Trilogy Metals Reports Drilling Results from Newly Discovered Zone at the Sunshine Prospect and Drilling Results at the Bornite Project
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News Release
Trilogy Metals Reports Drilling Results from Newly Discovered Zone
at the Sunshine Prospect and Drilling Results at the Bornite Project
September 10, 2019 - Vancouver, British Columbia – Trilogy Metals Inc. (TSX/NYSE
American: TMQ) ("Trilogy Metals” or the “Company”) is pleased to announce the first set of
assay results from this summer’s exploration diamond drilling program at the Bornite Project
and the Sunshine prospect, which are part of the Company’s Upper Kobuk Mineral Project s
(“UKMP”) located in the Ambler mining district of Northwest Alaska. All amounts are in USD.
Based on the VTEM geophysical survey that we completed this past spring over the Ambler
volcanogenic massive sulphide (“VMS”) belt and from historical drilling, the most recent drilling
targeted the Sunshine prospect, which is approximately eight miles (13 kilometers) from the
Arctic Project. The assay results reported below for one drill hole from the Sunshine prospect
comprises 161 meters of the 1,356-meter six-hole drill campaign at this prospect. Results
from the other five holes at Sunshine are pending and will be released later in the year.
The four Bornite drill holes reported below comprise approximately 3,014 meters from the
recently completed 7,610-meter drill campaign. All four drill holes contain copper
mineralization and were designed as either infill drill holes to the 300 to 400 -meter step-out
holes completed in 2017 and 2018 or in the case of RC19-0258 to step-out 150 meters to the
northwest of the existing mineral resource.
In total, there were 10 holes (7,610 meters) drilled at Bornite, 11 holes drilled at Arctic (2,405
meters) and six holes (1,357 meter s) drilled at the Sunshine prospect during the 2019 field
season.
Drilling Highlights – Sunshine Prospect
At a cutoff grade of 1.5% copper equivalent* the results from zones 1-4 and a newly discovered
zone from the Sunshine prospect are as follows:
• SC19-019 intersected five mineralized intervals of:
o 9.1 metres with a copper equivalent grade of 3.95% (3.02% copper, 1.42%
zinc, 0.27% lead, 0.14 g/t gold and 24.65 g/t silver);
o 3.3 metres with a copper equivalent grade of 2.82% (1.68% copper, 1.77%
zinc, 0.47% lead, 0.12 g/t gold and 27.57 g/t silver);
o 3.7 metres with a copper equivalent grade of 5.51% (4.74% copper, 0.97%
zinc, 0.13% lead, 0.15 g/t gold and 28.96 g/t silver);
o 3.0 metres with a copper equivalent grade of 1.63% (0.75% copper, 1.40%
zinc, 0.35% lead, 0.08 g/t gold and 21.02 g/t silver); and
o 7.88 metres with a copper equivalent grade of 5.23% (2.23% copper, 5.62%
zinc, 1.10% lead, 0.18 g/t gold and 46.95 g/t silver).
TSX, NYSE American
Symbol: TMQ
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* Assumptions used for the copper equivalent calculation were metal prices in USD of $2.90/lb copper, $1.10/lb zinc,
$0.90/lb lead $1,250/oz Gold, and $18/oz Silver and recovery is assumed to be 100% as no metallurgical test data is
available. The following equation was used to calculate copper equivalence: CuEq = Copper (%) + (Zinc (%) x 0.379)
+(lead (%) x 0.310) + (Gold (g/t) x 0.629) + (Silver (g/t) x 0.009).
Drilling Highlights – Bornite Project
At a cutoff grade of 0.5% copper the results from the Bornite Project are as follows:
• RC19-257 intersected three mineralized intervals including:
o 3.7 metres averaging 1.32% copper; and
o 4.4 metres averaging 2.60% copper.
• RC19-258 intersected three mineralized intervals including:
o 23.2 metres averaging 0.76% copper.
• RC19-259 intersected seven mineralized intervals including:
o 56.1 metres averaging 1.81% copper.
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• RC19-261 intersected six significant mineralized intervals including:
o 2.9 metres averaging 2.63% copper;
o 35.0 metres averaging 1.98% copper;
o 16.0 metres averaging 2.02% copper;
o 54.1 metres averaging 1.11% copper;
o 3.1 metres averaging 1.84% copper; and
o 29.0 metres averaging 1.47% copper.
James Gowans, Interim President and CEO of Trilogy Metals commented, “The four mineralized
holes from Bornite show that the Cu -mineralization is continuous throughout the Upper and
Lower Reefs. However, we are excited with the results from our recently completed regional
exploration program where we have intersected VMS polymetallic mineralization at Sunshine
with grades and thicknesses comparable to Arctic. Of particular excitement is the discovery of
a new horizon that lies above known sulphide horizons.”
The 2019 drilling budget of $9.2 million for Bornite this year was funded entirely by South32
Limited (ASX, LSE, JSE: S32; ADR: SOUHY) (“South32”) and represents the third and final
payment under the Company’s option agreement (as amended, the “Option Agreement”) with
South32 and maintains the Option Agreement in good standing.
