New Age Metals

Developing PMG and Lithium Properties in Canada

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Overview

New Age Metals Inc. (TSXV:NAM; OTCQB:NMTLF; FSE:P7J.F) is a green metals exploration company with two mineral divisions. Their Platinum Group Metal (PGM) Division is currently developing its flagship 100% owned River Valley PGM project in the Sudbury mining district of Ontario, Canada. The River Valley project is the largest undeveloped primary PGM deposit in North America. In April 2018, an updated N1-43101 calculation stated measured and indicated resources of 3.29 million ounces of PGMs and Gold which is 4.6 million ounces of Palladium equivalent. This is complimented by an inferred resource of 1.5 million ounces of PGMs and gold and 2.7 million ounces of palladium equivalent. This updated resource included a four-kilometer extension to the previous mineralized zone, which was acquired in the 2016 and now called the River Valley Extension. The most predominant of our payable metals on the project is Palladium, which as of September 24, 2018 was trading at $1066 (USD) per oz, approximately $1375 (CAD). River Valley is also host to deposits of Platinum, Gold, Cobalt, Copper and Nickel. PGMs are a collection of precious metals such as palladium and platinum—the two primary focus metals for New Age Metals—that have industrial applications, included in the manufacturing of catalytic converters in vehicles. Between 2016 and 2017, the price for palladium saw an increase of 56.3 percent, in the last three months moved up in price substantially maintaining its position as the best performing commodity in the last ten years. According to SFA Oxford, despite a limited supply, the demand for palladium will continue to grow, moving from 7.1 million ounces in 2013 to 10.1 million ounces by 2025. Platinum, the company’s secondary metal, has also seen a rise in prices, coming off its bottom price in late 2017.

New Age Metals also has a substantial Lithium exploration division in Manitoba.  The company has eight pegmatite properties located in Southeastern Manitoba, near the world-class Tanco pegmatite deposit. To find a hard-rock Lithium mine, the exploration project needs to have a considerable amount of Pegmatite. The Pegmatite must also host a mineral called Spodumene; it is in the Spodumene that Lithium will occur. New Age is the largest mineral claim holders in the Winnipeg Pegmatite field, as the company owns approximately 14,100 hectares/34,800 acres in this historic pegmatite field. Three of the properties are drill ready. In January 2018, New Age Metals entered into a final Option/Joint Venture with Azincourt Energy Corp (TSXV:AAZ) for the acquisition and development of part of the Lithium Division. Azincourt has an option to earn into the project.

The first year’s exploration budget for 2018 is $600 000, and New Age Metal’s technical team is the field manager. In April 2018, New Age Metals announced it had signed an agreement with Anglo Alaska Gold Corp (a US Corporation) to purchase a 100 percent interest of their 10,240-acre Genesis PGM/Base Metal project.

The Genesis project sits in the Valdez and Chitina Recording district of Alaska and is both road accessible and drill-ready. A fall 2018 program will be completed to further define drill targets.

New Age Metals is led by a management team and board of directors with significant collective experience and knowledge in exploring and developing PGM deposits. This includes CEO Harry Barr, who has completed 43 joint venture deals with major mining companies and has raised over $300 million in non-brokered financings across his career. The management team is also significantly invested in the company, having expended over several millions of dollars in financing and owning over 10 percent of the company shares.

Lead Director and River Valley Project Leader Mike Neumann brings significant experience in the mining arena and has been Proprietor of Neumann Engineering and Mining Services, Inc. since 1993 providing international engineering services.  Both the Board of Directors and Advisory Board are complemented by a very technical team, that includes Ron Hieber and Gordon Chunnett, whose careers spanned over 30 years with Anglo Platinum (the worlds largest platinum producer) and today both men are internationally recognized Platinum Group Metals experts.

Investment Highlights

  • Flagship PGM-primary deposit in the safe and stable mining jurisdiction of Sudbury, Ontario, Canada with ample history of nickel-copper-PGM mining for over 130 years.
  • The Sudbury Metallurgical complex has extra capacity and when production occurs could take the River Valley mineral concentrates.
  • New Age’s 100% owned project has a 2018 N1-43101 resource update with measured and indicated resource of 3.29 ounces of PGM and gold (4.6 million ounces of palladium equivalent)
  • The project’s first economic study, a preliminary economic assessment PEA, is underway and is slated to be completed by the end of Q2 2019.
  • Aggressive 2018/2019 exploration and development program is ongoing in both the Platinum Group Metals and Lithium division.
  • Palladium is the best-performing commodity in last ten years
  • The River Valley project has 7 payable metals
  • Largest mineral claim holder exploring for Litihum in the Winnipeg River pegmatite field in Manitoba
  • Project-funding in place via Option/Joint Venture agreement with Azincourt for development of New Age’s Lithium properties
  • 2 drill permits have been submitted and drilling is slated for winter 2019.
  • Recent acquisition of Genesis PGM/Basemetal project in Alaska with the field program underway
  • Management team with combined 200 years experience in developing PGM and Lithium deposits and have a vested interest in the company.
  • Turnaround for Junior Miners with significant mineral portfolios is expected due to improved metal prices and metal supply issues due to limited exploration and development over the last 10 years.

