Trilogy Metals Reports Drilling Results For Sunshine Project

Author: Benzinga Newsdesk | November 07, 2019 10:33am

Trilogy Metals Inc. (NYSE:TMQ) ("Trilogy Metals" or the "Company") is pleased to announce the second and final set of assay results from this summer's exploration diamond drilling program at the Sunshine prospect, which is part of the Company's Upper Kobuk Mineral Projects ("UKMP") located in the Ambler mining district of Northwest Alaska.

The Company also is pleased to provide an update on the permitting of the Ambler Mining District Industrial Access Project ("AMDIAP") otherwise known as the Ambler Road.

Based on the Versatile Time Domain Electromagnetic ("VTEM") geophysical survey that we completed this past spring over the Ambler volcanogenic massive sulphide ("VMS") belt and from historical drilling, the most recent drilling targeted the Sunshine prospect, which is approximately eight miles (13 kilometers) from the Arctic Project. The assay results from five drill holes from the Sunshine prospect comprise 1,196 meters of the 1,357-meter six-hole drill campaign at this prospect.

Drilling Highlights – Sunshine Prospect

At a cutoff grade of 1.5% copper equivalent* the results from the Sunshine prospect are as follows:

SC19-018 intersected four mineralized intervals of:
5.2 metres with a copper equivalent grade of 3.93% (2.08% copper, 3.13% zinc, 0.63% lead, 0.15 g/t gold and 41.64 g/t silver);
6.3 metres with a copper equivalent grade of 2.38% (1.63% copper, 1.45% zinc, 0.09% lead, 0.07 g/t gold and 13.38 g/t silver);
7.2 metres with a copper equivalent grade of 1.69% (0.72% copper, 2.18% zinc, 0.21% lead, 0.03 g/t gold and 6.64 g/t silver); and
1.1 metres with a copper equivalent grade of 1.71% (1.53% copper, 0.35% zinc, 0.01% lead, 0.03 g/t gold and 3.67 g/t silver).

SC19-020 intersected four mineralized intervals of:
3.4 metres with a copper equivalent grade of 6.54% (4.15% copper, 3.42% zinc, 0.83% lead, 0.26 g/t gold and 74.35 g/t silver);
1.6 metres with a copper equivalent grade of 3.77% (1.43% copper, 1.65% zinc, 0.40% lead, 0.06 g/t gold and 23.30 g/t silver);
4.9 metres with a copper equivalent grade of 5.77% (4.47% copper, 3.42% zinc, 0.01% lead, 0 g/t gold and 0.12 g/t silver); and
2.7 metres with a copper equivalent grade of 3.87% (3.70% copper, 0.44% zinc, 0% lead, 0 g/t gold and 0.40 g/t silver).

SC19-021 intersected one mineralized interval of:
9.7 metres with a copper equivalent grade of 6.10% (3.93% copper, 3.00% zinc, 0.77% lead, 0.22 g/t gold and 73.10 g/t silver).

SC19-022 intersected three mineralized intervals of:
1.4 metres with a copper equivalent grade of 5.90% (2.89% copper, 4.87% zinc, 1.41% lead, 0.17 g/t gold and 68.30 g/t silver);
4.2 metres with a copper equivalent grade of 1.85% (0.34% copper, 2.28% zinc, 1.07% lead, 0.07 g/t gold and 30.63 g/t silver); and
15.3 metres with a copper equivalent grade of 3.08% (1.35% copper, 2.91% zinc, 0.78% lead, 0.16 g/t gold and 32.58 g/t silver).

SC19-023 intersected one mineralized interval of:
5.0 metres with a copper equivalent grade of 2.09% (0.87% copper, 1.92% zinc, 0.66% lead, 0.10 g/t gold and 24.69 g/t silver).

* Assumptions used for the copper equivalent calculation were metal prices in USD of $2.90/lb copper, $1.10/lb zinc, $0.90/lb lead, $1,250/oz gold, and $18/oz silver and recovery is assumed to be 100% as no metallurgical test data is available. The following equation was used to calculate copper equivalence: CuEq = Copper (%) + (Zinc (%) x 0.379) + (Lead (%) x 0.310) + (Gold (g/t) x 0.629) + (Silver (g/t) x 0.009).

James Gowans, Interim President and CEO of Trilogy Metals commented, "The grades and widths of mineralization found at the Sunshine prospect are very similar to what we see at the Arctic project and I expect that with more drilling that we can delineate more mineralization at Sunshine. I also note that the Sunshine prospect is just one of dozens of prospects found within the 70-mile (100 kilometer) long Ambler VMS Belt which has the potential to be one of the most prolific mining districts in the world."

Ambler Mining District Industrial Access Project

On October 29, 2019 the comment period closed for the AMDIAP Draft Environmental Impact Statement ("EIS"). The Bureau of Land Management ("BLM"), which is the lead agency, is now incorporating the comments into the final EIS. The BLM is expected to provide an update on the timing of the completion of the final EIS at a later date. The Company wishes to express its sincere appreciation to the BLM for making progress on the EIS process. For more information on the permitting process for the AMDIAP please go to BLM Ambler Road.

Sunshine Prospect

At Sunshine, which is located approximately eight miles (13 kilometers) from the Arctic Project, the Company drilled six holes comprising 1,357 meters. On September 10, 2019, the Company released the results from drill hole SC19-019 which contained copper-zinc-lead-gold-silver mineralization (For more information on this press release please go to TMQ Bornite Sunshine Drilling September 10 2019.

