New Age Metals Pre-Feasibility Study and Exploration Update on the River Valley Palladium Project, Sudbury, Ontario
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
Page1
New Age Metals Pre-Feasibility Study and Exploration Update on the River
Valley Palladium Project, Sudbury, Ontario
August 17, 2021 Rockport, Ontario - New Age Metals Inc. (TSX.V: NAM; OTCQB: NMTLF;
FSE: P7J.F) (“NAM” or “Company”) is please d to provide an update on the ongoing Pre-
Feasibility Study and exploration drilling at the River Valley Palladium Project near Sudbury,
Ontario.
The Pre-Feasibility Study was announced in a Company press release dated April 12, 2021. Since
then, progress has been made in the minera l processing and metallurgical work program and the
geomechanical work program components of the Pre-Feasibility Study. Concurrently, NAM has
commenced exploration drilling at the Banshee Zone (Figure 1).
Figure 1. Geology map of the northern area of the River Valley Palladium deposit near Sudbury, Ontario. PGM
mineralized zones projected to surface. Mineral Resource Estimates using 0.35 g/t PdEq cut-off and PdEq calculation
of Preliminary Economic Assessment (2019) . The Huronian, Grenville and Nipissing units excluded for illustration
clarity.
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
Page2
Pre-Feasibility Study
Mineral Processing and Metallurgical Sampling Drill Program
Four drill holes totalling approximately 800 m have been completed; one each on the Dana North,
Dana South, Lismer North and Lismer South Zones (Figure 2). Each of the holes was drilled
downwards to intersect as much mineralization as possible for mineral processing and
metallurgical testwork by SGS Canada Inc. (Lakefield). HQ-size core was retrieved, logged and
sampled metre-by-metre by NAM. Eight-hundred 1-m long ½ core samples plus blind QA/QC
samples have now been delivered to SGS , where processing and preparation for assaying and
testwork has commenced. Assay results are pending from the laboratory and will be reported when
available. The samples will be composited for mineralized zone, rock type and particularly grade
variability testing. The testwork program at SGS is being managed on behalf of NAM by D.E.N.M
Engineering Ltd. (Burlington).
Figure 2. Collar location and traces of the four holes drilled in 2021 for mineral processing and metallurgical testwork
samples. The fifth (unlabelled) drill hole was planned for contingency, but not drille d. The background is a
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
Page3
topography image from the 2014 LiDAR survey of the River Valley Property. The Banshee Zone shown for
information only.
Geomechanical Drill Program
The Geomechanical drill program consists of work on 10 drill holes (Figure 3). Five of these holes
totalling 1,410 m will be drilled starting in mid-August to provide fresh, oriented HQ -size core
material for rock property and structural geology studies by Knight Piésold Ltd. (North Bay). Two
of the holes will be drilled at Dana North Zone, one hole at Dana South Zone, at least one hole at
Lismer North Zone, and one hole at Lismer Ridge Zone, as planned by Knight Piésold. The drilling
will start imminently at Lismer North and be complete d by J acob & S amuel D rilling Ltd .
(Sudbury). Additionally, a total of four historical holes at Dana North, Lismer North and Lismer
Ridge Zones have been selected to be surveyed by a televiewer instrument for rock type and
structural geology information. The drill program is slated for completion in Q4 2021.
Figure 3. Location of the planned drill holes for the geomechanical studies Knight Piésold. Holes KP21 -01 to -06
will be drilled in 2021 and holes labelled DN or LR are historical. Holes KP 21 -03, KP21-05, and possibly KP21-06
will also be logged and sampled as exploration drill holes.
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
Page4
In addition to the geomechanical work, the new diamond holes to be drilled at Dana South, Lismer
North and Lismer Ridge will also be logged and sampled as exploration holes. Core samples will
be sent to SGS Laboratories (Sudbury) for assaying. Assay results will be released when available.
