Clean Air Metals Identifies Potential Down Plunge Extent of Escape Intrusion and Provides a Company Update Clean Air Metals to Host a Live, Interactive Investor Webinar
Clean Air Metals Identifies Potential Down Plunge Extent
of Escape Intrusion and Provides a Company Update
Clean Air Metals to Host a Live, Interactive Investor Webinar
Thunder Bay, ON, August 29, 2023 – Clean Air Metals Inc. (“Clean Air Metals” or the “Company”)
(TSXV: AIR; FRA: CKU; OTCQB: CLRMF) is pleased to announce new magnetic inversion results
from the Company’s Thunder Bay North Critical Minerals Project near Thunder Bay, Ontario,
Canada (the “Project”).
The Thunder Bay North Critical Minerals Project hosts an indicated resource of 13.8Mt containing
1.2M ounces of 2PGE (Pt+Pd), 56,800 tonnes of Cu and 33,800 tonnes of Ni between the twin
magmatic intrusions (chonoliths) known as the Current and Escape deposits. The Escape deposit
contains 5.8Mt grading 2.6g/t 2PGE (Pt+Pd), 0.52% Cu and 0.22% Ni, as announced May 3rd, 2023.
The bulk of this mineralization is hosted in the high-grade zone (HGZ) occurring in the south-
eastern portion of the currently drill defined intrusion. Mineralization remains open to the
southeast.
A magnetic inversion case study was executed along the trend of the Escape chonolith and the
intersection of the Escape fault to the southeast, to model the potential down plunge extension
of the deposit. The study was successful in identifying a volume of material with high magnetic
susceptibility at depth, along the plunge of the Escape intrusion. The magnetic inversion model
has an estimated top of ~650m below surface with a vertical extent of ~800m and estimated width
of 500m and centred ~2000m ESE of the most eastern intersection of peridotite from the Escape
drill program (ELR20-034). The entirety of this plunge potential is currently untested.
A larger geophysical inversion program using existing datasets has recently been initiated. Joint
inversions of the magnetic, magnetotelluric (MT) and Z-TEM data will be completed for an area of
~80km2 which covers the Thunder Bay North Intrusive complex. The magnetic susceptibility and
conductivity products from these inversions will be utilized to target the intrusions and potential
mineralization hosted within at depth.
Geoff Heggie, VP Exploration commented: “The location and size of this magnetic anomaly is a
logical down plunge extension of the Escape intrusion and fits with the genesis theory of these
intrusions where mineral bearing magma was injected at high pressure from depth. The further
refinement of this anomaly by the recently commissioned geophysical inversion program will
establish the targets for the next phase of diamond drilling which is expected to commence early
in 2024”.
Methodology: Two magnetic inversion models were completed by EarthEX utilizing data from a
2010 ground survey and a 2008 airborne magnetic survey data. The 2008 airborne survey was
completed by UTS Geophysics, utilizing a fixed wing PAC-750XL plane with three Geometrics
G822A cesium vapour total field magnetometers in conjunction with a fluxgate three component
vector magnetometer. The survey was carried out on 40m spaced lines and a nominal sensor
height of 30m. Magnetic inversions were run on both data sets as unconstrained and generated
similar results (Fig. 1) which identified a volume of material with high magnetic susceptibility at
depth, along the plunge of the Escape intrusion.
Figure 1A: Plan view of the Escape chonolith (purple), the interpreted strike of the Escape fault
(teal) and magnetic inversion model of the 2008 airborne magnetic data (Blue). Magnetic
inversion model is filtered to shown blocks with highest magnetic susceptibility. Figure 1B: Long
section view of the Escape chonolith (purple) with the high magnetic susceptibility model down
plunge to the right (blue).
Permitting
The early exploration permitting process for the next phase of exploration drilling was submitted
in May 2023 and has received support from the three proximate First Nations communities upon
whose traditional territory the Thunder Bay North project lies and from the t wo potentially
affected Metis communities. The Ministry of Mines is currently consulting with one final
Indigenous group and the Company expects the permits to be issued later this fall.
