Trilogy Metals Inc. · TSX:TMQ
Trilogy Metals — Investor Presentation (September 2023)
46 slides from Trilogy Metals's investor presentation, September 2023
Slide 1: Corporate Presentation | September 2023
TSX TMQ | NYSE TMQ HIGH GRADE SAFE JURISDICTION SOLID PARTNERS Corporate Presentation | September 2023
Slide 2: Forward Looking Statements
FORWARD LOOKING STATEMENTS This presentation includes certain "forward-looking information” and "forward-looking statements” (collectively "forward-looking statements”) within the meaning of applicable Canadian and United States securities legislation including the United States Private Securities L
Slide 3: Technical Information and Cautionary Statements
TECHNICAL INFORMATION AND CAUTIONARY STATEMENTS TECHNICAL REPORT AND QUALIFIED PERSONS The document referenced below provide supporting technical information for the Arctic project referenced throughout this presentation. Project Qualified Person(s) Most Recent Disclosure ARCTIC Kevin Murray, Ausenc
Slide 4: Ambler Mining District
AMBLER MINING DISTRICT1 COPPER ZINC GOLD SILVER billion pounds billion pounds million ounces million ounces ARCTIC 2.35 3.22 0.675 52.0 (INDICATED) ARCTIC 0.19 0.29 0.062 5.0 (INFERRED) BORNITE 6.51 (INFERRED) with Zinc and Precious Metals a Safe, Rule of Law Jurisdiction 50/50 Ambler Mining Distric
Slide 5: Share Capitalization
SHARE CAPITALIZATION Solid, Supportive Shareholder Base WELL FUNDED BALANCE SHEET TSX, NYSE | TMQ Cash ~US$4.2 Million1 Issued and Outstanding 155.3 M1 No Debt Options 13.0 M1 JV Cash ~US$72.8 Million Fully Diluted 172.0 M2 (TMQ’s Interest ~US$36.4 MAJOR SHAREHOLDERS3 Million) 1 Electrum Group ~21.0
Slide 6: The Ambler Mining District Is More Than a High-Grade Copper District
THE AMBLER MINING DISTRICT IS MORE THAN A HIGH-GRADE COPPER DISTRICT It is a Source of Essential Minerals Listed on the U.S. Critical Minerals List COBALT ZINC COPPER Used in electric motors, GERMANIUM batteries of electric Used in semiconductor vehicles Used in electric vehicle batteries chips Used
Slide 7: Corporate Highlights – Partnerships
CORPORATE HIGHLIGHTS – PARTNERSHIPS Strong Partnerships to Advance the Ambler Mining District in Alaska 1. Joint Venture 2. Local Native 3. Infrastructure Partnership Partnership Partnership with with South32 with NANA State of Alaska South32 contributed US$145 Agreement/Business AIDEA currently adv
Slide 8: Joint Venture Partnership with South32
JOINT VENTURE PARTNERSHIP with South32 South32 Limited Exercised its Option to Form a Joint Venture with Trilogy Ambler Metals LLC formation 50% ~$145 million 50% Upper Kobuk Mineral Projects South32 is a global diversified metals and $72.5 million of initially contributed cash is mining company wit
Slide 9: Upper Kobuk Mineral Projects JV Area
UPPER KOBUK MINERAL PROJECTS JV AREA Total Land Package of 190,929 Ha (471,796 Acres) TRUST | RESPECT | INTEGRITY TSX, NYSE | TMQ 9
Slide 10: Corporate Highlights – Partnerships
CORPORATE HIGHLIGHTS – PARTNERSHIPS Strong Partnerships to Advance the Ambler Mining District in Alaska 1. Joint Venture 2. Local Native 3. Infrastructure Partnership Partnership Partnership with with South32 with NANA State of Alaska South32 contributed US$145 Agreement/Business AIDEA currently adv
Slide 11: Ambler Mining District Strong Local Support for Mining
