Trilogy Metals Announces Approved Program and Budget for the Ambler Access Project

Trilogy Metals Inc. (TSX: TMQ) (NYSE American: TMQ) ("Trilogy" or the "Company") is pleased to announce that the Alaska Industrial Development and Export Authority ("AIDEA") has formally approved the proposed plan and budget for the 2022 summer field season activities and services of up to $30.8 million for the Ambler Access Project ("Ambler Access Project" or "AAP"). The cost will be shared 5050 by AIDEA and Ambler Metals LLC ("Ambler Metals"), the joint venture operating company equally owned by Trilogy and South32 Limited (ASX, LSE, JSE: S32; ADR: SOUHY) ("South32"). All amounts are in US dollars.

2022 Ambler Access Project Budget and Proposed Field Work

The Board of AIDEA, a public corporation of the State of Alaska with the purpose to promote, develop and advance the general prosperity and economic welfare of the people of Alaska , has authorized up to $15.4 million for field season activities on the Ambler Access Project. These funds will be matched by up to another $15.4 million from Ambler Metals under the terms of the Ambler Access Development Agreement (the "Development Agreement") that was approved by the AIDEA Board on February 10, 2021 , and subsequently executed by both parties. Both South32 and Trilogy have approved Ambler Metals portion of this budget.

The $15.4 million amount that Ambler Metals is contributing to this year's AAP budget is in addition to the $28.5 million that was approved by Trilogy and South32 for the 2022 program at the Upper Kobuk Mineral Projects ("UKMP").

During the 2022 field season, AIDEA will be carrying out additional work including, geotechnical investigations, right-of-way surveys, environmental studies, road and bridge engineering design work, and cultural resources work.

According to AIDEA, the AAP is expected to create thousands of new jobs resulting in over $5 billion in wages paid during the lifetime of the project and that the bulk of the work force required for the construction, management and maintenance of the road will be from the local communities. AIDEA is already holding job fairs in the local communities with a commitment to hire locally and benefit local villages.

Tony Giardini , President and CEO of Trilogy, commented, "It has been over 10 years since Trilogy formed its partnership with NANA Regional Corporation, Inc ("NANA"). This partnership has been a very productive and fulfilling experience for all sides. Since that time, Trilogy and now Ambler Metals, have been fully committed to our core values which include respect for the environment, Iñupiaq and Athapaskan subsistence cultures and the safety and wellbeing of all our employees. We have always taken extreme pride on our commitment to our native partners and have always worked hard to earn their trust. We believe our unparalleled track record and strong relationships with our local partners will ultimately prove to be successful in the development of the AAP and the development of the UKMP. Since 2004 to the formation of the Ambler Metals joint venture we invested $147 million into the UKMP. Subsequently, the joint venture invested $3.5 million and $22.6 million in 2020 and 2021, respectfully. Ultimately, there has been approximately $176 million invested in the Ambler Mining District over the years."

Simon Collins , Chief Development Officer of South32, commented, "Our participation in the Ambler Metals joint venture, which is studying the potential development of the UKMP, is fully aligned with South32's aim of reshaping our portfolio by increasing our exposure to the base metals that are important in a low carbon future. In line with our company's purpose and values, we are committed to progressing the UKMP in a way that minimizes social and environmental impact and is based on positive stakeholder relationships and the creation of opportunities for local communities."

Ramzi Fawaz , President and Chief Executive Officer of Ambler Metals, "We are looking forward to a busy and productive 2022 field season. Ambler Metals will be recruiting for over 60 direct hire positions, ranging from geologists to heavy equipment operators. Additionally, there will be approximately 50 positions hired through contractors working for us. We are also pleased to announce that as part of our workforce development plans, Ambler Metals will be kicking off several vocational training programs involving participants from the NANA and Doyon regions. This in addition to the very successful scholarship program that Ambler has in place for deserving NANA Shareholders studying for future careers in the natural resources sector."

