Trilogy-South32 venture delivers feasibility for $1bn Arctic project – by Mariaan Webb ( – August 20, 2020)

Ambler Metals – a joint venture between Trilogy Metals and South32 – on Thursday announced the outcome of a feasibility study for the Arctic base and precious metals project, in north-western Alaska.

With an estimated initial capital requirement of $906-million and sustaining capital of $114-million, the project has a payback period of 2.6 years, Toronto-listed Trilogy said in a statement.

The study calculated that Arctic has an aftertax net present value (NPV) of $1.1-billion and an internal rate of return (IRR) of 27%, using long-term metal prices of $3/lb for copper, $1.10/lb for zinc, $1/lb for lead, $1 300/oz for gold and $18/oz for silver.

At current spot prices, the NPV is $1.3-billion and the IRR is 29.6%. Prepared by Ausenco Engineering Canada, the study outlines plans for establishing an openpit mine and mill complex for a 10 000 t/d operation, producing an average of 155-million pounds of copper, 192-million pounds of zinc, 32-million pounds of lead, 32 165 oz of gold and 3.4-million ounces of silver each year over 12 years.

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