Clean Air drills 60 m of 2.05 g/t Pt at Thunder Bay

Jun 28, 2022

2022-06-28 09:08 ET – News Release

Mr. Abraham Drost reports

CLEAN AIR METALS REPORTS DRILL RESULTS INCLUDING 20.7M GRADING 3.90 G/T PLATINUM, 5.36G/T PALLADIUM, 1.97% COPPER AND 0.97% NICKEL IN HOLE ELR22-143

Clean Air Metals Inc. has released new assay results from the 2022 drill campaign from both the Escape and Current PGE-Cu-Ni (platinum-group-element-copper-nickel) deposits at the company’s Thunder Bay North project near Thunder Bay, Ont., Canada.

New assay highlights from the Escape South deposit area includes (Table 1):

Infill Hole ELR22-140 which intersected 70.5m grading 1.18g/t Platinum (Pt), 1.52g/t Palladium (Pd), 0.54% Copper (Cu) and 0.31% Nickel (Ni) from 341.0m-411.5m downhole, including 14.0m grading 2.65g/t Pt, 3.46 g/t Pd, 1.28% Cu and 0.72% Ni from 392.0-406.0m downhole and increases the known dimensions of the Escape South High Grade Zone (“HGZ”).

Infill Hole ELR22-143 which intersected 60.0m grading 2.05g/t Platinum (Pt), 2.74g/t Palladium (Pd), 1.01% Copper (Cu) and 0.51% Nickel (Ni) from 373.0m-433.0m downhole including 20.7m grading 3.90 g/t Platinum (Pt), 5.36g/t Palladium (Pd), 1.97% Copper (Cu) and 0.97% Nickel (Ni) from 402.0-422.7.0m downhole (Figure 1) and increases the known dimensions of the Escape South HGZ.

Pursuant to the PEA mine plan reported January 12, 2022, initial production on the Escape Deposit commences at Year 4.5 of the Life of Mine on the Escape South HGZ on 2,323,948 tonnes grading 9.99g/t PtEq insitu. The Escape Deposit has now undergone an additional 55,651m of expansion drilling in 2021 and 2022 not yet included in the project mineral resource. This additional drilling has established continuity between the Escape South HGZ and the Escape North Zone and may add materially to the total Thunder Bay North Project Indicated insitu mineral resource (effective November 1, 2021) including the Current Deposit, averaging 8.12 g/t PtEq in 14,553,324 million tonnes insitu (reported December 1, 2021).

New assay highlights from the Current deposit area includes (Table 2):

Infill Hole CL22-043 which intersected 25.0m grading 2.01g/t Platinum (Pt), 2.57g/t Palladium (Pd), 0.94% Copper (Cu) and 0.52% Nickel (Ni) from 325.7m-373.0m downhole including 8.0m grading 3.08 g/t Platinum (Pt), 2.97g/t Palladium (Pd), 0.63% Copper (Cu) and 0.39% Nickel (Ni) from 147.0-155.0m downhole (Figure 2) and which improves the grade profile of the Beaver Lake Zone down plunge from the main PEA production areas.

Pursuant to the PEA mine plan reported January 12, 2022, the first 3.7 years of mining at Current Deposit on 4,835,410 tonnes of material insitu averages 4.49g/t 4E PGE or 10.04g/t PtEq insitu at Lower Current and Bridge Zones, immediately up plunge from the Beaver Lake Zone.

Mineral resource endowment and platinum-equivalents are quoted pursuant to the Technical Report and Mineral Resource Estimate for the Thunder Bay North Project, Thunder Bay, Ontario, with an effective date of January 20, 2021 (the “Technical Report”). The Technical Report was posted to SEDAR on March 4, 2021 and prepared by Nordmin Engineering Ltd.- QP Glen Kuntz, P.Geo. Ontario. Nordmin as QP utilized 2-year trailing average metal price assumptions[1] for the updated mineral resource as a basis for the Preliminary Economic Assessment (the “PEA”) reported on December 1, 2021 and filed January 12, 2022.

DRA Selected as PFS Metallurgical Process Provider

The Company again states 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. The DRA team has reviewed the existing and historical metallurgical testing results and marketing studies culminating in the Preliminary Economic Assessment (PEA) by Nordmin Engineering, the technical report of which was filed on SEDAR on January 12, 2022. DRA will leverage existing knowledge on standard crush, grind, flotation process design and smelter payabilities into the next phase of testing and metallurgical optimization, including amenability to hydrometallurgical recoveries of the main platinum, palladium, copper, nickel commodity suite with rhodium, cobalt, gold and silver byproducts.

