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Clean Air Metals releases new drill results from Escape deposit Steepledge extension at Thunder Bay North, which augur well for resource update

Published: 08:43 31 Mar 2022 EDT

Clean Air Metals Inc -
Late last year, the company announced an independent preliminary economic assessment (PEA) on the Current and Escape deposits at the company's Thunder Bay North asset, which showed an after-tax net present value (NPV) of C$378.4 million, using a 5% discount rate, as well as an after-tax internal rate of return (IRR) of 29.8%

Clean Air Metals Inc (TSX-V:AIR, OTCQB:CLRMF) has unveiled new drill results from this year's drilling at the Escape platinum group elements (PGE)-copper-nickel deposit at its flagship Thunder Bay North project in Ontario, which augur well for a resource update.

The latest assays hail from the Steepledge extension of the deposit and highlights include an intersection of 15 metres (m) at a grade of 1.73 grams per ton (g/t) platinum, 1.92 g/t palladium, 0.70% copper and 0.30% nickel (Ni) starting from 237.5m depth in one hole.

That intercept included a length of 2.8m grading 2.86 g/t platinum, 3.05g/t palladium, 1.18% copper and 0.38% nickel starting from 246.4m downhole.

In a statement, Abraham Drost, the CEO of Clean Air Metals, told investors that there was "a total of 37,000m of previously reported drilling results from the Escape Deposit in 2021 which are not yet applied to an updated mineral resource for the Thunder Bay North project".

READ: Clean Air Metals underscores commitment to Thunder Bay North Project with new executive appointments

"Assay results to date suggest good continuity of mineralization between sections along the 900m trend of mineralization between the Escape South High Grade Zone (HGZ) (>5g/t Pt+Pd) and Steepledge South Zone," he added.

"Previous step-out drilling on the margins of the Escape South High Grade Zone (HGZ) and continuing up trend to the Steepledge area continues to deliver impressive assay results. Under the results of the recent PEA press release, the Escape South High Grade Zone (HGZ) (>5g/t platinum plus palladium) is identified as a high-value potential mining area at the base of the Escape Deposit in years commencing in Year 4 of the PEA mine plan, pursuant to the recently delivered PEA technical report," Drost continued.

Late last year, the company announced an independent preliminary economic assessment (PEA) on the Current and Escape deposits at the company's Thunder Bay North asset, which showed an after-tax net present value (NPV) of C$378.4 million, using a 5% discount rate, as well as an after-tax internal rate of return (IRR) of 29.8%.

The PEA also estimated the project will generate average annual revenue of C$239.8 million per year from the sale of PGE and copper mineral concentrates over a 10-year mine life.

Total mined metal production over the life of the mine, based on the current resource base, is expected to be 629,000 ounces of platinum, 618,000 ounces of palladium, 111 million pounds of copper, 57 million pounds of nickel, 38,000 ounces of gold, and 850,000 ounces of silver.

Clean Air Metals' flagship asset sits near the city of Thunder Bay, Ontario and the Lac des Iles Mine owned by Impala Platinum. The property hosts the twin magma conduit bodies which host Current and Escape deposits forming the basis for a positive preliminary economic assessment around a ramp access underground mine.

Contact the author at giles@proactiveinvestors.com

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