(TheNewswire)
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Rhodium (Rh) (~US$ 7,950/ ounce,dated 9 st May 2023) is the mostvaluable platinum group metal (PGM), with recent spot price highs of 5times higher than Pd and 7 times higher than Pt
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552 Rh new assay results for the Dana and Lismer Zonesof the River Valley Palladium Deposit
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Highest assay result is 0.306 g/t Rh, with 33 moresamples returned assays ?0.100 g/t Rh and a total of 113 samplesreturned assays 0.050 g/t Rh
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The highest Rh concentrations generally coincide withthe highest palladium (Pd) and platinum (Pt) grades
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Rh concentrations in the River Valley Deposit areequivalent to approximately 9% of Pt grades
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Based on encouraging results fromPhases 1 to 3, subsequent phases of this multi-phase Rh evaluationprogram will take samples of PGE mineralized intervals from more ofthe mineralized zones for assay analysis and PGE mineralogicalstudies
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The River Valley Deposit is one of North Americaslargest undeveloped primary platinum-group metal projects with 2.3 MozPd+Pt+Au in the Measured + Indicated classifications and 1.6 MozPd+Pt+Au in the Inferred classification
Rockport, Canada – TheNewswire- May 9, 2023 - New Age Metals Inc. (NAM)(TSXV:NAM ) ; ( OTC:NMTLF ) ; ( FSE:P7J) (“NAM” or the “Company”) announcescompletion of the Rh geochemistry study of the River Valley PalladiumDeposit, 100 km east of Sudbury, Ontario. Phase 3 of the Rh geochemistry studycollected 552 ¼ HQ core samples from four metallurgical drill holescompleted in 2021 within the Dana North, Dana South, Lismer North andLismer Ridge Zones . This announcement presents new Rh assaydata for these 552 samples. These zones arelocated in the northern 5-km of the 16 km-long River Valley PalladiumDeposit (Figure 1). In addition to Rh, the core samples were alsoassayed for gold (Au), iridium (Ir), palladium (Pd), platinum (Pt),and ruthenium (Ru) at the Geoscience Laboratories in Sudbury.
The new Rh data covered herein are in to addition todata generated from recent and historical exploration drill core,surface channel samples and grab samples of the River ValleyDeposit
( see NAM press releases datedMarch 2, 2021 for Phase 1 and December 15, 2021 for the Phase 2results; see also Pacific North West Capital Corp. press release datedJuly 26, 2011 ). Rh is the most valuable platinum groupmetal (PGM), with recent spot price highs of about US7950/oz Rh,roughly 5 times higher than Pd and 7 times higher than Pt . However, Rh analyses are too costly to be performed onevery drill core assay sample. Rh is reported in the current MineralResource Estimate for the River Valley Deposit ( see NAM press release dated October 5,2021 ), based on regression analysis ofhistorical drill core and channel sample assay data for the Dana andLismer Zones.
Figure 1. Distribution of 2021 updated pit constrained Mineral Resources at$15/t NSR cut-off at the River Valley Project. The mineralized zoneslabelled in red ( Dana North, Dana South, LismerNorth and LismerRidge ) are the subject of this press release.Notes: M&I = Measured and Indicated Mineral Resources, Ind: =Indicated Mineral Resources, Inf = Inferred Mineral Resources.
The purpose of the multi-phase Rh geochemistry studyprogram is three-fold:
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1) Investigate Rh grades anddistribution trends within the River Valley Deposit;
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2) Develop a more robustregression technique to estimate Rh concentrations from Pt grades forfuture Mineral Resource Estimates; and
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3) Investigate the potential of Rhas payable metal at River Valley.
Each of these topics are addressed below.
1) Rh Grade and Distribution Trends
In total, 552 samples of mineralized drill coreintervals in the four metallurgical holes were selected for Rh assay:200 from Dana North, 148 from Dana South; 84 from Lismer North, and120 from Lismer Ridge. Overall, the Rh assays values returned rangefrom 0.0007 g/t to 0.306 g/t Rh.
Thirty-four drill of the core samples returned assays of ?0.100 g/tRh (Table 1) and 113 samples returned assays >0.050 g/t Rh. Thehighest assay result for Ir is 0.069 g/t and for Ru is 0.039 g/t, alsofor the samples from the Lismer Ridge Zone.
