VANCOUVER, BC, April 5,
2022 /CNW/ - Trilogy Metals Inc.
(TSX: TMQ) (NYSE American: TMQ) ("Trilogy" or the "Company")
welcomes the recent announcement by President Biden invoking the
Defense Production Act ("DPA"). The DPA is an aggressive measure to
increase the US domestic production of metals including
cobalt, nickel, lithium, manganese, and graphite. The DPA is
a Cold War-era statute that gives the President access to funding
and other enhanced powers to shore up the American industrial base
and ensure the private sector has the necessary resources to defend
national security and face emergencies.
Tony Giardini, President and CEO
of Trilogy, commented, "With the statement by President Biden
specifically highlighting that the United
States needs to end its long-term reliance on adversarial
countries for metals that are critical to a green economy, we want
to reiterate that the Upper Kobuk Mineral Projects ("UKMP") hosts
Indicated Resources of 3.4 billion pounds of copper and 3.4 billion
pounds of zinc, and Inferred Resources of 5.4 billion pounds of
copper and 88 million pounds of cobalt1. We believe that
the resources at the UKMP will become a critical source of green
metals for the US economy, as well as a significant economic
contributor within the Northwest Arctic Borough, its Native
communities, and the Alaskan economy."
Dickie Moto, Northwest Arctic Borough Mayor, stated, "Resource
development when carried out in a way that respects our subsistence
lifestyle, our culture, and the wellbeing of the land, has the
potential to create progressive economic and employment outcomes
for the people of our communities within the Northwest Arctic
Borough. I believe that the Ambler Access Project would have a
positive, meaningful effect on our communities given that gas
prices are currently $16 a gallon and
that we are witnessing some of the highest unemployment rates in
Alaska. I also want to reiterate
that on October 11, 2021, the
Northwest Arctic Borough, which is the regional government for
Northwest Alaska, passed a
resolution in support of the Ambler Access Project. Also, the
villages of Kobuk, Shungnak, Kiana, Selawik, and Deering have also passed resolutions in favor
of development of the road. The road and the proposed mines, if
developed responsibly, would provide jobs and the ability to
sustain our subsistence lifestyle for future generations of Inupiaq
within the borough."
Update on the Ambler Access
Project ("AAP")
The AAP is the proposed 211-mile industrial-use-only road that
would link the UKMP in Northwestern
Alaska to the Dalton Highway.
On February 22, 2022, the United
States Department of the Interior ("DOI") filed a motion to remand
the Final Environmental Impact Statement ("FEIS") and suspend the
right-of-way permits issued to the Alaska Industrial Development
and Export Authority ("AIDEA") for the AAP (the "Voluntary
Remand Motion"). For more information on the motion by the DOI,
please go to DOI documents or go to the Trilogy website at
https://trilogymetals.com/news-and-media/news/2022.
On March 22, 2022, the Intervenor
Defendants (the State of Alaska,
NANA, AIDEA, and Ambler Metals LLC ("Ambler Metals")) filed motions
in response to the DOI's Voluntary Remand Motion.
In its motion, Ambler Metals, the joint venture operating
company equally owned by wholly owned subsidiaries of Trilogy and
South32 Limited, stated that it does not oppose the Voluntary
Remand Motion subject to the following conditions:
- No vacatur or termination of the permits;
- The remand must be completed within nine months;
- That there must be status updates to the court every 60 days
during the remand period; and
- Federal Defendants (DOI) must lodge the administrative record
within 30 days of issuing any new decision.
The Company expects that the DOI and the United States
Department of Justice will prepare and submit their response brief
to the United States District
Court for the District of Alaska
("US District Court") by April 5,
2022. It will then be left to the US District Court to
decide on the motion for a remand.
Mr. Giardini commented, "Again, I want to thank the people
within the Northwest Arctic Borough in Alaska for taking the time and effort to
express their support for the AAP. All five villages have been
clear that the construction of the road is expected to have
positive impacts for their communities, where a balance can be
achieved with respect to the environment and the local people's
subsistence culture and lifestyle."
Technical Reports
1The Upper Kobuk Mineral Projects, which includes the
Arctic Project and the Bornite Project, contains mineral resources
referenced in the technical reports below:
- "Arctic Feasibility Study Alaska, USA NI 43-101 Technical
Report" with an effective date of August 20,
2020, which was prepared on a 100% ownership basis, of which
Trilogy's share is 50%, and under National Instrument 43-101
standards by independent consultant, Ausenco Engineering Canada
Inc. of Vancouver, Canada. A copy
of the report is available at www.edgar.com, www.sedar.com and
www.trilogymetals.com.
- "NI 43-101 Technical Report on the Bornite Project,
Northwest Alaska, USA" with an
effective date of December 31, 2021
which was prepared under National Instrument 43-101 standards by
independent consultants Robert Sim,
P.Geo., SIM Geological Inc., Bruce M.
Davis, FAusIMM and Jeff
Austin, P.Eng., International Metallurgical &
Environmental Inc
Arctic's Indicated Mineral Resources total 36.0 million tonnes
grading 3.07% copper and 4.23% zinc, at a 0.5% cut-off grade,
containing 2.44 billion pounds of copper, and 3.35 billion pounds
of zinc.
Bornite's In-Pit Indicated Mineral Resources total 41.7 million
tonnes grading 1.04% copper, at a 0.5% cut-off grade, containing
955 million pounds of copper.
Arctic's Inferred Mineral Resources total 3.5 million tonnes
grading 1.71% copper and 2.72% zinc, at a 0.5% cut-off grade,
containing 131 million pounds of copper, and 210 million pounds of
zinc.
Bornite's In-Pit Inferred Mineral Resources total 93.9 million
tonnes grading 0.98% copper, at a 0.5% cut-off grade, containing
2.03 billion pounds of copper. It also has 135.6 million tonnes
grading 0.017% cobalt, at a 0.5% cut-off grade, containing 51
million pounds of cobalt.
Bornite's Below-Pit (South Reef) Inferred Mineral Resources
total 35.3 million tonnes grading 3.39% copper, at a 1.5% cut-off
grade, containing 2.64 billion pounds of copper. It also has 35.3
million tonnes grading 0.039% cobalt, at a 1.5% cut-off grade,
containing 30 million pounds of cobalt.
Bornite's Below-Pit (Ruby Zone)
Inferred Mineral Resources total 15 million tonnes grading 1.98%
copper, at a 1.5% cut-off grade, containing 653 million pounds of
copper. It also has 15.0 million tonnes grading 0.021% cobalt, at a
1.5% cut-off grade, containing 7 million pounds of cobalt.
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
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 potential of the
UKMP to become a critical source of green metals for the US
economy; the potential of the UKMP to become a significant
economic contributor within the Northwest Arctic Borough, its
Native communities, and the Alaskan economy; the
potential for the development and operation of the Arctic Project
to create jobs; the benefits of the AAP and the merits of the UKMP;
the status, timing and potential outcome of litigation regarding
the AAP; and potential permitting and development of the AAP 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 results of
the additional supplemental work on the
FEIS resulting from the voluntary remand; 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, 2021 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 Industry Guide 7 did
not permit the inclusion of information concerning "mineral
resources". The SEC's new mining disclosure rules under Regulation
S-K 1300 are closer, but not identical to NI 43-101 and CIM
Definition Standards. As the Company is not yet subject to
Regulation S-K 1300, it remains subject to 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 under
either SEC's Industry Guide 7 or Regulation S-K 1300.
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SOURCE Trilogy Metals Inc.