Trilogy notches PFS milestone on journey to develop Ambler mining district

Trilogy Metals Inc. (TSX/NYSE American: TMQ) has tabled results from a positive pre-feasibility study (PFS) for its polymetallic Arctic deposit, which is part of its larger land holdings in the Ambler Mining District in northwestern Alaska. A proposed mine at Arctic has an after tax net present value of US$1.4 billion at an 8% discount rate and an after tax internal rate of return of 33.4%. A 12-year mine plan calls for US$780 million in initial capital expenditure and US$66 million in sustaining capital. Total all-in cash costs are estimated at US63¢ per lb. of payable copper. At US$3 per lb. copper, payback would take two years. Arctic contains 36 million indicated tonnes grading 3.07% copper, 0.73% lead, 4.23% zinc, 0.63 gram gold and 47.6 grams silver for 2.4 billion lb. copper, 581 million lb. lead, 3.3 million lb. zinc, 728,000 oz. gold and 55 million oz. silver. That’s inclusive of 43 million probable tonnes grading 2.32% copper, 3.24% zinc, 0.57% lead, 0.49 gram gold and 36 grams silver. The volcanic massive sulfide (VMS) deposit lies 470 km northwest of Fairbanks, Alaska, and located on the side of a mountain beneath 100 to 130 metres of rock. Continue reading at The Northern Miner.