Thunder Bay, ON, June 17, 2020 – Clean Air Metals Inc. (“Clean Air” or the “Company”) (TSXV: AIR; Q: CLRMF) is pleased to announce new assays from the Phase 1 minimum 10,000m diamond drilling campaign on the Escape Lake Intrusion portion of its Thunder Bay North Project announced May 22, 2020. Two holes from the current Phase 1 drill program previously announced by the Company are combined with results from six fully validated and previously unreported drill holes obtained from the former project operator (Table 1). The Company will host an Investor Update Webinar today June 17, 2020 at 11amET to discuss these results. See details and Registration Link below.
Highlight intercepts include Clean Air Hole ELR20-003 which intersected 78.9m of 1.66ppm (g/t) Platinum, 2.17ppm (g/t) Palladium, 0.8% Copper and 0.41% Nickel, including 20.0m of 3.3ppm (g/t) Platinum, 4.49ppm (g/t) Palladium, 1.54% Copper and 0.84% Nickel. A previously unreported and fully validated historic Drill Hole 12CL0009 reported an assay interval of 33.4m of 3.01ppm (g/t) Platinum, 4.08ppm (g/t) Palladium, 1.49% Copper and 0.77% Nickel.
Table 1 Assay Results from Phase 1 Drilling – Escape Lake Zone, Thunder Bay North
- All intercepts are estimated to be 95% of true width based on drill hole inclination
- Mineralized intervals calculated at 1 ppm Pt+Pd cutoff
- Mineralization open in all directions
Phase 1 drilling by the Company will consist of approximately 15-20 drill holes of 500-600m each, nominally on 50m centers designed to discover limits of the Escape Lake Zone mineralization, which remains open in all directions (Figure 1).
Figure 1 Phase 1 Drill Target Area – Escape Lake Zone, Thunder Bay North
The Escape Lake Zone mineralization is located at approximately 400m vertical depth within the Escape Lake Intrusion (Figure 2) and is open geologically. The objective of the Phase 1 program is to define the magnitude of the Escape Lake Zone and the full strike length of the mineralized area as a precursor to future calculation of a mineral resource estimate of the Escape Lake horizon.
Figure 2 3D Oblique View – Escape Lake Zone, Thunder Bay North
Abraham Drost, CEO of Clean Air Metals Inc. stated that “assays from Clean Air’s initial two holes in Phase 1 drilling suggests a new Platinum-Palladium-Copper-Nickel discovery at Escape Lake. The historic drill results were never publicly reported. These are the Company’s first confirmatory assay results since acquiring the Project on May 14, 2020, coming back to trade as Clean Air Metals Inc. on May 22, 2020 and commencing Phase 1 drill testing of what has up to this point been known locally as the Escape Lake High Grade Zone.”
“The emerging picture is that of a body of mineralization that is open laterally and along strike, contained in a mafic-ultramafic intrusion and magma conduit system. Given the $6.7M flow-through financing the Company closed yesterday, we are in a position to pursue our 2020 exploration objectives with vigor. The Company is presently executing Phase 1 drilling on the Escape Lake magma conduit and planning targeted geophysics to search for high tenor massive sulphides which have previously been identified on the Thunder Bay North Property.”
Quality Assurance/Quality Control
Clean Air Metals uses ALS Global (“ALS”), a well-established and recognized mineral assay and geochemical analytical services company. The Thunder Bay laboratory holds ISO-9000 accreditation; the Vancouver facility holds ISO-17025 registration.
Quality assurance and quality control (QA/QC) statistical checks were performed on original, ALS-certified analytical data for all 8 holes in Table 1. Selected core intercepts from historic (RT) holes in Table 1 were relogged and resampled and compared with historic data. Mr. Andrey Zagoskin, P.Geo., Ontario, a Qualified Person under National Instrument 43-101 (“NI 43-101”) and employee of the Company, led the validation exercise and has approved Table 1 assay results.
All NQ-sized drill core is cut with a diamond-tipped saw blade with half of the core submitted to ALS for sample preparation and analysis. Core samples from selected intervals are individually bagged and tagged, gathered up in larger sealed poly bags and shipped to the sample prep facility in Thunder Bay, ON under custody of Clean Air personnel at all times. Sample preparation is completed at the ALS sample preparation facility located in Thunder Bay, ON and analysis is completed at the primary ALS assay laboratory located in Vancouver, B.C.
