Trilogy Metals Reports Drilling Results from the Bornite Project
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News Release
Trilogy Metals Reports Drilling Results from the Bornite Project
October 9, 201 8 - Vancouver, British Columbia – Trilogy Metals Inc. (TSX/NYSE
American: TMQ) ("Trilogy Metals” or the “Company”) is pleased to announce the first set of
high-grade copper and cobalt assay results from this summer’s exploration diamond drilling
program at the Bornite Project, a part of the Company’s Upper Kobuk Mineral Project s
(“UKMP”) located in the Ambler mining district of Northwest Alaska. Sample results from these
four holes comprise approximately 3,871 meters from the recently completed 10,123 meter
drill campaign. All four drill holes contain copper mineralization and were designed as infill
holes to the 300 to 400 meter step-out holes drilled by the Company’s previous round of drilling
completed in 2017.
At a cutoff grade of 0.5% copper the results are as follows:
• RC18-246 intersected three mineralized intervals of:
o 19.6 metres averaging 2.06% copper;
o 6.1 metres averaging 2.36% copper; and
o 7.6 metres averaging 1.04% copper.
• RC18-243 intersected one mineralized interval of:
o 2.0 metres averaging 2.23% copper.
• RC18-244 intersected one mineralized interval of:
o 20.4 metres averaging 0.83% copper.
• RC18-247 intersected two mineralized intervals of:
o 20.1 metres averaging 4.55% copper, including 16.4 meters grading 5.34%
Copper and 0.21% Cobalt (The results of this mineraliz ed interval were
disclosed in the Company’s press release dated August 23, 2018); and
o 33.4 metres averaging 0.82% copper.
Rick Van Nieuwenhuyse, President and CEO of Trilogy Metals commented, “We continue to see
narrow zones of high -grade copper and cobalt mineralization overlain by broader zones of
lower grade mineralization at Bornite. The continuity of the mineralized envelop continues to
impress. With another eight holes of results due to come out over the next several weeks, we
will continue to release results as they become available. After all results are in, we expect to
complete an updated resource estimate at Bornite in the first half of next year.”
The 2018 drilling budget of $10 million for Bornite this year was funded entirely by Sout h32
Limited (ASX, LSE, JSE: S32; ADR: SOUHY) (“South32”) and represents the second $10 million
payment under the Option Agreement with South32 and maintains the Option Agreement in
good standing. In August 2018, South32 agreed to increase its contribution to this year’s
TSX, NYSE American
Symbol: TMQ
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Bornite drilling program by funding an additional $800,000 to the Company for an increased
budget at Bornite totaling $10.8 million, which allowed the Company to expand drilling from
8,000 meters to 10,000 meters this summer. The additiona l funding will reduce South32’s
2019 minimum exploration budget commitment of $10 million to $9.2 million. 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 was comprised of 12 d rill holes totaling approximately 10, 123 meters
through a combination of infill and expansion drill holes in and around the known deposit. The
original drilling campaign was budgeted to be 8,000 metres but was subsequently expanded
to 10,000 metres with th e addition of two more drill rigs. The 2018 program followed up on
drilling completed during the 2017 exploration program which was one of the larger programs
in the history of drilling at the Bornite Project. During 2017, the Company drilled nine diamond
drill holes comprising 8,437 metres to test the extension of the of the currently defined
resource†.
Trilogy Metals has recently completed its summer exploration drilling program at Bornite 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. The objective of the 2018
drill campaign is to infill and expand the currently defined open pit and underground mineral
resources.
Results 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 selec tive
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 RC18-0246.
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 (%)
RC18-0243
479.56 483.11 3.55 0.65 0.02
548.16 550.18 2.02 2.23 0.01
715.77 717.65 1.88 0.60 0.01
851.63 853.63 2.00 0.53 0.02
RC18-0244
603.92 624.32 20.40 0.83 0.02
713.20 715.80 2.60 0.74 0.01
726.57 735.11 8.54 0.47 0.01
741.11 743.66 2.55 0.93 0.00
782.50 786.06 3.56 0.66 0.01
† See the latest resource statement in the report titled “NI 43 -101 Technical Report on the
Bornite Project, Northwest Alaska, USA” released on July 20, 2018 with an effective date of
June 5, 2018 (the “Bornite Technical Report”) on the Company’s website at
www.trilogymetals.com and on the Company’s profile at www.sedar.com and www.sec.gov.