What are PGMs?

PGMs are classified as rare precious and industrial metals which include palladium, platinum, rhodium, ruthenium, iridium and osmium. Used in a variety of different applications, the primary use for PGMs is in catalytic converters, which convert harmful gases produced by hydrocarbon emissions in vehicles into less-harmful substances. In fact, over 80 percent of the Palladium produced PGMs is used in catalytic converters, each of which contain between 3.0 grams to 7.0 grams of PGM’s, depending on the vehicle size and manufacturer. Palladium is used predominantly for catalytic converters used in gasoline engines.

As the number of vehicles increase around the world and while more and more governments impose mandates regarding reductions in vehicular pollution, the demand for catalytic converters, and for the metals required to develop them, is growing continually. This has been reflected in the price of palladium, which has been the best performing commodity in the last ten years, growing at an average 21.5 percent per year.

The automobile industry is also facing a rise in demand for electric vehicles. Within this transition of the market, catalytic converters will still play a relevant role as they will be necessary for any form of hybrid vehicle.

Flagship Project: River Valley PGM Project

River Valley is the largest undeveloped primary PGM resource in North America, with 4.626Moz PdEq in Measured Plus Indicated including an additional 2.7 Moz PdEq in Inferred. The resource above is the result of a new 2018 NI 43-101 calculation, which was completed April 2018 by WSP Canada Inc. (WSP) under the supervision of Todd McCracken, P. Geo. The River Valley PGM project has excellent infrastructure and is within 100 kilometers of the Sudbury Metallurgical Complex. The project is 100% owned by NAM.

River Valley has an ongoing geophysics program using the most up to date survey methods. Surface exploration and our recent drill programs have had encouraging results.

In 2017 New Age Metals continued to make geological advancements in the newly discovered higher-grade Pine Zone.  The contact zone is where the current measured and indicated resources have been proven and where approximately $45 million has been expended to date. Thus far in 2018, other new targets that have not been previously explored have been identified. These new targets may extend the River Valley Project mineralization to new zones that are very close to our existing resources.

New Age Metals Figure 1

The northern portion with superimposed 2018 merged IP at -100 level. This figure was retrieved from the River Valley Geophysical review by Geoscience North (Alan King, P.Geo., M.Sc.). Note: Figure 1 only represents approximately 3.5 km of the overall strike length of the River Valley PGM Project. The red line represents the contact where previous drilling has occurred. The yellow band represents the footwall where the Pine Zone was discovered. The circles represent new drill targets. Over time, their plan to continue a geophysical program along the 16kms of strike and at depth.

Current Exploration and Development Objectives:

Complete the River Valley Project Preliminary Economic Assessment (PEA)

In July and August, NAM engaged P&E Mining Consultants to collaborate with DRA Americas to complete the first economic study: Preliminary Economic Assessment on River Valley. The PEA will look at the River Valley resource as defined in their most recent 2018 Resource Update and design potential mining scenarios for open pit mining and specifically outline the projected mine life, metal production rates and processing routes for the River Valley Project. It will further consider capital and operating costs to be incurred to finally deliver a report that incorporates all of the above information into a financial model to provide total cash flow, pre-tax net present value (NPV) and pre-tax internal rate of return. Completion of the PEA is slated for the end of the second quarter of 2019.

Mineralogical studies underway

Expert Process Solutions (XPS), based in Falconbridge, Ontario has been engaged to perform mineralogical studies of the ore. XPS provides world class quantitative mineralogy for ore body characterization and metallurgical technology services for operational support, growth initiatives and project development and has extensive experience in many commodities including Platinum Group Metals. Management of NAM believes that a better understanding and characterization of the River Valley PGM mineralization will be a guide in future endeavors and development work including improved flowsheet and processing options in preparation for a Preliminary Economic Assessment (PEA) Report.

new age metals XPS

XPS is collaborating with Steinert, a company that specializes in magnetic and sensor sorting solutions that are finding new applications in the mining industry to explore various methodologies. These could facilitate pre-concentrating River Valley ore and upgrade the value of material that would be put through later stages of processing in a plant that would treat River Valley ore and our concentrates.

new age metals steinert

Illustration of a Steinert

North American Palladium, Canada’s only primary producer of PGMs, ships all its concentrates approximately 1,000 km from its Thunder Bay, Ontario Lac-des-Iles mine to the Sudbury Mining Complex for processing where the local majors have extra capacity to treat PGM ores.

new age metals nap

Subject to continued positive project development results for the River Valley Project and the completion of a positive Preliminary Economic Assessment, NAMs management plan is to develop a series of open pits, mine and concentrate on site and ship the concentrates approximately 100 road kilometers to the Sudbury Metallurgical complex.

