Trilogy Metals Reports Significant Copper and Zinc Drill Result for the Arctic Deposit and Plans for an Ore Sorting Study
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News Release
Trilogy Metals Reports Significant Copper and Zinc Drill Result for the
Arctic Deposit and Plans for an Ore Sorting Study
January 16, 2018 - Vancouver, British Columbia – Trilogy Metals Inc. (TSX/NYSE
American: TMQ) (“Trilogy Metals” or the “Company”) is pleased to announce additional in-fill
drill results and provide a project update from its 2017 summer field program at the Arctic
poly-metallic volcanogenic massive sulphide (“VMS”) deposit, part of the Upper Kobuk Mineral
Projects (“UKMP") located in the Ambler mining district of Northwest Alaska. All amounts are
in United States dollars unless otherwise stated.
The 2017 Arctic field program included 785.2 meters of diamond drilling to collect
representative sample material to conduct bulk ore sorting studies for the Arctic deposit. An
additional 273.8 meters of sonic drilling was completed to collect geotechnical, hydrological,
geothermal, and hydrogeological information for the tailings management facilities and waste
rock dump for the project in support of the upcoming Pre-Feasibility Study (“PFS”). The PFS
results are anticipated to be released in Q1 2018.
Highlights from the Drill Program
Based on a cut-off grade of 0.5% CuEq, significant zones of high grade copper, zinc,
lead, gold, and silver mineralization were intersected – including:
AR17-0159 intersected four mineralized intervals, including 31.11 meters of 1.58%
copper, 2.84% zinc, 0.69% lead, 0.38 g/t gold, and 30.79 g/t silver , and
15.25 meters of 2.91% copper, 4.34% zinc, 0.96% lead, 0.66 g/t gold, and
44.27 g/t silver;
AR17-0160 intersected four mineralized intervals, including 25.95 meters of 2.43%
copper, 1.19% zinc, 0.16% lead, 0.59 g/t gold, and 46.31 g/t silver , and
17.23 meters of 4.42% copper, 5.32% zinc, 1.37% lead, 0.13 g/t gold, and
43.92 g/t silver;
AR17-0161 intersected two mineralized intervals, including 17.60 meters of 2.69%
copper, 5.50% zinc, 1.14% lead, 0.66 g/t gold, and 54.47 g/t silver , and 4.40
meters of 3.01% copper, 3.80% zinc, 0.95% lead, 0.54 g/t gold, and 50.90
g/t silver;
AR17-0162 intersected one mineralized interval, 6.75 meters of 2.35% copper,
6.00% zinc, 1.57% lead, 0.71 g/t gold, and 43.27 g/t silver; and
AR17-0163 intersected one mineralized interval, 6.48 meters of 2.95% copper,
6.33% zinc, 1.40% lead, 0.84 g/t gold, and 44.23 g/t silver.
“These results from large diameter drill holes continue to demonstrate that Arctic is an
exceptional copper-zinc rich deposit. Further engineering and environmental work completed
this summer will support completion of the Arctic Pre-feasibility Study by the end of Q1, 2018.
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We expect this study will demonstrate that Arctic is one of the highest grade, open pitable
copper deposits in the world. And it is located in a mining friendly jurisdiction in the United
States where both our shareholders and stakeholders will be able to reap the benefits of our
efforts. Meanwhile, the Alaska Industrial and Export Authority (“AIDEA”) continues to advance
permitting of the Ambler Mining District Industrial Access Project with the scoping process set
to be finalized by the end of January”, stated Rick Van Nieuwenhuyse, President and CEO of
Trilogy Metals.
Trilogy Metals completed five PQ diamond drill holes for a total of 785.2 meters of core (see
Figure 1). This drill program was designed to collect 2 tons of representative mill-feed material
for bulk ore sorting test work at the Steinert facility in Kentucky, USA, an independent facility.
The core was quartered for geochemical analysis, and the remaining core shipped to ALS
Minerals, in North Vancouver, B.C., Canada, an independent laboratory for coarse crushing
and chemical analysis. The core will be sent to the Steinert facility in early 2018 for subsequent
bulk ore sorting testing. The ore sorting studies will be carried out after the PFS is released
and if determined to be advantageous to overall project, will be incorporated in subsequent
studies.
The Company is pleased to announce that all five holes encountered mineralized intervals
consistent with previous drilling conducted within the resource area on the property. Significant
mineralized intervals of high-grade mineralization at a cutoff of 0.5% CuEq are reported in
Table 1. These drill results, along with ongoing engineering and environmental studies
described below, will be used to support the PFS on the Arctic deposit.
Figure 1: 2017 Arctic PQ Drill Program
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Table 1: Significant Drill Intercepts – 2017 PQ Drill Program
Footnotes to Drill Interval Table:
Copper equivalent (CuEq) calculations use metal prices assumptions of $3.00/lb for copper, $1.00/lb for zinc, $0.90/lb for lead,
$1,300/oz for gold, and $18/oz for silver. Copper equivalent calculations are adjusted for the expected metallurgical recoveries of 92%
for copper, 88% for zinc, 77% lead, 63% for gold, and 56% for silver.
