Clean Air Metals shares rise on new Thunder Bay North resource

Clean Air Metals‘ (TSXV: AIR; US-OTC: CLRMF) shares ended the day 14% higher after the junior posted an updated resource for its Thunder Bay North critical metals project, where it’s working towards a prefeasibility study.

The Current and Escape deposits, both of which exhibit a roughly 1:1 platinum to palladium ratio, are included in the estimate. 

The Current deposit contains an indicated resource of 8.2 million tonnes grading 2.7 grams platinum plus palladium (2PGE) per tonne, 0.33% copper, and 0.22% nickel. The inferred resource is 1.6 million tonnes grading 1.7 grams 2PGE, 0.32% copper and 0.2% nickel. The contained metals in the indicated portion include 717,000 oz. 2PGE, 59.5 million lb. copper, and 39 million lb. nickel. 

The Escape deposit contains 5.8 million indicated tonnes grading 2.6 grams 2PGE per tonne, 0.52% copper, and 0.28% nickel. The inferred resource is 600,000 tonnes at 1.5 grams 2PGE, 0.29% copper, and 0.17% nickel. Contained metals in the indicated portion of the Escape deposit include 492,000 oz. 2PGE, 67 million lb. copper, and 36.4 million lb. nickel. 

According to a December 2021 preliminary economic assessment, a 3,600-tonne-per-day development at Thunder Bay North would cost $367.2 million and generate an after-tax net present value of $378.4 million (at a 5% discount rate) and an internal rate of return of 29.8%.

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 said it will now focus on a new economic study for Current and Escape to include potential mining rates, sequencing, geotechnical analysis, and updated metallurgical recoveries. 

The estimate was based on underground mining using a net smelter return cut-off value of US$48 per tonne with prices of US$1,500 per oz. palladium, US1,450 per oz. platinum, US$24 per oz. silver, US$1,800 per oz. gold, US$4.25 per lb. copper, and US$10 per lb. nickel. 

Rhodium and cobalt present in the deposits are not considered payables, but they are potentially valuable byproduct credits at Thunder Bay North, which is located 60 km southeast of the Lac des Iles palladium mine owned by Impala Canada.

Clean Air shares gained 1¢ on the day to close at 8¢, giving the company a $16.8-million market cap. The stock has traded in a 52-week window of 4¢ and 24¢.