(TheNewswire)
August 11, 2023 - TheNewswire - Rockport,Canada - New Age Metals Inc. (NAM) (TSXV:NAM ) ; ( OTC:NMTLF ) ; ( FSE:P7J) (“NAM” orthe “Company” is pleased to announce the filing of a new, positiveNational Instrument 43-101 Preliminary Economic Assessment (“PEA”)Technical Report (“the Report”) on SEDAR for its 100%-owned RiverValley Palladium Project, 60 km east-northeast of Sudbury, Ontario.The results of the PEA were previously announced in a Company pressrelease dated June 29, 2023. This is NAM’s second PEA completed onRiver Valley (see Company press release dated June 27, 2019). Theeffective date of this new Report is June 29, 2023.
New PEA Highlights
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Pre-Tax NPV(5%): $296M; After-Tax: $140M
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Pre-Tax IRR: 16%; After-tax IRR: 11%
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Annual Production: 2.5 Mt of potential process plant feed at an average grade of1.19 g/t PdEq and process recovery of 71.5%, resulting in an averageannual payable Pd production of 47,400 oz.
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Total Tonnes Processed over Life ofMine: 38.6 Mt/16 years
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Pre-production Capital Requirement: $269M
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Average Unit Operating Cost: $30.98/t
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Assumed US$ Metal Prices: $2,150/oz Pd, $1,050/oz Pt, $1,830/oz Au,$4.00/lb Cu
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River Valley Process PlantFeed: Treated in an on-site conventionalsulphide flotation plant to produce a saleable PGM-enriched Cuconcentrate for transport off-site for smelting and refining
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Project EnhancementOpportunities: Increased metal recoveries andexpanded Mineral Resources
Harry Barr, NAM Chairman & CEO, stated:“We are pleased to file the Report for the River Valley 2023 PEA,which shows positive results with an after-tax NPV(5%) of $140 M CADand IRR of 11% and 16 years of palladium, platinum and copperproduction. Compared to the 2019 PEA, this new PEA is based on a muchsmaller, higher-grade operation with markedly lower CAPEX, expandedunderground mining and reduced open pit mining, and significantlysmaller environmental impact. These encouraging results are based onthe 2021 Mineral Resource Estimate, produced in accordance withcurrent CIM standards and guidelines, to provide feed to an on-site2.5 Mtpa process plant. The next steps in Project development includetesting of promising new technologies for improved platinum metalrecoveries and targeting areas for drilling to convert Inferred toIndicated Mineral Resources, expanding current Mineral Resources, andthe discovery and delineation of new mineralized zones, all forincorporation into future, more advanced economic studies.”
PEA Summary *
The site plan layout for the new River Valley PEA isshown in Figure 1.
Figure 1. NewPEA site layout plan for the River Valley Palladium Project.
Five open pits and two underground portals that have been used in theengineering design of the Project, the proposed process plant site,low-grade stockpile, waste rock storage facilities, tailings storagefacility, and site infrastructure are shown in Figure 1. The Projectas represented in Figure 1 has an area of approximately 40km 2 ,which reflects a major reduction and increased focus from the 130km 2 site plan area in the 2019 PEA.
The parameters of the PEA are summarized in Table 1. PEA operating costs and capital costs are presented in Tables 2 and3.
Table 1. PEA SummaryParameters
Assumptions | |
Palladium Price (Base case) US$/oz | 2,150 |
Exchange Rate US$:CDN$ | 1.35 |
Production Profile | |
Total Tonnes Processed (M) | 38.6 |
Process Plant Head Grade PdEq g/t | 1.19 |
Mine Life (years) | 16 |
Daily process plant throughput (tpd) | 6,850 |
Palladium Process Plant Recovery (%) | 71.5 |
Total Payable Palladium Equivalent Ounces (k) | 735 |
Average annual Palladium Production Ounces (k) | 47.4 |
Operating Costs ($ per tonne processed) | |
Unit Average LOM Operating Costs | 30.98 |
Open Pit Mining Costs | 12.63 |
Underground Mining Costs | 60.61 |
Processing Costs | 12.69 |
G&A | 2.01 |
LOM Average Cash Cost US$/oz Pd | 1,241 |
Capital Requirements | |
Pre-Production Capital Cost ($ M) | 268.7 |
Sustaining Capital Cost (Life of Mine) ($ M) | 163.0 |
Project Economics | |
Royalties (%) | 3 |
Royalty Payable After $2M Buy Down to 1% ($ M) | 25 |
Taxes (M $) | 258 |
Pre-Tax | |
Cumulative Undiscounted Cash Flow ($ M) | 609 |
NPV (5% Discount Rate) ($ M) | 296 |
IRR (%) | 16.1 |
Payback (years) | 6.1 |
After-Tax | |
Cumulative Undiscounted Cash Flow ($ M) | 352 |
NPV (5% Discount Rate) ($ M) | 140 |
IRR (%) | 11.3 |
Payback (years) | 6.9 |
Table 2. Operating CostSummary
Operating Cost | Unit | LoM |
Open Pit Mining Cost | $/t mined | 2.95 |
Open Pit Mining Cost | $/t processed | 12.63 |
Underground Mining Cost | $/t processed | 60.61 |
Process Cost | $/t processed | 12.69 |
G&A | $/t processed | 2.01 |