History of Ambler Access Project

In 1980, President Jimmy Carter signed the Alaska National Interest Lands Conservation Act ("ANILCA") into law. ANILCA sought to balance the state's natural resource-based economy with environmental protection and preserve Alaskans' unique ways of life.
ANILCA established 10 new federal parks, preserves, and monuments throughout Alaska while guaranteeing certain rights of access for subsistence, hunting, fishing, recreation, and other economic and social purposes. Access to and from the Ambler Mining District for resource development is guaranteed in Section 201(4) of ANILCA.
In 2009, the Alaska Department of Transportation and Public Facilities ("DOT&PF") began evaluating multiple road and railroad routes that could provide access to the Ambler Mining District. Access to the District was assessed for both east and west alignments. As a result of these studies, a potential corridor was identified that would connect the Dalton Highway to the Ambler Mining District crossing the Gates of the Arctic National Preserve.
In 2013, the project was transferred from DOT&PF to AIDEA, a public corporation of the State of Alaska . AIDEA's purpose is to promote, develop and advance the general prosperity and economic welfare of the people of Alaska .
AIDEA undertook the project with the goal of forming a public-private partnership to finance, construct, operate and maintain the controlled industrial access road. The project approach is modeled on AIDEA's successful DeLong Mountain Transportation System ("DMTS"), which includes a 52-mile industrial access road from the Red Dog Mine to the DMTS shallow-water port. AIDEA worked with private industry to develop the DMTS industrial access road and the costs of road construction were paid back through tolls on road use.
According to AIDEA, during the scoping period (which was extended from 90 days to over 330 days), the United States Bureau of Land Management ("BLM") held 15 public hearings in 13 communities and received more than 7,200 written comments. Subsequently, after the draft EIS was released in August 2019 , the BLM held an additional 18 hearings in rural communities, hearings in two hub communities ( Anchorage and Fairbanks ), and a hearing in Washington, D.C. The BLM received an additional 29,000 written comments to the draft EIS which were scrutinized and incorporated into the final EIS. AIDEA has stated that the development and production of the the Joint Record of Decision ("JROD") and the Final Environmental Impact Statement ("FEIS"), which cost almost $5 million , was an extraordinarily high-quality and comprehensive analysis report, which, in their opinion, far surpasses the BLM's legal obligations.
On July 23, 2020 , the Company announced that the BLM issued the JROD and the FEIS for the AAP. Subsequently, a Section 404 Permit, which is governed by the Clean Water Act ("CWA"), was issued by the United States Army Corp. of Engineers ("USACE") to AIDEA.
Lawsuits were filed shortly thereafter by a coalition of national and Alaska environmental non-government organizations in response to the BLM's issuance of the JROD for the Ambler Access Project. Subsequently NANA, AIDEA, Ambler Metals and the State of Alaska applied for and were granted intervenor status in the litigation.
On January 6, 2021 , BLM, the National Park Service and AIDEA signed Right-of-Way agreements giving AIDEA the ability to cross federally owned and managed lands along the route for the Ambler Access Project approved in the JROD. The authorizing documents with the two agencies are the final federal permits required for the Ambler Access Project.
On February 10, 2021 , AIDEA entered into the Development Agreement, a long-term agreement with Ambler Metals for shared pre-development costs of the Ambler Access Project. The Development Agreement is an agreement between AIDEA and Ambler Metals to contribute up to $35 million each for feasibility and permitting activities of the Ambler Access Project through the end of December 2024 .
During the second quarter of 2021, AIDEA signed a land access agreement with Doyon Limited to conduct feasibility and permitting activities to advance the Ambler Access Project and in September 2021 AIDEA signed a land access agreement with NANA to conduct similar activities.
In October 2021 , the Northwest Arctic Borough Assembly passed a resolution in support of the Ambler Access Project.
On October 27, 2021 , the federal defendants, which include the BLM, the USACE, United States Department of the Interior, the National Park Service and the United States Department of Transportation were granted a 60-day stay with respect to each of the lawsuits. The stay was granted through November 29, 2021 .
Throughout 2021, the Ambler Access Project made significant progress achieving multiple land access milestones, including rights-of-way ("ROW") between AIDEA, the National Park Service , and BLM as well as an AIDEA-Doyon land access agreement and an AIDEA-NANA land access permit.
The agreement and permit with Doyon and NANA, respectively, are effective until December 31, 2024 . Note that these are not ROW agreements. Project resources were added to advance the project through Final Feasibility and Permitting, including a dedicated program manager, external communications manager, and a team of contractors to complete nine critical scopes of work.
On January 21, 2022 , the federal defendants filed a request for an additional 30-day extension.

About Trilogy Metals

Trilogy Metals Inc. is a metal exploration and development company which holds a 50 percent interest in Ambler Metals LLC which has a 100 percent interest in the Upper Kobuk Mineral Projects ("UKMP") in Northwestern Alaska . On December 19, 2019 , South32, a globally diversified mining and metals company, exercised its option to form a 50/50 joint venture with Trilogy. The UKMP is located within the Ambler Mining District which 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 a land package that spans approximately 181,387 hectares. Ambler Metals has an agreement with NANA Regional Corporation, Inc., an Alaska Native Corporation that provides a framework for the exploration and potential development of the Ambler Mining District in cooperation with local communities. Trilogy's 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, statements relating to the permitting and construction of the AAP, the timing and benefits of the AAP and the merits of the UKMP 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. 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 whether the Alaska Industrial Development and Export Authority will build the AAP; the impact of the COVID-19 pandemic; success of exploration activities, permitting timelines, requirements for additional capital, government regulation of mining operations, environmental risks, prices for energy inputs, labour, materials, supplies and services, uncertainties involved in the interpretation of drilling results and geological tests, unexpected cost increases and other risks and uncertainties disclosed in the Company's Annual Report on Form 10-K for the year ended November 30, 2020 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.

