Trilogy Metals (TMQ) Prnewswire·2025-01-15 11:30Core Viewpoint - Trilogy Metals Inc. announced positive results from its Preliminary Economic Assessment (PEA) for the Bornite copper project, indicating strong economic viability and potential for extended mining operations in the Ambler Mining District of Northwestern Alaska [1][4][17]. Summary by Relevant Sections Project Overview - The Bornite Project is a joint venture between Trilogy Metals and South32, with Trilogy holding a 50% interest [1][27]. - The PEA outlines a 6,000 tonne-per-day underground mining operation with a projected mine life of 17 years [4][18]. Economic Viability - The PEA forecasts total payable production of 1.9 billion pounds of copper over the mine life [8][17]. - The base case scenario assumes a long-term copper price of 552 million, with an Internal Rate of Return (IRR) of 23.6% [8][9]. Financial Metrics - Initial capital expenditure is projected at 363.1 million, leading to total capital expenditures of 394 million, with an after-tax IRR of 20% [8][9]. Operating Costs - Total operating costs are estimated at 2.76 per pound of payable copper, with an all-in cost of $3.35 per pound [9]. Mineral Resources - The PEA includes inferred mineral resources totaling 208.9 million tonnes with an average grade of 1.42% copper, containing approximately 6,527 million pounds of copper [10][11]. - The South Reef area contains higher-grade mineralized zones that may be amenable to underground mining [11][13]. Future Potential - The study suggests the possibility of extending mining activities at the Upper Kobuk Mineral Projects (UKMP) to over 30 years based on existing resources [5][17]. - The PEA does not account for potential synergies from the closure of the Arctic Project, which could be significant [17]. Technical Contributors - The PEA was prepared by independent consultants, including Wood Canada Limited and Ausenco Engineering Canada ULC, ensuring compliance with National Instrument 43-101 standards [16][22].