(TheNewswire)
June 10, 2021 – TheNewswire - Rockport, Ontario -New Age Metals Inc. (TSXV:NAM ) ; ( OTC:NMTLF ) ; ( FSE:P7J.F) (“NAM” or “Company”) is pleased to provide an updateon its rhodium assay and metallurgical drilling programs at its 100%owned River Valley Palladium Project, located 100 km east of Sudbury,Ontario. These studies are being carried out as key components of aPre-Feasibility Study of the River Valley Project, which was announcedin a Company press release dated April 12, 2021.
Rhodium Assay Program
The purpose of the rhodium (“Rh”) assay program isto generate data with which to evaluate whether Rh could be a payablemetal for any potential mining operation at River Valley. Due to theexpense of the analyses, the Rh assay program will be multi-phase. In phase 1 (2020), new Rh data were generated for 2015 to 2020 drillcore from the Pine Zone (see company press release dated March 2,2021). Historical data area available for the Dana North Zone.
In Phase 2 (the current phase), Rh data will begenerated for the Lismer North Zone (aka Lismer Extension Zone)(Figure 1). To this end, samples from eight (8) mineralized intervalsin four diamond drill cores on a key cross-section have been selectedfor Rh assay analysis. The historical drill cores have been sampledand the 189 samples (plus blind QC) delivered to Geo Labs in Sudburyfor preparation and high-sensitivity assay analysis. Assay results areexpected in September. As of June 9, 2021, Rh is trading for ,800/oz (Kitco).
Figure 1. Geology map of the northern area of the River Valley Palladiumdeposit. Mineralized zones projected to surface. Mineral ResourceEstimates using 0.35 g/t PdEq cut-off and PdEq calculation ofPreliminary Economic Assessment (2019). The Huronian and Nipissingunits (younger) and the Grenville units (older) excluded forillustration purposes.
Metallurgical Drill Program
The metallurgical drilling is being carried out tosample fresh material for mineral processing and metallurgical studiesas part of the ongoing Pre-Feasibility Study of River Valley. Fourholes are planned; one each on the Dana North Zone, Dana South Zone,Lismer North Zone and Lismer Ridge Zone. Each hole will be HQ size anddrilled down through at least 200 metres of PGM-Cu sulphidemineralization, in order to provide plenty of material forcomprehensive metallurgical studies.
At this point, metallurgical hole DN-21-01m has beencompleted on the Dana North Zone (Figure 2) and hole DS-21-01m isdrilling on the Dana South Zone, 0.5 km to the south. Metallurgicalholes LN-21-01m and LR-21-01m will be drilled on the Lismer North Zoneand the Lismer Ridge Zone, respectively. The metallurgical drillprogram is planned to be completed before the end of June. Thesamples will be sent to SGS for assay, compositing and metallurgicalstudies and to Geo Labs for Rh assay analysis.
Figure 2. Collar locations and traces (surface projections) of the plannedmetallurgical study drill holes overlain on 3D mineralization modelsand LiDAR DEM. Four of the five planned holes are to be drilled (1contingency). As of the date of this press release, drill holeDN-21-01m is completed and DS-21-01m drilling.
Stock Options
The Company announces that it has granted 1,900,000incentive stock options to directors, officers and consultants of theCompany at an exercise price of $0.18 per share for a period of five(5) years from the date of grant in accordance with the Company'sStock Option Plan. The Stock Options granted will be subject tovesting restrictions, acceptance by the TSX Venture Exchange and willbe subject to regulatory hold periods in accordance with applicableCanadian Securities Laws.
In addition, the Company intends to extend the expirydate of an aggregate of 983,331 stock options originally granted toDirectors, Officers and Consultants of the Company on July 15, 2016. Subject to TSX Venture Exchange approvalthe Company will apply to extend the expiry date from July 15, 2021 toJuly 15, 2026. The exercise price of $0.21 will remain thesame.
About Rhodium
Rh is the rarest and most valuable ofthe PGMs . 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 aby-product of platinum and palladium mining at grades generally?0.10 g/t Rh. South Africa is the world’s largest producer of Rh(~80%), followed by Russia (~10%), Zimbabwe (~5%), Canada (~2%), andthe USA (~2%).
About River Valley
The River Valley Palladium Project islocated 100 road-km east from the City of Sudbury. The Project area is linked to Sudbury by a network ofall-weather highways, roads and rail beds and is accessible year-roundwith hydro grid and natural gas power nearby. River Valley enjoysthe strong support of local communities, like the village of RiverValley, 20 km to the south. A fully executed Memorandum ofUnderstanding is in place with a local First Nation. Environmentalbaseline studies re-commenced in 2020.
The current Mineral Resource Estimatewas announced in a Company press release dated January 15, 2019 and isbased on metal prices substantially lower than today . At a cut-offgrade of 0.35 g/t PdEq, the Mineral Resource consists of: 99 Mtgrading 0.52 g/t Pd, 0.20 g/t Pt, 0.03 g/t Au and 0.06% Cu, or 0.90g/t PdEq in the Measured and Indicated classifications; and 52 Mtgrading 0.31 g/t Pd, 0.15 g/t Pt, 0.04 g/t Au and 0,04% Cu, or 0.63g/t PdEq in the Inferred classification. Contained metal contentsare 2.4 Moz Pd+Pt+Au or 2.9 Moz PdEq in the Measured and Indicatedclassifications and 0.8 Moz Pd+Pt+Au or 1.1 Moz PdEq in the Inferredclassification.
The 2019 PEA results for the River Valley PalladiumProject were announced in a press release dated June 27, 2019. The 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 NPV 5% of US$261 million and a pre-tax IRRof 13%. At a +20% palladium price of $1,440/oz Pd, the pre-taxNPV 5% increases to $501Mand the pre-tax IRR to 19%. The current 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 Company has recently completed a PreliminaryEconomic Assessment on the project and, plans are to complete a Pre-Feasibility Study by the end of thefirst half of 2022 . In Alaska, the Company owns 100% of theGenesis PGM-Cu-Ni Project.
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.