(TheNewswire)
June 8 ,2022 – TheNewswire - Rockport, Ontario - New Age Metals Inc. (TSXV:NAM ) ; ( OTC:NMTLF ) ; ( FSE:P7J.F) (“NAM” or“Company”) is pleased to report new assay results for core samplesfrom 2021 drill hole KP21-05 completed at the Dana South Zone. Drillcore assays returned a long, higher-grade intersection of palladium(“Pd”) mineralization lying outside the established boundary ofDana South. This Pdmineralization intercept appears to represent an opportunity to expandDana South south-southeastwards direction. Location of the Dana South Zone in the northern area of theRiver Valley Deposit (Figure 1), makes it a key zone in the ongoingPre-Feasibility Study of the River Valley Project.
Highlights
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Drill Hole KP21-05: 1.129 g/t Pd+Pt+Au (“3E”) and 0.108%Cu over 84 metres from 197 metres downhole;
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Including 1.918 g/t 3E and 0.183% Cuover 30 metres from 242 m downhole;
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And 2.373 g/t 3E over 18 metres from243 metres downhole.
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37 metres of the 84-metre longmineralized intercept is located outside the wireframed domainboundary of Dana South Zone
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This external Pd mineralizationindicates strong potential for expanding Dana South by drilling alongstrike to the south-southeast of the mineralized zone.
Harry Barr, Chairman and CEO of NAM said, “This Pdmineralization intercept of the Dana South Zone in drill hole KP21-05is remarkable. The exploration upside potential at River Valleycontinues to surprise, despite historical and recent drilling of 723holes totalling 156,000 metres along the 16 km strike length of theDeposit. Follow-up drilling designed to confirm and expand the DanaSouth mineralization beyond the historically modelled boundaries willbe undertaken this summer. Despite continued volatility in the globalmarkets, palladium prices remain high and rhodium, an additional metalof potential interest at River Valley, is also trading at very highprices.”
Drill Hole KP21-05
As part of the ongoing PFS of the River ValleyProject, Knight-Piésold Ltd (“KP”) planned
KP21-05 as a diamond drill hole to test the location and geomechanicalnature of the footwall contact to the Dana South Zone of the RiverValley Palladium Deposit. The drill hole was collared at
UTM (NAD83 Zone 17N) 555,582 m E and 5,171,902 m N, and oriented to bedrilled at azimuth 99º and inclination of -57º. The 290-metre longdrill hole encountered a long interval of copper-iron sulphidemineralization in the favourable Breccia Unit of the River ValleyIntrusion, and was therefore logged and sampled by NAM geologists asan exploration drill hole. Assays returned 84 metres grading
1.129 g/t 3E and 0.108% Cu from 197 metres downhole, including aninterval of 30 metres grading 1.918 g/t 3E and 0.183% Cu, or $111/tNSR from 242 metres downhole, and 18 metres grading
2.373 g/t 3E and 0.212% Cu, or $139/t NSR from 243 metres downhole(Table 1). At approximately 224 metres downhole, drill holeKP21-05 exited the Dana Southwireframed mineralized domain and continued in mineralization mainlywithin the Breccia Unit for an additional 57 metres
(Figure 2). From the end of mineralization at281 m downhole, the drill hole continued for an additional 9 metresthrough largely barren rock before being stopped at a depth of 290metres in the footwall.
Implications
Although intersected at a shallow angle by KP21-05, theoccurrence of such higher-grade mineralization outside of thewireframed domain suggests that the Dana South Zone mineralization extends farthersouth-southeast than previously modelled . Inother words,
the previously interpreted fault boundary appears to have beenmisplaced and requires
re-interpretation. The fault is likely present, given the apparentdextral offset of the Banshee Zone to the south-southwest (Figure 1),but is potentially located significantly farther to thesouth-southeast than modelled.
