THUNDER BAY, ON, Aug. 20, 2020 /CNW/ - Clean Air Metals
Inc. ("Clean Air Metals" or the "Company") (TSXV: AIR)
(OTCQB: CLRMF) is pleased to announce new assay results
from the drilling campaign currently underway at the Company's
100%-owned Thunder Bay North Project (the "Project").
New results from Drill Holes ELR20-008, -009, -010, and -014 in
the Escape Lake Intrusion portion of the Project ("Escape Lake")
complement those previously announced on June 17, June 29,
and July 15, 2020, and are part of a
20,000m drill programs (Table 1).
The new tranche of assays includes Drill Hole ELR20-008 which
intersected 96.0m of 1.22g/t
Platinum, 1.63g/t Palladium, 0.61% Copper and 0.34%
Nickel from 326.8m-423.0mm
downhole, including 18m of 2.29g/t
Platinum, 3.2g/t Palladium, 1.17% Copper and 0.76%
Nickel from 391.8m-410.0m
downhole.
ELR20-008 is a 50m step-out north
from previously reported Drill Hole ELR20-003 (reported
June 17, 2020) that returned an assay
interval of 78.9m of 1.66g/t
Platinum, 2.17g/t Palladium, 0.80% Copper and 0.41%
Nickel from 359.5m-438.4m
downhole, including 20.0m of
3.30g/t Platinum, 4.49g/t Palladium, 1.54% Copper and 0.84%
Nickel from 395.5m-415.5m downhole (Figure 1).
Abraham Drost, CEO of Clean Air
Metals stated that "the assay results from Drill Hole ELR20-008
extends the strike length of the deposit to the north at a greater
thickness than the original Rio Tinto discovery holes. Holes 009
and 010 intersected mineralization over intervals of up to
14m likely defining the lateral edges
of the mineralized conduit.
It is encouraging that drill targeting, based on previous drill
results and recent geophysics, has allowed us to accurately
identify a high-grade core as seen in previous Drill Hole ELR20-004
(reported July 15, 2020) and thicker
keel of the deposit as seen previously in Drill Hole ELR20-003.
Drilling will now extend 650m
north towards a previously drilled 2010 intersection in
Rio Hole 10CL0003 which returned an
assay interval of 27.3m of 1.15ppm
(g/t) Platinum, 1.3 g/t Palladium, 0.43% Copper and 0.22%
Nickel."
- All intercepts are estimated to be >95% of true width based
on drill hole inclination
- Mineralized intervals calculated at 1 ppm Pt+Pd cutoff
The Escape Lake Zone mineralization identified thus far is
located at a depth of approximately 325m-425m vertical
depth within the Escape Lake Intrusion. The objective of the
ongoing program is to define the magnitude of the Escape Lake
Mineralized Zone to support the calculation of a mineral resource
estimate and mine plan by Nordmin Engineering Ltd., ("Nordmin")
(announced August 11, 2020) for the
Escape Lake horizon in addition to the Current Lake deposit, the
subject of an Historic Estimate referenced below.
Historic Estimate – Current Lake deposit
The Escape Lake Intrusion and magma conduit which is the
Company's present focus in Phase 1 drilling (Table 1), appears to
be a standalone, separate twin structure to the Current Lake
Intrusion ('Current Lake') and magma conduit on the Thunder Bay
North Project on which there exists a historic estimate of 9.8
million Tonnes (Indicated). The Historic Estimate is from pit
constrained and underground sources (Table 2).
The estimate of the Current Lake Deposit at the Thunder Bay
North Project is considered by Clean Air Metals to be historic in
nature. No Qualified Person as defined by NI 43-101 has completed
sufficient work for the Company to classify the historic estimate
of the Current Lake Deposit as current and the Company is not
treating the historic estimate as current. The Company's QP has
verified the data but no resampling of core or any other tests on
the analytical procedures has been performed by the Company
to-date. Confirming the historic estimate at Current Lake and
tradeoff studies on possible underground mining methods will be a
concurrent priority for Clean Air Metals.
Thunder Bay North Pit-Constrained Historic Estimate
The pit-constrained Historic Estimate is reported at a cut-off
grade of 0.59 g/t Pt-Eq within a Lerchs-Grossman pit shell
optimized on Pt-Eq. The strip ratio (waste: ore) of this pit is
9.5:1. The platinum-equivalency formula is based on assumed metal
prices and overall recoveries. The Pt-Eq formula is: Pt-Eq g/t = Pt
g/t + Pd g/t x 0.3204 + Au g/t x 0.6379 + Ag g/t x 0.0062 + Cu g/t
x 0.00011 + Total Ni g/t x 0.000195 + Total Co g/t x 0.000124 + Rh
g/t x 2.1816. The conversion factor shown in the formula for each
metal represents the conversion from each metal to platinum on a
recovered value basis. The assumed metal prices used in the Pt-Eq
formula are: Pt US$1,595/oz, Pd
US$512/oz, Au US$1,015/oz, Ag US$15.74/oz, Cu US$2.20/lb, Ni US$7.71/lb, Co US$7.71/lb and Rh US$3,479/oz. The assumed combined flotation and
PlatsolTM process recoveries used in the Pt-Eq formula are: Pt 76%,
Pd 75%, Au 76%, Ag 55%, Cu 86%, Ni 44%, Co 28% and Rh 76%. The
assumed refinery payables are: Pt 98%, Pd 98%, Au 97%, Ag 85%, Cu
100%, Ni 100%, Co 100% and Rh 98%.
