Clean Air drills 25 m of 1.58 g/t Pt at Thunder Bay
2020-09-30 07:21 ET - News Release
Mr. Abraham Drost reports
CLEAN AIR METALS ANNOUNCES NEW STEP-OUT DRILL RESULTS FROM THE ESCAPE LAKE INTRUSION AT THUNDER BAY NORTH, INCLUDING 25.0M OF 1.93G/T PLATINUM, 1.58/T PALLADIUM, 0.64% COPPER, AND 0.28% NICKEL
Clean Air Metals Inc. has released new assay results from the drilling campaign currently under way at the company's 100-per-cent-owned Thunder Bay North project.
New results from holes ELR20-011, -012, -013A, -015, -017 and -018 in the Escape Lake intrusion portion of the project complement those previously announced on June 17, June 29, July 15 and Aug. 20, 2020, and are part of a 20,000-metre drill program.
The new tranche of assays includes drill hole ELR20-008, which intersected 25.0 m of 1.58 g/t platinum, 1.97 g/t palladium, 0.64 per cent copper and 0.28 per cent nickel from 389.7 m to 414.7 m downhole, including 5.0 m of 2.36 g/t platinum, 2.87 g/t palladium, 0.91 per cent copper and 0.27 per cent nickel from 403.7 m to 410.0 m downhole.
Abraham Drost, chief executive officer of Clean Air Metals, stated that: "The assay results from hole ELR20-011, 012, 13A, 15, 17 and 18 broaden the Escape Lake deposit laterally into a larger lens of mineralization that appears to be ponded up against the Escape Lake fault to the south.
"While it is early days and there is work to be done to prepare the Escape Lake deposit for inclusion in the Nordmin Engineering resource validation exercise, it is encouraging that drill targeting based on previous drill results and recent geophysics has allowed the company to accurately identify a high-grade core and thicker east side sail to the Escape Lake deposit. Average dimensions are now interpreted at approximately 200 m long by 175 m wide by an average thickness of 30 m, with an average specific gravity of 3.1 tonnes per cubic metre.
"The company is well funded with over $12-million in the treasury. Drilling will ultimately extend 650 m uptrend to the northwest on 50 m sections towards a previously drilled 2010 intersection in Rio hole 10CL0003, which returned an assay interval of 27.3 m of 1.15 ppm (g/t) platinum, 1.3 g/t palladium, 0.43 per cent copper and 0.22 per cent nickel."
ASSAY RESULTS UPDATE -- ESCAPE LAKE ZONE, THUNDER BAY NORTH Hole ID From To Length Pt-Pd Cu-Ni Pt Pd Cu Ni (m) (m) (m) (ppm) (%) (ppm) (ppm) (%) (%) 11CL0005 387.0 415.0 28.0 5.63 1.52 2.44 3.18 1.11 0.41 11CL0007 392.6 417.7 25.1 6.28 1.87 2.73 3.55 1.24 0.63 11CL0008 387.9 416.0 28.1 7.26 1.83 3.22 4.04 1.36 0.46 12CL0009 391.0 424.4 33.4 7.09 2.26 3.01 4.08 1.49 0.77 12CL0011 378.0 408.0 30.0 3.39 0.86 1.56 1.84 0.63 0.23 12CL0012 387.4 417.0 29.6 4.00 1.32 1.74 2.26 0.81 0.51 ELR20-002 386.2 416.2 30.0 4.76 1.45 2.07 2.69 0.96 0.49 ELR20-003 359.5 438.4 78.9 3.84 1.20 1.66 2.17 0.80 0.41 ELR20-004 391.6 424.5 32.9 7.49 2.36 3.16 4.33 1.55 0.81 ELR20-005 386.7 424.7 38.0 4.28 1.55 1.82 2.46 0.92 0.63 ELR20-006 372.1 388.1 16.0 2.96 0.75 1.37 1.59 0.55 0.20 ELR20-007 388.5 421.0 32.5 3.85 1.10 1.69 2.16 0.75 0.35 ELR20-008 326.8 423.0 96.0 2.85 0.95 1.22 1.63 0.61 0.34 ELR20-009 368.6 373.0 4.0 3.04 1.12 1.23 1.81 0.67 0.44 ELR20-010 377.3 391.0 14.0 2.73 0.71 1.27 1.46 0.52 0.19 ELR20-014 377.0 379.0 2.0 1.28 0.37 0.22 0.16 0.60 0.69 ELR20-011 389.7 414.7 25.0 3.54 0.93 1.58 1.97 0.64 0.28 403.7 408.7 5.0 5.23 1.18 2.36 2.87 0.91 0.27 ELR20-012 385.7 399.7 14.0 3.85 1.10 1.72 2.13 0.75 0.35 ELR20-012 493.0 495.0 2.0 1.10 0.59 0.53 0.57 0.30 0.29 ELR20-013A 375.8 378.8 3.0 1.45 0.52 0.63 0.83 0.33 0.19 ELR20-015 393.0 403.0 10.0 4.29 1.02 1.97 2.33 0.79 0.23 397.0 401.0 4.0 5.59 1.29 2.55 3.03 1.01 0.27 ELR20-017 386.9 395.9 9.0 1.93 0.59 0.88 1.05 0.37 0.22 ELR20-018 388.7 405.0 15.8 3.77 0.93 1.72 2.06 0.70 0.23 399.7 404.0 3.8 5.42 1.19 2.46 2.96 0.98 0.21 (1) All intercepts are estimated to be less than 95 per cent of true width based on drill hole inclination. (2) Mineralized intervals calculated at one ppm Pt-Pd cut-off.