Clean Air follows a documented quality control procedure for its core assay sampling program consisting of the insertion of blind blanks, duplicates, and certified Palladium-Platinum and Copper-Nickel standards into the sample stream. The insertion procedure results in a minimum of 11% to 12% control sample frequency depending on the length of the sampled interval.
Gold, platinum, and palladium are analysed using fire assay (FA) with an inductively coupled plasma mass spectrometry (ICP-MS) finish. Samples with grades above the optimal ICP-MS detection limits are analysed using an optical emission spectroscopy method (ICP-OES).
Also, thirty-three (33) elements of each sample, including copper, nickel, silver, chromium, cobalt, and sulphur, are analyzed by a multi-element analytical method using the atomic emission spectroscopy (ICP-AES) technique following four-acid digestion of the sample. When samples have grades above the optimal detection limits for this analytical method, they are re-analysed using a high-grade method consisting of either ICP-AES or atomic absorption spectrometry (AAS) techniques.
The Escape Lake Intrusion and magma conduit which is the Company’s focus in Phase 1 drilling (Table 1), appears to be a standalone, separate twin structure to the Current Lake Intrusion and magma conduit on the Thunder Bay North Project (Figure 3) on which there exists a historic estimate of 9.8 million Tonnes (Indicated). The Historic Estimate is from Open Pit and Underground sources (Table 2).
Figure 3 3D Oblique View of Current Lake and Escape Intrusive Complex Lithology Shells of Magma Conduits
The historic estimate of the Current Lake Deposit at the Thunder Bay North Project is considered by Clean Air to be historic in nature. No Qualified Person as defined by NI 43-101 has done sufficient work for Clean Air to classify the historic estimate of the Current Lake Deposit as current and the Company is not treating the historic estimate as current. The Company's QP has verified the data but no resampling of core or any other tests on the analytical procedures has yet been performed by the Company to-date. Confirming the historic estimate at Current Lake will be a concurrent priority for Clean Air Metals Inc.
Thunder Bay North Open Pit Historic Estimate
The open pit Historic Estimate is reported at a cut-off grade of 0.59 g/t Pt-Eq within a Lerchs-Grossman pit shell optimized on Pt-Eq. The strip ratio (waste: ore) of this pit is 9.5:1. The platinum-equivalency formula is based on assumed metal prices and overall recoveries. The Pt-Eq formula is: Pt-Eq g/t = Pt g/t + Pd g/t x 0.3204 + Au g/t x 0.6379 + Ag g/t x 0.0062 + Cu g/t x 0.00011 + Total Ni g/t x 0.000195 + Total Co g/t x 0.000124 + Rh g/t x 2.1816. The conversion factor shown in the formula for each metal represents the conversion from each metal to platinum on a recovered value basis. The assumed metal prices used in the Pt-Eq formula are: Pt US$1,595/oz, Pd US$512/oz, Au US$1,015/oz, Ag US$15.74/oz, Cu US$2.20/lb, Ni US$7.71/lb, Co US$7.71/lb and Rh US$3,479/oz. The assumed combined flotation and PlatsolTM process recoveries used in the Pt-Eq formula are: Pt 76%, Pd 75%, Au 76%, Ag 55%, Cu 86%, Ni 44%, Co 28% and Rh 76%. The assumed refinery payables are: Pt 98%, Pd 98%, Au 97%, Ag 85%, Cu 100%, Ni 100%, Co 100% and Rh 98%.
Thunder Bay North Underground Historic Estimate
The underground Historic Estimate is reported at a cut-off grade of 1.94g/t Pt-Eq. The Pt-Eq formula is: Pt-Eq g/t = Pt g/t + Pd g/t x 0.2721 + Au g/t x 0.3968 + Ag g/t x 0.0084 + Cu g/t x 0.000118 + Sulphide Ni g/t x 0.000433 + Sulphide Co g/t x 0.000428 + Rh g/t x 2.7211. The assumed metal prices used in the Pt-Eq formula are: Pt US$1,470/oz, Pd US$400/oz, Rh US$4,000/oz, Au US$875/oz, Ag US$14.30/oz, Cu US$2.10/lb, Ni US$7.30/lb and Co US$13.00/lb. The assumed process recoveries used in the Pt-Eq formula are: Pt 75%, Pd 75%, Rh 75%, Au 50%, Ag 50%, Cu 90%, and Ni and Co in sulphide 90%. The assumed smelter recoveries used in the Pt-Eq formula are Pt 85%, Pd 85%, Rh 85%, Au 85%, Ag 85%, Cu 85%, Ni 90% and Co 50%. Ni and Co in sulphide were estimated by linear regression of MgO to total Ni and total Co respectively. The regression formula for Ni in sulphide (NiSx) is: NiSx = Ni - (MgO% x 60.35 - 551.43). The regression formula for Co in sulphide (CoSx) is: CoSx = Co - (MgO% x 4.45 - 9.25).