Note: *2.700 g/t Pd is the upper limit ofdetection for the analytical method employed by the assay lab, andtherefore the higher Pd values listed can be regarded asprovisional.
The announcement of these 552 results increases thetotal inventory of Rh data assays for River Valley to 8,610 (Table 2).At 80.2% of the total, the results for Dana North still dominate theinventory. However, the maximum Rh assay in this dataset is reportedfor the Lismer Ridge Zone, located 3 km south along strike from DanaNorth.
Notes: *drill core samples of mineralizedintervals only
(channel samples, surface rocksamples and academic study samples excluded)
**lower limit of detection =0.000008 ppm Rh
Statistically, the assay results show strong positivecorrelation of Rh with the other four PGE
(R 2 >0.9) and moderate to strong correlation with Au (R 2 >0.6) (Table3), consistent with presence in the mineral phases Hollingworthite[(Rh,Pt,Pd)AsS], platarsite [(PtAsS) with minor Rh and Ru), andlaurite [(RuS 2 with minorRh], each of which has been identified in previous mineralogical andscientific studies of River Valley. In contrast, Rh shows moderatecorrelation (R 2 >0.6) with Cu, Ni and S at the Dana Zonesand weak correlation (R 2 <0.5) with Cu, Ni and particularly S atthe Lismer Zones. On the other hand, and as previously reported forthe Pine and Lismer North Zones, Rh (and Ru) do not correlate withchromium (Rh R 2 <0.010, and therefore is very unlikely tobe held in Cr-bearing phases like chromite. The evident occurrence of Rh independentlyof chromite differs from other Rh-bearing PGE deposits elsewhere, andcould potentially benefit metallurgical recovery processes. Similarly,the presence of laurite could bode well for potential Ru recovery.
Notes: *2022-2023 assay data from Geoscience Laboratories and 2021 assay datafrom SGS Canada Inc. are for the same sampled drill core interval
**Au, Ir, Pd, Pt, Rh and Ru assay values in grams pertonne (g/t); Cu, Ni, and Co assay values in percent (%); Cr assayvalues in ppm
*** Correlation coefficient for rhodium
2) Development of a ReliableRegression Technique
Statistical analysis indicates that Rh assay values forthe remaining River Valley Deposit (>100,000 samples) can beestimated on the basis of measured Pt values through regressionanalysis. A plot of measured Pt values versus Rh values for the 552drill core samples assayed at Geoscience Labs and the non-linearregression line with its derived equation are shown in Figure 2. Atthis stage, non-linear regression models appear to be better thanlinear regression models for predicting higher Rh values.
Figure 2. Plotof measured Pt versus Rh ppb values for the assayed mineralized drillcore intervals (1044 samples) and the non-linear regression line withderived equation solved in DataDesk ? 8.2.1.
3) Investigate the Potential of Rh asPayable Metal at River Valley
In order to progress Rh studies further, subsequentphases of work will take samples of PGE mineralized intervals fromadditional mineralized zones to establish and confirm the spatialdistribution of rhodium, where practical, throughout the River ValleyDeposit. Specifically, themineralized zones selected to be studied next include the Lismer RidgeZone and the Varley Zone. Rhodium recoverytestwork and detailed mineralogical investigations will be included infuture metallurgical studies, in order to determine whether Rh couldbe a payable metal for a potential PGM mining operation at RiverValley. Additionally, non-linear regression models will be furtherinvestigated for more even more reliable prediction of Rh contents,particularly higher values, where Rh assays are not available.
Rhodium
Rh is the rarest and most valuable ofthe PGEs . The main use for Rh is in catalyticconverters designed to clean vehicle emissions. This metal is particularly effective incleaning nitric oxide emissions from internal combustion enginevehicles . The majority of Rh is produced as a
by-product of platinum mining in South Africa. South Africa is theworld’s largest producer of Rh (~80%),followed by Russia (~10%), Zimbabwe (~5%), Canada (~2%), and the USA(~2%).
The global average mineral resource/reserve grade is 0.281 g/t Rh,with the lowest reported mineral resource/reserve grade of 0.010 g/tRh and the highest reported mineral resource/reserve grade of 0.381g/t Rh (source: S&P Global, 2020). As of May 1, 2023, the price ofrhodium is ~US$7,300/oz (source: Kitco May 1, 2023).
