New Age Metals consists of two green metal Divisions;
- Largest undeveloped Platinum Group Metals (PGM) Project in North America. Why is this a Green Metal? Because Platinum/Palladium are primarily used in Catalytic Converters to reduce emissions from Machinery that have exhausts.
- Lithium Division with eight 100% owned Projects, the largest land-owner in the Winnipeg Pegmatite field (100% financed by our Option/JV partner).
SFA Oxford, a think tank and research firm for the PGM Industry have recently predicted increased global demand and a much more limited supply of PGM’s. SFA have also forecasted increased prices for PGM’s due to higher worldwide demand and ever-increasing mining costs in South Africa, which is a primary producer of PGM’s.
Investors following the energy vehicle (EV) market are aware of the increasing demand for Lithium primarily driven by the battery and battery storage markets. Analysts familiar to this industry are predicting lithium price increases based on supply issues and ever-growing demand from the battery industries. Research firm GlobalData forecasts Lithium demand will more than doublewithin four years.
New Age Metals (TSX: V.NAM, OTCQB: NMTLF,Forum), a Junior exploration and development Company has two separate green metal strategies, one for each of its divisions plans to help to help meet the upcoming demand for these strategic minerals:
- Platinum Group Metals (PGM): The River Valley Project is the largest undeveloped primary PGM deposit in North America. In Alaska, NAM recently acquired its new 100% owned Genesis PGM/Base Metals Project.
- Lithium Canada Development: Eight 100% owned Lithium projects located approx. 125km NE of Winnipeg, Manitoba.
Located in Sudbury Ontario’s mining district, the 100%-owned River Valley PGM Project is NAM’s flagship operation. The project is North America’s largest undeveloped primary PGM deposit with measured and indicated mineral resources of 3.297 Million PGM+Gold Ounces, along with 1,578,367 Ounces in the Inferred Category. In terms of Palladium Equivalent Ounces, we have 4.626 Million Ounces in the Measured + Indicated category and 2.713 Million Ounces in the Inferred category. As of today’s date (Sept 21, 2018) Palladium was valued at (USD) $1047 or approximately $1361 per Ounce using a 1.30 CAD conversion factor.
The project’s exploration and development program is based on recommendations of previous geophysical studies and reviews by the company’s consultants, recent drilling, ongoing advanced metallurgical and mineralogy studies and selective pit design drill programs.
Approximately 45 million has been expended in exploration and development on the River Valley Project to date, and it is now ready for its first economic study. P&E Mining Consultants Inc and DRA Americas Inc have been selected to complete the projects first economic study, a preliminary economic assessment (PEA).
This combination of two green metal assets sets NAM apart, but what differentiates the Company is its senior technical and financial management team. The team is led by CEO Harry Barr, who brings more than 35 years of mining industry experience and his extremely technical board of directors adds an additional 200 years of mining and exploration development and expertise. The NAM team is specifically focused on acquisition, finance and development of mineral projects on an international scale. As CEO, Barr has guided his management teams to complete more than 300 option / joint venture agreements with major, mid-tier, and junior mining companies and raised over 300 million in funding.
Stockhouse Editorial recently caught up with CEO Barr to talk about where New Age Metals fits in with the surging supply and demand for PGM’s and Lithium.
Thank you for taking the time to speak with us. Given your experience in the industry, what do you make of the media frenzy over EVs and the Lithium demand? Do you expect it to be as massive as predicted?
Given the fact NAM has two mineral personalities, I sometimes get caught between investors who believe the electric car industry will completely decimate the traditional automobile industry which consist of combustion engines and their need for Platinum/Palladium auto-catalyst’s. My belief based upon following these two industries for many years is that we are 30-50 years away from the electric car industry dominating market share. For electric cars to be everywhere, there is going to need to be charging stations everywhere, and that sort of infrastructure will take time. Would you try to drive an Electric Car across Canada?
It is feared there won’t be sufficient quantities of PGMs and Lithium in the ground to meet this demand, do you believe this to be true?
Our PGM consultants (SFA Oxford) a think tank and extremely proficient group regarding PGM’s have recently produced two reports for us about the supply and demand of PGM’s over the next 10-20 years. Their research points to increasing production costs in South Africa, one of the worlds’ largest producers of PGM’s due to increased depth of mining, labour costs, and political uncertainty. Increasing worldwide demand for these industrial and precious metals were also highlighted in their research, which pointed to higher demand of automobiles and the industrialization of emerging third-world economies.
