November 10, 2021 Rockport, Ontario – New Age Metals Inc. (TSX.V: NAM; OTCQB: NMTLF; FSE: P7J.F) (“NAM” or “Company”) is pleased to deliver an update on the Pre-Feasibility Study and exploration activities at the River Valley Palladium Project near Sudbury, Ontario.
Since the previous update was announced in a Company press release dated August 17, the Mineral Resource Estimate of River Valley has been updated and progress has been made advancing the mineral processing and metallurgical, geomechanical and geotechnical, and environmental and community relations work components of the Pre-Feasibility Study. Concurrently, NAM completed an initial phase of drilling at the Banshee Zone and excavated a new exploration trench near the Dana South Zone (Figure 1), to further explore the palladium potential in this area.
Pre-Feasibility Study
Updated Mineral Resource Estimate
The updated Mineral Resource Estimate by P&E Mining Consultants Inc (Brampton) (“P&E) was announced in a Company press release dated October 5, 2021 and will underpin the ongoing Pre-Feasibility Study. At cut-offs of CDN$15/t NSR (pit constrained) and CDN$50/t NSR (out-of-pit), the Mineral Resource Estimate consists of: 89.6 Mt grading 0.54 g/t Pd, 0.21 g/t Pt, 0.04 g/t Au and 0.06% Cu, or CDN$47.58 NSR/t in the Measured and Indicated classifications; and 94.3 Mt grading 0.35 g/t Pd, 0.16 g/t Pt, 0.03 g/t Au and 0.06% Cu, or CDN$31.69 NSR/t in the Inferred classification. Contained metal contents are 2.3 Moz Pd+Pt+Au in the Measured and Indicated classifications and 1.6 Moz Pd+Pt+Au in the Inferred classification.
The updated 2021 Mineral Resource Estimate is based on all historical and 2020 diamond drilling, revised mineralized domain modelling, inverse distance grade interpretation methodology, and higher overall metal prices, particularly for palladium. At the CDN$15/t NSR cut-off, the pit constrained Measured & Indicated Mineral Resources total of 89 Mt grading 0.79 g/t Pd+Pt+Au (2.3 Moz) reported herein significantly exceeds the potentially mineable 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.
Overall, the Pre-Feasibility Study as led by P&E will consider optimized mine production and mineral processing rates, based on this potentially more valuable Updated Mineral Resource Estimate than that which underpinned the 2019 PEA.
Mineral Processing and Metallurgical Sampling Drill Program
Four additional mineral processing and metallurgical sampling holes totalling approximately 802 m, have been drilled in 2021; one each on the Dana North, Dana South, Lismer North and Lismer Ridge Zones (Figure 2). Each of the holes was drilled downwards to intersect as much mineralization as possible for mineral processing and metallurgical testwork by SGS Canada Inc. (Lakefield). HQ-size core was retrieved, logged and sampled metre-by-metre by NAM. Eight-hundred 1-m long ½ core samples plus blind QC samples were delivered to SGS for processing, assaying and variability testwork.
At this date, SGS have advised that all of the assay results should be available in the next few weeks. The samples will then be composited for grade (low, average, high), mineralized zone and rock type variability testing, in order to optimize metal recoveries. This work will build on previous studies by SGS in 2012 and include, for the first time, systematic rhodium recovery determinations. The testwork program at SGS is being managed on behalf of NAM by D.E.N.M Engineering Ltd. (Burlington).
Geomechanical Drill Program
The Geomechanical drill program consisted of work on up to 10 drill holes (Figure 3). Five of six planned holes totalling 1,412 m were drilled between August and October to provide fresh, oriented HQ3-size core material for rock property and structural geology studies by Knight Piésold Ltd (“KP”). (North Bay). Two of the holes was drilled at Dana North Zone, one hole at Dana South Zone, one hole at Lismer North Zone, and one hole at Lismer Ridge Zone, as planned by Knight Piésold and drilled by Jacob & Samuel Drilling Ltd. (Sudbury). In addition, six historical holes at the Dana North, Lismer North and Lismer Ridge Zones were surveyed by a televiewer instrument for rock type and structural geology information. The televiewer surveying program was completed in October 2021. Next steps involve processing and interpreting the data, and returning to the site for geochemical sampling.
The holes labelled DN or LR are the historical holes selected for televiewer surveys. Partial surveys were completed in LR-72 and LR-117 and alternative holes were selected to collect additional data at depth. LR-150 was inaccessible at the time of survey and an alternative hole was surveyed instead. Note that holes KP21-01 and KP21-05 will be logged and sampled as exploration drill holes.
In addition to the geomechanical studies, the holes drilled at the Lismer Ridge (KP21-01) and Dana South (KP21-05) Zones will also be logged, sampled and assayed as exploration holes. Core samples will be sent to SGS Laboratories (Sudbury) for assaying and the results released when available.
Geotechnical Program
As part of the ongoing Pre-Feasibility Study, the Knight-Piésold geotechnical component of this Pre-Feasibility Study includes excavations and drilling of overburden in the areas of the open pit mines, process plant, waste dumps and tailings facilities, largely as outlined in the 2019 PEA (Figure 4). At this current date, the excavation test pits have largely been completed and the surficial drilling program is now in progress. In addition, geochemical and physical studies of tailings materials produced during metallurgical testwork will be completed at SGS under the direction of Knight- Piésold, as part of this Pre-Feasibility Study.
The plan consists of test pits to be excavated during the fall 2021 program and holes to be drilled during the fall 2021 and winter 2022 programs.
Environmental Baseline Studies and Community Relations Engagement
Story Environmental continued baseline environmental studies of the Property and worked towards establishing meaningful relationships with Indigenous Communities.
