JV article: Clean Air Metals a ‘Made in Canada’ solution

Clean Air Metals (TSXV: AIR; US-OTC: CLRMF) is advancing one of the rare primary platinum resources outside of South Africa at its Thunder Bay project in northern Ontario.

The platinum-palladium-copper-nickel project, 40 km northeast of the city of Thunder Bay on Lake Superior, consists of shallow-dipping sister deposits, Escape and Current. They’re about 2.5 km apart.

“They are both magmatic intrusions and may have the same source, although that’s highly speculative,” says CEO Mike Garbutt.

A preliminary economic assessment (PEA) of the project in October envisioned a near-surface, ramp-access underground operation producing 2,500 tonnes per day over 11 years.

The Current deposit would be accessed first via a portal from surface with production at Current starting within the first year. The main ramp would continue to the Escape deposit with production starting in year four.

32% return

The PEA outlined an after-tax net present value (at an 8% discount rate) of $157.5 million (C$113 million) and an after-tax internal rate of return of 32%. Initial capital was pegged at $89.5 million with capital payback estimated at 2.5 years.

For now, the company is examining potential toll milling options at nearby facilities, such as Impala Canada’s Lac des Iles, about 70 km to the north. But if metal prices continue to rise, Garbutt says the company will take a hard look at building its own mill.

The two deposits host 14.9 million indicated tonnes grading 1.3 grams platinum per tonne, 1.36 grams palladium per tonne, 0.4% copper, 0.24% nickel, 0.1 gram per tonne gold and 2.51 grams silver per tonne (2.66 grams PGE2). Inferred resources measure 2.49 million tonnes averaging 0.81 gram platinum, 0.8 gram palladium, 0.31% copper, 0.19% nickel, 0.07 gram gold and 1.81 grams silver (1.62 grams PGE2).

Downhole geophysics being performed by Crone Geophysics at the Current deposit.  Credit:  Clean  Air Metals

“If you look at undeveloped assets in PGEs, you don’t see many with the platinum grades we have,” says Garbutt. “And when you throw in the copper and palladium values, that really drives potential value for investors and makes this asset shine.”

1/3 copper

While platinum is the main opportunity at Thunder Bay North, with the metal constituting about 40% of the project’s value at current prices, copper makes up about one-third of the value and nickel roughly 10%.

“The copper market is taking off with global electrification and concerns about supply, but we haven’t really tapped into our copper story yet. ”In October, the company confirmed that the Escape deposit continues down-plunge into a previously untested 2.5 km long magnetic anomaly that connects to the known resource, suggesting the potential for a significantly longer life.

Hole EL25-001 intersected the mineralized conduit system that hosts Escape and returned 53 metres grading 0.52 gram platinum, 0.69 gram palladium, 0.26% copper and 0.17% nickel from 404.4 metres downhole. It included 11 metres of 1.08 grams platinum, 1.41 grams palladium, 0.52% copper and 0.24% nickel from 430 metres.

“A big thing for a lot of mines is resource replacement, and both deposits have this opportunity at scale,” Garbutt says. “This down-plunge potential could and should get some attention from senior mining companies.”

Rising prices

Since the PEA came out in the third quarter of 2025, platinum prices have jumped by about 60% and palladium prices roughly 40%, Garbutt says. Platinum ended 2025 at $2,067 per oz., up from $915.50 per oz. at the end of 2024, while palladium rose to $1,615 per oz. from $915 per ounce.

“Platinum has had good fundamentals for a year or more and it’s simply supply and demand,” he says. “There isn’t a whole lot of supply from primary mines and recycling hasn’t got its act together.”

What’s more, a lot of supply is from South Africa, where grades are declining, infrastructure is aging and costs are increasing.

VP of Exploration, Lionnel Djon inspects core at the project core yard.  Credit: Clean Air Metals

On the demand side the fundamentals are good. Platinum group metals are used in catalytic converters to transform vehicle exhaust into less toxic gases. They are used in both conventional combustion engines and in plug-in and hybrid vehicles.

“What people don’t understand is it’s not just combustion engines that need these metals,” he says. “And in some cases, there is more demand for PGEs from plug-ins and hybrids.”

Gold substitute

In addition to strong demand for platinum jewelry and for use as a catalyst in chemical production across Asia, he adds, the metal, particularly in China, is viewed as a good investment and a less expensive store of value than gold. In November, China launched its first platinum and palladium futures trading platform, the Guangzhou Futures Exchange. 

“Chinese investors started gobbling up massive volumes and that’s driven part of the price speculation in the last month,” Garbutt says. This year, Clean Air Metals will continue to seek permits for advanced exploration with the potential to a ramp into the Current deposit for a bulk sample. In parallel, it will undertake additional geophysics to support drilling to expand the down-plunge mineralization at Escape. The company will advance metallurgical test work for toll milling and will consider advancing technical studies to the next stage.

For Garbutt, the low-risk, near-surface project just a 40-minute drive from Thunder Bay is a compelling development case and presents an opportunity to advance efficiently in partnership with First Nations.

“If you look at what’s been developed out there, for the most part it’s multi-billion-dollar projects but there’s got to be a space in critical minerals in this province and in this country for support to small and medium-sized assets to get them going,” he says. “They are a critical part of Canada maintaining its position as a leader in mineral production and development. We have a ‘Made in Canada’ solution right here.”

The preceding Joint Venture Article is PROMOTED CONTENT sponsored by Clean Air Metals and produced in co-operation with The Northern Miner. Visit: www.cleanairmetals.com for more information.