Trilogy, South32 partner with Alaska to fund critical mine road
Ambler Metals, a joint venture between Canada鈥檚 Trilogy Metals (TSX, NYSE: TMQ) and Australia鈥檚 South32 (ASX, LSE, JSE: S32), has inked a聽聽with the Alaska Industrial Development and Export Authority (AIDEA) aimed at building a critical road for a copper-zinc-gold project in the state鈥檚 northwest.
The partnership, formed in 2019, seeks to eventually develop the Upper Kobuk Mineral Projects (UKMP) in Alaska鈥檚 Ambler mining district. Building an access road to the deposit is one of the first steps to achieving that goal.
The agreement defines how AIDEA and Ambler Metals will work together on pre-development work for the access project, funding and oversight of the project’s feasibility and permitting.
The parties have agreed to contribute up to $35 million each for the road鈥檚 pre-development costs. The deal runs until they have reached a decision on the road project construction, which is expected before the end of 2024.
鈥淲e see the signed agreement as another positive step forward towards the eventual construction of the Ambler access road,鈥 BMO metals and mining analyst, Rene Cartier, said in a note to investors.
Bumps in the road
The approved would run by a section of the Arctic National Park and Preserve, though it would be outside of both the park itself and the designated wilderness areas.
The 211-mile (340km) gravel road, with construction costs estimated at between $280 million and $380 million, still faces legal challenges.
While it received the backing of the US Bureau of Land Management in July last year, and have filed two separate lawsuits in an attempt to halt the road development.
The outcome of those suits may push first production out until at least 2027, .
Last month, AIDEA signed agreements for right of way for the Ambler access project with the United States Bureau of Land Management and the National Park Service, securing a 50-year right-of-way on federally owned and managed land.
The UKMP projects have a combined resource of 8 billion pounds of copper, 3 billion pounds of zinc and 1 million ounces of gold equivalent.
The proposed mine is expected to produce more than 159 million pounds of copper, 199 million pounds of zinc, 33 million pounds of lead, 30,600 ounces of gold and 3.3 million ounces of silver over a 12-year mine life.
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Comments
Sarah
The story incorrectly claims that the road would bypass Gates of the Arctic National Park and Preserve. In fact, the preferred ROW crosses the southern lobe. This is why NPS is also signing ROW agreements, as the story points out. It’s required to permit a right of way under ANILCA.