A Stage 2 Archeological Assessment was completed by Horizon Archaeology Inc., and the draft report was shared with Indigenous Communities in September 2021. This assessment work was completed within the proposed area of development, in order to identify any areas of archaeological significance. Based upon the information gathered, it was determined that the shoreline areas around southwestern Pine Lake and Platadium Pond, both near the Dana South Zone, should be considered cleared of further archaeological concerns.
Aquatics, surface water and hydrology baseline studies have continued on the Property. The field studies included: 1) water quality sampling at nine surface water sampling sites; 2) water flow measurement and water level recording on the outlet of Pine Lake; and 3) spawning habitat assessment in Pine Lake. Fish community assessments were completed in Platadium Pond, Pine Lake, Unnamed Lake 2, Banshee Lake, Unnamed Stream 2, Unnamed Stream 4, and Unnamed Stream 8 (Figure 5). The surface water sampling, hydrology, and the archaeological assessment field work involved Indigenous Community members. In addition, atmospheric data is being consolidated for the area and a report is being prepared, and the installation of groundwater monitoring wells is currently underway, as part of the geotechnical program being undertaken by Knight Piésold. Story Environmental will commence a groundwater monitoring program when the installation of these monitoring wells is complete.
Ongoing Palladium Exploration (Banshee and Dana South Zones)
During the Pre-Feasibility Study, palladium exploration continued on the River Valley Property, specifically at the Banshee and Dana South Zones. The Banshee Zone is located between the key Dana Zones to the North and the Lismer Zones to the northeast and east (Figure 6), which collectively are the focus of the ongoing Pre-Feasibility Study. Due to its central location, Banshee could therefore be of strategic importance to any potential future mining-processing operation at the Project.
The Banshee Zone was drilled between 2002 and 2004 and is currently defined in 22 diamond drill holes totalling 4,274 m. The Zone currently measures 700 m long and up to 100 m wide, is drilled to an average depth of 134 m vertically below surface (maximum depth = 261 m), strikes NNE, and dips vertically to steeply to the east (i.e., overturned). At a CDN$15 NSR/t cut-off, the current (2021) Mineral Resource Estimate of the Banshee Zone is 2.44 Mt grading 0.29 g/t Pd, 0.17 g/t Pt, 0.03 g/t Au, 0.06% Cu, 0.01% Ni, or CDN$30.11 NSR/t for 39 koz of 3E in the Indicated classification and 3.51 Mt grading 0.29 g/t Pd, 0.16 g/t Pt, 0.06% Cu, 0.01% Ni or CDN$29.28 NSR/t for 54 koz of 3E in the Inferred classification (see Company press release dated October 5, 2021). The Banshee Zone remains open to expansion by drilling, particularly at depth.
The 2021 exploration plan for the Banshee Zone consists of 13 holes totalling 4,175 m (Figure 6), designed primarily to extend the palladium mineralization down-dip. The exploration drilling commenced at the south end of Banshee in late July. To date, four of the drill holes totalling 1,277 m have been completed on two cross sections and contact-type Cu-Fe sulphide mineralization was encountered that is typical of the River Valley Palladium Deposit. Core sample assays are pending from the laboratory in Sudbury and will be released when available. In the meantime, the drilling at Banshee has been temporarily suspended for the remainder of 2021, in order to focus resources on advancing the Pre-Feasibility Study.
At Dana South Zone, a trench was excavated in July 2021 on mineralized outcrops between the east boundary of the Dana South mineralized domain and the west shoreline of Pine Lake
(Figure 7). Previously, samples from scattered mineralized outcrops in this area returned assay values as high as 8.29 g/t Pd+Pt+Au and 0.24% Cu. The excavation of the trench was successful in exposing mineralized River Valley Intrusion rocks. The mineralization has been systematically sampled along saw-cut channels and the samples submitted to an assay laboratory in Sudbury. Assay results will be released when available.
About NAM
New Age Metals is a junior mineral exploration and development company focused on the discovery, exploration and development of green metal projects in North America. The Company has two divisions; a Platinum Group 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 largest undeveloped Platinum Group Metals Projects, situated
100 km from Sudbury, Ontario. The Company completed a positive Preliminary Economic Assessment on the Project in 2019 and, is fully financed to complete a Pre-Feasibility Study in 2022. In addition to River Valley, the Company owns 100% of the Genesis PGM-Cu-Ni Project in Alaska, and plans to complete a surface mapping and sampling program there in 2022.
The Lithium Division is one of the largest mineral claim holders in the Winnipeg River Pegmatite Field, where the Company is exploring for hard rock lithium and various rare elements such as tantalum and rubidium. Exploration in 2021 has included drone geophysics on at least five of the Company’s seven projects and a maiden drill program on the Company’s Lithium Two Project. On September 28, the Company announced a partnership with Mineral Resource Limited (MRL, ASX: MIN), the world’s fifth largest lithium producer to explore and develop the Company’s lithium project portfolio.
Our philosophy is to be a project generator with the objective of optioning our projects with major and junior mining companies through to production. The Company is actively seeking an option/ joint venture partner for its road-accessible Genesis PGM-Cu-Ni project in Alaska.
Investors are invited to visit the New Age Metals website at www.newagemetals.com where they can review the company and its corporate activities. Any questions or comments can 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.
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Qualified Persons
The contents contained herein that relate to Exploration Results and Mineral Resources for the River Valley Project is based on information compiled, reviewed or prepared by Dr. Bill Stone, P.Geo., a consulting geoscientist for New Age Metals. Dr. Stone 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 Barr”
Harry G. Barr
Chairman and CEO
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.