  1. Ground proof several of the large geophysical anomalies identified in the 2018 geophysical program, conduct selective bulldozer stripping.
  2. Mapping of new mineralized zones, surface sample and/or diamond saw sampling, send samples for assay.
  3. Complete report with budgets to outline a 3-phase diamond drill program on the multiple drill targets as outlined by the Abitibi geophysical reports and Alan King’s interpretation of these reports in the northern 3.5-4 km of River Valley.

new age metals figure 3

Global resource of River Valley. Note: A 0.4 g/t cut-off grade was used as that was approximately the open pit cut-off of Canada’s only PGM producing mine, North American Palladium’s Lac des Iles. The current economic study is expected to use higher cut-off grades and will focus in the northern portion of the project.

Genesis PGM Project

The Genesis PGM Project is an under explored, highly prospective multi-prospect drill ready Pd-Pt-Ni-Cu property that warrants follow-up drilling, additional surface mapping, sampling to expand the known footprint of mineralization and to determine the ultimate size and grade of the layered mineralization outlined to date. NAM management is actively seeking an option/joint-venture partner for this road accessible PGM/Multiple Element Project using the Prospector Generator business model. The stable land status, ease of access and superb infrastructure make this project prospective for year-around exploration, development and production.

new age metals figure 4

Map of the Genesis PGM/ Base Metal Project in Alaska

A detailed work program has been proposed in a recent NI 43-101 technical report done by Curt Freeman, President of Avalon Development Corporation who will manage these programs beginning in the fall of 2018.

Lithium Division

The Company has eight pegmatite hosted Lithium Projects in the Winnipeg River Pegmatite Field, located in SE Manitoba. In January, NAM announced a final agreement with Azincourt Energy Corp. for the Manitoba Lithium Projects. This Pegmatite Field hosts the world class Tanco Pegmatite that has been mined for Tantalum, Cesium and Spodumene (one of the primary Lithium ore minerals) in varying capacities, since 1969. NAM’s Lithium Projects are strategically situated in this prolific Pegmatite Field. Presently, NAM, under its subsidiary Lithium Canada Developments, is the largest mineral claim holder in the Winnipeg River Pegmatite Field for Lithium and Rare Metal projects. Azincourt Energy Corp. is financed for and has committed to a minimum of $600,000 to be expended on exploration this year in Manitoba. On July 11, 2018, NAM announced that they had exercised their option to search for Lithium and Rare Metals on the CAT4 claim.

new age metals tanco mine

Tanco Mine, Manitoba. This Pegmatite Field hosts the world class Tanco Pegmatite that has been mined for Tantalum, Cesium and Spodumene (one of the primary Lithium ore minerals) in varying capacities, since 1969.

On August 16, NAM provided an update on the summer 2018 exploration program where assays from the Lithium Two Project showed up to 3.3% Li2O. Further to the assay results, extensive surface exploration programs were completed on the Lithman North while there are ongoing programs taking place on the Lithman East and Lithman East Extension Projects.

new age metals winnipeg river

Map showing the geographic position of the Winnipeg River Pegmatite Field in relation to Ontario and Manitoba.

NAM’s technical team has started advanced surface exploration on Lithium One in early September and two drill applications have been applied for. Additional work will also be completed on several of the company’s other Manitoba Lithium projects.

new age metals lithium projects

Map showing the 8, 100% owned Lithium Projects.

Management

Harry Barr—Chairman, CEO and Director

Harry Barr has over 30 years of experience in the Mining Industry, founding Freegold Ventures Limited, Canalaska Uranium Ltd. and New Age Metals Inc. Over the last 15 years, he has acted in various management capacities for El Nino Ventures Inc. (currently Chairman and CEO). Former president/CEO of Next Gen Metals, which merged with Namaste Technologies in February 2016. He has created shareholder value by building teams to assist him in corporate finance, project acquisition, and exploration and development of mineral projects in nine countries and three continents. As a CEO, he has guided his management teams to complete over 43 option joint venture agreements with major mining companies, and over 300 with mid-tier and junior mining companies. He and his team have raised approximately $300 million in non-brokered private placements, other equity arrangements and option joint venture agreements.