In addition, the Company and South32 funded an additional $2 million for district exploration
focused on identifying and testing new drill targets within the Ambler VMS Belt. The Company
contributed $1 million to the UKMP regional program and South32 contribute d the remaining
$1 million . The regional drilling focused on the Sunshine deposit, which is located
approximately 8 miles (13 kilometers) from the Arctic Project and 13 miles (21 kilometers)
from the Bornite Project. 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 at Bornite was comprised of 1 0 drill holes totaling approximately 7,610
meters through a combination of infill and expansion drill holes in and around the known
resource.
Trilogy Metals has recently completed its summer exploration drilling program at Bornite and
Sunshine and geotechnical activities at its Arctic Project. Additional drill results are anticipated
to be released regularly over the next couple of months as they become available.
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Results for Bornite are presented in Table 1 at a cutoff grade of 0.5% copper to be comparable
with previous drill results released by the Company. All the intersected widths are normal to
stratigraphy and therefore can be considered to be true widths. Results at a more selective
higher-grade cutoff of 1.5% copper are also presented in Table 2 to show locally higher-grade
intervals. Table 3 shows drill hole locations. Figure 1 shows the location of the drill holes
on a plan map and Figure 2 shows a cross-section through drill hole RC19-0259 and Figure
3 shows a cross-section through drill hole RC19-0261.
Table 1 - 0.5% Cu cut-off with maximum 3 m internal waste – Minimum 1.5 m interval
Hole From (m) To (m) Length (m) Cu (%) Co (%)
RC19-0257
391.51 393.27 1.76 0.70 0.01
546.20 549.87 3.67 1.32 0.02
587.35 591.74 4.39 2.60 0.02
RC19-0258
636.31 659.49 23.18 0.76 0.02
668.50 670.22 1.72 0.77 0.01
692.34 692.86 0.52 0.54 0.01
RC19-0259
368.05 370.15 2.10 0.81 0.01
497.50 498.96 1.46 0.80 0.01
501.99 506.73 4.74 0.88 0.00
512.06 568.20 56.14 1.81 0.01
647.16 648.83 1.67 0.51 0.01
718.11 719.12 1.01 0.91 0.01
802.16 804.62 2.46 0.53 0.00
RC19-0261
304.55 307.43 2.88 2.63 0.00
335.80 337.54 1.74 0.57 0.01
345.20 347.79 2.59 0.64 0.01
355.09 356.77 1.68 0.58 0.03
362.92 364.98 2.06 0.62 0.02
371.50 373.38 1.88 0.94 0.02
387.39 422.40 35.01 1.98 0.03
426.64 442.63 15.99 2.02 0.01
480.24 481.96 1.72 0.94 0.01
489.20 492.42 3.22 0.71 0.01
526.57 580.64 54.07 1.11 0.02
584.57 586.44 1.87 0.73 0.00
651.90 655.01 3.11 1.84 0.03
661.57 690.61 29.04 1.47 0.04
754.11 754.91 0.80 1.05 0.02
758.11 760.48 2.37 0.85 0.01
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Table 2 - 1.5% Cu cut-off with maximum 3 m internal waste – Minimum 1.5 m interval
Hole From (m) To (m) Length (m) Cu (%) Co (%)
RC19-0257 588.72 591.74 3.02 3.10 0.03
RC19-0258 654.00 655.59 1.59 1.67 0.06
RC19-0259
505.05 506.73 1.68 1.61 0.01
521.90 530.89 8.99 3.18 0.01
534.07 539.26 5.19 2.73 0.01
548.32 549.74 1.42 2.28 0.00
552.81 564.89 12.08 2.25 0.01
RC19-0261
306.32 307.43 1.11 5.14 0.00
391.12 400.14 9.02 2.50 0.06
403.56 420.43 16.87 2.31 0.03
428.41 441.28 12.87 2.32 0.02
531.32 542.04 10.72 1.69 0.04
554.33 559.70 5.37 1.89 0.01
576.81 578.51 1.70 1.55 0.03
651.90 653.80 1.90 2.38 0.03
667.97 670.69 2.72 3.51 0.17
682.96 690.61 7.65 2.23 0.05
Table 3 – Bornite and Sunshine Drill Hole Locations
East (m) North (m) Elevation (m) Azimuth Dip
RC19-0257 590151 7440397 242 206 -75
RC19-0258 589585 7440733 203 206 -80
RC19-0259 590229 7439961 293 215 -67
RC19-0261 589847 7440643 219 206 -75
SC19-019 601748 7457923 776 0 -90
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Figure 1- Map Showing Location of 2019 Drilling Program at Bornite
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Figure 2 – Cross Section of Bornite Drilling Showing RC19-259 Results
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Figure 3 – Cross Section of Bornite Drilling Showing RC19-261 Results
Mineralization within the Bornite deposit occurs as a series of “Reefs” hosted by both the Upper
and Lower Bornite Carbonate sequences separated by generally unmineralized phyllite unit s.
