(TheNewswire)
March 9, 2022 – TheNewswire- Rockport, Ontario - New Age Metals Inc.(TSXV:NAM ) ; ( OTC:NMTLF ) ; ( FSE:P7J.F) (“NAM” or “Company”) is pleased to reportnew palladium (Pd) assay results for channel samples taken from atrench excavated on an area of mineralized outcrops in the footwall tothe Dana South Zone, at the River Valley Palladium Deposit nearSudbury, Ontario. This Pdmineralization could represent an opportunity to expand Dana Southeastwards, or is a new discovery in the footwall to the River ValleyPalladium Deposit. The Dana South Zone islocated in the northern area of the Deposit, and is therefore a keyzone in the ongoing Pre-Feasibility Study of the River ValleyProject.
Highlights
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Channel sample assay grades of up to6.11 g/t Pd, 1.86 g/t Pt and 0.26% Cu
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Mineralized channel intercepts of upto 2.36 g/t Pd, 0.70 g/t Pt and 0.13% Cu over
5 metres -
Channels saw-cut in newly excavatedtrench located 100 metres east of the Dana South MineralResources
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This footwall Pd mineralizationappears open to expansion by drilling
Harry Barr, Chairman and CEO of NAM stated, “The Pdmineralized potential of the footwall to the River Valley Depositcontinues to impress. From discovery of the Pine Zone in 2015 (1 kmnorth of the Dana South Zone) to indications of mineralized footwallat Lismer North (press release dated March 1, 2022) and now at DanaSouth, the potential for exciting new discoveries at River Valleyremains surprisingly high. As Russia is the worlds largest producer ofpalladium, the current sanctions have driven the palladium price tonew all-time highs this week. Rhodium, another metal for which we areexploring at River Valley, is also trading at very highprices.”
2021 Trenching and Channel SamplingProgram
In 2016 and 2020, sparsely sulphide mineralized grab samples fromoutcrops located east of the Dana South Mineral Resources returnedassays of up to 8.29 g/t Pd+Pt+Au, 0.124 g/t Rh and 0.24% Cu (NAMpress release dated September 24, 2020). As these outcrops are located 50 to 100metres east of the Mineral Resources, the mineralization here suggeststhat the Dana South Zone extends farther east than currently defined,or that it constitutes a new discovery .
In 2021, a trench was excavated on the mineralizedoutcrops to investigate the continuity of this mineralization,particularly westward towards the Dana South Zone (Figure 1).Subsequently, four channels totalling 95 metres in length were cut andcontiguously sampled in 1 metre intervals
(Table 1). The samples were submitted to SGS Canada Inc. for assay andthe results are now available
(Table 2), and summarized below.
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Channel 1: Thischannel is mineralized along its entire 14 m length. Assays for the
14 samples returned 1.55 g/t 3E (Pd+Pt+Au) and 0.069% Cu or $84.57/tNSR over
14 m , including 3.14 g/t 3E and 0.127% Cu or$174.57/t NSR over 5 m; -
Channel 2: Assays for 28 samples returned 0.89 g/t 3E and 0.079% Cu or $52.96/tNSR over 3 m and 0.99 g/t and 0.057% Cu or $54.42/t NSR over 8m;
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Channel 3: Assays for 30 samples returned 1.01 g/t 3E and 0.251% Cu or $55.79/tNSR over 20 m, including 1.66g/t 3E and 0.130% Cu or $95.67/t NSR over 9 m ;and
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Channel 4: assays for 23 samples returned 2.18 g/t 3E and 0.205% Cu or $129.05/tNSR over 3 m and 0.73 g/t 3E and 0.038% Cu or $39.93/t NSR over 3 m.
The Pd mineralization in the Southeast Trench arearemains open to the north, south and west towards Dana South. Additional trenching andchannel sampling and new drilling programs to further test continuityof this mineralization are being planned for 2022.
Figure 1. Location of the four sampled channels (C1 to C4) in DanaSouth-Southeast Trench, 50 m to 100 m east of the Dana South MineralResource. Note that the palladium mineralization in the SoutheastTrench area is open to the north, west and possibly to the south.Details of the Dana South Mineral Resource Estimate, including the NSRformula,
are available on the Company website ( www.newagemetals.com ) and under the Company profile on SEDAR.
*Coordinates NAD83 Zone 17N
Notes:
*Interval widths are apparent, nottrue. Extents and orientation of the Pd mineralization remains to bedetermined.
** NSR formula given in NAM press releasedated October 5, 2021.
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.
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 m alongstrike and 50 m wide and has been traced in drilling to 500 m belowsurface . It remains open toexpansion by drilling at depth, to the south, and now possibly to theeast . Based on a $15/t NSR cut-off, the 2021updated pit-constrained Mineral Resource Estimate of Dana South is15.374 Mt grading 0.97 g/t 3E and 0.06% Cu, or $57.95/t NSR inMeasured and Indicated Mineral Resources, and 1.17 Mt grading 0.61 g/t3E and 0.06% Cu, or $37.02/t NSR in Inferred Mineral Resources(see NAM press release dated October 5, 2021).
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. Recipes for Dana Zone gradevariability composites were finalized and delivered by DENM to SGSLakefield in February 2022. The geomechanical and hydrogeological siteinvestigation studies by Knight Piésold Ltd. are largely completed,whereas the geotechnical site investigation studies continue. StoryEnvironmental continue baseline environmental studies of the RiverValley Property and establishing meaningful relationships with localIndigenous Communities. In a press release dated January 26, 2022, NAMannounced that a Memorandum of Understanding(“MOU”) had been signed with Nipissing First Nation. This MOU isin addition to that signed with Temagami First Nation in 2014 andrenewed in 2017.
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.
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%. Note that as of March 7, 2022, thepalladium price hit a new all-time high of 3,499/oz(Kitco).
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 September 28 th ,2021, the Company announced a partnership with Mineral Resource Limited (MRL, ASX:MIN), the world’s fifth largest lithium producer to explore anddevelop the Company’s lithium project portfolio. NAM is currentlyfinalizing the 2022 exploration budget and management believes that2022 will include the most aggressive exploration on the projects todate.
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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