Mike Neumann— Lead Director and River Valley Project Leader

Mr. Neumann brings significant experience in the mining arena and has been Proprietor of Neumann Engineering and Mining Services, Inc. since 1993 providing international engineering services focusing primarily on underground hard rock engineering facets such as mine design, productivity improvements, rock mechanics, second opinions, peer reviews and other types of studies. Mr. Neumann is a graduate of Haileybury School of Mines and Michigan Technological University (Mining Engineering Degree) a member of the Canadian Institute of Mining, the International Society of Rock Mechanics and the Association of Professional Engineers of Ontario. Concurrent with his current position, from 2003 to 2006, Mr. Neumann was Director and Chief Operating Officer of Silver Eagle Mines Inc., (now Excellon Resources Inc.) a TSX listed Canadian-based silver exploration and development company focused on acquiring, exploring and developing high grade silver deposits among the silver mines in Mexico. Prior to this Mr. Neumann was Co- Founder and Director of the Engineering Seismology Group Inc. based in Kingston, Ontario. His early industry experience includes positions of Chief Engineer at Campbell Red Lake Mines and Underground Superintendent at Barrick’s Holt McDermott Mine.

Robert Guanzon, CPA, CMA—CFO

Robert Guanzon has been in the field of accounting for more than 25 years. He has been involved in the financial reporting of junior mining exploration companies, pharmaceutical manufacturing business, research & development, real estate/property management, and project building construction. He holds a Bachelor’s degree in Accounting, a Certified Public Accountant (Philippines) and a member of Chartered Professional Accountants British Columbia. He brings extensive experience in dealing with financial matters and corporate strategy.

Charlotte Brown—Corporate Secretary

Charlotte Brown is an administrator with over 15 years of experience in the corporate and securities industries in both public and private sectors. Ms. Brown has previously held positions as corporate secretary and corporate assistant for publicly traded companies. She currently holds the position of Corporate Secretary for El Nino Ventures and New Age Metals Inc.

John Londry—Director

John Londry received his B.Sc. and M.Sc. degrees in Geology from the University of Windsor. For the past 30 years he has been active in the mineral exploration and mining industry. His considerable experience encompasses both grass roots and advanced stage exploration projects throughout Canada, the United States and South America. He has held senior positions with Camflo, Noranda Exploration, Hemlo Gold Mines, and Battle Mountain Gold.

Colin Bird—Director

Colin Bird is a chartered mining engineer and Fellow of the Institute of Materials, Minerals and Mining. He has spent over 20 years in operational mine management. He has extensive international experience in developing, financing and managing mines. He has been involved in the management of Nickel, Copper, Gold and other diverse mineral operations. He is responsible for listing several resource companies and has been the founder of a number successful companies significantly Kiwara Resources Plc. and Pan African Resources Plc. He has served on resource company boards in the UK, Canada and South Africa. He has specific PGM industry knowledge generally gained in South Africa where he is the Chairman of Jubilee Platinum Plc an emerging platinum focused junior.

Colin Bird—Director

Colin Bird is a chartered mining engineer and Fellow of the Institute of Materials, Minerals and Mining. He has spent over 20 years in operational mine management. He has extensive international experience in developing, financing and managing mines. He has been involved in the management of Nickel, Copper, Gold and other diverse mineral operations. He is responsible for listing several resource companies and has been the founder of a number successful companies significantly Kiwara Resources Plc. and Pan African Resources Plc. He has served on resource company boards in the UK, Canada and South Africa. He has specific PGM industry knowledge generally gained in South Africa where he is the Chairman of Jubilee Platinum Plc an emerging platinum focused junior.

Ron Hieber—Director

Ron Hieber is an Internationally Recognized Expert in Platinum Group Metals and was Head of Worldwide Exploration for Anglo Platinum, the world’s largest Platinum producer. He is a geology graduate of Rhodes University, South Africa. He began his career with Anglo American Platinum, on the company’s Platinum mines in Rustenburg, followed by service on the mines in other Bushveld Complex areas, becoming Chief Geologist at Rustenburg in 1981.

In 1986 he was appointed to the corporate office as head of all Anglo Platinum’s mining geology and exploration functions until retirement in 2009. During his service with Anglo, Ron was made a Divisional Director and the Group’s Survey, Ventilation, Rock Engineering and Strategic Planning functions were added to his Geological responsibilities. From the time of his appointment at Corporate, he contributed significantly to the accumulation, retention and management of Anglo Platinum’s mineral rights portfolio, on the Bushveld Complex and Great Dyke, whilst also directing worldwide PGM Exploration Programmes for Anglo Platinum, in Australia, China, Canada, Russia and Brazil. This included heading-up the River Valley Option/Joint Venture for Anglo Platinum, from Discovery, in 2000, with Pacific North West Capital. At the time he retired, he was a Director of several Anglo Platinum subsidiaries, including Unki Platinum Ltd. (Zimbabwe) and Rustenburg Platinum Mines Ltd. From 2009, he worked as Executive Director: Business Development for Kameni Ltd., which had PGM interests, in the Eastern Bushveld and Zimbabwe. After selling its projects, Kameni closed and he now runs his own company, with interests in South African and Zimbabwean Gold projects.


 

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