Escape intrusion
Escape
Fault
Magnetic inversion area
A. Plan view
B. Long section view
Receipt of Final Metallurgical Test Report
On August 22nd the Company received the final report from Base Metallurgical labs for the
completed Phase Two metallurgical test program (see press release dated June 29, 2023). The test
program was completed using large diameter core samples from both the Current and Escape
deposits to produce 3 composites and 17 variability samples. The test program comprised a suite
of 80 open circuit development tests, 8 locked cycle flotation tests and follow-up variability tests.
Modelled recoveries are shown in Table 1 (below). These were generated using estimated head
grades and the recovery curves derived from the Phase Two test program.
Table 1: Modelled recoveries
Near Surface High Grade Zones (Early Years Mining)
Pt Pd Cu Ni Au Ag
% Recovery 80.6% 86.2% 95.9% 57.0% 85.0% 65.2%
Head Grade 1.58 g/t 1.61 g/t 0.45 % 0.24 % 0.11 g/t 2.77 g/t
Remaining Zones (Later Mining)
Pt Pd Cu Ni Au Ag
% Recovery 77.6% 85.0% 95.4% 55.5% 85.0% 65.2%
Head Grade 1.18 g/t 1.30 g/t 0.41 % 0.23 % 0.10 g/t 2.52 g/t
Optimal results were achieved with bulk flotation, followed by a copper-nickel separation process
which resulted in a simple flowsheet and improved overall recovery of metals in two concentrates.
The modelled concentrate grade outlined the potential for a clean copper concentrate grading
22% Cu, 38 g/t Pt+Pd and a PGE Ni-rich concentrate grading 50 g/t Pt+Pd and 3.75% Ni. In addition,
the results of three multi-element scans of the concentrates did not identify problematic
abundances of deleterious elements. A preliminary assessment of concentrate marketability was
completed and identified that the projected concentrates produced, were marketable with
interest and indicative terms received from several domestic and overseas smelters.
Market Commentary
With four critical metals as potentially payable in its concentrate, the Company is well positioned
to take advantage of the pending metals price super cycle predicted by many analysts to supply
the green energy revolution. Climate related events over the last few years have awoken the
world to the effects of climate change and the need to transition away from fossil fuels as quickly
as possible. Almost every major government is injecting significant financial incentives into the
green energy transition. Were it not for a generally slower global economy, most significantly
China’s slowing economy, we would perhaps already be entering a metals price super cycle.
Of particular importance to Clean Air Metals, but not fully recognized yet by the markets, is the
important role that platinum will play in the green hydrogen economy. Hydrogen is expected to
be the fuel that replaces carbon-based energy in planes, ships, trains, long distance trucking and
the remainder of the heavy transportation industry. In addition, steel manufacturing and other
heavy industry, currently reliant on fossil fuels will have to transition to hydrogen.
The production of green hydrogen through electrolysis utilizes platinum in the electrodes to
improve efficiency and resist corrosion. Likewise, hydrogen fuel cells use a platinum-based
membrane to generate electricity from hydrogen. The platinum market globally is very small with
only about 6 million ounces of primary production per year, almost 90% of which comes from
South Africa with its inherent supply risk.
Jim Gallagher, CEO of Clean Air Metals stated: “The Thunder Bay North project remains one of
the very few and very rare platinum projects outside of Africa. The project development timeline
of further exploration, permitting, technical studies and project construction potentially aligns
with the growth of the hydrogen economy and potential metals price appreciation. We continue
to prudently manage our cash resources and still advance the Project. Equity markets in general
are currently very difficult for most of the junior mining sector and the Company does not
currently intend to do any dilutive financing at these low valuations. We currently have
approximately $8 million in cash, sufficient to support currently planned activities well into 2024.
We do continue to investigate potential strategic partners who share the Company’s long-term
view on the platinum market and who potentially would partner with the Company moving
forward.“
Upcoming Events
- Webinar and Q&A session: September 6, 2023 at 4pm ET
- Beaver Creek Precious Metals Summit: September 12-15, 2023
Qualified Person
Dr. Geoff Heggie, Ph.D., P.Geo., a Qualified Person under National Instrument 43-101 and Vice
President, Exploration for the Company, has reviewed and approved all technical information in
this press release.
