(TheNewswire)
May 4, 2022 – TheNewswire - Rockport, Ontario - New Age Metals Inc.(TSXV:NAM ) ; ( OTC:NMTLF ) ; ( FSE:P7J.F) (“NAM” or “Company”) is pleased to providean update on the Pre-Feasibility Study of the River Valley PalladiumProject, one of North Americas largest undeveloped Platinum GroupMetals Projects near Sudbury, Ontario (Figure 1). Progress has beenmade in advancing the mineral processing and metallurgical,geomechanical, hydrogeological, geotechnical, and environmental andcommunity engagement work components of the Pre-Feasibility Study.
Figure 1. Palladium Mineral Resources in thenorthern area of the River Valley Palladium Deposit near Sudbury,Ontario. Mineralized zones ( red ) projected to surface.Mineral Resource Estimates using CDN$15/t NSR cut-off and NSRcalculation of 2021 Updated Mineral Resources and Technical Report(P&E, 2021). Mineral Resources for Pardo Zone have not beenestimated due to lack of drilling. The Huronian, Grenville andNipissing geological units not shown for illustration clarity.
Mineral Processing and MetallurgicalTesting Program
The mineral processing and metallurgical testing program at SGS CanadaInc. (Lakefield) (“SGS”) is being managed on behalf of NAM byD.E.N.M Engineering Ltd. (Burlington) (“DENM”). Mineralogical sulphide and platinum metal studies ofthe Lismer Zones also commenced in February. In addition to Pd and Pt minerals, themineralogical study will focus on detection of nickel sulphideminerals (mainly pentlandite) and rhodium mineral (hollingworthite)and other minor PGM phases . In addition, Rhassaying of MinMet sample drill core commenced in February at GeoLabs(see Company press release dated March 22, 2022). This work, in conjunction with metal recovery testwork atSGS, will culminate, for the first time, in robust rhodium recoverydeterminations for River Valley. Furthermore, physical and chemical studies of thetailings produced during metallurgical testwork at SGS will bereleased by the end of July. These studies will be completed at SGSunder the direction of Knight-Piésold, as part of thisPre-Feasibility Study. |
Geomechanical-Hydrogeological andGeotechnical Programs
Site investigation work by Knight-Piésold Ltd.(“KP”) was completed in March, which included bedrock andsurficial drilling as well as pit excavations. Two of the fivegeomechanical drill holes (KP21-01 at Lismer Ridge Zone and drill holeKP21-05 at Dana South Zone – see Figure 1) were logged and sampledby NAM geologists as exploration holes. Mineralized drill core sampleswere sent to SGS (Lakefield, Ontario) for initial sample preparation,and then to SGS Laboratory in Burnaby, BC for assay analysis. Theresults will be released when available.
Rock mass quality and structural domains have beendetermined by KP, based on logging of oriented drill core, downholeteleviewer survey results, laboratory testing, and historicalstructural geology mapping and modelling studies. Open sloperecommendations were issued in April for review and comment. Designwork has now commenced on site water management structures. Designwork on the tailing storage facilities will follow.
Environmental Baseline Studies andCommunity Relations Engagement
Story Environmental Inc. (“Story”) continuedbaseline environmental studies of the River Valley Property andbuilding effective relationships with local First Nationscommunities,
for future permit applications and approvals.
The ongoing environmental studies consisted of aquatics, surface waterand hydrology field work on the Property in the late fall of 2021 andwinter of 2022. The surface water field work involved Temagami FirstNation personnel. Also, groundwater monitoring wells were installed inthe fall of 2021. In addition, a desktop atmospheric assessment wascompleted for the Property in January 2022.
An Exploration Memorandum ofUnderstanding (“MOU”) was signed with Nipissing First Nation inlate-January 2022 (see Company press release dated January 26,2022). This MOU is in addition to the MOUsigned previously with Temagami First Nation in 2014 and amended in2017. Story assisted with set-up and led a community meeting withTemagami First Nation in early December 2021, during which a RiverValley Palladium Project update was presented.
In March 2022, the Mineral Development Branchconfirmed, based on the Project’s early stage of development, thatNAM’s Duty to Consult remains limited to these two First Nationcommunities.
Mineral Resources/Reserves, Mining,Infrastructure, Cash Flow Model
The River Valley 2021 Updated Mineral ResourceTechnical Report by P&E Mining Consultants Inc (“P&E”) wasfiled on SEDAR in November 2021 (see Company press release datedNovember 19, 2021). At cut-offs of CDN$15/t NSR (pit constrained) andCDN$50/t NSR (out-of-pit), the Mineral Resource Estimate consists of:89.9 Mt grading 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; and94 Mt grading 0.35 g/t Pd, 0.16 g/t Pt, 0.04 g/t Au and 0.06% Cu,
or CDN$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. This Mineral Resource Estimatewill underpin the ongoing
Pre-Feasibility Study. The pit constrainedMeasured & Indicated Mineral Resources total of 89 Mt grading 0.79g/t Pd+Pt+Au (2.3 Moz) reported significantly exceeds the potentiallyeconomic portion Mineral Resources total of 78 Mt grading 0.79 g/tPd+Pt+Au (2.0 Moz) reported in the 2019 Preliminary EconomicAssessment (“PEA”) of River Valley.
The Pre-Feasibility Study as led byP&E will consider optimized mine production and mineral processingrates, based on the current, potentially more valuable Updated MineralResource Estimate than that which underpinned the 2019 PEA . Pit slope recommendations by Knight-Piésold have beenreviewed and accepted. SGS/DENM are scheduled to deliver indicativemetal recoveries to P&E by the end of May 2022 for NSR modellingand Mineral Reserve estimation work.
Pre-Feasibility Completion Schedule
NAM announced commencement of the River ValleyPre-Feasibility Study in the spring 2021
(see Company press release dated April 12, 2021). At that time, thePre-Feasibility Study was slated for completion in 12 to 14 months.However, the Covid-19 pandemic, difficulties in finding and retainingexperienced labour, a major shortage of suitable drill rigs andexperienced drillers, and backlogged assay laboratories have delayedcompletion of the PFS to Q4 of 2022.
About River Valley
The River Valley Palladium Project islocated 100 road-km east from the City of Sudbury . The Project areais linked to Sudbury by a network of all-weather highways , roads and rail bedsand is accessible year-round with hydro grid and natural gas powernearby. River Valley enjoys the strong support of localcommunities , like the village of River Valley,20 km to the south. A fully executed Memorandum of Understanding is inplace with two local First Nation communities. Environmentalbaseline studies re-commenced in 2020 and will continue in2022.
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 metal prices of US$1,200/ozPd, $1,050/oz Pt and $3.25/lb Cu, the PEA showed an after-tax NPV5% ofUS$138 million and an after-tax IRR of 10%. At a +20% palladiumprice of $1,440/oz Pd, the after-tax NPV5% increases to $299M and theafter-tax IRR to 15%. The current price of Pd is approximately$2,100/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 and rubidium. In 2021 drone geophysics were completed on atleast five of the Company’s seven projects and in March 2022 themaiden drill results on the Company’s Lithium Two Project wereannounced. On September 28,2021, the Company announced a partnership with Mineral ResourceLimited (MRL, ASX: MIN), the world’s fifth largest lithium producerto explore and develop the Company’s lithium project portfolio.
NAM is currently finalizing the 2022 exploration budget and managementbelieves that 2022 will include the most aggressive exploration on theprojects to date.
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 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. 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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