The Sunshine prospect lies within a north-facing alpine cirque west of the Shungnak River and just south of the eastward flowing Sunshine Creek. The Ambler VMS-style mineralization was discovered by Bear Creek Mining Company in 1969 and is exposed on an east trending ridge. The rock units exposed are typical of the Ambler Schist sequence that hosts the Arctic deposit and include quartz +/- feldspar and chlorite schist, graphitic and graphitic quartz schist, marble and calcareous schist. Massive and semi-massive sulphide mineralization, consisting of chalcopyrite, sphalerite, galena, and tetrahedrite/tennantite, occurs in 0.1 metre to 8-metre bands generally at a contact between graphitic and calcareous schist.

Results for Sunshine are presented in Table 1 at a cutoff grade of 1.5% copper equivalent. All the intersected widths are close to normal to stratigraphy and therefore can be considered to be true widths. Results at a more selective higher-grade cutoff of 2.5% copper equivalent are also presented in Table 2 to show locally higher-grade intervals. Table 3 shows the drill hole locations. Figure 1 shows the location of the drill holes on a plan map and Figure 2 shows a cross-section through drill holes SC19-018, SC19-021 and SC19-022.

Table 1 - 1.5% Cu Eq cut-off* with maximum 2 m internal waste – Minimum 1.0 m interval

Hole
From (m)
To (m)
Length (m)
Cu (%)
Zn (%)
Pb (%)
Au (g/t)
Ag (g/t)
CuEq (%)*

SC19-018
139.52
144.76
5.24
2.08
3.13
0.63
0.15
41.64
3.93

238.72
245.06
6.34
1.63
1.45
0.09
0.07
13.38
2.38

247.86
255.06
7.20
0.72
2.18
0.21
0.03
6.64
1.69

260.46
261.60
1.14
1.53
0.35
0.01
0.03
3.67
1.71

SC19-020
176.37
179.74
3.37
4.15
3.42
0.83
0.26
74.35
6.54

188.55
190.10
1.55
1.43
1.65
0.40
0.06
23.30
3.77

204.15
209.09
4.94
4.47
3.42
0.01
0.00
0.12
5.77

219.30
221.98
2.68
3.70
0.44
0.00
0.00
0.40
3.87

SC19-021
146.62
156.28
9.66
3.93
3.00
0.77
0.22
73.10
6.10

SC19-022
114.12
115.47
1.35
2.89
4.87
1.41
0.17
68.30
7.96

130.40
134.61
4.21
0.34
2.28
1.07
0.07
30.63
1.85

143.73
159.01
15.28
1.35
2.91
0.78
0.16
32.58
3.08

SC19-023
163.50
168.51
5.01
0.87
1.92
0.66
0.10
24.69
2.09

* Assumptions used in USD for the copper equivalent calculation were metal prices of $2.90/lb copper, $1.10/lb zinc, $0.90/lb lead, $1,250/oz gold, and $18/oz silver and recovery is assumed to be 100% as no metallurgical test data is available. The following equation was used to calculate copper equivalence: CuEq = Copper (%) + (Zinc (%) x 0.379) + (Lead (%) x 0.310) + (Gold (g/t) x 0.629) + (Silver (g/t) x 0.009).

Table 2 - 2.5% Cu Eq cut-off* with maximum 2 m internal waste – Minimum 1.0 m interval

From (m)
To (m)
Length (m)
Cu (%)
Zn (%)
Pb (%)
Au (g/t)
Ag (g/t)
CuEq (%)*

SC19-018
139.52
144.76
5.24
2.08
3.13
0.63
0.15
41.64
3.93

241.80
244.26
2.46
2.19
2.97
0.13
0.10
20.90
3.61

253.64
255.06
1.42
1.16
3.78
0.13
0.02
6.50
2.70

SC19-020
176.37
179.74
3.37
4.15
3.42
0.83
0.26
74.35
6.54

204.15
209.09
4.94
4.47
3.42
0.01
0.00
0.12
5.77

219.30
221.98
2.68
3.70
0.44
0.00
0.00
0.40
3.87

SC19-021
146.62
156.28
9.66
3.93
3.00
0.77
0.22
73.10
6.10

SC19-022
114.12
115.47
1.35
2.89
4.87
1.41
0.17
68.30
7.96

143.73
159.01
15.28
1.35
2.91
0.78
0.16
32.58
3.08

SC19-023
163.50
168.51
5.01
0.87
1.92
0.66
0.10
24.69
2.09

Table 3 – Sunshine Drill Hole Locations

Hole
East (m)
North (m)
Elevation (m)
Azimuth
Dip
Length (m)

SC19-018
601748
7457922
776
15
-52
296

SC19-020
601863
7457873
766
70
-48
230

SC19-021
601862
7457872
766
70
-79
213

SC19-022
601692
7457866
777
345
-80
204

SC19-023
601692
7457868
776
345
-45
253

Figure 1 - Map Showing Location of 2019 Drilling Program at Sunshine (CNW Group/Trilogy Metals Inc.)

Figure 2 - Cross Section of Sunshine Drilling Showing Drilling Results (CNW Group/Trilogy Metals Inc.)

QA/QC Program

The drill program, sampling protocol, and data verification were managed by qualified persons employed by the Company. Diamond drill holes were typically collared and drilled to depth HQ for the Sunshine holes. Samples were collected using a 0.2-metre minimum length, a 2.5-metre maximum length and a 1.5-metre average sample length. Drill core recovery averaged 95% for Sunshine core. Three quality control samples (one blank, one standard and one duplicate) were inserted into each batch of 20 samples. The drill core was sawn, with half sent to ALS Minerals in Fairbanks for sample preparation and the sample pulps forwarded to ALS's North Vancouver facility for analysis. ALS Minerals is an independent facility certified as ISO 9001:2008 and accredited to ISO / IEC 17025:2005 from the Standards Council of Canada. The Company will submit 5% of the assay intervals from prospective lithologies to an independent check assay lab.

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