Trilogy Metals Inc. (TSX/NYSE American: TMQ) ("Trilogy Metals", "Trilogy" or the "Company") is pleased to announce a new regional exploration budget of $2 million that is in addition to the previously announced 2019 programs and budgets of $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 $18.2 million. All amounts are in US dollars.
Image: Location of Historic Resources at the Ambler VMS Belt. Photo: courtesy of CNW Group/Trilogy Metals Inc.
Last December the Company’s technical team held meetings in Perth, Australia with representatives of South32 Limited (ASX, LSE, JSE: S32; ADR: SOUHY) (“South32”). Subsequent to these meetings, additional discussions took place in Vancouver resulting in both Companies agreeing to increase exploration expenditures at the UKMP by $2 million. The additional $2.0 million has been approved for regional or district exploration focused on identifying and testing new drill targets within the Ambler Volcanogenic Massive Sulphide (“VMS”) Belt. The Company will contribute $1 million to the UKMP regional program and South32 will contribute the remaining $1 million.
The $1 million that South32 is contributing is in excess of the $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 January 31, 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 $2 million exploration program along the Ambler VMS belt. The program 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.”
Source: Company Press Release