Unit LoM Average Operating | $/t processed | 30.98 |
Table 3. Capital Cost Summary
Development Capital | Initial (Y-2, Y-1) ($ M) | Sustaining ($ M) | Total LOM ($ M) |
Open Pit Development and Equipment | 37.0 | 59.4 | 96.4 |
Process Plant | 119.2 | 119.2 | |
On-Site Infrastructure | 17.4 | 17.4 | |
Electrical Powerline | 30.0 | 30.0 | |
Tailings Management Facility | 17.0 | 27.0 | 44.0 |
Owner's Costs | 10.0 | 10.0 | |
Underground Mine Development | 37.1 | 37.1 | |
Reclamation Bond and Closure | 16.3 | 16.3 | |
Contingency | 29.9 | 18.1 | 48.0 |
Total Capital | 268.7 | 163 | 431.7 |
*This PEA was prepared in accordancewith National Instrument 43-101 (“NI 43-01”) Standards ofDisclosure of Mineral Projects. It was prepared byP&E Mining Consultants Inc. with D.E.N.M. Engineering Ltd., KnightPiésold Ltd. and Story Environmental. Readers are cautioned that thePEA is preliminary in nature and includes Inferred Mineral Resourcesthat are considered too speculative geologically to have the economicconsiderations applied to them that would enable them to be classifiedas Mineral Reserves, and there is no certainty that the PEA will berealized. Mineral Resources that are not Mineral Reserves do nothave demonstrated economic variability.
Next Steps
At least two major opportunities to increase the valueof the River Valley Palladium Project are:
1) improved metal recoveries;and
2) increased Mineral Resources.
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1) ImprovedMetal Recoveries
Hydrometallurgical Options. The main focus of this PEA from a processingstandpoint is conventional milling and flotation with upgrading of theresultant copper concentrate to a marketable product. The finalconcentrate (copper and PGMs) would be shipped to specific smelters totreat the River Valley product as a part of the revenue stream.
As an alternative to shipping to smelters, pressureleaching and metal precipitation options to recover platinum groupmetals (“PGMs”), gold and base metals will be investigated.Several PGM deposits worldwide are currently being subject tohydrometallurgical testing, as a potentially economic alternative tobase metal smelters.
Alternative Flotation Applications. Conventional flotation of the River Valleymaterial has thus far been unable to produce a high-grade marketablesmelter concentrate for maximum net smelter returns.
The expected concentrate grades based on the recent testing at SGSLakefield were detailed in New Age Metals press release dated August9, 2022.
Preliminary scoping work has been completed on the River Valleymaterial utilizing two flotation alternatives to produce ahigher-grade rougher concentrate and also possible increases in PGMrecoveries. The two technologies being investigated are the Woodgroveflotation and the Glencore (Jameson) cell techniques.
Rhodium Recovery & Marketability. Additional work in this area would be beneficialfor the Project,
due to the relatively high metal price of rhodium. The testworkrecently completed showed the ability to recover rhodium in the finalconcentrate, albeit not at a saleable threshold grade for thesmelters. Review of the rhodium mineralogy and process alternatives isrecommended.
An initial proof-of-concept PLATSOL TM test programis under development with SGS Canada Inc. for completion in Q4 of2023.
2) Increased Mineral Resources
The distribution of the current Mineral Resources atRiver Valley is shown in Figure 2.
Major infill, expansion and exploration drill programsare planned at River Valley to: 1) convert Inferred to IndicatedMineral Resources at the Lismer and Varley Zones; 2) expand currentMineral Resources at depth and along strike at the Dana South,Banshee, Lismer Ridge, Varley and Azen Zones; and 3) test targets anddelineate mineralized zones that show potential for inclusion infuture Mineral Resource modelling, particularly in the footwall to theRiver Valley Intrusion, as guided by the results of surface anddownhole geophysical surveys and 3-D geological modelling.
The drilling programs are slated to commence in H22023, subject to financing.
Figure 2. Distribution of pit constrained Mineral Resources at $15/t NSRcut-off. The priority mineralized zones for infill, expansion andexploration drilling are labelled red , which are open toexpansion by drilling at depth and, in places, alongstrike . Note that the Pine Zone is not exposed atsurface. M&I = Measured and Indicated Mineral Resources, Ind =Indicated Mineral Resources, and Inf = Inferred MineralResources.
About the River Valley Project
The River Valley Palladium Project is located 100road-km east-northeast from the City of Sudbury.
The Project area is linked to Sudbury by a network of all-weatherhighways, roads and rail beds and is accessible year-round with hydrogrid and natural gas power nearby. River Valley enjoys the strongsupport of local communities, like the Village of River Valley, 20 kmto the south. Fully executed Memorandum of Understandings are in placewith the Temagami First Nation and the Nipissing First Nation groups,since 2014 and 2022, respectively. Environmental baseline studiesre-commenced in 2020 are planned to continue through 2023.
