Chairman’s Message – Q3 2023
On behalf of the management and directors, I am pleased to update you on the key milestones completed to date in Q2/Q3-2023 and the goals and objectives for New Age Metals (NAM) for the balance of the year.
The Company aims to ensure that we are actively communicating with our shareholders and other stakeholders to the best of our abilities, and we want you to know that we are available to answer any questions or concerns. If you would like to receive an update, please contact us at our Rockport field office line (1-613-659-2773 or 1-800-667-1870). Alternatively, you can reach us via email at info@newagemetals.com or subscribe to our distribution by clicking the subscribe button at the top right corner of our website.
River Valley Project Overview
On June 29th, the company heralded the conclusion of a new Preliminary Economic Assessment (PEA) for the River Valley Palladium Project. The recently disclosed PEA results are encouraging, demonstrating a post-tax NPV(5%) of $134 M CAD, an IRR of 11%, and 16 years of palladium, platinum, and copper production. Compared to the 2019 PEA, the 2023 PEA envisages a leaner, high-grade operation with decreased CAPEX, enlarged underground mining, contracted open pit mining, and a significantly diminished environmental footprint. These positive outcomes are rooted in the 2021 Mineral Resource Estimate, crafted in line with the prevailing CIM standards and guidelines, to provide feed to an on-site 2.5 Mtpa process plant. The future plans entail targeting areas for drilling to transition Inferred to Indicated Mineral Resources, broadening current Mineral Resources, identifying new mineralized zones, and experimenting with novel technologies for superior metal recoveries, all with the goal of integrating them into subsequent, more sophisticated economic studies. On February 7th, the Company announced the assay results from its 2022 exploration drilling program on the River Valley Dana South Zone. Six diamond drill holes were completed totalling 1,328 m at Dana South Zone, located near the north end of the River Valley Deposit, and all intersected Pd mineralization, thereby expanding the known extents of Pd mineralization. We plan to fully model the drill hole results and expand the Dana South Zone through additional step-out drilling as part of NAM’s 2024 exploration program. Utilizing the recommendations from the completed PEA along with our technical teams’ recommendations on at least 3 areas in the Northern portion of the Project, a larger scale drill program has been recommended.
Genesis PGM, Battery Metals Project, Alaska
Figure 2: Location of the Genesis PGM-Cu-Ni Project, Nelchina Mining District, Alaska.
The Genesis PGM-Cu-Ni Project is an under explored, highly prospective drill ready property located 460 km south of Fairbanks, Alaska. The map figure below shows the location of the Genesis Project. The Company announced the 2021 exploration program on its 100% owned Genesis PGM-Copper-Nickel Project in Alaska on September 20. The program was completed in two phases. The objective of the program was to complete a surface rock, soil and stream sediment geochemical sampling and geological mapping program at the Bernard Mountain and Sheep Hill areas of the Genesis Project to identify additional future drill targets. The Genesis Project has never been drilled and represents an opportunity for a new discovery. The first phase of work involved the collection of rock grab samples and small soil sample pits were dug to assess soil profiles at target areas outlined from previous work. A subsequent phase of similar geochemical sampling and mapping was completed in late September. The stable land status, ease of access and superb infrastructure make this project prospective for year-round exploration, and development. The Company continues to solicit potential option/joint venture partner(s) to continue the exploration and development of its Genesis Project.
Lithium Division , Manitoba
Regional map of southeast Manitoba showing NAM’s 100% owned Lithium and Rare Element Projects.
On June 13th, we disclosed the second phase drill results from the Lithium Two Manitoba Project. The company is buoyed by the overall findings of the second drilling phase on the Lithium Two Property. We found high-grade lithium intercepts in six drill holes probing the extension of the Eagle Pegmatite, including samples that yielded up to 4.20% Li2O over a 0.5 m core length. Additionally, the company announced a $300,000 grant awarded by the Manitoba Mineral Development Fund. This financial aid from the MMDF will augment our $7 million 2023/24 budget sanctioned by our partner, Mineral Resources Limited (“MinRes”). Our Summer exploration venture continues and will encompass geophysical, geochemical, and archaeological surveys, instrumental in getting ready for 15,000 meters winter drill programs. We extend our heartfelt gratitude to the Manitoba Mineral Development Fund for the grant and are excited to utilize these funds judiciously. The Company has recently acquired 3 additional 100% owned Lithium Projects in Northern Manitoba and is currently soliciting 3rd parties for an option/JV arrangement to further develop these projects. On August 17th, 2023, the Company signed an Option/JV agreement with Australian junior Native Mineral Resources (NMR). A large scale geophysical program on the McLaughlin Lake Lithium Project will consists of an airborne triaxial magnetic survey and radiometrics that will be co-collected during the survey and will be completed by mid-October 2023.
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I would personally like to acknowledge our directors, management team and technical team for their ongoing hard work and dedication to our Company. On behalf of our board of directors, I would like to thank you, our shareholders and interested parties for your continued interest and support.
Sincerely,
Harry Barr
Chairman & CEO
NEW AGE METALS INC.
