South32 Ltd. has exercised its option to acquire a 50% interest in a joint-venture company with Trilogy Metals to develop the Upper Kobuk Mineral Projects (UKMP) in the Ambler mining district of northwest Alaska. The projects include the high-grade, polymetallic Arctic deposit, the Bornite copper deposit, and a highly prospective regional exploration portfolio.
Arctic is a volcanogenic massive sulphide (VMS) deposit where current activities are focused on advancing development studies and permitting, following release of a prefeasibility study (PFS) by Trilogy in April 2018. The PFS describes the potential technical and economic viability of establishing a conventional open-pit copper-zinc-lead-silver-gold mine-and-mill complex for a 10,000-metric-ton-per-day (mt/d) operation.
Bornite is a carbonate-hosted copper deposit located about 25 kilometers (km) southwest of the Arctic deposit. The 2020 field season will include further exploration drilling at Bornite and regional activity across the highly prospective Ambler VMS and carbonate-hosted copper belts.
Trilogy Metals will contribute all of its assets associated with the UKMP to the newly formed joint-venture company, and South32 will contribute $145 million. Establishment of the joint venture follows an initial exploration partnership between South32 and Trilogy over three field seasons to advance both parties’ geological understanding of the UKMP.
South32 CEO Graham Kerr said, “Investing in exploration to create shareholder value is integral to our group’s strategy. Forming the UKMP Joint Venture will be another important milestone as we reshape and improve our portfolio, by adding high-quality copper and base metals development options.
Trilogy Metals Interim President and CEO James Gowans said, “The Ambler mining district has great potential that we expect will finally be realized with the formation of the joint venture and when the Ambler Mining District Industrial Access Project, providing key infrastructure access, is approved. We are very excited to advance this partnership.”