The Cu-Co mineralization at Bornite occurs in three distinct carbonate zones, the Upper Reef,
the Lower Reef, and the South Reef. All three zones were drill tested this year.
Mineralization is typically observed as breccia matrix replacement and is generally dominated
by chalcopyrite and sometimes by bornite with chalcocite – particularly in the higher -grade
zones. Mineralization can also be observed as vein and replacement zones containing
chalcopyrite and calcite/dolomite gangue. These styles of mineralization were observed in all
holes mentioned in this press release with bornite, chalcocite mineralization observed in RC19-
0261, and minorly within RC19-0257; and chalcopyrite dominating mineralization observed in
RC19-258 and RC19-0259.
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Sunshine Prospect
At Sunshine, which is located approximately eight miles (13 kilometers) from the Arctic Project,
the Company drilled six holes comprising 1,357 meters.
The Sunshine prospect lies within a north-facing alpine cirque west of the Shungnak River and
just south of the eastward flowing Sunshine Creek. The Ambler VMS-style mineralization was
discovered by Bear Creek Mining Company (BCMC) in 1969 and is exposed on an east trending
ridge. The rock units exposed are typical of the Ambler Schist sequence that hosts the Arctic
deposit and include quartz +/- feldspar and chlorite schist, graphitic and quartz graphitic schist,
marble, and calcareous schist. Massive and semi -massive sulphide mineralization, consisting
of chalcopyrite, sphalerite, galena, and tetrahedrite/tennantite, occurs in 0.1 meter to 8-meter
bands generally at a contact between graphitic and calcareous schist. Three mineralized
horizons, each consisting of two sulphide layers, are limbs of recumbent synformal and
antiformal closures with the antiformal fold nose eroded away to the northeast and the fold
opening to the southwest. The new horizon listed in Tables 4 and 5 and displayed in Figure
4 may represent a structurally higher fourth recumbent fold limb.
Results for Sunshine are presented in Table 4 at a cutoff grade of 1.5% copper equivalent. All
the intersected widths are close to normal to stratigraphy and therefore can be considered to
be true widths. Results at a more selective higher-grade cutoff of 2.5% copper equivalent are
also presented in Table 5 to show locally higher-grade intervals. Table 6 shows the drill hole
location. Figure 4 shows the location of the drill holes on a plan map and Figure 5 shows a
cross-section through drill hole SC19-019. Of note is the discovery of a new zone of high-grade
polymetallic mineralization within SC19-019.
Table 4 - 1.5% Cu Eq cut-off* with maximum 2 m internal waste – Minimum 1.5 m interval
* Assumptions used in USD for the copper equivalent calculation were metal prices of $2.90/lb copper, $1.10/lb zinc,
$0.90/lb lead $1,250/oz Gold, and $18/oz Silver and recovery is assumed to be 100% as no metallurgical test data is
available. The following equation was used to calculate copper equivalence: CuEq = Copper (%) + (Zinc (%) x 0.379)
+(lead (%) x 0.310) + (Gold (g/t) x 0.629) + (Silver (g/t) x 0.009).
Table 5 - 2.5% Cu Eq cut-off* with maximum 2 m internal waste – Minimum 1.5 m interval
* Assumptions used in USD for the copper equivalent calculation were metal prices of $2.90/lb copper, $1.10/lb zinc,
$0.90/lb lead $1,250/oz Gold, and $18/oz Silver and recovery is assumed to be 100% as no metallurgical test data is
available. The following equation was used to calculate copper equivalence: CuEq = Copper (%) + (Zinc (%) x 0.379)
+(lead (%) x 0.310) + (Gold (g/t) x 0.629) + (Silver (g/t) x 0.009).
Hole Zone From (m) To (m) Length (m) Cu (% ) Zn (% ) Pb (% ) Au (g/t) Ag (g/t) CuEq (% )*
New 57.00 66.14 9.14 3.02 1.42 0.27 0.14 24.65 3.95
1 68.85 72.15 3.30 1.68 1.77 0.47 0.12 27.57 2.82
2 98.81 102.54 3.73 4.74 0.97 0.13 0.15 28.96 5.51
3 122.36 125.40 3.04 0.75 1.40 0.35 0.08 21.02 1.63
4 138.17 146.05 7.88 2.23 5.62 1.10 0.18 46.95 5.23
SC19-019
Hole Zone From (m) To (m) Length (m) Cu (% ) Zn (% ) Pb (% ) Au (g/t) Ag (g/t) CuEq (% )*
New 57.00 65.06 8.06 3.28 1.47 0.27 0.15 25.64 4.25
1 68.85 72.15 3.30 1.68 1.77 0.47 0.12 27.57 2.82
2 98.81 102.54 3.73 4.74 0.97 0.13 0.15 28.96 5.51
4 138.17 146.05 7.88 2.23 5.62 1.10 0.18 46.95 5.23
SC19-019