Preliminary Economic Assessment (PEA)

The Company 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. The related Technical Report was filed on SEDAR on January 12, 2022 https://cleanairmetals.ca/site/assets/files/5750/21015-01-pfs-0000_ni_43_101_pea_12jan2022.pdf

Abraham Drost, CEO of Clean Air Metals stated that “the Escape and Current deposits continue to perform. Potential peer leading mining head grades and proximity to infrastructure near the City of Thunder Bay and support of the affected First Nation and Metis communities for this sustainable green energy metal mix position the project well. These factors combined with DRA’s work targeted on improving ore payabilities are critical to success of the project.

This infill drilling on the margins and extension of the Escape South High Grade Zone (HGZ) and Upper Beaver Lake Zone of the Current Deposit continues to deliver strong results. The Lower Current and Bridge Zones of the Current Deposit may be accessed 70m below surface and provide a strong start to mining at the Thunder Bay North Project, pursuant to the PEA mine plan. The Escape South High Grade Zone (>5g/t Pt+Pd) is identified as a high value potential mining area at the base of the Escape Deposit contributing feed to the mill at Year 4.5 of the PEA mine plan, pursuant to the recently delivered PEA technical report filed January 12, 2022.”

Figure 1: New Drill Hole Intercepts in the Escape Deposit Area

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Figure 2: New Drill Hole Intercepts in the Current Deposit Area

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COVID Policy

Clean Air Metals continued to apply COVID-19 avoidance and personal protection measures for its geological staff, drilling contractor and service suppliers. Personnel are required to self-monitor and self-isolate or elect to work from home. The Company closely follows Ontario Provincial Government COVID guidelines.

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.

Quality Assurance/Quality Control

Clean Air Metals uses ALS Global (“ALS”), a well-established and recognized mineral assay and geochemical analytical services company. The Thunder Bay laboratory holds ISO-9000 accreditation; the Vancouver facility holds ISO-17025 registration.

All NQ-sized drill core is cut with a diamond-tipped saw blade with half of the core submitted to ALS for sample preparation and analysis. Core samples from selected intervals are individually bagged and tagged, gathered up in larger sealed poly bags and shipped to the sample prep facility in Thunder Bay, ON under custody of Clean Air Metals’ personnel at all times. Sample preparation is completed at the ALS sample preparation facility located in Thunder Bay, ON and analysis is completed at the primary ALS assay laboratory located in Vancouver, B.C.

Clean Air Metals follows a documented quality control procedure for its core assay sampling program consisting of the insertion of blind blanks, duplicates, and certified Palladium-Platinum and Copper-Nickel standards into the sample stream. The insertion procedure results in a minimum of 11% to 12% control sample frequency depending on the length of the sampled interval.

Gold, platinum, and palladium are analyzed using fire assay (FA) with an inductively coupled plasma mass spectrometry (ICP-MS) finish. Samples with grades above the optimal ICP-MS detection limits are analyzed using an optical emission spectroscopy method (ICP-OES).

Also, thirty-three (33) elements of each sample, including copper, nickel, silver, chromium, cobalt, and sulphur, are analyzed by a multi-element analytical method using the atomic emission spectroscopy (ICP-AES) technique following four-acid digestion of the sample. When samples have grades above the optimal detection limits for this analytical method, they are re-analyzed using a high-grade method consisting of either ICP-AES or atomic absorption spectrometry (AAS) techniques.

Social 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 Indian Band 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, Metis 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 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 Project hosts the twin magma conduit bodies which host the Current and Escape deposits forming the basis for a robust preliminary economic assessment PEA) filed January 12, 2002. The PEA of a ramp access underground mine and on-site 3600tpd milling complex and the 2-year trailing average price deck, features a pretax NPV5 of C$425m and an IRR of 31% on initial capital of $378m over a 10-year mine life.

Executive Chair Jim Gallagher and CEO Abraham Drost lead an experienced technical team who are using the Norilsk magma conduit stratigraphic and mineral deposit model to guide ongoing exploration and development feasibility studies for a low-carbon, all-electric sustainable mining operation at Thunder Bay North. 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.

We seek Safe Harbor.

https://www.cleanairmetals.ca/