Exploration Drilling
Exploration on the River Valley Property continues during the Pre-Feasibility Study. A focus of
the 2021 exploration program is the Banshee Zone (Figure 4). The Banshee Zone was discovered
by mineral prospecting and drilling between 2002 to 2004. Despite its central location between the
Dana Zones to the north and the Lismer Zones to the east and south, the Banshee Zone has been
overlooked in post-2004 exploration programs due to its apparently small size and lower grade. At
a cut-off grade of 0.35 g/t PdEq, the current (2019) pit-constrained Mineral Resource Estimate for
Banshee is 3.36 Mt grading 0.29 g/t Pd, 0.17 g/t Pt, 0.03 g/t Au, 0.04% Cu and 0.01% Ni, or 0.55
g/t PdEq, all in the Inferred classification. This resource is based on a database of just 22 diamond
drill holes totalling 4,274 m, with an average depth of only <200 m below surface . Below that
depth, the palladium mineralization remains open to expansion by drilling down-dip along the 700
m strike -length of the Zone . A combination of near-historic high Pd price and its central
location means that the Banshee Zone could be of strategic importance to any future mining
operation at 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
Page5
Figure 4. Location and hole traces for planned 2021 exploration drill holes at Banshee Zone. The plan consists of
drilling 13 holes totalling 4,175 m along 10 cross -sections of the Zone’s 700 m strike -length. The deepest hole will
penetrate to 300 m below surface.
The 2021 exploration plan for Banshee consists of 13 holes totalling 4,175 m (Figure 4), designed
to expand the known extents of mineralization down-dip. The exploration drilling commenced at
the south end of Banshee in late July, following completion of the IP geophysical survey in June
(see Company press release dated July 6, 2021) . To date, four of the drill holes have been
completed and contact-type Cu-Fe sulphide mineralization typical of the River Valley Deposit was
encountered. Core sample assays are pending from the laboratory in Sudbury and will be released
when available.
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
Page6
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.
A fully executed Memorandum of Understanding is in place with a local First Nation.
Environmental baseline studies re-commenced in 2020.
The current Mineral Resource Estimate was announced in a Company press release dated January
15, 2019 and is based on metal prices substantially lower than today. At a cut -off grade of
0.35 g/t PdEq, the Mineral Resource consists of: 99 Mt grading 0.52 g/t Pd, 0.20 g/t Pt, 0.03 g/t
Au and 0.06% Cu, or 0.90 g/t PdEq in the Measured and Indicated classifications; and 52 Mt
grading 0.31 g/t Pd, 0.15 g/t Pt, 0.04 g/t Au and 0 .04% Cu, or 0.63 g/t PdEq in the Inferred
classification. Contained metal contents are 2.4 Moz Pd+Pt+Au or 2.9 Moz PdEq in the Measured
and Indicated classifications and 0.8 Moz Pd+Pt+Au or 1.1 Moz PdEq in the Inferred
classification.
The 2019 PEA resul ts for the River Valley Palladium Project were announced in a press release
dated June 27, 2019. The 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%. The current price of Pd
is approximately $2,515/oz Pd.
About NAM
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 from 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. A technical report is slated to be published by the end of the first half of 2022.
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
Page7
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 this year.
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. 2021 plans include drone geophysics on at least five of the Company’s
seven projects and a maiden drill program on the Company’s Lithium Two Project.
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 and for all or
part of our Lithium Division in Manitoba.
Investors are invited to visit the New Age Metals website at www.new agemetals.com where they
can review the company and its corporate activities. Any questions or comments can be directed
to [email protected] or Harry Barr at [email protected] or Cody Hunt at
[email protected] or call 613 659 2773.
Opt-in List
If you have not done so already, we encourage you to sign up on our website
(www.newagemetals.com) to receive our updated news.
Qualified Persons
The contents contained herein that relate to Exploration Results and Mineral Resources 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 Barr”
Harry G. Barr
Chairman and CEO
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
Page8
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”, “opti mistic” or similar
expressions. These statements by their nature involve risks and uncertainties, and actual results may differ materially depending on a var iety of
important factors, including, among others, the Company’s ability and continuation of effo rts 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 pla ce undue reliance on
forward-looking statements.