March 9, 2022 Rockport, Ontario – New Age Metals Inc. (TSX.V: NAM; OTCQB: NMTLF; FSE: P7J.F) (“NAM” or “Company”) is pleased to report new palladium (Pd) assay results for channel samples taken from a trench excavated on an area of mineralized outcrops in the footwall to the Dana South Zone, at the River Valley Palladium Deposit near Sudbury, Ontario. This Pd mineralization could represent an opportunity to expand Dana South eastwards, or is a new discovery in the footwall to the River Valley Palladium Deposit. The Dana South Zone is located in the northern area of the Deposit, and is therefore a key zone in the ongoing Pre-Feasibility Study of the River Valley Project.
- Channel sample assay grades of up to 6.11 g/t Pd, 1.86 g/t Pt and 0.26% Cu
- Mineralized channel intercepts of up to 2.36 g/t Pd, 0.70 g/t Pt and 0.13% Cu over
- Channels saw-cut in newly excavated trench located 100 metres east of the Dana South Mineral Resources
- This footwall Pd mineralization appears open to expansion by drilling
Harry Barr, Chairman and CEO of NAM stated, “The Pd mineralized potential of the footwall to the River Valley Deposit continues to impress. From discovery of the Pine Zone in 2015 (1 km north of the Dana South Zone) to indications of mineralized footwall at Lismer North (press release dated March 1, 2022) and now at Dana South, the potential for exciting new discoveries at River Valley remains surprisingly high. As Russia is the worlds largest producer of palladium, the current sanctions have driven the palladium price to new all-time highs this week. Rhodium, another metal for which we are exploring at River Valley, is also trading at very high prices.”
2021 Trenching and Channel Sampling Program
In 2016 and 2020, sparsely sulphide mineralized grab samples from outcrops located east of the Dana South Mineral Resources returned assays of up to 8.29 g/t Pd+Pt+Au, 0.124 g/t Rh and 0.24% Cu (NAM press release dated September 24, 2020). As these outcrops are located 50 to 100 metres east of the Mineral Resources, the mineralization here suggests that 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 mineralized outcrops 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 and contiguously sampled in 1 metre intervals
(Table 1). The samples were submitted to SGS Canada Inc. for assay and the results are now available
(Table 2), and summarized below.
- Channel 1: This channel 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/t NSR 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/t NSR over 3 m and 0.99 g/t and 0.057% Cu or $54.42/t NSR over 8 m;
- Channel 3: Assays for 30 samples returned 1.01 g/t 3E and 0.251% Cu or $55.79/t NSR over 20 m, including 1.66 g/t 3E and 0.130% Cu or $95.67/t NSR over 9 m; and
- Channel 4: assays for 23 samples returned 2.18 g/t 3E and 0.205% Cu or $129.05/t NSR 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 area remains open to the north, south and west towards Dana South. Additional trenching and channel sampling and new drilling programs to further test continuity of this mineralization are being planned for 2022.
Assay Procedures & QA/QC
The two Dana and two Lismer holes were drilled under the supervision of NAM geologists.
The core samples were sent to the SGS Canada Inc. Laboratory in Lakefield, Ontario, for initial sample preparation and assay analyses by SGS Laboratory in Burnaby, B.C. The preparation involved crushing of 3 kg of each sample to 90% passing 1.25 mm, and then pulverizing a representative 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 by two-acid digestion and ICP-OES finish (GE-ICP21B20). Blanks and blind certified standard samples were submitted at regular intervals for assay with the core samples as part of NAM’s rigorous Quality Assurance/Quality Control program.
About Dana South Zone
The Dana South Zone appears to be a fault offset from the larger Dana North Zone. The Dana South Zone measures 250 m along strike and 50 m wide and has been traced in drilling to 500 m below surface. It remains open to expansion by drilling at depth, to the south, and now possibly to the east. Based on a $15/t NSR cut-off, the 2021 updated pit-constrained Mineral Resource Estimate of Dana South is 15.374 Mt grading 0.97 g/t 3E and 0.06% Cu, or $57.95/t NSR in Measured and Indicated Mineral Resources, and 1.17 Mt grading 0.61 g/t 3E 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 Palladium Project 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 variability composites have been delivered by DENM Engineering to SGS Lakefield for blending and testwork studies, as described above. Recipes for Dana Zone grade variability composites will be finalized and delivered by DENM to SGS Lakefield by the end of February 2022. The geomechanical and hydrogeological site investigation studies by Knight Piésold Ltd. are largely completed, whereas the geotechnical site investigation studies continue. Story Environmental continue baseline environmental studies of the River Valley Property and establishing meaningful relationships with local Indigenous Communities. In a press release dated January 26, 2022, NAM announced that a Memorandum of Understanding (“MOU”) had been signed with Nipissing First Nation. This MOU is in addition to that signed with Temagami First Nation in 2014 and renewed in 2017.
About River Valley
The River Valley Palladium Project is located 100 road-km east from the City of Sudbury.
The Project area is linked to Sudbury by a network of all-weather highways, roads and rail beds and is accessible year-round with hydro grid and natural gas power nearby. River Valley enjoys the strong support of local communities, like the village of River Valley, 20 km to the south.
Fully executed Memorandum of Understandings are in place with local First 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 release dated October 5, 2021 (Figure 2). 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 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/t NSR in the Measured and Indicated classifications; and 94 Mt grading 0.35 g/t Pd, 0.16 g/t Pt, 0.04 g/t Au 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 and Indicated classifications and 1.6 Moz Pd+Pt+Au in the Inferred classification.
The 2019 PEA results for the River Valley Palladium Project were announced in a press release dated June 27, 2019, and are based on the updated 2019 Mineral Resource Estimate for River Valley. The 2019 PEA outlines a 20,000 t/day open pit mine and processing plant operation producing an average of 119,000 ounces of PdEq per year over a mine life 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$261 million and a pre-tax IRR of 13%. At a +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, the palladium price hit a new all-time high of $US 3,499/oz (Kitco).
The 2021 updated Mineral Resource Estimate will form a basis for the ongoing Pre-Feasibility Study of the River Valley Palladium Project.
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 by road east of 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 on the Project in 2022. In addition to River Valley, the Company owns 100% of the Genesis PGM-Cu-Ni Project in Alaska, and has plans to complete a surface mapping and sampling program 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. In 2021 drone geophysics were completed on at least five of the Company’s seven projects and in October a maiden drill program on the Company’s Lithium Two Project was initiated. On September 28th, 2021, 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 email@example.com or Harry Barr at Hbarr@newagemetals.comor Cody Hunt at Codyh@newagemetals.comor call 613 659 2773.
If you have not done so already, we encourage you to sign up on our website (www.newagemetals.com) to receive our updated news.
The contents contained herein that relate to the scientific and exploration results 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 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.