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New Age Metals Inc
Symbol NAM
Shares Issued 197,110,752
Close 2021-10-05 C$ 0.11
Market Cap C$ 21,682,183
Recent Sedar Documents

New Age files NI 43-101 estimate for River Valley

2021-10-05 12:04 ET - News Release

Mr. Harry Barr reports

NEW AGE METALS ANNOUNCES UPDATED MINERAL RESOURCE ESTIMATE OF THE RIVER VALLEY PALLADIUM PROJECT: 2.3 MILLION M&I AND 1.6 MILLION INFERRED PD+PT+AU OUNCES

New Age Metals Inc. has released an independent National Instrument 43-101 updated mineral resource estimate for its 100-per-cent-owned River Valley palladium project near Sudbury, Ont.

Harry Barr, chairman and chief executive officer of New Age Metals, said: "We are very pleased to substantially improve on the previous mineral resource estimates completed for the River Valley palladium project. At a $15-per-tonne NSR [net smelter retuurn] cut-off, Pd [palladium] plus Pt [platinum] plus Au [gold] grades and total measured and indicated mineral resources increased compared to the previous updated 2019 mineral resource estimate.

"The presence of higher-grade mineralization for many kilometres of strike length at River Valley at a wide range of cut-offs, within 100 km [kilometres] of the Sudbury mining and processing hub, bodes well for the ongoing prefeasibility study.

"In order to better highlight the potential for economic mining at River Valley, we graduated from a palladium metal grade equivalency used in the 2019 preliminary economic assessment to an NSR-based model in the 2021 updated mineral resource estimate. An advantage of this change is that NSR less the cut-off NSR better showcases the potential positive economics of the River Valley project.

"The predominant contribution of palladium to the NSR clearly demonstrates that River Valley is a true PGM [platinum group metal] deposit, which is very rare outside of Southern Africa.

"In addition, ongoing and future exploration programs will target zones for converting inferred to indicated mineral resources and new zones nearby with potential to expand the mineral resources."

Highlights of the updated 2021 mineral resource estimate are as follows:

  • At a cut-off of $15-per-tonne NSR, pit-constrained measured and indicated mineral resources contain 2.25 million ounces (Moz) of Pd plus Pt plus Au within 89.0 million tonnes (Mt) grading 0.79 gram per tonne (g/t) Pd plus Pt plus Au, or at $47.6-per-tonne NSR, and inferred mineral resources of 1.59 Moz Pd plus Pt plus Au within 92.7 Mt grading 0.53 g/t Pd plus Pt plus Au, or at $31.1-per-tonne NSR.
  • At a cut-off of $25-per-tonne NSR, pit-constrained measured and indicated mineral resources contain 1.96 Moz Pd plus Pt plus Au within 60.1 Mt grading 1.02 g/t Pd plus Pt plus Au, or at $60.5-per-tonne NSR, and inferred mineral resources contain 1.12 Moz within 48.4 Mt grading 0.72 g/t Pd plus Pt plus Au, or at $41.5-per-tonne NSR.
  • Out-of-pit-constrained measured and indicated mineral resources contain 31,000 ounces Pd plus Pt plus Au within 642,000 tonnes grading 1.49 g/t Pd plus Pt plus Au, or at $88.5-per-tonne NSR, and inferred mineral resources contain 62,000 ounces within 1.6 Mt grading 1.21 g/t Pd plus Pt plus Au, or at $68.1-per-tonne NSR, at a cut-off of $50 NSR per t.
  • Recommendations include in-fill drilling to convert inferred to indicated mineral resources and exploration drilling downdip/downplunge of the mineralized zones to potentially expand the mineral resources along strike and at depth.

The updated 2021 mineral resource estimate for River Valley, with an effective date of Sept. 14, 2021, is summarized in an attached table.

At a cut-off of $25-per-tonne NSR, pit-constrained mineral resources are presented in an attached table. The measured and indicated mineral resource estimate relative metal contribution to the NSR is presented in an attached table. The predominant contribution of Pd plus Pt (88.4 per cent) is particularly noteworthy, given the rarity of such true PGM deposits in secure and established mining jurisdictions globally.

The updated 2021 mineral resource estimate was prepared by P&E Mining Consultants Inc. (Brampton, Ont.) using the drill hole database provided by New Age. The drill hole database consisted of 723 diamond drill holes totalling 156,421 metres (m), which were drilled in many exploration campaigns completed between 2000 and 2020.

Comparison with previous mineral resource estimate

In 2019, an updated mineral resource estimate and a preliminary economic assessment of the River Valley palladium project were released. The updated 2019 mineral resource estimate was completed by WSP Canada Inc. with an effective date of Jan. 9, 2019. The mineral resource estimate with pit-constrained and out-of-pit cut-offs of 0.35 g/t palladium equivalent (PdEq) and two g/t PdEq, respectively, is presented in an attached table.

The updated 2021 mineral resource estimate is based on all historical and 2020 diamond drilling, more conservative mineralized domain wireframing strategy and revised mineralized domain modelling, inverse distance grade interpretation methodology, and higher overall metal prices, particularly for palladium. As a result, measured and indicated mineral resources increased compared with the previous mineral resource estimate. At the $15-per-tonne NSR cut-off, the pit-constrained measured and indicated mineral resource total of 89 Mt grading 0.79 g/t Pd plus Pt plus Au (2.3 Moz) reported herein significantly exceeds the potentially minable resource total of 78 Mt grading 0.79 g/t Pd plus Pt plus Au (two Moz) reported in the 2019 preliminary economic assessment of River Valley.

Prefeasibility study update

A prefeasibility study of the River Valley palladium project was announced in a company press release dated April, 2021. At this point, fresh drill core samples from the Dana North, Dana South, Lismer North and Lismer Ridge zones are being processed, prepared and assayed for mineral processing and metallurgical test work at SGS Lakefield. The geomechanical drill programs are under way on the Lismer and Dana zones and the geotechnical site investigation program is to start imminently by Knight-Piesold. Environmental baseline sampling during seasonal low water conditions will be carried out by Story Environmental in Q4 2021.

Exploration update

Exploration in 2021 is focused on identifying opportunities for converting inferred to indicated mineral resources and for expanding the known mineral resources. An induced polarization geophysical survey and four drill holes totalling 1,300 m have been completed at Banshee zone. Mineralization was intersected and assays are pending from the laboratory. A new trench has been excavated and more mineralization exposed to the east adjacent to the known mineralization at Dana South zone. Mapping and sampling are under way and will be completed in Q4 2021.

About the River Valley palladium project

The River Valley palladium project is located 100 road kilometres east from 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.

A fully executed memorandum of understanding is in place with a local first nation. Environmental baseline studies recommenced in 2020.

The updated 2021 mineral resource estimate will form a basis for the continuing prefeasibility study of the River Valley palladium project.

About New Age Metals Inc.

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.

Qualified persons

Eugene Puritch, PEng, president of P&E Mining Consultants and an independent qualified person and competent person, has reviewed and approved the technical content of this news release.

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, PGeo, 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.

A technical report in support of this updated 2021 mineral resource estimate for the River Valley palladium project will be prepared in accordance to National Instrument 43-101 and filed on SEDAR within 45 days of this news release.

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