Clean Air Metals Inc. has adopted COVID-19 avoidance and personal protection measures for its geological staff, drilling contractor and service suppliers. Personnel are required to maintain physical distance, self-monitor and self-isolate or elect to work from home. Management had previously eliminated plans for a camp setup to service a planned diamond drill campaign on the Escape Lake Project. The Company is aware of Thunder Bay Health Unit guidelines that provide for “mandatory” self-isolation for returning overseas and inter-provincial travel. The guidelines previously also “strongly recommended” self-isolation after travel into the Northwest region from other areas of the Province. Mineral Exploration and Development has been deemed an essential service in the Province of Ontario
(http://www.netnewsledger.com/2020/03/23/ontario-covid-19-business-allowed-toremain-open-list-march-23-2020/). The Company has procured the services of a locally staffed and serviced diamond drilling contractor to complete the Phase 1 diamond drilling program.
Mr. Allan MacTavish, P.Geo. a Qualified Person as such term is defined under NI 43-101, and an employee of the Company, has reviewed and approved all technical information in this press release.
As previously announced and subject to acceptance by the TSX Venture Exchange, the Company has entered into an agreement to retain the services of Independent Trading Group (“ITG”). ITG assists Clean Air in expanding its visibility through marketing making. Under the terms of the Agreement, ITG provides capital markets advice and market making services to the Company for an initial six-month term. ITG, which is Canada’s only brokerage firm dedicated exclusively to professional trading, employees a large resource base and investment tools to not only maintain liquidity for stocks of clients but also opens the door to a variety of investment opportunities.
Clean Air Metals Inc. and its wholly-owned subsidiary Panoramic PGMs (Canada) Ltd. acknowledge that the Escape Lake Property is on the traditional territory of the Fort William First Nation and the Red Rock First Nation, signatories to the Robinson-Superior Treaty of 1850.
Investor Update Webinar
Please join Abraham Drost, CEO, and Jim Gallagher, Executive Chairman, TODAY, June 17th, 2020 at 11:00 AM Eastern Time (US and Canada) to discuss the initial results from our ongoing drill program, followed by a question and answer period.
Date: Wednesday, June 17, 2020
Time: 11:00 AM (EST)
Registration Link: Clean Air Metals (TSXV: AIR) Investor Update
After registering, you will receive a confirmation email containing information about joining the webinar. Questions may be asked during the webinar, or can be emailed in to email@example.com. A replay will be made available on the Clean Air website.
ON BEHALF OF THE BOARD OF DIRECTORS
Abraham Drost, Chief Executive Officer of Clean Air Metals Inc.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
The information contained herein contains "forward-looking statements" within the meaning of applicable securities legislation. Forward-looking statements relate to information that is based on assumptions of management, forecasts of future results, and estimates of amounts not yet determinable. Any statements that express predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance are not statements of historical fact and may be "forward-looking statements." Forward-looking statements are subject to a variety of risks and uncertainties which could cause actual events or results to differ from those reflected in the forward-looking statements, including, without limitation: risks related to the TSXV listing, risk related to the failure to obtain adequate financing on a timely basis and on acceptable terms; risks related to the outcome of legal proceedings; political and regulatory risks associated with mining and exploration; risks related to the maintenance of stock exchange listings; risks related to environmental regulation and liability; the potential for delays in exploration or development activities or the completion of feasibility studies; the uncertainty of profitability; risks and uncertainties relating to the interpretation of drill results, the geology, grade and continuity of mineral deposits; risks related to the inherent uncertainty of production and cost estimates and the potential for unexpected costs and expenses; results of prefeasibility and feasibility studies, and the possibility that future exploration, development or mining results will not be consistent with the Company's expectations; risks related to commodity price fluctuations; and other risks and uncertainties related to the Company's prospects, properties and business detailed elsewhere in the Company's disclosure record. Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in forward-looking statements. Investors are cautioned against attributing undue certainty to forward-looking statements. These forward-looking statements are made as of the date hereof and the Company does not assume any obligation to update or revise them to reflect new events or circumstances, except in accordance with applicable securities laws. Actual events or results could differ materially from the Company's expectations or projections.