Trilogy’s copper-zinc Arctic project joins FAST-41

Trilogy Metals (NYSE-A, TSX: TMQ) says its primary project in northwestern Alaska’s Ambler Mining District is entering the FAST-41 initiative, a milestone in the advancement of one of the world’s highest-grade undeveloped polymetallic deposits.

The Arctic project, which Trilogy is progressing under a 50/50 joint venture with Australia’s South32 (ASX, LSE, JSE: S32), joins a slew of others in the federal program to streamline permitting for major infrastructure and critical mineral developments. Trilogy said last month it applied for the status. 

“Acceptance into the FAST-41 program is one of the most significant milestones in the Arctic project’s history,” Tony Giardini, president and CEO of Trilogy, said in a release on Friday.

The deposit is being pegged as a major potential supplier of copper and zinc — both considered critical minerals by the U.S. government. According to company estimates, the site holds about 35.7 million indicated tonnes grading 2.98% copper and 4.09% zinc, for 2.35 million lb. contained copper and 3.22 billion lb. of zinc. It also holds substantial resources of lead, gold and silver.

FAST-41 

FAST-41 was created under President Barack Obama in 2015 but has been more aggressively deployed and politically emphasized as part of permitting reforms under Donald Trump. He has leaned harder into the program by pairing it with executive orders to shorten timelines. 

As part of the Trump administration’s push to secure reliable, domestic supplies of critical minerals like copper, Washington said in October it would take a 10% direct ownership stake in Trilogy. In addition, the President also signed an executive order directing U.S. agencies to reissue permits for the proposed 340-km access route needed to support mining in the region.

“The United States currently imports a substantial share of its copper supply from foreign nations – a strategic vulnerability that FAST-41, by providing a clear and coordinated federal permitting framework for domestic mineral projects, could help alleviate,” Giardini added.

Shares of Trilogy Metals closed Friday’s trading down 6.9%, in line with moves in other copper-mining companies. The Vancouver-based company has a market capitalization of $1 billion.

Permits

The milestone follows the company’s recent application for a water permit with the U.S. Army Corps of Engineers, the federal agency involved in many of the FAST-41 program’s covered projects. The Clean Water Act (CWA) Section 404 permit is the only key permit required at the federal level, while other permits are issued at the state and local levels. 

Analysts at TD Securities project that, upon successful permitting, Trilogy could begin construction at the Arctic site as soon as 2029, with first production two years after. A 2023 technical reported outlined a potential 13-year mine operation 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.

In addition to the Arctic project, Trilogy is also preparing the Bornite site, located about 25 km southwest, for renewed exploration. According to the company, this deposit has the potential to extend copper mining activities to more than 30 years.