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Trilogy Metals to increase 2019 exploration budget at Upper Kobuk mineral projects

Published by , Assistant Editor
Global Mining Review,

Trilogy Metals Inc. (Trilogy Metals) has announced a new regional exploration budget of US$2 million that is in addition to the previously announced 2019 programmes and budgets of US$16.2 million, increasing the exploration budget at the company's Upper Kobuk Mineral Projects (UKMP) located in the Ambler Mining District of Northwest Alaska for 2019 to US$18.2 million.

Last December, the company's technical team held meetings in Perth, Australia with representatives of South32 Limited (South32). Subsequent to these meetings, additional discussions took place in Vancouver resulting in both companies agreeing to increase exploration expenditures at the UKMP by US$2 million. The additional US$2.0 million has been approved for regional or district exploration focused on identifying and testing new drill targets within the Ambler Volcanogenic Massive Sulfide (VMS) Belt. The company will contribute US$1 million to the UKMP regional programme and South32 will contribute the remaining US$1 million.

The US$1 million that South32 is contributing is in excess of the US$30 million in option payments that South32 has already contributed to maintain the option to form a 50/50 joint venture on the UKMP (see the press release dated 31 January 2019 for more information on the option agreement between Trilogy and South32).

Rick Van Nieuwenhuyse, President and CEO of Trilogy Metals commented, "As an exploration geologist, I am very excited that the Technical Committee and South32 have agreed to equally fund a US$2 million exploration programme along the Ambler VMS belt. The programme will include a VTEM airborne geophysical survey along the entire belt.  Follow-up ZTEM may be flown in certain areas.  High priority targets will be evaluated with follow-up drilling. There are dozens of known VMS prospects along the 75 mile long Ambler Belt including many with historic resources.  It is exciting to be drilling new exploration targets again.  We are confident that we can find additional high-grade polymetallic resources along this prolific mineral belt."

Ambler VMS Belt

The Ambler mining district is located on the southern margin of the Brooks Range. Within this VMS belt, several deposits and prospects (including the Arctic Deposit) are hosted in the Ambler Sequence, a group of Middle Devonian to Early Mississippian, metamorphosed, bimodal volcanic and volcaniclastic rocks with interbedded siliceousclastic, graphitic, and calcareous metasediments. The Ambler sequence occurs in the upper part of the regional Anirak Schist. VMS-style mineralisation is found along the entire 110 km strike length of the district. In addition to the Arctic Deposit, numerous other VMS-like occurrences are present on the Trilogy Metals land package. The most notable of these occurrences are the Dead Creek (also known as Shungnak), Sunshine, Cliff, Horse, and the Snow prospects to the west of the Arctic Deposit and the Red, Nora, Tom-Tom and BT prospects to the east.

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