(TheNewswire)
March 1, 2022 – TheNewswire - Rockport,Ontario - New Age Metals Inc. (TSXV:NAM ) ; ( OTC:NMTLF ) ; ( FSE:P7J.F) (“NAM” or “Company”) is pleased toprovide an update on its metallurgical study program at its 100% ownedRiver Valley Palladium Project (the “Project” or Property”), 100km east of the City of Sudbury, Ontario. This study is being carriedout as a key component of the ongoing Pre-Feasibility Study of theRiver Valley Palladium Project (see Company press release dated April12, 2021).
Metallurgical Sample AssayProgram
Further to the announcement dated November 10, 2021, NAM has nowreceived metre-by-metre assay results from SGS for all four of themetallurgical holes drilled at River Valley in 2021
(Figure 1; Table 1). Four shortdiamond holes were drilled inside the River Valley Deposit, one eachat the Dana North, Dana South, Lismer North and Lismer RidgeMineralized Zones (Table 2). These HQ-size drill holes wereplanned to validate mineralized zone models and maximize recovery offresh mineralized sample material for the mineral processing andmetallurgical testwork studies. The Dana Zones and the Lismer Zoneswere selected for study, because they are the most assessible and thebest understood of the ten known palladium mineralized zones (Figure2), and therefore the most probable starting location for anypotential mining operation at River Valley. The four drill holesintersected palladium mineralization in gabbroic rocks of the hostBreccia Unit for almost the entire length of each hole. The palladiummineralized intersections are summarized below.
The Dana North Zone hole(DN-21-01m) was drilled for 201 m obliquely down-dip, parallel to themetallurgical hole drilled in 2012. Drill hole DN-21-01m intersected 2.08 g/t 3E and 0.12% Cu (or $117/tNSR) over 141.5 m from 0.5 m downhole from surface, including 2.24 g/t3E and 0.13% Cu (or $126/t NSR) over 124.5 m, and 1.21 g/t 3E and0.09% Cu (or $68/t NSR) over 55 m from 145 m downhole, including 1.37g/t 3E and 0.09% Cu ($77/t NSR) over 45 m (Table 1). Therelatively higher-grade interval from near-surface is not surprising,given that this hole was collared on some of the highest-gradematerial ever sampled historically at River Valley. This drill hole also ended inmineralization.
The Dana South Zone hole(DS-21-01m) was drilled for 200 m obliquely down-dip, in contrast tothe vertical hole drilled in 2012. Drill hole DS-21-01m intersected 2.74 g/t 3E and 0.20 % Cu over 11 mfrom surface, and 3.00 g/t 3E and 0.15% Cu (or $166/t NSR) over 66 mfrom 111 m downhole, including 3.48 g/t 3E and 0.17% Cu over 47 m (or$192/t NSR) (Table 1). These are the highest grade intersectsin the four drill holes, consistent with Dana South having the highestaverage grade of the four mineralized zones (see Figure 1). This drill hole also ended in higher-grademineralization.
The Lismer North Zone hole(LN-21-01m) was drilled for 185 m obliquely down-dip. Drill holeLN-21-01m intersected 1.02 g/t 3E and 0.13% Cu (or $59/t NSR) over 23m from 21 m downhole, 1.01 g/t 3E and 0.06% Cu (or $55/t NSR) fromover 7 m from 131 m downhole, 0.99 g/t 3E, and 0.08% Cu (or $55/t NSR)over 11 m from 143 m downhole, including 1.63 g/t 3E and 0.12% Cu (or$89/t NSR) over 3 m from 145 m downhole, 1.61 g/t 3E and 0.06% Cu (or$87/t) over 3 m from 151 m downhole, and 2.34 g/t 3E and 0.07% Cu (or$129/t NSR) over 14 m from 162 m downhole (Table 1). Compared to theDana North and Dana South results, the mineralization at Lismer Northappears in this drill hole to be lower grade and less continuous.
The Lismer Ridge Zone hole(LR-21-01m) m was drilled for 215 m obliquely down-dip.