As a result of the KP21-05 intercept, themineralization at Dana South is open to expansion by drilling alongstrike to the south-southeast, in addition to down-dip. A follow-updrilling program is planned to test for this potential extension ofDana South, as part of the proposed
River Valley 2022 exploration program. The drilling will strive toconfirm the presence of the higher-grade Pd mineralization, test itscontinuity along strike and down-dip, and determine the location ofthe boundary fault.
Figure 1. Drillhole KP21-05 collar location at Dana South Zone of the River ValleyPalladium Deposit near Sudbury, Ontario.
Notes:
1 The mineralized interval is based on alower cut-off grade of 0.2 g/t 3E and a minimal width of 3 m,including
up to 2.5 m of dilution.
2 Interval widths are apparent, not true.
3 NSR formula given in NAM press releasedated October 5, 2021.
Figure 2. Planview of the Dana South Zone 3-D wireframed domain (red translucent)showing historical drilling and the KP21-05 location. The KP21-05mineralized intersection protrudes east-southeast beyond thewireframed palladium mineralized domain, indicating expansionpotential with additional drilling. Trench = historical Dana SouthTrench, SET = Southeast Trench area in the footwall to Dana South (seeNAM press release dated March 9, 2022).
Assay Procedures & QA/QC
Drill hole KP21-05 was completed under the supervisionof KP personnel and NAM geologists.
The drill 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 reference (standard) samples were submitted at regularintervals for assay with the drill core samples as part of NAM’srigorous Quality Assurance/Quality Control program.
About Dana South Zone
The Dana South Zone appears to be a fault offset fromthe larger Dana North Zone. The Dana South Zone measures 250 metresalong strike and 50 metres wide, and has been traced in drilling toapproximately 500 metres below surface, the deepest drilling completedat River Valley.
Dana South remains open to expansion by drilling at depth, possibly tothe east and now to the south-southeast . Basedon a CDN$15/t NSR cut-off, the 2021 updated pit-constrained MineralResource Estimate of Dana South is 15.374 Mt grading 0.97 g/t 3E and0.06% Cu, or CDN$57.95/t NSR in Measured and Indicated MineralResources, and 1.17 Mt grading 0.61 g/t 3E and 0.06% Cu, orCDN$37.02/t NSR in Inferred Mineral Resources (see NAM press releasedated October 5, 2021).
Pre-Feasibility Study Update
A Pre-Feasibility Study of the River Valley PalladiumProject was announced in the NAM press release dated April 12, 2021,and a progress update was announced in the NAM press release dated May4, 2022. At this point, SGS has advised thatindicative metallurgical recoveries for the Dana and Lismer Zonesshould be available by the end of Q2 2022. Mineralogical sulphide andplatinum metal studies of the Lismer Zones alsocommenced in February. In addition, Rh assaying of MinMet sample drillcore commenced in February at GeoLabs (see NAM press release datedMarch 22, 2022). This work, in conjunction with metal recoverytestwork at SGS, will culminate, for the first time, in robust rhodiumrecovery determinations for River Valley. Furthermore, physical andchemical studies of the tailings produced during the SGS metallurgicaltestwork will be released by the end of July. These studies will becompleted at SGS under the direction of KP.
Site geotechnical investigation work by Knight-PiésoldLtd. (“KP”) was completed in March, which included bedrock andsurficial drilling and pit excavations. Two of the five geomechanicaldrill holes (KP21-05 at Dana South and KP21-02 at Lismer Ridge) werelogged and sampled by NAM geologists as exploration drill holes. Rock mass quality and structural domains have been determined by KP,based on logging of oriented drill core, downhole televiewer surveyresults, laboratory testing, and historical structural geology mappingand modelling studies. Open pit slope recommendations were issued inApril for review and comment. A geotechnical site investigationsummary report was delivered in early June for review and comment anddesign work has now commenced on site water management structures.Design work on the tailing storage facilities will follow.
