Clean Air drills PGE’s, base metals at Thunder Bay North, Ontario
Clean Air Metals Inc. [AIR-TSXV; CLRMF-OTCQB] reported new assay results from the 2022 drill campaign from the Escape platinum group element/copper/nickel deposit at the 100%-owned Thunder Bay North project 50 km north of Thunder Bay, northwest Ontario.
New assay highlights from the Escape South deposit area includes Hole ELR22-137 which intersected 39.0 metres grading 1.17 g/t Platinum (Pt), 1.47 g/t Palladium (Pd), 0.49% Copper (Cu) and 0.27% Nickel (Ni) from 361.0-400.0 metres downhole.
Hole ELR22-139 intersected 16.0 metres grading 1.83 g/t Platinum, 2.38 g/t Palladium, 0.88% Copper and 0.51% Nickel from 383.0-399.0m downhole, including 6.0 metres grading 2.63 g/t Platinum, 3.48 g/t Palladium, 1.28% Copper and 0.75% Nickel from 385.0-391.0 metres downhole.
Hole ELR22-140 intersected 25.0 metres grading 2.01 g/t Platinum, 2.57 g/t Palladium, 0.94% Copper and 0.52% Nickel from 325.7-373.0 metres downhole.
The Escape Deposit also underwent an additional 37,000 metres of expansion drilling in 2021 and over 17,000 metres in 2022 which has confirmed continuity between the Escape South HGZ and the Escape North Zone and may add materially to the total Thunder Bay North Project Indicated in-situ mineral resource (effective November 1, 2021) of 8.12 g/t PtEq in 14,553,324 million tonnes.
Clean Air also reports that it has paid Panoramic Resources Limited [PAN-ASX] the second deferred consideration instalment payment of C$1.5 million from the sale of the Thunder Bay North PGM Project. The sale of the Thunder Bay North Project was completed via a Share Purchase Agreement in the 2020 financial year whereby Panoramic’s wholly-owned subsidiary, Magma Metals Pty Limited, sold all shares it held in Panoramic PGMs Canada Limited to Clean Air Metals Inc. for total consideration of C$9 million.
Inclusive of this latest instalment (C$1.5 million), Panoramic has received sale proceeds totaling C$7.5 million to date. The final deferred consideration payment of C$1.5 million is due to be received by May 13, 2023. A related transaction with Rio Tinto Exploration Canada for the purchase of the Escape Property for C$6 million has been paid in full. Both transactions fall under an Option-Purchase Agreement with Benton Resources Inc.
The company also advises that DRA AMERICAS INC (DRA) is the successful bid under a request for proposal (RFP) for Pre-feasibility Metallurgical Testing and Process Plant Design for the Thunder Bay North Project.
Clean Air has announced a comprehensive mine plan and cashflow model for both the Escape Deposit and Current Deposit as part of a PEA for the Current and Escape PGE-Cu-Ni Deposits of the Thunder Bay North Project on December 1, 2021.
Abraham Drost, CEO of Clean Air Metals, stated: “We are very pleased to have made the second to last C$1.5 million payment to Panoramic Resources of Australia. As Rio Tinto has already been fully paid, the last payment to Panoramic Resources will result in fully vesting the Option-Purchase Agreement with Benton Resources Inc. and owning the project 100%, subject to royalty considerations.
The appointment of DRA Americas for metallurgical and marketability optimization of feed material from both the Current and Escape deposits, marks the onset of prefeasibility studies at the Thunder Bay North Project.
The PEA of a ramp access underground mine and on-site 3,600 tpd milling complex and the 2-year trailing average price deck, features a pre-tax NPV5 of C$425 million and an IRR of 31% on initial capital of $378 million over a 10-year mine life.