AMBLER MINING DISTRICT Strong Local Support for Mining NANA has an established mining history in Northwest Alaska, with its partnership in the Red Dog Mine, one of world's largest producers of zinc Politically Stable Rule of Law Recognized Mineral Potential Resource Extractive Industries are the Lar
Slide 12: Corporate Highlights – Partnerships
CORPORATE HIGHLIGHTS – PARTNERSHIPS Strong Partnerships to Advance the Ambler Mining District in Alaska 1. Joint Venture 2. Local Native 3. Infrastructure Partnership Partnership Partnership with with South32 with NANA State of Alaska South32 contributed US$145 Agreement/Business Alaska Industrial D
Slide 13: Transportation Plan
TRANSPORTATION PLAN AIDEA Currently Advancing Road Access to Ambler Mining District Ambler Mining District 211 Truck Transfer Miles to Alaska Railroad Proposed Ambler 250 Miles Access Road Rail Transfer 345 to Miles Anchorage Port TRUST | RESPECT | INTEGRITY TSX, NYSE | TMQ 13
Slide 14: NEPA Road Permitting Process (EIS)
NEPA ROAD PERMITTING PROCESS (EIS) Bureau of Land Management was the lead agency for road permitting AIDEA is the proponent Detailed engineering has commenced on the road $70M funding agreement for detailed engineering (50:50 split with Ambler Metals and AIDEA) TRUST | RESPECT | INTEGRITY TSX, NYSE
Slide 15: Stakeholder Support for Ambler Access Road Project
STAKEHOLDER SUPPORT FOR AMBLER ACCESS ROAD PROJECT The Ambler Access Road is supported by Upper Kobuk Region, the North Slope Borough and Northwest Arctic Borough, that have passed resolutions in favor of the road project. “ The Joint Record of Decision (JROD) and the processes it lays out ensure th
Slide 16: Bi-Partisan Support for Ambler Access Road Project
BI-PARTISAN SUPPORT FOR AMBLER ACCESS ROAD PROJECT Letters sent to letter to U.S. Interior Secretary Deb Haaland reiterating strong support for the Ambler Access Project “ This Congressionally-mandated access is essential to ensuring the economic stability of both Alaska and the nation. In Alaska al
Slide 17: High-Grade String of Pearls
HIGH-GRADE STRING OF PEARLS Ambler Mining District Hosts Deposits Rich in Copper, Zinc, Lead, Gold, Silver & Cobalt TRUST | RESPECT | INTEGRITY TSX, NYSE | TMQ 17
Slide 18: Reserves at the Arctic Project
RESERVES AT THE ARCTIC PROJECT Probable Mineral Reserves PROBABLE1 MINERAL RESERVES Arctic 46,700,000 tonnes Resource @ ~3.7% Cu Eq. Outline Average Grades: 2.11% Cu 2.90% Zn 0.56% Pb 0.42 g/t Au 31.8 g/t Ag 1. See the Arctic Report (referenced on Slide 3) and the resource and reserve tables in Appe
Slide 19: Arctic Project General Concept Plan
ARCTIC PROJECT GENERAL CONCEPT PLAN Small Footprint Mine Site – Looking Northeast Conceptual drawing 1 km TRUST | RESPECT | INTEGRITY TSX, NYSE | TMQ 19
Slide 20: Arctic FS – Inputs & Economic Results
ARCTIC FS – INPUTS & ECONOMIC RESULTS1 Spot Metal Prices Feasibility Inputs and Economic Results Base Case Metal Prices (September 1, 2023) Mine Life 13 Years 13 Years Mill Capacity 10,000 tpd 10,000 tpd Strip Ratio (Waste/Ore) 7.3:1 7.3:1 149M lbs Cu 149M lbs Cu 173M lbs Zn 173M lbs Zn Average Annu
Slide 21: Arctic Producing Quality Concentrates
ARCTIC PRODUCING QUALITY CONCENTRATES1 3 Separate High-Quality Concentrates COPPER CONCENTRATE ZINC CONCENTRATE • 92.1% recovery • 88.5% recovery • 30.33% concentrate grade • 53.73% concentrate grade • Cu payable 96.5% • Zn payable 85% • Ag 161 g/t (4.67 oz); Ag payable 90% • No significant penalty
