(TheNewswire)
July 6, 2021 – TheNewswire - Rockport, Ontario- New Age Metals Inc. (TSXV:NAM ) ; ( OTC:NMTLF ) ; ( FSE:P7J.F) (“NAM” or “Company”) is pleased toannounce the start of an induced polarization (“IP”) geophysicalsurvey over the Banshee Zone of its 100% owned River Valley PalladiumProject near Sudbury, Ontario ( Figure 1 ). Apermit for the IP survey has been issued to NAM by the OntarioMinistry of Energy, Northern Development and Mines. The IP survey isbeing carried out by Abitibi Geophysics (Val-d’Or, Quebec).
IP Survey
The IP survey option selected for Banshee is Abitibi Geophysics’OreVision 3D, which is the configuration to be field deployed has adepth of investigation of up to 485 m below surface.
The IP survey will be completed over a newly cut 10 line-km grid(Figure 2). The new line-grid overlaps with the limit of previous IPsurveys (2017 and 2018) in the Grenvillian footwall and the RiverValley Intrusion hanging wall rocks to Banshee, plus the Banshee Zoneitself. The position of the Banshee Zone is known from drilling andmineralized surface outcrops.
From the end of June start date, the IP survey should be completed inabout 1 week of starting and an interpretation report delivered in 1month of completion. The IP survey data will be processed and invertedto aid identification of IP chargeability features of interest outsidethe known extents of the Banshee Zone for drill testing. The IPsurvey is designed to detect chargeability features along the faultscutting at high-angle to the basal contact (Figure 2), which maycontain structurally-controlled mineralization. The Pine Zone is thebest-known example of what could be structurally-controlledmineralization at River Valley. A5,000 m exploration and infill drill program is provisionally plannedat River Valley in 2021, mainly at the Banshee Zone.
Banshee Zone Background
The Banshee Zone was drilled between 2002 and 2004 and is currentlydefined in 22 diamond drill holes totalling 4,274 metres. The Zonemeasures 700 m long and up to 100 m wide, is drilled to depths oflocally up to 300 m vertically below surface, strikes NNE, and dipsvertically to steeply to the east (i.e., overturned). At a cut-offgrade of 0.35 g/t, the current (2019) Mineral Resource Estimate of theBanshee Zone is 3.36 Mt grading 0.29 g/t Pd, 0.17 g/t Pt, 0.03 g/t Au,0.04% Cu, 0.01% Ni, or 0.55 g/t PdEq, all in the Inferredclassification. The Zone remains open to expansion by drilling,particularly at depth.
The Banshee Zone is located between the core Dana Zones to the Northand the Lismer Zones to the east and south (Figure 1), whichcollectively are the focus of the ongoing Pre-Feasibility Study of theRiver Valley Project. Due to its central location, Banshee couldtherefore be of strategic importance to any potential futuremining-processing operation at the Project.
Figure 1. Geology map of the northern area of the River Valley Palladiumdeposit. PGM mineralized zones projected to surface. Mineral ResourceEstimates using the 0.35 g/t PdEq cut-off and PdEq calculationdetailed in the Preliminary Economic Assessment (2019). The Huronian,Grenville and Nipissing units excluded for illustration clarity.
Figure 2. Location of the new cut-line grid (blue lines) for the OreVision 3D IPSurvey relative to the current limit of IP survey coverage (blackoutline), location of the Banshee Zone (solid red body), andhigh-angle faults (white lines) that offset the basal contact of thePaleoproterozoic age River Valley Intrusion.
About River Valley
The River Valley Palladium Project is located 100 road-km east fromthe 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.
A fully executed Memorandum of Understanding is in place with a localFirst Nation. Environmental baseline studies re-commenced in 2020.
The current Mineral Resource Estimate was announced in a Company pressrelease dated January 15, 2019 and is based on metal pricessubstantially lower than today. At a cut-off grade of
0.35 g/t PdEq, the Mineral Resource consists of: 99 Mt grading 0.52g/t Pd, 0.20 g/t Pt, 0.03 g/t Au and 0.06% Cu, or 0.90 g/t PdEq in theMeasured and Indicated classifications; and 52 Mt grading 0.31 g/t Pd,0.15 g/t Pt, 0.04 g/t Au and 0.04% Cu, or 0.63 g/t PdEq in theInferred classification. Contained metal contents are 2.4 MozPd+Pt+Au or 2.9 Moz PdEq in the Measured and Indicated classificationsand 0.8 Moz Pd+Pt+Au or 1.1 Moz PdEq in the Inferred classification.
The 2019 PEA results for the River Valley Palladium Project wereannounced in a press release dated June 27, 2019. The PEA outlines a20,000 t/day open pit mine and processing plant operation producing anaverage of 119,000 ounces of PdEq per year over a mine life of 14years. Using base case metal prices of US$1,200/oz Pd, $1,050/oz Ptand $3.25/lb Cu, the PEA showed a pre-tax NPV5% of US$261 million anda pre-tax IRR of 13%. At a +20% palladium price of $1,440/oz Pd, thepre-tax NPV5% increases to $501M and the pre-tax IRR to 19%. Thecurrent price of Pd is approximately $2,700/oz Pd.
About NAM
New Age Metals is a junior mineral exploration and development companyfocused on the discovery, exploration and development of green metalprojects in North America. The Company has two divisions; a PlatinumGroup Metals division and a Lithium/Rare Element division.
The PGM Division includes the 100% owned, multi-million-ounce,district scale River Valley Project, one of North America’s largestundeveloped Platinum Group Metals Projects, situated 100 km fromSudbury, Ontario. The Companycompleted a positive Preliminary Economic Assessment on the Project in2019 and, is fully financed to complete a Pre-Feasibility Study on theProject. A technical report is slated to be published by the end ofthe first half of 2022.
In addition to River Valley, the Company owns 100% of the GenesisPGM-Cu-Ni Project in Alaska, and has plans to complete a surfacemapping and sampling program this year.
The Lithium Division is one of the largest mineral claim holders inthe Winnipeg River Pegmatite Field, where the Company is exploring forhard rock lithium and various rare elements such as tantalum andrubidium. 2021 plans include dronegeophysics on at least five of the Company’s seven projects and amaiden drill program on the Company’s Lithium Two Project.
Our philosophy is to be a project generator with the objective ofoptioning our projects with major and junior mining companies throughto production. The Company is actively seeking an option/ jointventure partner for its road-accessible Genesis PGM-Cu-Ni project inAlaska and for all or part of our Lithium Division in Manitoba.
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 Cody Hunt at Codyh@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.
Qualified Persons
The contents contained herein that relate toExploration Results and Mineral Resources for the River Valley Projectis based on information compiled, reviewed or prepared by Dr. BillStone, P.Geo., a consulting geoscientist for New Age Metals. Dr.Stone is the Qualified Person as defined by National Instrument 43-101and has reviewed and approved the technical content of this newsrelease.
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 any obligation to reviewor confirm analysts’ expectations or estimates or to releasepublicly any revisions to any forward-looking statements to reflectevents or circumstances after the date hereof or to reflect theoccurrence of unanticipated events. Investors should not place unduereliance on forward-looking statements.
Copyright (c) 2021 TheNewswire - All rights reserved.