Thunder Bay North Underground Historic Estimate
The underground Historic Estimate is reported at a cut-off grade
of 1.94g/t Pt-Eq. The Pt-Eq formula is: Pt-Eq g/t = Pt g/t + Pd g/t
x 0.2721 + Au g/t x 0.3968 + Ag g/t x 0.0084 + Cu g/t x 0.000118 +
Sulphide Ni g/t x 0.000433 + Sulphide Co g/t x 0.000428 + Rh g/t x
2.7211. The assumed metal prices used in the Pt-Eq formula are: Pt
US$1,470/oz, Pd US$400/oz, Rh US$4,000/oz, Au US$875/oz, Ag US$14.30/oz, Cu US$2.10/lb, Ni US$7.30/lb and Co US$13.00/lb. The assumed process recoveries used
in the Pt-Eq formula are: Pt 75%, Pd 75%, Rh 75%, Au 50%, Ag 50%,
Cu 90%, and Ni and Co in sulphide 90%. The assumed smelter
recoveries used in the Pt-Eq formula are Pt 85%, Pd 85%, Rh 85%, Au
85%, Ag 85%, Cu 85%, Ni 90% and Co 50%. Ni and Co in sulphide were
estimated by linear regression of MgO to total Ni and total Co
respectively. The regression formula for Nickel in sulphide (NiSx)
is: NiSx = Ni - (MgO% x 60.35 - 551.43). The regression formula for
Cobalt in sulphide (CoSx) is: CoSx = Co - (MgO% x 4.45 - 9.25).
Nordmin Engineering Ltd. Work Program
Nordmin will provide the following items within its scope of
work:
Work Package 1 (WP1) Resource Validation:
- Validate and approve the existing geological model and historic
estimate on the Current Lake deposit;
- Supervise and approve the development of a preliminary
geological model of the Escape Lake project in co-operation with
the database geologist and Vice-President, Project Manager;
- Supervise and approve the development of the drilling database
and preliminary resource model for the Escape Lake project in
co-operation with Clean Air Metals' database geologist; and
- Develop a global resource estimate for the Thunder Bay North
project.
Work Package 2 (WP2) Early Tradeoff Studies:
The WP2 early tradeoff studies for the Current Lake deposit will
be conceptual in nature, at an order of magnitude that is
comparable with a scoping/preliminary economic assessment level of
study. The principal parameters for a conceptual study are mostly
assumed and/or factored. Accordingly, the level of accuracy is plus
or minus 35 per cent. Nordmin will incorporate risk, peer and
environmental reviews, following the ESG principles, into each of
the following mining trade-off studies:
- Underground ("UG") ramp access;
- UG mining method;
- UG geotechnical review;
- Metallurgical/preliminary flowsheet design;
- Tailings management option analysis and initial design;
- Electric vehicle study;
- Surface works and infrastructure study; and
- Simplified, pretax cash flow analysis to be included in
applicable trade-off studies.
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.
Quality assurance and quality control (QA/QC) statistical checks
were performed on original, ALS-certified analytical data for all 8
holes in Table 1. Selected core intercepts from historic (RT) holes
in Table 1 were relogged and resampled and compared with historic
data. Mr. Andrey Zagoskin, P.Geo.,
Ontario, a Qualified Person under
National Instrument 43-101 and employee of the Company, led the
validation exercise and has approved Table 1 assay
results.
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 analysed 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 analysed 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-analysed using a
high-grade method consisting of either ICP-AES or atomic absorption
spectrometry (AAS) techniques.
COVID Policy
Clean Air Metals has adopted COVID-19 avoidance and personal
protection measures for its geological staff, drilling contractor
and service suppliers. Personnel are required to maintain physical
distance, use Personal Protective Equipment (PPE), self-monitor and
self-isolate or elect to work from home. Management had previously
eliminated plans for a camp setup to service a planned diamond
drill campaign on the Escape Lake Project. The Company is aware of
Thunder Bay Health Unit guidelines that provide for "mandatory"
self-isolation for returning overseas and inter-provincial travel.
The guidelines previously also "strongly recommended"
self-isolation after travel into the Northwest region from other
areas of the Province. Mineral Exploration and Development has been
deemed an essential service in the Province of Ontario
(http://www.netnewsledger.com/2020/03/23/ontario-covid-19-business-allowed-to-remain-open-list-march-23-2020/).
The Company has procured the services of a locally staffed and
serviced diamond drilling contractor to complete the Phase 1 and
Phase 2 diamond drilling programs.
Mr. Allan MacTavish, P.Geo. a
Qualified Person under National Instrument 43-101 and VP, Project
Manager of the Company, has reviewed and approved all technical
information in this press release.
Clean Air Metals and its wholly-owned subsidiary Panoramic PGMs
(Canada) Ltd. acknowledge that the
Escape Lake and Thunder Bay North Properties are on the traditional
territories of the Fort William First Nation, Red Rock First Nation and Biinjitiwabik Zaaging
Anishnabek, signatories to the Robinson-Superior Treaty of 1850.
The parties have entered into a Communication Protocol and are
committed to ongoing updates and dialogue around the Thunder Bay
North Project.
ON BEHALF OF THE BOARD OF DIRECTORS
"Abraham Drost"
Abraham Drost, Chief Executive
Officer of Clean Air Metals Inc.
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. 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 forward-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 results 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 projections.
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SOURCE Clean Air Metals Inc.