Cosmos Hills around Bornite and the
Ambler VMS Belt. The goal of this program is to follow-up on previous anomalous geochemical
results and to investigate geophysical anomalies that were identified during the 2019 airborne
versatile time domain electromagnetic survey.
Arctic Mine Permitting
Preparation work is continuing for the filing of the Notice of Intent (“NOI”), which marks the
commencement of formal federal permitting activities at the Arctic Project. The next step
before the submittal of the NOI is a permit preparedness review which will be an independent
third-party audit of the draft NOI. Assuming that there are no issues raised during this review,
the Company anticipates the joint-venture owners approving Ambler Metals to formally submit
the NOI to the United States Army Corps of Engineers (“USACE”).
Given that the Arctic Project is located on state and private land, the key federal permit will be
the 404 Dredge or Fill Permit that is issued by the USACE, which will be the lead agency during
the federal permitting process. The permitting process will be carried out in accordance with
the National Environmental Policy Act. In parallel with the federal permitting process, the State
of Alaska, specifically the Alaska Department of Environmental Conservation, Alaska
Department of Natural Resources and Alaska Department of Fish and Game, will be the state
agencies responsible for issuing the state permits which include the Mine Ope rating Permit,
the Air Quality Permit, the Dam Operating Permit, and the Water Discharge Permit. There will
also be other permits issued by the Northwest Arctic Borough. The Company expects to file
the NOI before the end of the year, and the overall permitting process to take 24 to 30 months
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to be completed.
COVID-19 Management
Ambler Metals has implemented a rigorous COVID management plan in which all incoming
personnel are subjected to rapid COVID testing before boarding chartered aircraft to camp and
prior to departing camp for home. All employees and contractors that are housed at camp
complete daily health assessments. As of August 28th , there have been 244 COVID tests
administered in Fairbanks with only four people having a positive COVID result. All four people
were immediately quarantined in Fairbanks. Of the 426 tests administered at camp, none were
positive results. Also, Ambler Metals has implemented a rigorous sanitation and safety program
at camp to ensure that all employees and contractors are safe and healthy.
Ramzi Fawaz, President and CEO of Ambler Metals, commented, “I am very pleased with how
we executed the summer field season in a safe and professional manner. Our COVID testing
protocols are working well with no positive tests at the Bornite camp which currently
accommodates approximately 70 people. I also want to reiterate that safety is our number one
priority and that we are dedicated to ensuring that our employees and stakeholders safely
return to their communities.”
Stakeholder Engagement
Ambler Metals has commenced stakeholder engagement activities within the Northwest Arctic
Borough and the Doyon Region. Senior Ambler Metals staff held public meetings in several of
the Borough and Doyon communities, including Hughes, Kiana, Noorvik and Shungnak, which
are the proximal villages to the UKMP and where Ambler Metals recruits many of its Indigenous
employees for the summer field season.
Ambler Access Project Update
The summer field season for the Ambler Access Project is underway with cultural heritage work
along the proposed 211-mile, east-west-running controlled industrial access road that would
provide industrial access to the Ambler M ining District in Northwestern Alaska. The Alaska
Industrial Development and Export Authority has prioritized cultural heritage work, aquatic
habitat studies and geotechnical planning for this year ’s, and next year’s field seasons to
progress the feasibility engineering and permitting work for the road . On August 9 th, the
Governor of Alaska, Mike Dunleavy, visited the UKMP. During the visit, the Governor reiterated
his strong support for the development of the Ambler Mining District and for the development
of the Ambler Acces s Project. He also announced the formation of the Subsistence Advisory
Committee Working Group which is to include Native stakeholders within the Northwest Arctic
Borough and the Doyon Region who could be affected by the proposed road. This committee
is being formed to develop the terms of reference for the formal Subsistence Advisory
Committee that will provide guidance to AAP on subsistence and other matters for the design
and operation of the road.
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Qualified Persons
Richard Gosse, P.Geo., Vice President Exploration for Trilogy, is a Qualified Person as defined
by National Instrument 43-101. Mr. Gosse has reviewed the scientific and technical information
in this news release and approves the disclosure contained herein.
About Trilogy Metals
Trilogy Metals Inc. is a metal exploration and development company which holds a 50 percent
interest in Ambler Metals LLC which has a 100 percent interest in the UKMP in Northwestern
Alaska. On December 19, 2019, South32, a globally diversified mining and metals company,
exercised its option to form a 50/50 joint venture with Trilogy. The UKMP is located within the
Ambler Mining District which 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 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 a land package that spans approximately 172,636 hectares. Ambler Metals
has an agreement with NANA Regional Corporation, Inc., an Alaska Native Corporation that
provides a framework for the exploration and potential development of the Ambler M ining
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, statements relating to Ambler Metals’ unlikelihood to achieve the drill meters planned at
the Arctic Project for this field season, the Company’s expectation that the shortfall in the drilling program will not influence
the permitting and development timeline of the Arctic Project, Ambler Metals’ plans to keep the camp open longer than
originally planned and timing of the closure thereof, the information gathered during this season will assist w ith future
exploration, activities including identifying drill targets for next year’s field season, the goals of the soil sampling program
within the Cosmos Hills around Bornite Ambler VMS Belt, the timing of regional drilling results, and plans and assumptions for
the submittal of the NOI and the permitting process for the Arctic Project and the timing, thereof, 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. 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 diffe r
materially from the Company's expectations include the uncertainties involving impact of the COVID-19 pandemic; success of
exploration activities, permitting timelines, requirements for additional capital, government regulation of mining operations ,
environmental risk s, prices for energy inputs, labour, materials, supplies and services, uncertainties involved in the
interpretation of drilling results and geological tests, unexpected cost increases and other risks and uncertainties disclosed in
the Company’s Annual Report on Form 10-K for the year ended November 30, 2020 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.