VANCOUVER, June 5, 2017 /CNW/ - Trilogy Metals Inc. (TSX, NYSE-MKT: TMQ) ("Trilogy Metals" or "the Company") is pleased to announce that it has engaged Ausenco Engineering Canada Inc. ("Ausenco") to prepare the Arctic pre-feasibility study ("PFS") technical report anticipated to be complete in Q1, 2018. The Company has also engaged Amec Foster Wheeler ("Amec") to complete mine planning and SRK Consulting (Canada) Inc. ("SRK") to complete tailings and waste design, hydrology and environmental studies.
Ausenco is a global diversified engineering, construction and project management company providing consulting, project delivery and asset management solutions to the resources, energy and infrastructure sectors. Ausenco's experience in base metal and cold weather projects ranges from conceptual, pre-feasibility and feasibility studies for new project developments to brownfield expansions with EPCM and EPC delivery. Ausenco is currently engaged on a number of remote projects with similar characteristics and opportunities to the Arctic project. Ausenco's office in Vancouver, British Columbia, Canada will coordinate the Arctic PFS.
"We are pleased to have assembled an excellent team to complete our pre-feasibility study on the high-grade polymetallic Arctic deposit. Ausenco, Amec and SRK are, all three, highly skilled and reputable companies, and the individual team members at each of these companies have decades of mining experience to draw on. The Arctic project is the first of many exciting opportunities in the Ambler mining district. While the Arctic PFS gets underway with a budget of US$7.1 million, we will continue to explore our exciting Bornite property with a budget of US$10 million. With a US$17 million total budget this year for exploration at Bornite and the Arctic PFS, it will be a very busy and productive year ahead for the Company. Major mining districts take time to develop and we are fortunate to have long-term support through our partnerships with NANA, AIDEA and South32, as well as continued support from our large shareholders", says Rick Van Nieuwenhuyse, President and Chief Executive Officer.
Arctic Pre-Feasibility Study
The Arctic deposit is a high-grade copper-zinc-lead volcanogenic massive sulfide deposit which also contains significant amounts of precious metals. The Company is proposing a 10,000 tonne per day, open pit mining operation with a typical crush-grind-float flow sheet producing significant tonnages of copper and zinc concentrates and lessor lead concentrate containing significant quantities of precious metals. The Company has recently provided updated "PFS level" metallurgy, pit-slope stability and hydrology information in our March 19, 2017 press release (https://Trilogy PR April 19 2017) and an updated resource estimate for Arctic on March 25, 2017 (https://Trilogy PR April 25 2017). This summer, our consultants will work with our team members to complete the site investigation work to determine the optimal location for the mill and power plant, tailing and waste design, and other supporting infrastructure and facilities. The Company had previously released a National Instrument 43-101 - Standards of Disclosure technical report entitled "Preliminary Economic Assessment Report on the Arctic Project, Ambler Mining District, Northwest Alaska" dated effective September 12, 2013 (the "PEA") (https://Trilogy PR September 12 2013). We expect the PFS to be completed in Q1, 2018. Ausenco, who are independent from the Company, will coordinate and work with our other consultants to provide engineering support and an economic analysis, as well as author the Arctic PFS technical report for the Company.
Qualified Persons
Andrew W. West, P.Geo., 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 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.
