Trilogy Quarterly July 6 2022 Ambler Metals LLC (“Ambler...

Trilogy Quarterly July 6 2022


Ambler Metals LLC (“Ambler Metals”), the joint venture company owned 50/50 by Trilogy and South32 had commenced mobilization for the summer 2022 field program at the UKMP. The drill program will be helicopter-supported and will be based out of Ambler Metals’ expanded 90-person camp at Bornite. The previously announced $28.5 million fiscal 2022 budget was updated to approximately $26.2 million. The field season is entirely funded by Ambler Metals and consists of a minimum 10,000 meters of diamond drilling with additional meters contingent on drill performance, weather and approval of supplementary budgets. The field season program prioritizes advancing the Arctic Project with additional infill drilling to further improve the confidence in the resource and the completion of a geotechnical study to further de-risk the project. Exploration outside of the Arctic deposit will focus on discovering copper-rich satellite deposits near Arctic, the Cosmos Hills and the Ambler Lowlands.

The 2022 Arctic program involves a minimum 6,000 meters in 27 holes, as part of an 8,400-meter infill program to increase confidence from the Indicated to Measured category. In addition, three to five holes totaling 500 to 750 meters are planned to complete a geotechnical and hydrogeological assessment of Arctic that was initiated last year.The 2022 exploration program for the Cosmos Hills and Ambler Lowlands includes drilling of approximately 2,400 meters as well as detailed mapping and soil sampling to build on the work performed during the prior year. In addition, a minimum 2,000 meters of trenching is planned around Pardner Hill and the Bornite East target area.

All project related costs are funded by the joint venture. Amber Metals is well funded to advance the UKMP with $52.8 million in cash and $53.5 million loan receivable from South32 as at May 31, 2022. Subsequent to the quarter end, South32 repaid the full balance of the loan, consisting of $53.1 million principal and $0.5 million interest, resulting in Ambler Metals having over $100 million in cash. There are sufficient funds at the joint venture to fund the updated budgets for the UKMP of $26.2 million and the Ambler Access Project of $15.4 million for fiscal 2022. Trilogy does not anticipate having to fund the activities of Ambler Metals until the current cash balance of approximately $100 million is expended.

https://trilogymetals.com/news-and-media/news/trilogy-metals-reports-second-quarter-fiscal-2022-financial-results/

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Ash here.

High summer. Much drilling in ~10 weeks. 2/3 on Arctic resource definition.

Trilogy is an office. The action is within the JV.

$100m is serious money, S32 money.

Arctic is one of the highest grade copper deposits in the world, av 5% CuEq. $US1b capex.

I'm guessing five years to first production, three in a Cu crisis.

Slim chance of dislodging any instos from Trilogy holdings until around next cap raise. Cheque book always open, of course.

This sits nicely next to Sierra Gorda. GK & team walk a long loping stride.

Ash