Assay Procedures & QualityControl
Drill (¼ HQ) core samples were selected by NAMgeologists from PGE-Cu sulphide mineralized intervals in the DanaNorth and South and Lismer North and Ridge drill holes completed in2021. The samples were delivered directly to Geoscience Laboratory inSudbury for processing, preparation and assay analyses. Gold, iridium,palladium, platinum, rhodium and ruthenium were assayed by 30 g nickelfire assay with ICP-MS finish (IMP-200; ISO/IEC 17025 Accredited).Copper, nickel, cobalt, sulphur, Cr and 28 additional elements hadpreviously been assayed by two-acid digestion and ICP-OES finish bySGS Laboratory in Burnaby, B.C. ( see NAM press release dated March 1,2022 ). Blanks and blind certified referencematerial (standards) samples were inserted at regular intervals forassay with the core samples, as part of NAM’s rigorous QualityControl program.
About the River Valley PalladiumProject
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 2020are planned to continue through 2023.
The details of the 2021 updated Mineral Resource Estimate wereannounced in a Company press release dated October 5, 2021. Atcut-offs of CDN$15/t NSR (pit constrained) and CDN$50/t NSR(out-of-pit), the Mineral Resource Estimate consists of: 89.9 Mtgrading 0.54 g/t Pd, 0.21 g/t Pt, 0.04 g/t Au and 0.06% Cu, orCDN$47.58/t NSR in the Measured and Indicated classifications; and 94Mt grading 0.35 g/t Pd, 0.16 g/t Pt, 0.04 g/t Au and 0.06% Cu, orCDN$31.69/t NSR in the Inferred classification. Contained metalcontents are 2.3 Moz Pd+Pt+Au in the Measured and Indicatedclassifications and 1.6 Moz Pd+Pt+Au in the Inferred classification.
The 2019 Preliminary Economic Assessment (“PEA”) results for theRiver Valley Palladium Project were announced in a press release datedJune 27, 2019, and are based on the 2019 updated Mineral ResourceEstimate. The 2019 PEA outlines a 20,000 t/day open pit mine andprocessing plant operation producing an average of 119,000 ounces ofPdEq per year over a mine life of 14 years. Using base case metalprices of US$1,200/oz Pd, $1,050/oz Pt and $3.25/lb Cu, the PEA showeda pre-tax NPV5% of US$261 million and a pre-tax IRR of 13%. At a +20%palladium price of $1,440/oz Pd, the pre-tax NPV5% increases to $501Mand the pre-tax IRR to 19%.
The updated 2021 Mineral Resource Estimate forms a basis for theongoing updated PEA of the River Valley Palladium Project. Theupdated PEA results are due to be released in the summer of 2023.
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 by road east of Sudbury, Ontario. In addition to River Valley,NAM owns 100% of the Genesis PGM-Cu-Ni Project in Alaska, and plans tocomplete a surface mapping and sampling program in 2022.
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 elementssuch as tantalum, rubidium, and cesium. The company recentlycompleted a phase two drill program at Lithium Two Project and isbeginning to receive initial assay results. Further exploration plansfor 2023/24 include continued mapping/sampling field programsfollowing up on prospective trends outlined in the magnetic data and2022 surface sampling, additional geophysical surveys, and diamonddrilling. 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. The 2023/24 budget for ourManitoba Lithium Division has been submitted to MRL and a final budgetis expected by mid-April 2023. The company is currently completing its2022/23 $2.3 million budget.
Our philosophy is to be a project generator with theobjective of optioning our projects with major and junior miningcompanies through to production. The Company is activelyseeking an option/ joint venture partner for our newly acquiredNorthman, McLaughlin Lake, and South Bay Lithium Projects in NorthernManitoba, as well as its road-accessible Genesis PGM-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 toinfo@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.
The contents contained herein that relate toExploration Results or Mineral Resources is based on informationcompiled, reviewed or prepared by Dr. Bill Stone, P.Geo., a consultinggeoscientist for New Age Metals. Dr. Stone is the Qualified Personas defined by National Instrument 43-101 and has reviewed and approvedthe PGE/PGM-related technical content of this news 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 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.
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