VANCOUVER, Dec. 13, 2018 /CNW/ - Trilogy Metals Inc.
(TSX/NYSE American: TMQ) ("Trilogy Metals" or the
"Company") is pleased to announce the third, and final, set of
copper and cobalt assay results for five holes from the 2018 summer
exploration diamond drilling program at the Bornite Project, a part
of the Company's Upper Kobuk Mineral Projects ("UKMP") located in
the Ambler Mining District of Northwest
Alaska. Assay results from these five holes comprise
approximately 3,024 meters from the 10,123-meter drill
campaign. All five of the drill holes contain significant
copper mineralization and were designed as infill and extension
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:
- RC18-0254 intersected seven mineralized intervals of:
-
- 123.9 meters averaging 1.07% copper;
- 10.0 meters averaging 0.81% copper;
- 13.5 meters averaging 0.78% copper;
- 46.0 meters averaging 0.98% copper;
- 8.0 meters averaging 0.91% copper; and
- 29.0 meters averaging 1.68% copper.
- RC18-0252 intersected five mineralized intervals of:
-
- 2.9 meters averaging 1.95% copper;
- 3.6 meters averaging 2.63% copper;
- 12.5 meters averaging 1.49% copper;
- 1.9 meters averaging 1.12% copper; and
- 7.5 meters averaging 2.25% copper.
- RC18-0251 intersected three mineralized intervals of:
-
- 13.6 meters averaging 0.72% copper;
- 1.7 meters averaging 1.01% copper; and
- 1.3 meters averaging 0.98% copper.
- RC18-0255 intersected four mineralized intervals of:
-
- 1.0 meter averaging 11.47% copper;
- 5.4 meters averaging 0.88% copper;
- 14.3 meters averaging 0.97% copper; and
- 3.1 meters averaging 1.96% copper.
- RC18-0256 intersected three mineralized intervals of:
-
- 12.9 meters averaging 0.94% copper;
- 6.6 meters averaging 1.36% copper; and
- 15.0 meters averaging 2.54% copper.
On August 23, 2018, the Company
announced initial assay results from the first drill hole,
RC18-0247, from the Bornite Project. Subsequently, on October 9, 2018, the Company announced additional
assay results for three additional drill holes (RC18-0243,
RC18-0244, RC18-0246 as well as RC18-0247). Additional drilling
results, comprising assay results from three drill holes
(RC18-0248, RC18-0249 and RC18-0250) were released on November 19, 2018. The current release contains
the results for the five remaining drill holes (RC18-0251,
RC18-0252, RC18-0254, RC18-0255 and RC18-0256). Hole RC18-0253 was
re-collared as RC18-0254 before reaching its target depth. In
total, 12 holes were drilled at the Bornite Project during the 2019
summer exploration program.
Rick Van Nieuwenhuyse, President
and CEO of Trilogy Metals commented, "The latest drilling results
confirm the extent and continuity of the copper and cobalt
mineralized system at the Bornite Project, and continue to
demonstrate that the system is open. The results from drill hole
RC18-0254 show additional thick zones of continuous copper-cobalt
mineralization which is what was seen in RC13-0224, which contains
236.0 meters of 1.90% copper, including 6.6 meters of 7.70% copper
(please see the press release dated October
7, 2013). Hole RC18-0254 is approximately 150 meters to the
southwest of RC13-0224. Within the central part of the Bornite
deposit, drill holes RC18-0252, RC18-0255 and RC18-0256 partially
in-fill the doughnut hole – an area previously undrilled as seen in
figure 2. These three drill holes extend the mineralized envelope
towards the surface - potentially expanding the open pit resource.
The results from RC18-0251 extend the South Reef Zone up-dip to the
south – albeit at lower grades but the mineralized system remains
open up-dip towards the surface. Overall, all four of these
holes (RC18-0251, RC18-0252, RC18-0255 and RC18-0256) show that the
South Reef mineralization is open up dip and joins with the Main
Lower Reef mineralization that makes up the open pit resource."
This year's program was comprised of 12 drill 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 meters but was
subsequently expanded to 10,000 meters with the 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
meters to test the extension of the of the currently defined
resource†.
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
approximately true widths. Results at a more selective higher-grade
cutoff of 1.5% copper are presented in Table
2. Table 3 shows drill hole locations
while Figure 1 shows the location of the drill holes on
a plan map along with cross section lines A-A', B-B' and C-C'
(Figures 3, 4 and 5). Figure 2 shows the location of
the drill holes on a grade thickness contour map which will be
updated in a press release summarizing the 2018 drill results to be
issued at a later date.
