Corporate Update – New Age Metals Inc.
New Age Metals TSX-V: NAM OTCQB: NMTLF
Field Office: 59 Burtch’s Lane, Rockport, ON, Canada, K0E 1V0 [email protected]
+1.613. 659.2773 www.newagemetals.com
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Corporate Update – New Age Metals Inc.
▪ The River Valley Project is the largest undeveloped primary Platinum Group Metal (PGM)
mineral resource in North America. The Project has excellent infrastructure and is within
100 kilometres of the Sudbury Metallurgical Complex. The Project is 100% owned by New
Age Metals.
▪ The Project’s first economic study a Preliminary Economic Assessment (PEA) is underway
and management plans to release the summary press release by the end of the second
quarter.
▪ The price of an ounce of Palladium represents a 35% price increase in the last 12 months.
As such, for 2019, precious metals consultancy , Metals Focus believes that professional
investors will eventually return to palladium, with an annual average price of US$1,490
per oz. in 2019. Rhodium, which is also present at River Valley, has seen a price increase
of over 15% this YTD at US$2,860 per oz.
▪ For Platinum, a turnaround in investor sentiment stimulated heavy buying of platinum
Exchange Traded Funds (ETF’s) in early 2019. Investors were motivated by supply
disruption risks and an improving outlook for auto demand.
▪ Drill permits for our Lithium Two and Lithium One Projects in Manitoba have been applied
for and the company is in the final approval process from the province of Manitoba.
▪ The Company is actively seeking a strategic partner for our Genesis PGM/Polymetallic
Project in Alaska
May 28th, 2019 Rockport, Canada – New Age Metals Inc. (TSX.V: NAM; OTCQB: NMTLF; FSE: P7J.F) Harry
Barr, Chairman & CEO, stated; “We are pleased to update our shareholders and interested parties
as to our ongoing activities in both our PGM and Lithium divisions. Specifically, give a progress
update on the River Valley Project Preliminary Economic Assessment (PEA). This update will detail
our e xploration and development plans for both the PGM and Lithium divisions in 2019 .
Furthermore, we will highlight the current PGM market and particularly Palladium and Platinum
price trends.”
New Age Metals TSX-V: NAM OTCQB: NMTLF
Field Office: 59 Burtch’s Lane, Rockport, ON, Canada, K0E 1V0 [email protected]
+1.613. 659.2773 www.newagemetals.com
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Update on the PEA
NAM commissioned both P&E Mining Consultants (P&E) and DRA Americas (DRA) to complete the River
Valley Project’s first economic study, a Preliminary Economic Assessment (PEA) in August 2018.
The company has been informed by its engineering consultants that th e preliminary PEA mine plan,
production schedule and financial model is nearing completion, and we plan to release the highlights of
the study in a press release before the end of the second quarter this year.
At this stage, the PEA is focused on investigating the mining potentia l of the project, including the latest
discovery, the Pine Zone and other footwall mineralization potential. The study will also help define areas
of the project that require additional exploration and development.
The objective of the PEA would be to create a conceptual mine plan, mine schedule, a capital cost
estimate, and operating cost estimate incorporated into a financial model to provide total cash flow,
net present value (NPV), and internal rate of return (IRR).
River Valley PGM Project Goals & Objectives
During 2019, the company’s exploration & development objectives are as follows:
1. Complete the re-stated resource calculation (Q1 2019);
2. Complete the Projects first economic study, PEA (Q2 2019);
3. Complete surface exploration on additional target areas based on recommendations of the
updated 43-101 and the 2017/2018 geophysics (slated for Q3-Q4 2019);
4. Arrange additional funding for continued development of the project (ongoing);
5. Conduct a 5000-metre drill program focusing in the northern portion of the Project;
6. Solicit a strategic partner to aid in further exploration and development of the Project. Potential
major partners are waiting for the PEA results to complete additional due diligence on River
Valley.
New Age Metals TSX-V: NAM OTCQB: NMTLF
Field Office: 59 Burtch’s Lane, Rockport, ON, Canada, K0E 1V0 [email protected]
+1.613. 659.2773 www.newagemetals.com
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Palladium, Platinum, Rhodium Price & Performance
There are various reasons why the Palladium (Pd) price movement has occurred and more to suggest
that Pd price may continue to rise. First, there are continued supply deficits forecasted for Pd and in
2019 alone Johnson Matthey (JM) expects that it could exceed a million ounces (PGM Market Report -
May 2019). Emissions standards are increasing worldwide as is the preference for larger vehicles, both
of which require more Pd to be used in the catalytic converters.