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Table 1 - Continued
Hole From (m) To (m) Length (m) Cu (%) Co (%)
RC18-0246
664.16 666.23 2.07 0.90 0.02
699.06 718.64 19.58 2.06 0.01
723.80 725.66 1.86 0.52 0.01
731.23 738.49 7.26 0.76 0.00
750.33 756.40 6.07 2.36 0.02
763.50 766.33 2.83 0.88 0.00
776.93 784.56 7.63 1.04 0.02
790.42 792.82 2.40 0.55 0.01
838.75 840.34 1.59 0.62 0.00
RC18-0247
731.27 764.67 33.40 0.82 0.01
789.30* 809.40* 20.10 4.55 0.17
* Results for this interval were previously released on August 23, 2018
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 (%)
RC18-0243 548.16 550.18 2.02 2.23 0.01
RC18-0246
703.70 713.09 9.39 3.45 0.01
751.95 756.40 4.45 2.78 0.02
RC18-0247 791.87* 808.27* 16.40 5.34 0.21
* Results for this interval were previously released on August 23, 2018
Table 3 – Bornite Drill Hole Locations
East (m) North (m) Elevation (m) Azimuth Dip
RC18-0243 590217 7440723 258 206 -80
RC18-0244 590187 7440902 270 206 -80
RC18-0246 590875 7440488 350 220 -72
RC18-0247 590537 7440676 318 206 -80
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Figure 1- Map Showing Location of 2018 Drilling Program
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Figure 2 – Cross Section of Bornite Drilling Showing RC18-246 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 g enerally 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 RC18-
0247, RC18-0246, and minorly within RC18-0244; and chalcopyrite dominating mineralization
observed in RC18-0243.
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Bornite Resource
The resource estimate utilized assay data from drill holes completed by the Company between
2011 and 2013 and re -sampled historic holes Kennecott drilled in the 1960s and 1970s . On
June 5th, 2018 the Company announced an updated resource estim ate for the Bornite project
of 5.5 Billion pounds of copper inferred resource at a grade of 1.74% Cu and 913 Million pounds
of copper indicated resource at a grade of 1.02% Cu and total Inferred Cobalt resources (in-
pit and below -pit) of 182.4 million tonnes grading 0.019% Co for 77 million pounds of
contained cobal t. Trilogy Metals filed a National Instrument 43 -101 technical report in July
2018. See the Bornite Technical Report as well as the Company’s press release s dated June
5, 2018 (https://Trilogy PR June 5 2018) and the Company’s press release on the filing of the
updated NI43-101 Technical Report for Bornite on July 20, 2018 (https://Trilogy PR July 20
2018).
QA/QC Program
The drill program, sampling protocol and data verification were managed by qualified persons
employed by the Company. Diamond drill holes were typically collared at PQ or HQ diameter
drill core and reduced to HQ and NQ diameter during the drilling process. Samples were
collected using a 0.2 -metre minimum length, 2.5 -metre maximum length and 1. 8-metre
average sample length. Drill core recovery averaged 87% overall and 9 4% within the
prospective lithologies. Three quality control samples (one blank, one standard and one
duplicate) were inserted into each batch of 20 samples. The drill core was sawn, with half sent
to ALS Minerals in Fairbanks for sample preparation and the sample pulps forwarded to ALS's
North Vancouver facility for analysis. ALS Minerals in North Vancouver, B.C., Canada, is a
facility certified as ISO 9001:2008 and accredited to ISO / IEC 17025:2005 from the Standards
Council of Canada. The Company will submit 5% of the assay intervals from prospective
lithologies to an independent check assay lab.
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 herei n.
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 l ocated 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 developm ent 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, further drilling activity, the potential advancement of the
AMDIAP, the timing and the filing of updat ed reports on the Company’s projects, the future price of copper, the
estimation of mineral reserves and mineral resources, the realization of mineral reserve and mineral resource
estimates, the timing and amount of estimated future production, costs of production, capital expenditures, costs and
timing of the development of projects, the likelihood and timing of the AMDIAP, the potential future development of
Bornite, the future operating or financial performance of the Company, planned expenditures and th e anticipated
activity at the UKMP Projects, are forward-looking statements. The assay results from drill hole RC18-0247 should not
be considered representative of other drilling results for the 2018 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 regulation 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 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 interpretat ion 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 co nstruction 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, whi ch 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, 2017 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. Unle ss 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 Min ing, 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 developed by the Canadian Securities Administrators
which establishes standards for all public disclosure an issuer makes of scientific and technical information concerning
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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 produced or extracted at the time the reserve determination is ma de. 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 d eposits
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 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 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.