This Lismer Ridge hole (LR-21-01m) intersected 1.06 g/t 3E and 0.06%Cu (or $58/t NSR) over 27 m from 6 m downhole, 0.82 g/t 3E and 0.05%Cu (or $45/t NSR) over 30 m from 130 m downhole, including 2.32 g/t 3Eand 0.17% Cu (or $130/t NSR) over 4 m from 156 m downhole, 1.16 g/t 3Eand 0.07% Cu (or $83/t NSR) over 21 m from 170 m downhole and 2.39 g/t3E and 0.07% Cu (or $128/t NSR) over 4 m from 205 m downhole (Table1). Unlike the other three drill holes, LR-21-01m deviated more thanusual and exited the wireframed mineralized domain at
175 m downhole, but remained in mineralization (some higher grade) foran additional 40 m till end of hole. This surprising result makes this area east-adjacent to Lismer Ridgea promising exploration target of interest.
Each of the four drill holes provided an average of approximately1,700 kg of material for a total of 6,800 kg, plenty for: 1) extensivetestwork on a composite sample from each zone plus an overallcomposite sample from the four zones; 2) comprehensive assaying andQEMSCAN studies to follow the main metals (Pd, Pt, Au and Cu) duringthe testwork; and 3) high-sensitivity assaying to assist indetermining Rh recoveries. The two Dana holes were drilled in June2021 by Multi Drilling (Rouyn-Noranda) and the two Lismer holes inJuly 2021 by Jacob & Samuel Drilling Ltd. (Sudbury). Afterlogging, each hole was sampled at 1 metre intervals. Each 1 metreinterval was cut into equal halves with a diamond saw. Half the corewas sent to SGS Canada Inc’s processing facilities in Lakefield forassay and preparation for metallurgical testwork. In total, 809samples from the four drill holes (plus 37 “blind” certified QCsamples) were assayed.
The metallurgical testwork samples were received by SGS Lakefield inJune, 2021 (Dana Zones) and August, 2021 (Lismer Zones). The totalweight of the samples received was 3,483 kg. Recipes for the fourLismer grade variability composites (0.5 g/t 3E, 0.8 g/t 3E, 1.0 g/t3E and 1.3 g/t 3E) were finalized and delivered by D.E.N.M Engineering(“DENM”) to SGS Lakefield in late-January 2022. Recipes for Danagrade variability composites have been finalized and delivered byD.E.N.M. to SGS in late February, 2022.
1 Corelength |
2 Pd+Pt+Au |
3 NSRformula from NAM press release dated October 5, 2021 |
Figure 1. Collar location andtraces of the four holes drilled in 2021 for mineral processing andmetallurgical testwork material. M&I = Measured and IndicatedMineral Resources, Ind: = Indicated Mineral Resources, Inf = InferredMineral Resources. The background is a LiDAR 2014 survey topographyimage. The Banshee Zone shown for information only.
1 NAD83Zone 17N coordinates | |
2 Drillhole length |
Assay Procedures & QA/QC
The two Dana and two Lismer holes were drilled under the supervisionof NAM geologists.
The core samples were sent to the SGS Canada Inc. Laboratory inLakefield, Ontario, for initial sample preparation and assay analysesby SGS Laboratory in Burnaby, B.C. The preparation involved crushingof 3 kg of each sample to 90% passing 1.25 mm, and then pulverizing arepresentative subsample of ~0.1 kg to 85% passing 75 µm. Palladium,platinum and gold were analyzed by fire assay with ICP-AES finish(GE-FAI30V5). Copper, nickel and 32 additional metals were assayed bytwo-acid digestion and ICP-OES finish (GE-ICP21B20). Blanks and blindcertified standard samples were submitted at regular intervals forassay with the core samples as part of NAM’s rigorous QualityAssurance/Quality Control program.
