New Age Metals (TSX-V:NAM, OTCQB:NMTLF) Inc has updated on the progress of its pre-feasibility study (PFS) for its River Valley palladium project in Ontario, which it now expects to be completed in the fourth quarter of 2022.
The company said there had been progress on the processing, metallurgical, geomechanical, hydrogeological, geotechnical, and environmental and community engagement components of the report.
Site investigation work by Knight-Piesold Ltd (KP) was completed in March this year, which included bedrock and surficial drilling as well as pit excavations.
A mineral processing and metallurgical testing program is taking place at SGS Canada Inc, with initial flotation testwork designed to confirm parameters from the previous 2012 scoping study work and the best conditions to move forward.
READ: New Age Metals hits palladium mineralization in all four holes at Banshee zone on its River Valley project in Ontario
SGS has advised that indicative metal recoveries should be available by the end of May, reported New Age.
Furthermore, physical and chemical studies of the tailings produced during metallurgical testwork at SGS will be released by the end of July, the company added.
Story Environmental Inc has continued baseline environmental studies of the property and is building relationships with local First Nations communities for future permit applications and approvals.
An exploration memorandum of understanding (MoU) was signed with Nipissing First Nation in late January this year, in addition to the MOU signed previously with Temagami First Nation in 2014 and amended in 2017.
A resource update, filed in November 2021, showed pit constrained measured and indicated (M&I) resources of 89 million tonnes (Mt) grading 0.79 grams per ton (g/t) palladium, platinum and gold (2.3 million ounces).
This significantly exceeds the potentially economic portion mineral resources total of 78 Mt grading 0.79 g/t palladium, platinum and gold (2 Moz) reported in the 2019 preliminary economic assessment (PEA) of River Valley, highlighted the company.
The PFS will consider optimized mine production and mineral processing rates, based on the current, potentially more valuable updated resource estimate than in the 2019 PEA, it added.
New Age noted it had announced the start of the PFS in the spring of 2021 and it was slated for completion in 12 to 14 months.
"However, the Covid-19 pandemic, difficulties in finding and retaining experienced labour, a major shortage of suitable drill rigs and experienced drillers, and backlogged assay laboratories have delayed completion of the PFS to Q4 of 2022," it told investors.
Contact the writer at giles@proactiveinvestors.com