The PGM’s Platinum, Palladium and Rhodium are extensively used in catalytic converters to convert
harmful gasses like hydrocarbon emissions into less harmful substances. The allowable limits of carbon
monoxide (CO) and hydrocarbon (HC) from gasoline passenger vehicles in China will be reduced by 60%
by 2025 (SFA Oxford, 2019).
The Chinese emission standard story alone tends itself to the increase in Pd demand to grow by
500,000 ounces by 2021. To summarize, the Palladium fundamentals and forecasts align well with the
timeline for development of our River Valley Project.
The platinum market is expected to move into deficit in 2019, with a resurgence in investor activity
outweighing modest falls in industrial and jewellery demand. Johnson Matthey also expects a tentative
recovery in autocatalyst consumption, as stricter heavy duty emissions legislation is enforced first in
China and then in India. JM forecasts a modest increase in primary supplies, but this could be tempered
by electricity shortages and, potentially, industrial action in South Africa, while growth in recycling may
be dampened by processing capacity constraints in some regions.
Both Platinum and Palladium are considered precious metals, like Gold and are used as a store of value.
Rhodium, which is also present at River Valley, has seen a price increase of over 15% this year at
US$2,860 per oz.
2019 Mineral Resource Update
On January 9, 2019 NAM filed its latest Mineral Resource Estimate on the River Valley Project. The May
2018 Resource Estimate presented a global mineral inventory. The January 2019 Resource presents a pit
constrained mineral resource that shows reasonable prospects for eventual economic extraction. The
results of the updated Mineral Resource Estimate are tabulated in Table 1 below (0.35 g/t PdEq open pit
and 2.0 g.t PdEq underground cut-off). This 43-101 Technical Report is available on SEDAR. See page 4.
New Age Metals TSX-V: NAM OTCQB: NMTLF
Field Office: 59 Burtch’s Lane, Rockport, ON, Canada, K0E 1V0 [email protected]
+1.613. 659.2773 www.newagemetals.com
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Table 1: Results from the January 2019 NI 43-101 Mineral Resource Estimate.
Class PGM + Au (oz) PdEq (oz) PtEq (oz)
Measured 1,394,000 1,701,000 1,701,000
Indicated 983,000 1,166,000 1,166,000
Meas +Ind 2,377,000 2,867,000 2,867,000
Inferred 841,000 1,059,000 1,059,000
Notes:
1. CIM definition standards were followed for the Mineral Resource Estimate.
2. The 2018 Mineral Resource models used Ordinary Krig ing grade estimation within a three -dimensional block model with
mineralized zones defined by wireframed solids.
3. A base cut-off grade of 0.35 g/t PdEq was used for reporting Mineral Resources in a constrained pit and 2.00 g/t PdEq was
used for reporting the Mineral Resources under the pit.
4. Palladium Equivalent (PdEq) calculated using (US$): $ 950/oz Pd, $ 950/oz Pt, $ 1,275/oz Au, $ 1500/oz Rh, $ 2.75/lb Cu,
$5.25/lb Ni, $36/lb Co.
5. Numbers may not add exactly due to rounding.
6. Mineral Resources that are not Mineral Reserves do not have economic viability
7. The Inferred Mineral Resource in this estimate has a lower level of confidence tha n that applied to an Indicated Mineral
Resource and must not be converted to a Mineral Reserve. It is reasonably expected that the majority of the Inferred Mineral
Resource could be upgraded to an Indicated Mineral Resource with continued exploration.
New Age Metals TSX-V: NAM OTCQB: NMTLF
Field Office: 59 Burtch’s Lane, Rockport, ON, Canada, K0E 1V0 [email protected]
+1.613. 659.2773 www.newagemetals.com
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Figure 1: The Yellow Band represents the footwall potential area of the River Valley Deposit based
on the results of the Pine Zone where footwall mineralization was noted to extend 150 met res
eastward from the Pine Zone/ T3 main deposit.