About NAM
New Age Metals is a junior mineral exploration anddevelopment company focused on the discovery, exploration anddevelopment of green metal projects in North America. The Company hastwo divisions; a Platinum Group Element division and a Lithium/RareElement division.
The PGE Division includes the 100% owned,multi-million-ounce, district-scale River Valley Project, one of NorthAmerica’s largest undeveloped Platinum Group Element Projects,situated 100 km by road east-northeast of Sudbury, Ontario. The Company isactively seeking an option/joint venture partner to advance its RiverValley Palladium Project .
In addition to River Valley, NAM owns 100% of theGenesis PGE-Cu-Ni Project in Alaska, and plans to complete a surfacemapping and sampling program in 2022. The Company is activelyseeking an option/joint venture partner for its road-accessibleGenesis PGE-Cu-Ni Project in Alaska .
The Company’s Lithium Division is one of the largestmineral claim holders in the Winnipeg River Pegmatite Field, where theCompany is exploring for hard rock lithium and various rare elements,such as tantalum, rubidium, and cesium. The Company has announced itspreliminary $2 million 2023-2024 explorationbudget that will cover the first 4 months of the program. A largerbudget has been submitted to our partner Mineral Resources Limited andwe expect it to be approved this summer. Further Exploration plans for2023 include geophysical surveying, summer field work (which willinclude mapping, lithogeochemistry, MMI soil geochemistry,biogeochemistry, channel sampling), and permits/ archaeologicalsurveys. The Company has a partnership with Mineral Resource Limited(MRL, ASX: MIN), a top global lithium producer to explore and developthe Company’s lithium project portfolio in Southern Manitoba. Ourphilosophy is to be a project generator with the objective ofoptioning our projects with major and junior mining companies throughto production. The Company is activelyseeking an option/joint venture partner for our newly acquiredNorthman, McLaughlin Lake, and South Bay Lithium Projects in northernManitoba, and its road-accessible Genesis PGE-Cu-Ni Project inAlaska .
Investors are invited to visit theNew Age Metals website at www.newagemetals.com where they can reviewthe company and its corporate activities. Any questions or commentscan be directed to info@newagemetals.com or Harry Barr at Hbarr@newagemetals.com or Faraz Rasheed at Frasheed@newagemetals.com or call 613 659 2773.
If you have not done so already, we encourage you tosign-up on our website ( www.newagemetals.com ) to receive our updated news.
This PEA was prepared under the supervision of EugenePuritch, P.Eng., FEC, CET of P&E Mining Consultants Inc. Themetallurgical testwork, process plant design and cost estimates wereprepared by David Salari, P.Eng. of D.E.N.M Engineering Ltd. Thetailings facility and water management were prepared by JessicaBreault, P.Eng., the rock mechanics design input was prepared by wereprepared by Ben Peacock, P.Eng. of Knight Piésold Ltd. TheEnvironmental, Community and ESG write-up was prepared by Maria Story,P.Eng., of Story Environmental Inc. Mr. Puritch reviewed and approvedthe technical information in this press release. William Stone,P.Geo., Lead Geoscience Consultant for New Age Metals, is the CompanyQualified Person as defined by NI 43-101 and has reviewed and approvedthe technical content of this press release.
On behalf of the Board of Directors
“ Harry Barr”
Harry G. Barr
Chairman and CEO
Neither the TSX Venture Exchange nor its RegulationServices Provider (as that term is defined in the policies of the TSXVenture Exchange) accepts responsibility for the adequacy or accuracyof this release. Cautionary Note Regarding Forward Looking Statements:This release contains forward-looking statements that involve risksand uncertainties. These statements may differ materially fromactual future events or results and are based on current expectationsor beliefs. For this purpose, statements of historical fact may bedeemed to be forward-looking statements. In addition,forward-looking statements include statements in which the Companyuses words such as “continue”, “efforts”, “expect”,“believe”, “anticipate”, “confident”, “intend”,“strategy”, “plan”, “will”, “estimate”, “project”,“goal”, “target”, “prospects”, “optimistic” or similarexpressions. These statements by their nature involve risks anduncertainties, and actual results may differ materially depending on avariety of important factors, including, among others, the Company’sability and continuation of efforts to timely and completely makeavailable adequate current public information, additional or differentregulatory and legal requirements and restrictions that may beimposed, and other factors as may be discussed in the documents filedby the Company on SEDAR (www.sedar.com), including the most recentreports that identify important risk factors that could cause actualresults to differ from those contained in the forward-lookingstatements. The Company does not undertake anyobligation to review or confirm analysts’ expectations or estimatesor to release publicly any revisions to any forward-looking statementsto reflect events or circumstances after the date hereof or to reflectthe occurrence of unanticipated events. Investors should not placeundue reliance on forward-looking statements.
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