Pre-Feasibility Study Update
A Pre-Feasibility Study of the River Valley PalladiumProject was announced in a Company press release dated April, 2021,and a progress update was announced press release dated November 10,2021. At this point, recipes for Lismer Zone grade variabilitycomposites have been delivered by DENM Engineering to SGS Lakefieldfor blending and testwork studies, as described above. Recipes forDana Zone grade variability composites will be finalized and deliveredby DENM to SGS Lakefield by the end of February 2022. Thegeomechanical and hydrogeological site investigation studies by KnightPi é sold Ltd. are largelycompleted, whereas the geotechnical site investigation studiescontinue. Story Environmental continue baseline environmental studiesof the River Valley Property and establishing meaningful relationshipswith local Indigenous Communities. In a press release dated January26, 2022, NAM announced that a Memorandum of Understanding (“MOU”)had been signed with Nipissing First Nation. This MOU is in additionto that signed with Temagami First Nation in 2014 and renewed in2017.
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.
Fully executed Memorandum of Understandings are in place with localFirst Nations, environmental baseline studies re-commenced in 2020,and archeological studies were completed in 2021.
The current Mineral Resource Estimate was announced in a press releasedated October 5, 2021 (Figure 2). At cut-offs of CDN$15/t NSR (pitconstrained) and CDN$50/t NSR (out-of-pit), the Mineral ResourceEstimate consists of: 89.9 Mt grading 0.54 g/t Pd, 0.21 g/t Pt, 0.04g/t Au and 0.06% Cu, or CDN$47.58/t NSR in the Measured and Indicatedclassifications; and 94 Mt grading 0.35 g/t Pd, 0.16 g/t Pt, 0.04 g/tAu and 0.06% Cu, or CDN$31.69/t NSR in the Inferred classification.Contained metal contents are 2.3 Moz Pd+Pt+Au in the Measured andIndicated classifications and 1.6 Moz Pd+Pt+Au in the Inferredclassification.
Figure 2. River Valley 2021pit constrained Mineral Resources at $15/t NSR cut-off. Note thatthe Pine Zone, situated in the footwall to Dana North Zone, is notexposed at surface. M&I = Measured and Indicated MineralResources, Ind: = Indicated Mineral Resources, Inf = Inferred MineralResources.
The 2019 PEA results for the River Valley Palladium Project wereannounced in a press release dated June 27, 2019, and are based on theupdated 2019 Mineral Resource Estimate for River Valley. The 2019 PEAoutlines a 20,000 t/day open pit mine and processing plant operationproducing an average of 119,000 ounces of PdEq per year over a minelife of 14 years. Using base case metal prices of US$1,200/oz Pd,$1,050/oz Pt and $3.25/lb Cu, the PEA showed a pre-tax NPV5% of US$261million and a pre-tax IRR of 13%. Ata +20% palladium price of $1,440/oz Pd, the pre-tax NPV5% increases to$501M and the pre-tax IRR to 19%. As of February 24, 2022, thepalladium price was approximately ,400/oz.
The 2021 updated Mineral Resource Estimate will form a basis for theongoing Pre-Feasibility Study of the River Valley Palladium Project.
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. The Company completed a positivePreliminary Economic Assessment on the Project in 2019 and, is fullyfinanced to complete a
Pre-Feasibility Study on the Project in 2022. In addition toRiver Valley, the Company owns 100% of the Genesis PGM-Cu-Ni Projectin Alaska, and has plans to complete a surface mapping and samplingprogram in 2022.
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. In 2021 drone geophysics were completed on at least five ofthe Company’s seven projects and in October a maiden drill programon the Company’s Lithium Two Project was initiated. On September28 th , 2021, the Company announced a partnershipwith Mineral Resource Limited (MRL, ASX: MIN), the world’s fifthlargest lithium producer to explore and develop the Company’slithium project portfolio.
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.
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 to thescientific and exploration results for the River Valley Project isbased on information compiled, reviewed or prepared by Dr. Bill Stone,P.Geo., a consulting geoscientist for New Age Metals. Dr. Stone isthe Qualified Person as defined by National Instrument 43-101 and hasreviewed 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.
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