Indigenous Community Social and Economic Engagement
Clean Air Metals Inc. and its wholly owned subsidiary Panoramic PGMs (Canada) Ltd. acknowledge
that the Thunder Bay North Project is on the traditional territories of the Fort William First
Nation, Red Rock First Nation and Biinjitiwabik Zaaging Anishinabek. The parties together are the
Cooperating Participants in a Memorandum of Agreement dated January 9, 2021 (press release
January 11, 2021) and Exploration Agreement signed April 13, 2022 (press release April 14, 2022).
The Company appreciates the opportunity to work in these territories and remains committed to
the recognition and respect of those who have lived, traveled, and gathered on the lands since
time immemorial. Clean Air Metals is committed to stewarding Indigenous heritage and remains
committed to building, fostering and encouraging a respectful relationship with First Nations,
Métis and Inuit peoples based upon principles of mutual trust, respect, reciprocity and
collaboration in the spirit of reconciliation.
About Clean Air Metals Inc.
Clean Air Metals' flagship asset is the 100% owned, high grade Thunder Bay North Critical Minerals
Project, a platinum, palladium, copper, nickel project located near the City of Thunder Bay,
Ontario and the Lac des Iles Mine owned by Impala Platinum. The Thunder Bay North Critical
Minerals Project hosts the Current and Escape deposits, twin magma conduits which form the
basis for the new mineral resource estimate reported on May 4, 2023.
CEO Jim Gallagher and COO Mike Garbutt lead an experienced technical team who are using a
orthomagmatic mineral deposit model to guide ongoing exploration and development studies for
a potential mine development on the Project. As the former CEO of North American Palladium
Ltd. which owned the Lac des Iles Mine prior to the sale to Impala Platinum in December 2019, Jim
Gallagher and team are credited with the mine turnaround and creation of significant value for
shareholders.
ON BEHALF OF THE BOARD OF DIRECTORS
"Jim Gallagher"
Jim Gallagher, Chief Executive Officer of Clean Air Metals Inc.
For further information, please contact:
Jim Gallagher, Chief Executive Officer of Clean Air Metals Inc.
Phone: 705-690-7997
Email: [email protected]
Website: www.cleanairmetals.ca
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in
policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this
release.
Cautionary Note
The information contained herein contains "forward-looking statements" within the meaning of
applicable securities legislation, including statements regarding the potential of the Thunder Bay
North Project and the Escape and Current deposits and timing of technical studies includ ing
prefeasibility studies and updated mineral resource estimates. Forward-looking statements relate
to information that is based on assumptions of management, forecasts of future results, and
estimates of amounts not yet determinable. Any statements that express predictions,
expectations, beliefs, plans, projections, objectives, assumptions or future events or performance
are not statements of historical fact and may be "forward-looking statements." Forward-looking
statements are subject to a variety of risks and uncertainties which could cause actual events or
results to differ from those reflected in the f orward-looking statements, including, without
limitation: political and regulatory risks associated with mining and exploration; risks related to
the maintenance of stock exchange listings; risks related to environmental regulation and liability;
the potential for delays in exploration or development activities or the completion of feasibility
studies; the uncertainty of profitability; risks and uncertainties relating to the interpretation of
drill results, the geology, grade and continuity of mineral deposits; risks related to the inherent
uncertainty of production and cost estimates and the potential for unexpected costs and
expenses; results of prefeasibility and feasibility studies, and the possibility that future
exploration, development or mining resul ts will not be consistent with the Company's
expectations; risks related to commodity price fluctuations; and other risks and uncertainties
related to the Company's prospects, properties and business detailed elsewhere in the Company's
disclosure record. Should one or more of these risks and uncertainties materialize, or should
underlying assumptions prove incorrect, actual results may vary materially from those described
in forward-looking statements. Investors are cautioned against attributing undue certainty to
forward-looking statements. These forward-looking statements are made as of the date hereof
and the Company does not assume any obligation to update or revise them to reflect new events
or circumstances, except in accordance with applicable securities laws. Actual events or results
could differ materially from the Company's expectations or projection.