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SOURCE Trilogy Metals Inc.

View original content: https://www.newswire.ca/en/releases/archive/February2022/07/c5384.html

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Trilogy Metals TMQ:CA TMQ Copper Investing

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Trilogy Metals Reports High Grade Copper and Zinc from Drilling at its Arctic Deposit

VANCOUVER, Oct. 27, 2016 /PRNewswire/ – Trilogy Metals Inc. (TSX:TMQ) (NYSE:TMQ), formerly NovaCopper Inc., is pleased to announce drill results and provide a project update from its 2016 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 majority of this year’s project budget of US$5.5 million was spent on a drilling program at the Arctic Project that included 3,058 meters of drilling for geotechnical, hydrological, waste rock characterization and metallurgical studies as well as further resource definition. In addition to the drilling program, a series of environmental studies were conducted over the UKMP. The LiDAR survey that was incomplete last year due to weather conditions was also completed during the summer. This site investigation work will form the basis for completing a future pre-feasibility study on the Arctic deposit.

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Mining News: Enter Trilogy Metals

What does a name say about a company? Management of NovaCopper Inc. feels that its corporate moniker does not say enough about the diversity of metals present in the high-grade deposits encompassed by its Upper Kobuk Minerals Projects in the Ambler mining district of Northwest Alaska.
Arctic, the most advanced UKMP deposit, actually hosts more zinc than it does copper. And, while copper remains the dominant metal in terms of value, zinc supply shortages are closing the price gap between these two metals. Additionally, strong gold and silver prices have increased precious metals contributions to Arctic’s value this year.
“The Ambler district is more than just copper – it is copper; it’s zinc; (and) it’s precious metals,” NovaCopper President and CEO Rick Van Nieuwenhuyse explained in a recent interview.
As such, when markets open in Toronto and New York Sept. 8, NovaCopper Inc. will be no more. In its place, Trilogy Metals Inc. (TSX:TMQ) (NYSE:TMQ), will grace the boards of the Toronto Stock Exchange and NYSE-MKT.
NovaCopper shares under the previous symbol, NCQ, will seamlessly transition to Trilogy Metals shares, requiring no action for current shareholders.
Transition to Trilogy
Spun out of Novagold Resources Ltd. in 2012 to continue the exploration of Arctic and Bornite, two of the highest grade un-mined copper deposits in the world, NovaCopper was a natural choice for the Ambler mining district focused exploration company.
In the months leading up to the formation of NovaCopper, Van Nieuwenhuyse, who was then president and CEO of Novagold, forged a partnership with NANA Regional Corp. that brought together a large package of Novagold-owned mining claims blanketing a 70-mile- (110 kilometer) long belt of high-grade copper-lead-zinc-gold-silver deposits with an adjacent package of NANA-owned lands known for hosting exceptionally high-grade copper.
The alliance provides the Inupiat-owned Alaska Native regional corporation with the opportunity to benefit from the exploration and eventual development of the world-class Arctic deposit and other similar volcanogenic massive sulfide prospects across the Ambler belt. In return, NovaCopper was given the opportunity to investigate Bornite, a copper-rich deposit situated about 16 miles (26 kilometers) southwest of Arctic, and explore other mineral prospects across a large highly prospective swath of NANA lands in the Upper Kobuk region.
Over the ensuing four years, the partnership and the mineral endowment found on the 353,000 acres of UKMP lands has grown.
Today, the Arctic and Bornite deposits together are believed to host roughly 8.4 billion pounds of copper; 2.6 billion lbs. of zinc; 610,000 oz. of gold; 45.3 million oz. of silver; as well as significant quantities of lead and cobalt.
It is the natural diversity this broad range of metals – especially the zinc and precious metals components of Arctic, the UKMP deposit nearest to a production decision – that prompted the transition to the new name of Trilogy Metals.
Arctic focus
Over the past two years, the rebranded company has focused its field work on gathering the last bits of information needed to complete a pre-feasibility study that will outline plans to develop an open pit mine at Arctic.
A roughly 3,000-meter drill program at Arctic was the biggest ticket item of this year’s field program.
Prior to a similar infill drill program completed last year, Arctic hosted 23.85 million metric tons of indicated resource averaging 3.26 percent (1.71 billion lbs.) copper, 4.45 percent (2.34 billion lbs.) zinc, 0.76 percent (400 million lbs.) lead, 0.71 grams per metric ton (550,000 oz.) gold, and 53.2 g/t (40.8 million oz.) silver.
