Trilogy-South32 JV targets permit submission for Alaska copper deposit next year

[Ben Graham]

The 50/50 joint venture between Trilogy Metals (TSX, NYSE-A: TMQ) and South32 (ASX, LSE, JSE: S32) — sees 2026 as a pivotal year for the development of the Ambler mining district of northwestern Alaska.

On Wednesday, Trilogy announced that Ambler Metals, the joint venture, recently approved a $35 million work program next year aimed at advancing the Upper Kobuk Mineral Projects (UKMP), which include two copper-rich deposits (Arctic and Bornite) situated within an approximate 1,900 sq.-km land package.

Exploration activities in 2026 will primarily focus on the Arctic deposit, including geotechnical and condemnation drilling to support mine design, infrastructure placement and future production planning. As well, the Bornite project camp will be prepared for multi-year use and opened in the summer for geotechnical and exploration drilling.

Permitting submission

While it builds the technical and organizational foundations for future mine development, Ambler plans to initiate the mine permitting process for the Arctic project, targeting submissions sometime during 2026.

For this, Trilogy said the joint venture would look to leverage federal expedited programs such as FAST-41, which has already included several copper projects, including Rio Tinto (ASX, LSE: RIO) and BHP’s (ASX, LSE: BHP) Resolution Copper.

Trump raises stakes over Resolution Copper project with BHP, Rio Tinto CEOs at White House

Also in 2026, Ambler plans to re-establish an independent management team dedicated to managing the next stages of advancement at the UKMP. Over the coming years, this team will focus on advancing permitting for the Arctic project, completing technical programs, executing drill campaigns critical for mine design and infrastructure planning as well as strengthening community engagement, workforce development and local participation, it said.

Shares of Trilogy Metals shot up on Thursday after it provided this update. At midday, the Vancouver-based company traded 3.2% higher at C$6.17 apiece, for a market capitalization of just over C$1 billion ($730 million).

US government support

At the corporate level, Trilogy said it has budgeted approximately $5 million for company compliance and oversight of its investment in Ambler.

In October, the company received an investment of $35.6 million from the US government to support its development of UKMP through the Ambler Metals JV. The funding came along with US authorities’ re-instatement of the critical 340-km access road in the Ambler mining district linking the company’s deposits.

Permits for the Ambler Road were previously revoked during the Biden administration.

Trilogy Metals jumps as US reinstates Alaska road permits

High-grade copper deposits

The Arctic deposit has been designed by Trilogy as one of the highest-grade copper deposits globally, with 35.7 million indicated tonnes averaging over 5% copper equivalent. Its contained copper content is estimated at 2.34 billion lb.

A 2023 feasibility study outlined a potential 13-year mine with annual payable copper production of 149 million lb., along with 173 million lb. of zinc, 26 million lb. of lead, 32,538 oz. of gold and 2.8 million oz. of silver. Its after-tax net present value (at 8% discount) was estimated at $1.1 billion, with an internal rate of return of 22.8%.

The Bornite deposit also has a high copper grade based on current inferred resources. A preliminary economic assessment this year projected a 17-year mine life for Bornite, with total copper production of 1.9 billion lb. The after-tax NPV and IRR are estimated at $393.9 million and 20% respectively.