Story Environmental Inc. (“Story”) continuedbaseline environmental studies of the River Valley Property andbuilding effective relationships with local First Nations communities,for future permit applications. The ongoing environmental studiesconsisted of aquatics, surface water, groundwater and hydrology fieldwork on the Property in the late-fall of 2021 and winter-spring of2022. The fall surface water field work involved Temagami First Nationpersonnel. In addition, a desktop atmospheric assessment was completedin January 2022. AnExploration Memorandum of Understanding (“MOU”) was signed withNipissing First Nation in late-January 2022
(see NAM press release dated January 26, 2022). This MOU is in addition to the MOU signed previously withTemagami First Nation in 2014 and amended in 2017. Story assisted withset-up and led a community meeting with Temagami First Nation inDecember 2021, during which a River Valley Palladium Project updatewas presented.
The River Valley 2021 Updated Mineral ResourceTechnical Report by P&E Mining Consultants Inc (“P&E”) wasfiled on SEDAR in November 2021 (see NAM press release dated November19, 2021).
At cut-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; and94.0 Mt 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. The pit constrainedMeasured & Indicated Mineral Resources total of 89 Mt grading 0.79g/t Pd+Pt+Au
(2.3 Moz) reported significantly exceeds the potentially economicportion Mineral Resources total of 78 Mt grading 0.79 g/t Pd+Pt+Au(2.0 Moz) reported in the 2019 Preliminary Economic Assessment(“PEA”) of River Valley, and will underpin the ongoingPre-Feasibility Study.
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 indicativemetallurgical recoveries to P&E by the end of June 2022 for NSRmodelling, Mineral Reserve estimation and production scheduling work.After delays due to the Covid-19 pandemic,difficulties in finding and retaining experienced labour, a majorshortage of suitable drill rigs and experienced drillers, andbacklogged assay laboratories, t hePre-Feasibility Study is currently slated for completion in Q42022.
Stock Options
The Company also announces that it has granted 450,000incentive stock options to officers and consultants of the Company atan exercise price of $0.10 per share for a period of five (5) yearsfrom the date of grant in accordance with the Company’s Stock OptionPlan. The Stock Options granted will be subject to vestingrestrictions, acceptance by the TSX Venture Exchange and will besubject to regulatory hold periods in accordance with applicableCanadian Securities Laws.
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 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 2019 PEA results for the River Valley PalladiumProject were announced in a press release dated June 27, 2019, and arebased on the updated 2019 Mineral Resource Estimate for RiverValley.
The 2019 PEA outlines a 20,000 t/day open pit mine and processingplant operation producing an average of 119,000 ounces of PdEq peryear over a mine life of 14 years. Using base case metal prices ofUS$1,200/oz Pd, $1,050/oz Pt and $3.25/lb Cu, the PEA showed anafter-tax NPV5% of
US$138 million and after-tax IRR of 10%. At a +20% palladium price of$1,440/oz Pd, the after-tax NPV5% increases to $299M and the pre-taxIRR to 15%. The current price of Pd is approximately ,000/oz(Kitco).
The 2021 updated Mineral ResourceEstimate by P&E (summarized above) will form a basis for theongoing Pre-Feasibility Study of the River Valley PalladiumProject.
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 hastwo divisions; a Platinum Group Metals division and a Lithium/RareElement division.
The PGM Division includes the 100% owned,multi-million-ounce, district scale River Valley Project, one of NorthAmerica’s largest undeveloped 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. Inaddition to River Valley, the Company owns 100% of the GenesisPGM-Cu-Ni Project in Alaska, and has plans to complete a surfacemapping and sampling program in 2022.
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 andin October a maiden drill program on the Company’s Lithium TwoProject was initiated. OnSeptember 28, 2021, the Company announced a partnership with MineralResource Limited (MRL, ASX: MIN), the world’s fifth largest lithiumproducer to explore and develop the Company’s lithium projectportfolio. Exploration plans and a budget were announced in NAM pressreleases dated May 26, 2022 and June 1, 2022. Management believesthat 2022 will see the most aggressive exploration on the lithiumprojects 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 anoption/ joint venture partner for its road-accessible GenesisPGM-Cu-Ni project in Alaska.
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 phone 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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