South32, Trilogy plan Alaska copper permitting

A 50-50 joint venture between Trilogy Metals (TSX, NYSE-A: TMQ) and South32 (ASX, LSE, JSE: S32) sees 2026 as a pivotal year for developing Alaska’s Ambler mining district which has one of the world’s highest grade copper deposits. 

Ambler Metals, the joint venture, recently approved a $35-million work program next year aimed at advancing the Upper Kobuk Mineral Projects (UKMP). It includes two copper-rich deposits (Arctic and Bornite) situated within an approximate 1,900 sq.-km land package. Arctic grades more than 5% copper-equivalent.  

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, Ambler said this week. As well, the Bornite project camp will be prepared for multi-year use and opened in the summer for geotechnical and exploration drilling.

The project is one the Trump administration has tried to resurrect with approval in October for a 340-km access road linking the deposits that had been revoked during Joe Biden’s presidency. The government also allocated $35.6 million to support the road  and UKMP’s development through the Ambler Metals JV. 

Permitting

While Ambler builds the technical and organizational foundations for future mine development, it 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 in Arizona.

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 and another 3.6% on Friday morning to C$6.39 apiece, for a market capitalization of C$1.07 billion.

High-grades

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 an 8% discount) was estimated at $1.1 billion, with an internal rate of return of 23%.

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 $394 million and 20%, respectively.