PEA of the Current and Escape PGE-Cu-Ni Deposits Thunder Bay, Ontario--(Newsfile Corp. - December 1, 2021) - Benton Resources Inc. (TSXV: BEX) ("Benton") is pleased to announce it has been advised that Clean Air Metals Inc. ("Clean Air") has announced results from an independent Preliminary Economic Assessment (PEA) that was completed for its Thunder Bay North Platinum Group Element (PGE) - Copper (Cu) - Nickel (Ni) Project near Thunder Bay, Ontario, Canada. The PEA was prepared by Nordmin Engineering Ltd. ("Nordmin") of Thunder Bay, Ontario, and includes provision for a stand-alone milling complex and waste storage facility to process mill feed from both the Current deposit and the Escape deposit, part of the Thunder Bay North Project Mineral Resource Estimate.
PEA highlights include:
- The Project has a pre-tax net present value (NPV) of $425.0 million, and after-tax NPV of $378.4 million, at a 5% discount rate.
- The pre-tax internal rate of return (IRR) is 31.1%, and the after-tax IRR is 29.8%.
- The capital payback is 2.4 years from start of production.
- Revenue's average $239.8 million per year from sale of PGE and Copper mineral concentrates.
- Total mined metal production over a 10-year mine life based on the present resource base is expected to be 629 k oz Platinum, 618 k oz Palladium, 111 M pounds Copper, 57 M pounds Nickel, 38 k oz Gold, 850 k oz Silver, or 2,886 k oz PtEq.
- 65.2% of total mineral production occurs in the first 5 years.
- Operating margin of 59% in the first 5 years and Life-of-Mine Operating margin of 53%.
- The Project is located in close proximity to key infrastructure near the City of Thunder Bay, Canada.
- Base case economics were calculated using a 2-yr trailing average metal price deck.
Readers are advised that Clean Air has not made a production decision at the Thunder Bay North Project and there is no guarantee that a production decision will be made or that the production rates at the Thunder Bay North Project will be achieved. There are currently no Mineral Reserves for the Thunder Bay North Project. The information reported in the PEA for the Project is preliminary in nature and includes Inferred Mineral Resources that are considered too speculative geologically to have economic considerations applied to them that would enable them to be categorized as Mineral Reserves. Inferred Mineral Resources are based on limited geological evidence and sampling. The tonnage and grade of Inferred Mineral Resources have significant uncertainty as to their existence and as to whether they can be mined economically. There is no certainty that results for the PEA for the Project will be finally realized.
Readers are encouraged to view the announcement in its entirety at:
https://www.cleanairmetals.ca/news-media/news-releases/clean-air-metals-announces-a-pea-of-the-current-an-122539/
Executive Chair of Clean Air Jim Gallagher, P.Eng. stated: "The initial PEA for the Thunder Bay North Project brings together two previously independent deposits into one mining plan which is relatively low risk, low capital, quick to production and generates robust financial metrics. Given the significant potential upside with continued exploration drilling along the known conduits and with the already identified massive sulphide targets we believe that this PEA is a minimum base case that Clean Air Metals will continue to attempt to de-risk towards prefeasibility."
CEO of Clean Air Abraham Drost, P.Geo., stated that "the PEA sets a mine plan that allows the Company to move forward with several de-risking objectives. These include:
- converting mine plan-impacted unpatented mining claims to mining leases;
- engaging with regulators toward early commencement of the mine permitting process;
- continuation of the environmental impact studies (EIS) led by Englobe/DST Engineering;
- commencement of prefeasibility technical studies including optimization and tradeoffs around mining, metallurgy and mill design; and
- negotiation of Impact and Benefit agreements with affected First Nations and Mtis."
Stephen Stares, President and CEO of Benton stated: "Within a very efficient time frame, the Clean Air team has systematically advanced these deposits into a very exciting and prospective production scenario. Benton couldn't be more pleased with their progress to date and anticipates more positive developments ahead as they continue to de-risk the project and demonstrate its robust economics. As a significant shareholder of Clean Air and underlying royalty holder, we feel this equity stake offers our shareholders significant value through Benton's exposure to a quality development opportunity that is being advanced by a first-class team of mining industry professionals. We wish them success on the road ahead."
Benton continues to hold approximately 24.6 million shares in Clean Air Metals Inc. In addition, Benton retains a 0.5% net smelter return royalty from production on the Escape Lake portion of the project and a 0.5% net smelter return royalty from production on any mineral claims comprising the original Thunder Bay North portion of the project on which a net smelter royalty has not previously been granted.
About Benton Resources Inc.
Benton Resources Inc. is a well-funded mineral exploration company listed on the TSX Venture Exchange under the symbol BEX. Following a project generation business model, Benton has a diversified, highly-prospective property portfolio in Gold, Silver, Nickel, Copper, and Platinum Group Elements and currently holds large equity positions in other mining companies that are advancing high-quality assets. Whenever possible, BEX retains Net Smelter Return (NSR) royalties for potential long-term cash flow. Benton has also recently entered into a 50/50 strategic alliance with Sokoman Minerals Corp. (TSXV: SIC) through three large-scale joint venture properties including Grey River Gold, Golden Hope and Kepenkeck in Newfoundland that are now being explored.
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