In regards to Lithium, there is no doubt that our new world is driven by devices that require Lithium for their battery needs. At this point, Canada has no producing mines but shortly should have at least one and possible two in production. Many mining industry experts believe that Canada has vast potential in finding new hard-rock lithium projects.
NAM operates the largest undeveloped primary PGM deposit in North America, the River Valley Project, can you break down for investors the potential you’re sitting on?
Our recent NI-43101 resource calculation speaks for itself. We are currently completing the projects first economic study and our objective is to build a series of open-pit mines, mine, mill and concentrate on site and ship the concentrate to a Sudbury mining complex. There is no other advanced stage mineral project of this kind in North America which also has one of the best infrastructure in terms of road, power and nearby metallurgical complexes.
The Company recently announced that it is actively seeking an option/joint-venture partnerfor the Genesis Project in Alaska, what kind of ideal partner are you looking for?
Our newly acquired Genesis property is a PGM project with an exceptional Alaskan infrastructure and along with its PGM’s, we also have important Copper and Nickel credits. This project is drill ready, and our company will utilize the prospector generator model to attract a major/mid-tier/junior mining company to partner with NAM and advance Genesis via a Option/Joint Venture Contract.
With one of your JV partners, Azincourt, you sampled Li2O and pegmatites at your Manitoba Lithium Project , what did these results indicate?
This year’s focus is on five of our eight projects, however our primary focus has been on Lithium Two and Lithium One. Both of these projects have large Pegmatites. In Lithium exploration, the first objective is to find a Lithium Pegmatite, the second is to find Spodumene Minerals in the Pegmatite, and third and most important is to find sufficient Lithium mineralization to eventually have a economically viable project. Lithium Two has not been drilled since the 1950’s, but at that time had a non NI43-101 resource identified. Lithium One had several Pegmatites identified in the 1940’s and 1950’s and at one point earlier in time had a Spodumene mine. We currently have completed successful rounds of mapping and surface sampling, currently we have two drilling applications in to the Manitoba Government. Our goal is to begin blocking out resources on these two Lithium projects. Over a short period of time we plan to develop additional drill targets on our other projects.
Can you elaborate on why NAM hired P&E Consultants and DRA Americas Inc.?
The above companies are both geological and engineering consultants and have the relevant experience to complete our Preliminary Economic Assessment (PEA). P&E was selected because they have completed over 350 PEA’s and DRA Americas were selected because of their extensive PGM experience and the fact that their company builds the majority of the worlds Platinum concentrators.
You recently closed a private placement for more than $1.3 million, what will this go towards?
The previously mentioned PEA is our primary focus, but we are also completing an extensive geophysical program. The program is being analyzed by a top Geophysicist, and surface exploration and bull-dozer trenching is being conducted on 10 newly discovered geo-physical anomalies. The results from all of the above will be analyzed and a three-phase drill program which will be focused on the northern portion of the property. The drilling will take place in 2019.
Looking into the near future, what is next in terms of the PEA for River Valley?
Currently part of the PEA will be downsizing the global resource of our project to a mineable resource, they will look at pit-wall designs for a series of open pits. Mineralogical, Metallurgical studies will be incorporated and most importantly the PEA will look at the economic viability of the project. Our objective is to have the PEA concluded by the second Quarter of 2019.
Can you update our readers about near-term plans for the Genesis Projects?
This fall, on Genesis we will complete a surface-sampling program whose objective will to be to study the mineralized reef which was identified in outcrop for 850m along strike and which is to date 40m in true thickness. Platinum group metals of up to 2.5 grams Pd and 2.8 grams Pt have been identified, the project has associated Nickel (Ni) samples as high as 0.96% and Copper (Cu) samples of 0.58%. Our plan is to continue to build on our existing drill targets, and by the end of 2019 find a financial partner to further develop Genesis.
Any final thoughts for investors?
Often, I am asked what distinguishes New Age Metals from other Junior Explorers? My answer, is… what other Junior Explorer do you know of in the Lithium industry also have a PGM Division? How many explorers own 100% of North America’s largest undeveloped primary PGM project? Simply stated, my point is by being a shareholder of NAM you will be able to be a part of the growth of a company that is focused on two strategic green metal divisions.
FULL DISCLOSURE: New Age Metals Inc. is a paid client of Stockhouse Publishing.