The Escape Lake zone mineralization identified thus far is located at a depth of approximately 325 m to 425 m vertical depth within the Escape Lake intrusion. The objective of the continuing 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. (announced Aug. 11, 2020) for the Escape Lake horizon in addition to the Current Lake deposit, the subject of a historic estimate referenced below.
Historic estimate -- Current Lake deposit
The Escape Lake intrusion and magma conduit, the company's present focus in phase 1 drilling, appear to be a stand-alone, separate twin structure to the Current Lake intrusion 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.
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 National Instrument 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 qualified person 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 trade-off 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 PtEq (platinum equivalent) within a Lerchs-Grossman pit shell optimized on PtEq. 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 PtEq formula is: PtEq g/t equals Pt g/t plus Pd g/t times 0.3204 plus Au g/t times 0.6379 plus Ag g/t times 0.0062 plus Cu g/t times 0.00011 plus total Ni g/t times 0.000195 plus total Co g/t times 0.000124 plus Rh g/t times 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 PtEq formula are: Pt $1,595 (U.S.) per ounce, Pd $512 (U.S.) per oz, Au $1,015 (U.S.) per oz, Ag $15.74 (U.S.) per oz, Cu $2.20 (U.S.) per lb, Ni $7.71 (U.S.) per lb, Co $7.71 (U.S.) per lb and Rh $3,479 (U.S.) per oz. The assumed combined flotation and Platsol process recoveries used in the PtEq formula are: Pt 76 per cent, Pd 75 per cent, Au 76 per cent, Ag 55 per cent, Cu 86 per cent, Ni 44 per cent, Co 28 per cent and Rh 76 per cent. The assumed refinery payables are: Pt 98 per cent, Pd 98 per cent, Au 97 per cent, Ag 85 per cent, Cu 100 per cent, Ni 100 per cent, Co 100 per cent and Rh 98 per cent.
Thunder Bay North underground historic estimate
The underground historic estimate is reported at a cut-off grade of 1.94 g/t PtEq. The PtEq formula is: PtEq g/t equals Pt g/t plus Pd g/t times 0.2721 plus Au g/t times 0.3968 plus Ag g/t times 0.0084 plus Cu g/t times 0.000118 plus sulphide Ni g/t times 0.000433 plus sulphide Co g/t times 0.000428 plus Rh g/t times 2.7211. The assumed metal prices used in the PtEq formula are: Pt $1,470 (U.S.) per oz, Pd $400 (U.S.) per oz, Rh $4,000 (U.S.) per oz, Au $875 (U.S.) per oz, Ag $14.30 (U.S.) per oz, Cu $2.10 (U.S.) per lb, Ni $7.30 (U.S.) per lb and Co $13 (U.S.) per lb. The assumed process recoveries used in the PtEq formula are: Pt 75 per cent, Pd 75 per cent, Rh 75 per cent, Au 50 per cent, Ag 50 per cent, Cu 90 per cent, and Ni and Co in sulphide 90 per cent. The assumed smelter recoveries used in the PtEq formula are Pt 85 per cent, Pd 85 per cent, Rh 85 per cent, Au 85 per cent, Ag 85 per cent, Cu 85 per cent, Ni 90 per cent and Co 50 per cent. 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 equals Ni minus (MgO per cent times 60.35 minus 551.43). The regression formula for cobalt in sulphide (CoSx) is: CoSx equals Co minus (MgO per cent times 4.45 minus 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;
- Develop a global resource estimate for the Thunder Bay North project.
Work package 2 (WP2) early trade-off studies
The WP2 early trade-off 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;
- Simplified, pretax cash flow analysis to be included in applicable trade-off studies.
Quality assurance/quality control
Clean Air Metals uses ALS Global, a well-established and recognized mineral assay and geochemical analytical services company. The Thunder Bay laboratory holds International Organization for Standardization 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 eight holes in a table on the company's website. Selected core intercepts from historic (RT) holes in a table on the company's website were relogged and resampled and compared with historic data. Andrey Zagoskin, PGeo, Ontario, a qualified person under National Instrument 43-101 and employee of the company, led the validation exercise and has approved the assay results in a table on the company's website.
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, Ont., under custody of Clean Air Metals' personnel at all times. Sample preparation is completed at the ALS sample preparation facility located in Thunder Bay, Ont., 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-per-cent-to-12-per-cent 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, 33 elements of each sample, including copper, nickel, silver, chromium, cobalt and sulphur, are analyzed by a multielement 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 reanalyzed using a high-grade method consisting of either ICP-AES or atomic absorption spectrometry (AAS) techniques.
COVID-19 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 set-up 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 interprovincial 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 have been deemed an essential service in the province of Ontario. 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.
Allan MacTavish, PGeo, a qualified Person under National Instrument 43-101 and vice-president, project manager of the company, has reviewed and approved all technical information in this press release.
About Clean Air Metals Inc.
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. Clean Air Metals' wholly owned subsidiary, Panoramic PGMs (Canada) Ltd., is a signatory to a communication protocol between the parties.
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