Results are core intervals and not true thickness; true widths have not been determined for the above intercepts but are believed to be
representative of actual drill thicknesses.
Significant interval defined as a minimum of 1.0 meter Cu interval with average grade >0.5% CuEq.
Cutoff grade of 0.5% CuEq.
Internal dilution up to three meters of <0.5% CuEq.
Intervals of <1.0 meter not reported.
Core recovery averaged 96%.
Minimum sample length was 0.17m, average sample length was 2.4m overall and 1.7m within mineralized zones.
Some rounding errors may occur.
Table 2: 2017 Drill Hole Locations
Coordinates are in UTM Zone 4N (meters) coordinate system, NAD83 Datum.
Pre-Feasibility Study Update
Trilogy Metals completed 11 sonic drill holes (273.8 meters), 26 test pits, and 2 pump tests
during the 2017 field season. This program was developed to collect geotechnical,
hydrological, geothermal (permafrost), and hydrogeological information for the various tailings
management facilities and waste rock dump areas for the Arctic project. Four of the sonic drill
holes were instrumented with thermistors, piezometers and data loggers that will allow for
long term baseline monitoring information to be gathered that will be required for a future
permitting document.
On-going baseline environmental data collection included maintenance of three hydrologic
gauging stations and one meteorological station. Surface water quality samples were taken
Hole ID From (m) To (m) Length (m) Cu Eq Cu % Zn % Pb % Au g/t Ag g/t
145.45 160.70 15.25 4.64 2.91 4.34 0.96 0.66 44.27
167.34 198.45 31.11 2.74 1.58 2.84 0.69 0.38 30.79
203.45 211.95 8.50 4.42 2.64 4.72 0.63 0.49 54.72
216.55 221.35 4.80 1.62 0.85 1.57 0.44 0.30 32.60
116.25 121.04 4.79 7.95 5.93 6.19 0.75 0.56 60.53
133.54 140.67 7.13 8.21 6.61 4.66 0.81 0.53 76.38
156.00 173.23 17.23 6.20 4.42 5.32 1.37 0.13 43.92
214.80 240.75 25.95 3.08 2.43 1.19 0.16 0.59 46.31
143.60 148.00 4.40 4.56 3.01 3.80 0.95 0.54 50.90
157.90 175.50 17.60 4.87 2.69 5.50 1.14 0.66 54.47
AR17-0162 26.90 33.65 6.75 4.76 2.35 6.00 1.57 0.71 43.27
AR17-0163 26.84 33.32 6.48 5.43 2.95 6.33 1.40 0.84 44.23
AR17-0159
AR17-0161
AR17-0160
Hole ID Easting Northing Elevation Azimuth Dip Depth
AR17-159 613322 7453324 961 35 83 244.8
AR17-160 613331 7453073 922 8 85 255.1
AR17-161 612991 7452996 791 35 70 188.1
AR17-162 612943 7453417 815 35 70 50.9
AR17-163 612942 7453416 815 35 90 46.3
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from several surface water locations and analyzed for a full suite of parameters including total
and dissolved metals. An aquatics survey of rivers and creeks over the UKMP included
identification of fish species present and tissues metals testing. An avian survey over the
UKMP was conducted in May to identify bird nest locations, with a follow-up survey in July to
measure fledging success.
The Company continues to advance the acid-base-accounting static and kinetic test work at
Arctic. Six on-site barrel samples were successfully collected during all seasons of 2017 to
support the kinetics program. Maintenance and monitoring of all kinetic tests continues into
2018.
Trilogy Metals is pleased to announce that the Pre-Feasibility Study is on schedule and
anticipated to be completed by the end of the first quarter in 2018.
QAQC Program
The drill program, sampling protocol, and data verification were managed by qualified persons
employed by Trilogy Metals. The diamond drill holes were drilled at PQ diameter drill core.
Samples were collected using a 0.17-meter minimum length, 5-meter maximum length and
2.4-meter average sample length (1.7m through the mineralized zones). Drill core recovery
averaged 96% overall. 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 a quarter
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
an independent facility certified as ISO 9001:2008 and accredited to ISO / IEC 17025:2005
from the Standards Council of Canada. Results of the control samples were reviewed by a QP
and were all within acceptable limits. Trilogy Metals 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 and
verified the technical information in this news release and approves the disclosure contained
herein. The QP visually inspected all the mineralized intervals used in the composites stated
above and in addition checked the assays values reported on the assay certificates versus the
values used for the composite calculations and found no errors.
About Trilogy Metals
Trilogy Metals Inc. is a metals exploration 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 VMS deposits that contain copper,
zinc, lead, gold and silver, and carbonate replacement deposits which have been found to host
high grade copper 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 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 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, anticipated timing and results of the PFS, the future
operating or financial performance of the Company, planned expenditures and the anticipated
activity at the UKMP Projects, 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. 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 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 weather, 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, 2016 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.