_____________________
† 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.
|
Table 1 - 0.5% Cu cut-off with maximum 4 m internal waste
Hole
|
From
(m)
|
To
(m)
|
Length
(m)
|
Cu
(%)
|
Co
(%)
|
RC18-0251
|
539.05
|
552.73
|
13.68
|
0.72
|
0.01
|
613.45
|
615.15
|
1.70
|
1.01
|
0.00
|
676.05
|
677.30
|
1.25
|
0.98
|
0.04
|
RC18-0252
|
178.30
|
181.22
|
2.92
|
1.95
|
0.03
|
206.62
|
210.21
|
3.59
|
2.63
|
0.02
|
290.53
|
303.00
|
12.47
|
1.49
|
0.03
|
306.54
|
308.48
|
1.94
|
1.12
|
0.02
|
436.93
|
444.38
|
7.45
|
2.25
|
0.01
|
RC18-0254
|
455.00
|
578.90
|
123.90
|
1.07
|
0.02
|
614.90
|
624.90
|
10.00
|
0.81
|
0.04
|
638.80
|
652.26
|
13.46
|
0.78
|
0.01
|
672.25
|
718.25
|
46.00
|
0.98
|
0.01
|
722.25
|
730.25
|
8.00
|
0.91
|
0.01
|
738.25
|
767.29
|
29.04
|
1.68
|
0.04
|
RC18-0255
|
256.90
|
257.86
|
0.96
|
11.47
|
0.02
|
349.60
|
354.96
|
5.36
|
0.88
|
0.02
|
382.50
|
396.80
|
14.30
|
0.97
|
0.02
|
562.50
|
565.56
|
3.06
|
1.96
|
0.01
|
RC18-0256
|
165.65
|
178.50
|
12.85
|
0.94
|
0.02
|
183.60
|
190.15
|
6.55
|
1.36
|
0.02
|
256.20
|
271.22
|
15.02
|
2.54
|
0.02
|
Table 2 - 1.5% Cu cut-off with maximum 3 m internal waste
Hole
|
From
(m)
|
To
(m)
|
Length
(m)
|
Cu
(%)
|
Co
(%)
|
RC18-0252
|
180.48
|
181.22
|
0.74
|
5.59
|
0.08
|
207.87
|
210.21
|
2.34
|
3.61
|
0.02
|
290.53
|
291.04
|
0.51
|
11.05
|
0.13
|
298.03
|
298.98
|
0.95
|
2.46
|
0.06
|
436.93
|
442.79
|
5.86
|
2.71
|
0.01
|
RC18-0254
|
460.67
|
462.65
|
1.98
|
2.33
|
0.08
|
471.80
|
473.34
|
1.54
|
1.85
|
0.04
|
480.00
|
482.00
|
2.00
|
1.52
|
0.01
|
498.00
|
507.18
|
9.18
|
2.17
|
0.04
|
540.90
|
544.90
|
4.00
|
2.12
|
0.01
|
554.90
|
556.90
|
2.00
|
1.62
|
0.01
|
572.90
|
574.90
|
2.00
|
1.54
|
0.01
|
676.25
|
680.25
|
4.00
|
2.22
|
0.03
|
708.25
|
710.25
|
2.00
|
1.57
|
0.01
|
744.25
|
746.25
|
2.00
|
3.10
|
0.13
|
750.25
|
752.25
|
2.00
|
3.17
|
0.11
|
760.25
|
767.29
|
7.04
|
2.85
|
0.05
|
RC18-0255
|
256.90
|
257.86
|
0.96
|
11.47
|
0.02
|
350.76
|
352.68
|
1.92
|
1.75
|
0.04
|
389.00
|
391.65
|
2.65
|
1.84
|
0.02
|
563.68
|
565.56
|
1.88
|
2.56
|
0.01
|
RC18-0256
|
167.65
|
169.65
|
2.00
|
1.97
|
0.02
|
187.60
|
190.15
|
2.55
|
2.32
|
0.02
|
256.20
|
265.50
|
9.30
|
3.39
|
0.02
|
268.62
|
271.22
|
2.60
|
1.85
|
0.01
|
Table 3 – Bornite Drill Hole Locations
|
East
(m)
|
North
(m)
|
Elevation
(m)
|
Azimuth
|
Dip
|
RC18-0251
|
589984
|
7439671
|
242
|
26
|
-85
|
RC18-0252
|
589868
|
7440015
|
252
|
206
|
-75
|
RC18-0254
|
589884
|
7440799
|
228
|
169
|
-70
|
RC18-0255
|
589902
|
7440168
|
256
|
206
|
-75
|
RC18-0256
|
589711
|
7439884
|
224
|
170
|
-85
|
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 units. 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.
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. Assays
from historic Kennecott holes that were not re-sampled were also
used in the resource estimation. On June
5th, 2018 the Company announced an updated
resource estimate 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
cobalt. 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 releases 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-meter minimum length, 2.5-meter maximum
length and 1.9-meter average sample length. Drill core recovery
averaged 93% overall and 95% 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 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.
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 UKMP and mining generally in
Alaska, the timing and the filing
of updated 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
the anticipated activity at the UKMP Projects, are forward-looking
statements. The assay results from the drill holes discussed in
this press release 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 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,
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. 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, 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 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 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
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.
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SOURCE Trilogy Metals Inc.