Slide 22: Arctic Boasts Robust Economic Metrics
ARCTIC BOASTS ROBUST ECONOMIC METRICS Profitability Index, After-Tax IRR and After-Tax NPV Benchmarking ARCTIC (Trilogy Metals)(3) Chart by Data source: Wood Mackenzie, RBC database and company disclosure. Note: Project metrics shown on 100% basis. 1. Profitability index calculated as after-tax NPV
Slide 23: Arctic: Evolution of Basket Price
ARCTIC: EVOLUTION OF BASKET PRICE Arctic Revenue Per Tonne of Probable Reserves (US$/t ore)1 $400.00 $360.00 $320.00 Copper Zinc Lead Gold Silver $280.00 $240.00 $200.00 $160.00 $120.00 $80.00 Mine Site Cash Cost $40.00 $0.00 1. Based on Arctic Mineral Reserves with an effective date of November 15,
Slide 24: No Federal Lands – Easier to Permit
NO FEDERAL LANDS – EASIER TO PERMIT Requires Federal, State and Borough Approvals ▶ 404 Wetlands Permit from the ▶ All other significant permits issued by the State of Alaska: US Army Corps of Engineers Mine Operating Permit Dam Operating Permit is the only significant Federal Air Quality Permit Wat
Slide 25: NEPA Mine Permitting Process (EIS)
NEPA MINE PERMITTING PROCESS (EIS) 24-30 MONTHS 13 YEARS Mine permitting expected as next step Army Corp of Engineers (USACE) is expected to be the lead agency TRUST | RESPECT | INTEGRITY TSX, NYSE | TMQ 25
Slide 26: Comparison of the Ambler VMS Belt with Other Known Belts
COMPARISON OF THE AMBLER VMS BELT WITH OTHER KNOWN BELTS Multi-Billion Pound Copper VMS Districts of the World 1 1 1 2 2 2 Dashed lines represent area of influence of proximal-scale alteration about each deposit 1. Source: Franklin et al., 2005, Volcanic-associated massive sulphides, Econ.Geol., Dat
Slide 27: District Exploration: Pearls on a String
DISTRICT EXPLORATION: PEARLS ON A STRING 1 1 1 2 1.See the Arctic Report & Bornite Report (referenced on Slide 3) and the resource and reserve tables in Appendix for additional information, including details with respect to grade, quantity and metal or mineral content. See also Technical Information
Slide 28: Numerous Electromagnetic Anomalies
NUMEROUS ELECTROMAGNETIC ANOMALIES TRUST | RESPECT | INTEGRITY TSX, NYSE | TMQ 28
Slide 29: Bornite
BORNITE1 Testing Northern Extension 6.514 billion pounds of Inferred Copper 77 Million lbsResource Cobalt Mineral Resources for the Bornite Deposit (effective date, January 26, 2023) Cut-off Tonnes Average Grade Contained Metal Class Type/Area Cu (%) (Mt) Cu (%) Cu (Mlb) In-Pit 0.50 170.4 1.15 4,303
Slide 30: Trilogy's Mineral Resources Compared to Its Peers
TRILOGY’S MINERAL RESOURCES COMPARED TO ITS PEERS1 Chart by Measured & Indicated Resources (bn lb Cu Eq.) Inferred Resources (bn lb Cu Eq.) Resource Grade (% Cu Eq.) ARCTIC BORNITE 2 1. Peer group data as per company filings. Following long-term prices used to calculate Cu Eq - Au: US$1,650/oz, Ag:
Slide 31: Upper Kobuk Mineral Projects – Relatively Underexplored
UPPER KOBUK MINERAL PROJECTS – RELATIVELY UNDEREXPLORED 197,342 Meters Drilled Since 1957 TRUST | RESPECT | INTEGRITY TSX, NYSE | TMQ 31
Slide 32: Upcoming Catalysts
UPCOMING CATALYSTS News Flow Optimization of Arctic engineering studies by Ambler Metals Commencement of permitting of Arctic Project TRUST | RESPECT | INTEGRITY TSX, NYSE | TMQ 32
Slide 33: Taikuu!
TAIKUU! TRUST | RESPECT | INTEGRITY TSX, NYSE | TMQ 33
Slide 34: Appendix
TRUST | RESPECT | INTEGRITY APPENDIX TRUST | RESPECT | INTEGRITY TSX, NYSE | TMQ
Slide 35: Why Copper?
