Resource World Magazine

52 www.resourceworld.com o c t o b e r / n o v e m b e r 2 0 1 6 miNiNg NovaCopper becomes Trilogy Metals Arctic polymetallic project in Alaska features high-grade copper by Jennifer S. Getsinger, PhD, PGeo NovaCopper, once a spinoff from NovaGold, changed its name to Trilogy Metals Inc. [TMQ-TSX, NYSE-MKT] effective September 8, 2016. More than a copper company, Trilogy Metals also has significant zinc, lead, gold and silver projects. Targeting a large 100%-owned "naturally diversified" collection of properties in northwest Alaska's Ambler Mining District, known as the Upper Kobuk Minerals Projects (UKMP), Trilogy's main emphasis this year is on advancing its Arctic Project towards development, but remains committed to getting back to exploring its promising Bornite deposit. In an interview with Resource World magazine, President and CEO, Rick Van Nieuwenhuyse, expressed excite- ment about the next phases of the company's exploration and development plans in this highly prospective area replete with the company's metals of interest. Previously explored by Kennecott, the area is underlain by paired Devonian geological sequences consisting of the Ambler Schist Belt – metamorphosed volcanic and sedimentary rocks hosting polymetallic volcanogenic massive sulphide (VMS) deposits including the Arctic deposit and the Bornite Carbonate Sequence where interbedded carbonates and phyllites host replacement copper mineralization associated with widespread dolomitization, at the Bornite deposit. The company's 143,000 hectares of claims in the UKMP are being explored in partnership with NANA Regional Corporation (NANA). Since 1971, when the US enacted the Alaska Native Claims Settlement Act, mining companies have had the oppor- tunity to work directly with aboriginal groups such as NANA, providing mutually beneficial arrangements between natives including the local Iñupiat and mining ventures such as the suc- cessful Teck Resources Red Dog Mine. Trilogy is also working with AIDEA (the Alaska Industrial Development and Export Authority) on permitting a road to pro- vide access into the Ambler Mining District along with financing using private bonds similar to AIDEA's successful model at the Red Dog road and port facility. A preliminary economic assessment (PEA) was done on the Arctic deposit in 2013, and now the company is working toward pre-feasibility. The PEA noted after-tax valuations of US $537.2- US 857.3 million at a range of assumed commodity prices. The study contemplated a 10,000 tpd open-pit mine that would annually produce 125 million lbs copper, 152 million lbs zinc, 24 million lbs lead, 29,000 oz gold and 2.5 million oz silver over a minimum 12-year mine life. Average cash costs would be US $0.62/lb payable copper (after by-product credits). Estimated ini- tial capital cost is US $717.7 million. Current fieldwork includes over 3,000 metres of drilling plus engineering and environmental studies. The project is a polyme- tallic deposit (VMS) with promising grades of copper, zinc, lead, gold, and silver. Resources at the Arctic Project are 23.8 million tonnes indicated and 3.4 million tonnes inferred: copper, indicated, grading 3.26% Cu (1.713 million lbs contained metal), and inferred, 3.4 million tonnes grading 3.22% Cu (239 million lbs metal); zinc, indicated, grading 4.45% Zn (2,338 million lbs metal), and inferred, grading 3.84% Zn (285 million lbs metal); lead, indicated, grading 0.76% Pb (400.9 million lbs metal), and inferred, grading 0.58% Pb (43.2 million lbs metal); gold, indicated, grading 0.71 g/t Au (0.55 mil- lion oz metal), and inferred, grading 0.59 g/t Au (0.06 million oz metal); and silver, indicated, grading 53.2 g/t Ag (40.8 million oz metal), and inferred, grading 41.5 g/t Ag (4.5 million oz metal). In addition, at nearby Bornite, with Mt. Isa style of mineraliza- tion, copper indicated resources at Bornite In-Pit are 40.5 million tonnes grading 1.02% Cu (913 million lbs contained metal), and inferred, 84.1 million tonnes grading 0.95% Cu (1,768 million lbs metal); and at Bornite Below-Pit, inferred resources of 57.8 million tonnes grading 2.89% Cu (3,683 million lbs metal). Base metals in these deposits occur mainly in bornite, chalcoc- ite, chalcopyrite and pyrite, with potential recoverable cobalt, according to Van Nieuwenhuyse. He said the important story here is the size and quality of these deposits, with higher grades by over 10 times compared with some other copper mines, avail- able to be mined in an open pit (lower cost than underground). Precious metals mined from deposits like this can contribute to project financing. He is enthusiastic about the potential resur- gence of copper mining, because "copper equals energy in the green movement" – no matter how energy is produced, copper is involved either in processing or transmission of energy. Although permitting takes time in Alaska, it is a safe mining jurisdiction with secure title. Van Nieuwenhuyse is also encouraged by signs of warming up in the junior exploration market in general. n the trilogy metals exploration camp at the arctic project in northwestern alaska. photo courtesy trilogy metals Inc.

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