Trilogy Metals Announces Pre-Feasibility Study Results and Reserves for the Arctic Project, Alaska

Trilogy Metals Inc. (TSX/NYSE American: TMQ) (“Trilogy Metals” or the “Company”) is pleased to announce the positive results of its Pre-Feasibility Study (“PFS”) for its Arctic Copper-Zinc-Lead-Silver-Gold Project (“Arctic” or the “Arctic Project”) in the Ambler mining district of Northwestern Alaska. These results convert indicated mineral resources at Arctic to probable mineral reserves.  All amounts are stated in U.S. dollars unless otherwise stated.

As quoted in the press release:

“The results of the PFS show that Arctic is a robust, high quality project.  We are very pleased with the improvements in the economics in this Pre-Feasibility Study compared with the Preliminary Economic Assessment (“PEA”) performed on the Arctic Project in 2013.  The increase in net present value of Arctic in the PFS from the PEA is due to a number of cumulative factors, including: 1) improved mine plan that moves approximately $100 million in the pre-stripping forward which allows for a more aggressive mine ramp up – two years, rather than four years in the PEA.  This brings forward a significant amount of metal production and cashflow; 2) use of LNG versus diesel in the PEA – this reduces power generation costs and saves approximately $2.00/tonne in operating costs on processing; 3) improved tax legislation in the United States improves after-tax NPV and IRR; 4) improved long term commodity prices, specifically for copper and zinc; 5) improved metallurgical recoveries; and 6) an almost 20% increase in resource tonnes along with an improvement in grade resulting from our in-fill drilling programs conducted over the past couple of years”, said Rick Van Nieuwenhuyse, President and Chief Executive Officer.

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