(TheNewswire)
August 10, 2022 – TheNewswire - Rockport, Ontario - New Age Metals Inc. (TSXV:NAM ) ; ( OTC:NMTLF ) ; ( FSE:P7J.F) (“NAM” or“Company”) is pleased to provide an update on the Pre-FeasibilityStudy (“PFS”) of the River Valley Palladium Project near Sudbury,Ontario (Figure 1). Since the previous project update was announced ina press release dated May 4, 2022, further progress has been made inadvancing the mineral processing and metallurgical component of thePFS.
Figure 1. Palladium Mineral Resources in thenorthern area of the River Valley Palladium Deposit. Mineralized zones( red ) projected to surface. Mineral ResourceEstimates using C$15/t NSR cut-off and NSR calculation of 2021 UpdatedMineral Resources and Technical Report (P&E, 2021). MineralResources for Pardo Zone have not been estimated due to lack ofdrilling. The Huronian, Grenville and Nipissing geological units notshown for illustration clarity.
Mineral Processing and MetallurgicalTesting Program
The testing program at SGS Canada Inc. (Lakefield) (“SGS”) isbeing managed on behalf of NAM by D.E.N.M Engineering Ltd.(Burlington) (“DENM”) and is nearing completion. The SGS testwork priority was the Dana (South and North) andLismer (Ridge and North) mineralized zone master and grade variabilitycomposites. Grindability testing and flotation testwork on Dana andLismer master composites commenced in March are now complete. Thein-depth flotation work was undertaken on the Lismer and Danacomposites under locked cycle testing (“LCT”). LCTs permit the projection of the overallperformance of the conceptual flow sheet in terms of expected recoveryand concentrate grade . The overall effect ofrecirculating streams on process stability can also be determined. Inaddition, reagent consumptions can be more accurately determined forLCT versus standard batch testing. Indicative metal recoveriesdetermined are as follows:
LOM: Life of Mine The primary goal of the metallurgicaltesting was to produce a marketable single bulk copper concentrate(i.e. no selective flotation products) with associated PGM as part ofthe concentrate . Included in this exercise was the in-depthreview of rhodium (Rh) recovery for River Valley. A preliminarymetallurgical scoping study by Michigan Technological University(June, 2000) indicated Rh recovery of 27.5%. The resultant LCT for theLismer (39.1%) and Dana (41.7%) composites have an d indicated base Rh recovery of 40%. In addition to the LCT, variability work on higher than life-of-minegrades was carried out. Initialresults indicate possible higher recoveries and final grades at feedgrades >1.0 g/t 3E (Au+Pt+Pd) . In the 2019 PEA, head gradesof >1.0 g/t 3E were planned to be processed in the first 3-years ofoperation at River Valley. Thismodelling is underway for the PFS and will be reportedaccordingly. The final concentrate grades based on the LCT testing and 0.5% masspull are as follows:
Comminution testing on the RV variability samples indicated that theRiver Valley material is a medium to hard mineralized material forgrindability and very abrasive when compared to the SGS database.These characteristics will affect the overall grinding mill powerinput and sizing, as well as liner and media wear operating costs. The resultant work (flotation andcomminution) has allowed for process design data criteria to begenerated based on a potential mill throughput of 6 million tonnes perannum . Specific vendors have been contacted for confirmation ofunit operations sizing and capital costs to a PFS level. The development of these costs is nowunderway. Next Steps in the PFS While the metallurgical testwork has been advancing, progress havealso been made in the other components of the PFS of the River ValleyPalladium Project. Advancements in the geomechanical-hydrogeological-geotechnical, environmental andcommunity relations, and open pit mine design areas will be reportedaccordingly . Pre-Feasibility Completion Schedule NAM announced commencement of the River Valley Pre-Feasibility Studyin the spring 2021(see Company press release dated April 12, 2021). Atthat time, the Pre-Feasibility Study was slated for completion in 12months. However, the Covid-19 pandemic, difficulties in finding andretaining experienced labour, a major shortage of suitable drill rigsand experienced drillers, and backlogged assay laboratories havedelayed completion of the PFS to Q4 of 2022. |
About River Valley
The River Valley Palladium Project is located 100road-km east 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 strong support of local communities, like thevillage of River Valley, 20 km to the south. A fully executedMemorandum of Understanding is in place with two local First Nationcommunities. Environmental baseline studies re-commenced in 2020 andwill continue in 2022.
The 2019 PEA results for the River Valley PalladiumProject were announced in a Company press release dated June 27, 2019.The PEA outlines a 20,000 t/day open pit mine and processing plantoperation producing an average of 119,000 ounces of PdEq per year fora mine life of 14 years. Using base case US$ metal prices of $1,200/oz Pd , $1,050/oz Pt and $3.25/lb Cu, the PEA showed an after-taxNPV5% of US$138 million and an after-tax IRR of 10%. At a +20%palladium price of US$1,440/oz Pd, the after-tax NPV5% increases toC$299M and the after-tax IRR to 15%. The current price of Pd is approximatelyUS$2,125/oz Pd.
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 has two divisions; a Platinum Group Metals division and aLithium/Rare Element division.
The PGM Division includes the 100% owned,multi-million-ounce Pd+Pt+Au (“3E”), district scale River ValleyProject, one of North America’s largest undeveloped Platinum GroupMetals Projects, situated 100 km by road east of Sudbury, Ontario. The Company completed apositive Preliminary Economic Assessment on the Project in 2019 and,is fully financed to complete a Pre-Feasibility Study on the Projectin 2022. In addition to River Valley, theCompany owns 100% of the Genesis PGM-Cu-Ni Project in Alaska, and hasplans to complete a surface mapping and sampling program in2022.
The Lithium Division is one of the largest mineralclaim holders in the Winnipeg River Pegmatite Field, where the Companyis exploring for hard rock lithium and various rare elements such astantalum, caesium and rubidium. Further Exploration plans for 2022include continued mapping/sampling field program following up onprospective trends outlined in the magnetic data, a maiden drillprogram on the Lithium One Project, and phase two drill program atLithium Two Project. Thecompany has a partnership with Mineral Resource Limited (MRL, ASX:MIN), one of the top 5 global lithium producers to explore and developthe Company’s lithium project portfolio.
The 2022 budget for the Company’sLithium Division is $1.8 million
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 actively seeking an option/ joint venture partner for itsroad-accessible Genesis PGM-Cu-Ni project in Alaska and for all orpart 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 Farid Mammadov at faridm@newagemetal.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
David Salari, P.Eng., President of D.E.N.M. EngineeringLtd., and an independent Qualified Person and Competent Person hasprepared, reviewed and approved the technical content of this newsrelease.
The contents contained herein that relate toexploration results and Mineral Resources for the River Valley Projectare based on information compiled, reviewed or prepared by
Dr. William Stone, P.Geo., a consulting geoscientist for New AgeMetals. Dr. Stone is the Qualified Person as defined by NationalInstrument 43-101 and has reviewed and approved the technical contentof 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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