07:32 AM EDT, 04/17/2024 (MT Newswires) -- Trilogy Metals Inc. ( TMQ ) , which has plunged 24% to 52 week low levels in premarket trade on NYSE American, announced Wednesday that the Ambler Access project, the proposed 211-mile, industrial-use-only road from the Upper Kobuk Mineral Projects to the Dalton Highway that would enable access to the Ambler Mining District in Alaska, may be blocked.

The company noted there were media reports suggesting that the US Department of the Interior plans to block access to the Ambler Mining District. On April 16, the Alaska Industrial Development and Export Authority (AIDEA) urged the Department to comply with federal law and promises made at state level to allow access to state lands and minerals for the Ambler Access Road Project, which had been approved by the same Department in July 2020.

Ambler Metals LLC, Trilogy's 50-50 joint venture with South32 Limited also responded on April 16, with a statement. Kaleb Froehlich, Managing Director of Ambler Metals, said: "If true, this decision ignores the support of local communities for this project, while denying jobs for Alaskans and critical revenues for a region where youth are being forced to leave because of a lack of opportunity. A denial would also undermine the promise made to Alaskans in the Alaska National Interest Lands Conservation Act, which guaranteed a right-of-way for this crucial project. We strongly urge BLM to reconsider what would clearly be an unlawful and politically motivated decision that goes well beyond the narrow set of issues the courts agreed to allow the agency to address."

Trilogy said with cash totaling over US$32 million, including its share of cash at the joint venture, it is "well positioned to engage with key stakeholders and consider options and next steps."