Clean Air Metals advances Thunder Bay North towards resource update, prefeasibility

Clean Air Metals (TSXV: AIR; OTC: CLRMF) has released new assay results from the 2022 drill campaign at both the Escape and Current PGE (platinum group elements)-copper-nickel deposits, part of the company’s Thunder Bay North project located in Ontario. The company is advancing the project toward a resource update later this year and a prefeasibility study in mid-2023.

Three drill holes from the 2022 program were highlighted. Metallurgical bulk sample hole CLM22-007 intersected 19 metres grading 3.92 grams platinum per tonne, 3.9 gram palladium, 0.98% copper and 0.56% nickel, including 13.4 metres grading 5.06 grams platinum, 5.14 grams palladium, 0.98% copper and 0.56% nickel.

Those results support the grade profile of the production area in the first four years of the mine plan outlined in the preliminary economic assessment, the company said. 

The project is about 50 km northeast of the city of Thunder Bay, in northern Ontario.

Hole CLM22-008 returned 37.8 metres grading 2.91 grams platinum, 2.8 grams palladium, 0.7% copper and 0.39% nickel, including 19.2 metres grading 4.25 grams platinum, 4.14 grams palladium, 0.99% copper and 0.55% nickel. Hole CLM22-010 had 22.6 metres grading 2.33 grams platinum, 2.17 grams palladium, 0.62% copper and 0.41% nickel.

“The drilling assay results are in line with expectations for peer-leading mill head grade in the first seven years of mining at Thunder Bay North. Considerable upside exploration potential for massive sulphides outside the [assessment]  production area remains at the base of the Escape and Current magma conduits along the Escape Lake fault,” said Clean Air CEO Abraham Drost. The company is expanding its work permit footprint to accommodate a drill program on these targets this winter. 

In addition to metallurgical drilling, Clean Air is conducting a 17,000-metre expansion drill program this year at Thunder Bay North.

It expects to release a prefeasibility study in May or June 2023, with environmental baseline fieldwork, engineering studies and hydrogeological drilling test work all under way.

As outlined in the December 2021 assessment, the Thunder Bay North project features a ramp access underground mine and an on-site 3,600-tonne-per-day milling complex that boasts an after-tax net present value of $378.4 million and internal rate of return of 29.8% (at a 5% discount rate).

During an estimated 10-year mine life, total metal production would reach 629,000 oz. platinum, 618,000 oz. palladium, 111 million lb. copper and 57 million lb. nickel, plus 38,000 oz. gold and 850,000 oz. silver.

Clean Air shares were trading at 19¢ as of late afternoon Thursday in Toronto and have traded in a 52-week window of 14¢ and 30¢. It has a market cap of $42 million.