WHY COPPER? Copper is critical to the global transition to clean energy 10 Mt SUPPLY SHORTFALL BY 2040 Source: Wood Mackenzie online article, March 23, 2021 TRUST | RESPECT | INTEGRITY TSX, NYSE | TMQ 35
Slide 36: Management Team
MANAGEMENT TEAM CORPORATE EXPERIENCE BIO TONY GIARDINI ▪ Kinross Gold Former President of Ivanhoe Mines Ltd. from May 2019 to March 2020. Former ▪ Ivanhoe Mines Executive Vice President and Chief Financial Officer of Kinross Gold Corporation President, CEO and Director from December 2012 to April 20
Slide 37: Board of Directors
BOARD OF DIRECTORS CORPORATE EXPERIENCE BIO JANICE STAIRS ▪ Namibia Critical Over 30 years of experience working with companies involved in the resource sector Metals including positions held with Namibia Critical Metals Inc., Endeavour Mining Chair ▪ Endeavour Mining Corporation and Etruscan Resour
Slide 38: Board of Directors (continued)
BOARD OF DIRECTORS (continued) CORPORATE EXPERIENCE BIO GREGORY A. LANG ▪ NovaGold President and Chief Executive Officer of NOVAGOLD RESOURCES INC. Over 35 Resources years of diverse experience in mine operations, project development and Director ▪ Barrick Gold evaluations, including experience as P
Slide 39: Ambler Mining District Industrial Access Project (AMDIAP)
AMBLER MINING DISTRICT Industrial Access Project (AMDIAP) TRUST | RESPECT | INTEGRITY TSX, NYSE | TMQ 39
Slide 40: Ambler Mining District
AMBLER MINING DISTRICT TRUST | RESPECT | INTEGRITY TSX, NYSE | TMQ 40
Slide 41: Ambler Access Road Project Timeline
AMBLER ACCESS ROAD PROJECT TIMELINE JAN 2021 FEB 2021 FEB 2022 MAY 2022 SEPT 2022 NOV 2022 MAY 2023 AIDEA Ambler Metals United States DOI motion for USBLM published USBLM stated USBLM stated received right- entered into a Department of remand a Notice of Intent draft SEIS draft SEIS of-way for the D
Slide 42: Port of Alaska - Anchorage
PORT OF ALASKA - ANCHORAGE Concentrates Loaded Directly into Ship Hold Good for the Environment Saves Money Better Green Solution TRUST | RESPECT | INTEGRITY TSX, NYSE | TMQ 42
Slide 43: Mine Design Update by Wood Engineering
MINE DESIGN UPDATE by WOOD ENGINEERING Topo Surface Section Talc Zone 2023 FS 2 2020 FS Section 1 See the Arctic Report (referenced on Slide 3) and the resource and reserve tables in Appendix for additional information, including details with respect to grade, quantity and metal or mineral content.
Slide 44: Mineral Resource Summary Table as of November 30, 2022 under Regulation S-K 1300
MINERAL RESOURCE SUMMARY TABLE AS OF NOVEMBER 30, 2022 UNDER REGULATION S-K 1300 Average Grade Contained Metal Content Project Resource Tonnage Cu Pb Zn Au Ag Cu Pb Zn Au Ag Alaska Category (Mt) (%) (%) (%) (g/t) (g/t) (Mlb) (Mlb) (Mlb) (koz) (Moz) Arctic – 50% Attributable Inferred 2.25 1.92 0.70 2
Slide 45: Mineral Reserve Estimate as of November 30, 2022 for the Arctic Project
MINERAL RESERVE ESTIMATE AS OF NOVEMBER 30, 2022 FOR THE ARCTIC PROJECT, ALASKA USA UNDER REGULATION S-K 1300 Tonnage Average Grade Classification Mt Cu (%) Pb (%) Zn (%) Au (g/t) Ag (g/t) Probable Mineral Reserves – 50% 23.35 2.11 0.56 2.90 0.42 31.8 Attributable Interest Notes: 1. Mineral Reserves
Slide 46: NYSE American, TSX: TMQ www.trilogymetals.com
TRUST | RESPECT | INTEGRITY Corporate Office Suite 1150 – 609 Granville Street Vancouver, British Columbia, V7Y 1G5 Canada Phone +1 (604) 638-8088 NYSE American, TSX: TMQ www.trilogymetals.com TRUST | RESPECT | INTEGRITY TSX, NYSE | TMQ 46
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