May 23rd, 2018 Rockport, Canada – New Age Metals Inc. (TSX.V: NAM; OTCQB: NMTLF; FSE: P7J.F) is pleased to announce that the directors of the company have approved the request, from management, that NAM would like to complete a Preliminary Economic Assessment (PEA), on the 100% owned River Valley Platinum Group Metals (PGM) Project. Located approximately 100 km from the world famous Sudbury Metallurgical Complex, the River Valley Project is the largest undeveloped primary PGM resource in Canada. View our Corporate Video here.
The PEA will evaluate the Project at a high-level engineering and financial study. The mineralization will be interrogated with pit shell designs and mining schedule. The study would incorporate the latest information provided by the exploration programs as well as the metallurgical, geotechnical studies, and the new geophysics. The objective of the PEA would be a mine plan, mine schedule, a capital cost estimate, operating cost estimate incorporated into a financial model to provide total cash flow, net present value (NPV), and internal rate of return (IRR). NAM is currently conducting negotiations with several 3rd party engineering companies and will finalize its selection by the end of June 2018. NAM’s phase 1 program outlined in the NI-43-101: Diamond Drilling, Geological and Engineering Consulting, Metallurgical Studies, Geotechnical Studies, and a LiDAR survey. The approximate cost of the phase 1 program, including the PEA, will be $980,000, according to WSP Canada, the company who completed the May 2018 NI-43-101.
WSP, who completed the May 2018 NI-43-101, recommends that additional exploration expenditures are warranted to improve the viability of the Project and advance the Project towards a Preliminary Economic Assessment (PEA). It is recommended that NAM undertake a two-stage exploration program focused on delineation and expansion drill programs that will concentrate on the open pit potential along strike and down-dip of the known resources. Each program can be carried out concurrently and independently of each other; neither is contingent on the results of the other.
River Valley 2018 Exploration & Development Objectives
- Ground IP geophysics from T3 south to T9 completed and Alan King, NAM’s Sudbury based Senior Geophysical Consultant, will have his final recommendations (for Q2 2018)
- Utilize the new resource estimation, geophysical studies and reports to establish further drill targets (Q1-Q3 2018)
- Continue with drilling in the northern portion of the project (Q3-Q4 2018 & Q1 2019)
- Explore more target areas based on recommendations of the updated 43-101 and the 2018 geophysics (Q3-Q4 2018 & Q1-Q2 2019)
- Complete further baseline studies, geotechnical studies, a Lidar survey, and mineralogical and metallurgical studies (Q4 2018)
- Continue to advance the River Valley PGM Project towards a Preliminary Economic Assessment (PEA) on the River Valley PGM Deposit (slated for end of Q1 2019)
- The PEA will evaluate the Project at a high-level engineering and financial study. The mineralization will be interrogated with pit shell designs and mining schedule. The study would incorporate the latest information provided by the exploration programs as well as the metallurgical and geotechnical studies. The output of the PEA would be a mine plan, mine schedule, a capital cost estimate, operating cost estimate incorporated into a financial model to provide total cash flow, net present value (NPV), and internal rate of return (IRR).
- Our Corporate Mandate is to build a series of open pits (bulk mining) over the 16 kilometers of mineralization. We will mine, crush, and concentrate on site, then ship the concentrates to Sudbury. The objective of NAM before the March 2018 NI-43-101 was to increase the resource in the northern portion (Pine Zone/Dana North/Dana South/Lismer North) to over 1Moz of PGMs. The new NI-43-101 accomplished this.
ABOUT NAM’S PGM DIVISION
NAM’s flagship project is its 100% owned River Valley PGM Project (NAM Website – River Valley Project) in the Sudbury Mining District of Northern Ontario (100 km east of Sudbury, Ontario). Presently the River Valley Project is North America’s largest undeveloped primary PGM deposit with Measured + Indicated resources of 160 million tones @ 0.44 g/t Palladium, 0.17 g/t Platinum, 0.03 g/t Gold, with a total metal grade of 0.64 g/t at a cut-off grade of 0.4 g/t equating to 3,297,173 ounces PGM plus Gold and 4,626,250 PdEq Ounces (Table 1). This equates to 4,626,250 PdEq ounces M+I and 2,713,933 PdEq ounces in inferred (see May 8th, 2018 press release). Having completed a 2018 NI-43-101 resource update the company is finalizing its 2018 exploration programs which will include geophysics, and extensive drill programs, which are all working towards the completion of a Preliminary Economic Assessment (PEA). Our objective is to develop a series of open pits (bulk mining) over the 16 kilometers of mineralization, concentrate on site, and ship the concentrates to the long-established Sudbury Metallurgical Complex. Alaska: April 4th, 2018, NAM signed an agreement with one of Alaska’s top geological consulting companies. The companies stated objective is to acquire additional PGM and Rare Metal projects in Alaska. On April 18th, 2018, NAM announced the right to purchase 100% of the Genesis PGM Project, NAM’s first Alaskan PGM acquisition related to the April 4th agreement. The Genesis PGM Project is a road accessible, under explored, highly prospective, multi-prospect drill ready Pd-Pt-Ni-Cu property.
