Clean Air Metals Inc (TSX-V:AIR, OTCQB:CLRMF) has reported new drill results from the so-called Current deposit at the company's flagship Thunder Bay North critical minerals project in Ontario, which support the mine design for the property.
The asset, which is near the Lac des Iles Mine owned by Impala Platinum, is home to twin bodies which, in turn, host the Current and Escape deposits, which form the basis of a historic preliminary economic assessment (PEA).
That report envisaged a ten-year underground mine and an on-site 3,600 tonnes per day (tpd) milling complex. The pre-tax net present value was pegged at C$425 million and internal rate of return (IRR) of 31% on initial capital of US$367 million.
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The new drill assays included one hole, which hit 10 metres (m) at 3.31 grams per ton (g/t) platinum, 3.16 g/t palladium, 0.61% copper and 0.43% nickel, starting from 244m depth.
CEO Abraham Drost told investors that the latest assays supported prefeasibility study (PFS) mine design at the project.
"Considerable upside exploration potential for massive sulphides outside the PEA production area remains at the base of the Escape and Current magma conduits along the Escape Lake Fault. The company is presently expanding its Work Permit footprint to accommodate a drill program on these targets this winter," he said.
"These are challenging markets for small cap junior miners. Clean Air Metals is fortunate to hold peer-leading high-grade platinum-palladium-copper-nickel assets at Thunder Bay North with relatively low capital intensity and close to infrastructure with a highly accomplished exploration and development team," added Drost.
PFS level engineering, metallurgical optimization and resource validation are continuing supervised by chief operating officer (COO) Mike Garbutt, said the firm.
This work is expected to culminate in a PFS technical report outlining mineable mineral reserves at the Thunder Bay North Project, expected by the third quarter of 2023, it added.
"In the meantime, environmental baseline fieldwork and hydrogeological test work continue."
Clean Air Metals said its executive chair Jim Gallagher and Garbutt are heading up an experienced team who are using the Norilsk magma conduit stratigraphic and mineral deposit model to guide ongoing exploration and development prefeasibility 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 its 2019 sale to Impala Platinum, Gallagher and his team are credited with the mine turnaround and creation of significant value for shareholders.
Contact the writer at giles@proactiveinvestors.com