At present the only area that has confirmed footwall mineralization is in the Pine Zone (defined
from 2015 to 2017 drilling). Geophysics and exp loration continues to test other areas of the
Deposit. Management’s specific focus is to outline a potentially economic Mineral Resource in the
northern portion of the Project that can be subsequently developed as a series of open pits (bulk
mining), crushed, and concentrate on site, with concentrate shipped to a smelter in Sudbury.
New Age Metals TSX-V: NAM OTCQB: NMTLF
Field Office: 59 Burtch’s Lane, Rockport, ON, Canada, K0E 1V0 [email protected]
+1.613. 659.2773 www.newagemetals.com
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2019 Exploration Plan - River Valley PGM Project
To date an approximate 160,441 metres (481,323 feet) in 710 drill holes have been conducted by the
company as operators on the River Valley Project. Several independent 43-101 compliant resource
estimates have previously been generated for the deposit through the exploration and development
phases. The River Valley Deposit’s present resource, with approximately 2.9M PdEq ounces in
Measured Plus Indicated mineral resources and near-surface mineralization, covers a total of 16
kilometers of strike. The company continues to explore and enhance the River Valley PGM Deposit.
After the ground proofing and surface exploration program conducted in the Summer/Fall of 2018,
(which followed up on the most recent induced polarization survey by Abitibi Geophysics) NAM
management has designed a 5,000 metre drill programs to test the new geophysical anomalies. See
Figure 2 below, which shows these new geophysical anomalies and potential targets for the next stage
of drilling at River Valley superimposed over the upper 4 kilometres of the project map.
Figure 2: Northern portion of the project with superimposed 2018 merged IP at -100m level.
Retrieved from River Valley Geophysical review by Geoscience North (Alan King, P. Geo., M.Sc.)
New Age Metals TSX-V: NAM OTCQB: NMTLF
Field Office: 59 Burtch’s Lane, Rockport, ON, Canada, K0E 1V0 [email protected]
+1.613. 659.2773 www.newagemetals.com
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2019 Exploration Plans for Lithium Division
The Company has eight pegmatite hosted Lithium Projects in the Winnipeg River Pegmatite Field,
located in SE Manitoba. In 2018 NAM conducted surface exploration programs on our Lithman East,
Lithman North, Lithium One and Lithium Two projects. The programs consisted of reviewing,
characterising and sampling the known surface pegmatites. Samples were taken from the Eagle and FD5
pegmatites on Lithium Two and returned results of up to 3.8% Li2O. On Lithium One, samples were
taken from the known Silverleaf and Annie pegmatites and returned significant Li20 assays of up to
4.1%.
In 2019, the Company plans to drill the Lithium Two Project first. Drill permits have been applied for
and the company is awaiting approval from the province. The application has been accepted by the
relevant parties to date and is in the final stages of the approval process. The first drill permit is
expected to be issued in June 2019.
Genesis PGM / Polymetallic Project
On April 4th, 2018, NAM signed an agreement with one of Alaska’s top geological consulting companies.
The company’s stated objective is to acquire additional PGM and Rare Metal projects in Alaska. On April
18th, 2018, NAM announced the right to purchase 100% of the Genesis PGM/Polymetallic Project, NAM’s
first Alaskan PGM acquisition related to the April 4th agreement. The Genesis PGM/Polymetallic Project is
a road accessible, under explored, highly prospective and multi-prospect drill ready Palladium (Pd) -
Platinum (Pt)- Nickel (Ni)- Copper (Cu) property. A comprehensive report on previous exploration and
future phases of work was completed by Avalon Development of Fairbanks Al aska in August 2018 on
Genesis. (available here). A 2019 sampling program will be conducted to continue to outline additional
mineralization along the 800 -metre by 40 -metre mineralized zone. Management is actively seeking an
option/joint-venture partner for this road accessible PGM and multiple element Project using the
Prospector Generator business model.
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New Age Metals TSX-V: NAM OTCQB: NMTLF
Field Office: 59 Burtch’s Lane, Rockport, ON, Canada, K0E 1V0 [email protected]
+1.613. 659.2773 www.newagemetals.com
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QUALIFIED PERSON
The contents contained herein that relate to Exploration Results or Mineral Resources is based on
information compiled, reviewed or prepared by Carey Galeschuk, a consulting geoscientist for New Age
Metals. Mr. Galeschuk 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
For further information on New Age Metals, please contact Anthony Ghitter or Cody Hunt, Business
Development at 613-659-2773, or [email protected]
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.