The results of the new resource estimation are tabulated in Table 1 below (0.4 PdEq cut-off).
|Pd (g/t)||Pt (g/t)||Rh (g/t)||Au (g/t)||Cu (%)||Ni (%)||Co (%)||PdEq (g/t)|
|Total Meas +Ind||160,732.7||0.44||0.17||0.02||0.03||0.05||0.01||0.002||0.90|
|Class||PGM + Au (oz)||PdEq (oz)||PtEq (oz)||AuEq (oz)|
|Total Meas +Ind||3,297,173||4,626,250||4,626,250||2,600,724|
- CIM definition standards were followed for the resource estimation.
- The 2018 resource models used Ordinary Krig grade estimation within a three-dimensional block model with mineralized zones defined by wireframed solids.
- A base cut-off grade of 0.4 % g/t PdEq was used for reporting resources.
- Palladium Equivalent (PdEq) calculated using (US$): $1,000/oz Pd, $1,000/oz Pt, $1,350/oz Au, $1750/oz Rh, $3.20/lb Cu, $5.50/lb Ni, $36/lb Co.
- Numbers may not add exactly due to rounding.
- Mineral Resources that are not mineral reserves do not have economic viability
- The quantity and grade of reported inferred resources in this estimation are uncertain in nature and there has been insufficient exploration to define these inferred resources as an indicated or measured mineral resource and it is uncertain if further exploration will result in upgrading them to an indicated or measured mineral resource category.
PRIVATE PLACEMENT EXTENSION
The Company also announces that it has received approval from the TSX Venture Exchange (the “Exchange”) for an extension to complete its current non-brokered private placement financing previously announced May 7, 2018 for proceeds of up to $1,200,000. For further details on the private placement please contact Paul Poggione, Corporate Development, 1-613-659-2773, PaulP@newagemetals.com.
ABOUT NAM’S LITHIUM DIVISION
The Company has seven separately funded pegmatite hosted Lithium Projects in the Winnipeg River Pegmatite Field, located in SE Manitoba, with focus on Lithium bearing pegmatites. Three of the projects are drill ready. This Pegmatite Field hosts the world class Tanco Pegmatite that has been mined for Tantalum, Cesium and Spodumene (one of the primary Lithium ore minerals) in varying capacities, since 1969. NAM’s Lithium Projects are strategically situated in this prolific Pegmatite Field. Presently, NAM is the largest mineral claim holders for Lithium in the Winnipeg River Pegmatite Field. On January 15th 2018, NAM announced an agreement with Azincourt Energy Corporation (see Jan 15, 2018, Feb 22nd, 2018 and April 11th, 2018 Press Releases) whereby Azincourt will commit up to $4.35 million dollars in exploration, up to 3.5 million shares of Azincourt stock to NAM, up to $210,000 in cash, and a 2% net smelter royalty on all 7 projects. Exploration plans for 2018 are currently in progress, whereby a minimum of $600,000 will be expended this year. For complete details on the terms and conditions of the NAM/AAZ option joint venture please see the press release dated Jan 15th, 2018.
The contents contained herein that relate to Exploration Results or Mineral Resources is based on information compiled, reviewed or prepared by Carey Galeschuk, a consulting geoscientist for New Age Metals. Mr. Galeschuk is the Qualified Person as defined by National Instrument 43-101 and has reviewed and approved the technical content of this news release.
On behalf of the Board of Directors
Harry G. Barr
Chairman and CEO
Should you have additional inquiries, please contact Paul Poggione, Corporate Development, Tel: 1-613-659-2773, email: PaulP@NewAgeMetals.com.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Cautionary Note Regarding Forward Looking Statements: This release contains forward-looking statements that involve risks and uncertainties. These statements may differ materially from actual future events or results and are based on current expectations or beliefs. For this purpose, statements of historical fact may be deemed to be forward-looking statements. In addition, forward-looking statements include statements in which the Company uses words such as “continue”, “efforts”, “expect”, “believe”, “anticipate”, “confident”, “intend”, “strategy”, “plan”, “will”, “estimate”, “project”, “goal”, “target”, “prospects”, “optimistic” or similar expressions. These statements by their nature involve risks and uncertainties, and actual results may differ materially depending on a variety of important factors, including, among others, the Company’s ability and continuation of efforts to timely and completely make available adequate current public information, additional or different regulatory and legal requirements and restrictions that may be imposed, and other factors as may be discussed in the documents filed by the Company on SEDAR (www.sedar.com), including the most recent reports that identify important risk factors that could cause actual results to differ from those contained in the forward-looking statements. The Company does not undertake any obligation to review or confirm analysts’ expectations or estimates or to release publicly any revisions to any forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. Investors should not place undue reliance on forward-looking statements.