This VMS deposit also contains an estimated 3.63 million metric tons of inferred resource averaging 3.22 percent (239 million lbs.) copper, 3.84 percent (285 million lbs.) zinc, 0.58 percent (43.2 million lbs.) lead and 0.59 g/t (60,000 oz.) gold.
“What is so spectacular about Arctic is it hosts really fantastic grades,” said Van Nieuwenhuyse.
Drilling over the past two seasons has focused on upgrading much of the inferred resources to the higher confidence measured and indicated categories; some pit expansion drilling; and holes targeted to collect pit slope stability, hydrology and metallurgical information.
Thanks in part to great weather at Arctic this year, the 2016 program came in under the US$5.5 million budgeted for the field work.
Trilogy Metals is expected to release results from this drilling and the other field work in October.
Advancing Ambler
When Trilogy Metals returns to the Ambler district in 2017, the company plans to complete the geotechnical work needed to further refine locations for a power plant, mill, waste rock pile, stockpiles and tailings facilities for the Arctic mine plan to be detailed in the prefeasibility study.
The renamed company also would like to resume drilling at Bornite, a copper-rich carbonate replacement deposit that is reminiscent of those found in the African Copper Belt of southern Africa and the Mt. Isa district of Queensland, Australia.
Using a 0.50 percent copper cutoff grade, Bornite now hosts an estimated 40.5 million metric tons of in-pit indicated resources averaging 1.02 percent (913 million pounds) copper; and 84.1 million metric tons of inferred resources averaging 0.95 percent (1.8 billion lbs.) copper.
Additionally, at a 1.50 percent copper cutoff grade, Bornite is estimated to contain 57.8 million metric tons of below-pit inferred resources averaging 2.89 percent (3.7 billion lbs.) copper.
While already world-class in terms of both size and grade, the various zones of Bornite are open to expansion in several directions. The most compelling area is a 1,000-meter-wide stretch of continuing high grades along the northern front.
Hole RC13-0220, the most northeasterly hole drilled at Bornite cut three very high-grade intervals from 877 to 923 meters (at a 2.0 percent cutoff): 5.9 meters of 6.66 percent copper; 9.9 meters of 2.48 percent copper; and 19.7 meters of 2.24 percent copper.
Hole RC13-0224, drilled about 800 meters west of hole 220, cut five high-grade intercepts from 579 meters to 755 meters along this northern front: 19.5 meters of 3.02 percent copper; 16.8 meters of 2.36 percent copper; 39.5 meters of 2.37 percent copper; 8.6 meters of 3.26 percent copper; and 6.5 meters of 7.7 percent copper.
Trilogy believes that continued expansion in this direction could put the grades and size of its Ambler deposits on par with Mount Isa, where more than 400 million metric tons of ore grading 2.12 percent copper has been mined over the past 75 years.
Financial footing
An innovative financing completed last year puts Trilogy Metals in a good position to finish the pre-feasibility work at Arctic and continue exploration at Bornite.
In mid-2015, the company closed the buyout of Sunward Resources Ltd., a fellow exploration company with roughly US$20 million in the bank but a market cap hovering around US$13 million.
In exchange for the cash and Sunward’s Titiribi gold-copper project in Columbia, NovaCopper issued 43.1 million shares to Sunward shareholders.
When Trilogy Metals lights up the boards of the TSX and NYSE-MKT exchanges, it will have nearly US$10 million of this cash remaining in its treasury.
Adding to this strong financial footing, the company cut a deal in mid-August to sell the Titiribi property to Brazil Resources Inc., an exploration company with a growing portfolio of gold and copper properties in South America and Alaska.
In exchange for the Columbia gold-copper property, Trilogy will hold 5 million Brazil Resources shares. With a 50-day moving average of C$2.60 per share, these shares are currently worth about C$13 million.
“While we believe the Titiribi property has excellent exploration potential and a strong local team, the sale allows NovaCopper (Trilogy) to focus on its high-grade copper, zinc and precious metals projects located in Northwest Alaska,” said Van Nieuwenhuyse.
Connect with Trilogy Metals Inc. (TSX:TMQ) (NYSE:TMQ) to receive an Investor Presentation.

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The sale, announced by the company on Monday (December 9), will see Boliden acquire full ownership of Somincor, the company operating Neves-Corvo, as well as Zinkgruvan Mining Aktiebolag and its associated entities.

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