Clean air metals: Powering the eV revolution

tHe CLimate CHanGe imPeratiVe is DriVinG wOrLDwiDe DemanD fOr a CarBOn-free transPOrtatiOn seCtOr

North American infrastructure is currently not built to accommodate this demand. An historic step change and build out of electrical generation, transmission and storage infrastructure is required to facilitate the electric vehicle (EV) revolution. This will require increased sustainable production of certain strategic minerals and commodities going forward to meet demand.

Why Clean Air Metals? The company is engaged in advanced exploration of a high-grade Norilsk-style PGE-NiCu magma conduit system containing the catalytic conversion strategic minerals platinum and palladium in a 1:1 ratio. The system also contains nickel, the battery metal, and copper, the lifeline of the EV. Clean air metals are the commodities powering the EV revolution.

The global shift to lower automobile emissions and tightening environmental standards is being led by the United States, China and the EU. The resulting demand for palladium and other PGEs such as rhodium has increased dramatically. Catalytic converters, the exhaust-based pollution control devices in gas and diesel-powered vehicles, are designed to reduce toxicity of combustion emissions. Roughly 85 per cent of palladium consumption can be attributed to the automotive industry which uses it in the production of these catalytic converters.

Steve Stares and his team at Benton Resources Inc. (BEX: TSXV) put the deal together with the intent to capitalize on the rising demand in platinum and palladium metals. With the help of Brett Whalen and a group of investors at the

cashed-up shell Regency Gold Corp., Jim Gallagher and Abraham Drost joined the new venture as the incoming board and management team and suggested the name Clean Air Metals Inc. as the successor to Regency Gold.

Fresh off his recent success as CEO of North American Palladium (PDL:TSX), which sold in December 2019 to Impala Platinum Holdings Limited of South Africa for C$1.0 billion in cash, Jim felt there was significant opportunity remaining in the platinum and palladium market and that demand for both metals would continue. The opportunity to acquire and further explore the highgrade Thunder Bay North and Escape Lake projects in the Thunder Bay North area was compelling. Jim took the role of executive chairman of the new venture and Clean Air Metals was off to a great start.

In conjunction with the acquisition of Thunder Bay North and Escape Lake, the company also closed a concurrent $15 million sub-receipt financing in February 2020, which included a $2 million investment by legendary mining investor Eric Sprott. Currently, the company is completing its reverse takeover of Regency Gold and hopes to be listed and trading on the TSX Venture Exchange as AIR:TSXV in April 2020.

The now consolidated Thunder Bay North and Escape Lake project represents a significant enterprise value for the company. Historically, close to C$100 million has been spent to acquire the Thunder Bay North and Escape

Lake projects. However, the company was able to acquire both assets for C$15 million in cash with half on closing for both assets and the balance to be paid to Vendors Panoramic Resources of Australia and Rio Tinto under option with Benton in equal installments over three years.

The Thunder Bay North project has seen significant exploration, with over 780 holes having been drilled on the project to date. The property hosts a Historical Indicated Mineral Resource of 9.8 million tonnes grading 2.3 grams per tonne (g/t) PtEq, which was completed in 2012. An exciting feature of the project is the high-grade nature of the deposit and the potential for massive sulphides. Significant intersections have been encountered in the past including massive sulphide intercepts grading 2.6 metres at 97.98 gpt Pd+Pt+Au and 14.9 per cent Cu+Ni.

Magma conduit systems are the highest-grade sources of the clean air metals nickel, copper and PGEs worldwide. These include the Norilsk and Talnakh deposits in Russia and the Eagle deposit in Michigan. Canada’s own Voisey’s Bay deposit in Newfoundland and Labrador is a magma conduit system with extremely high-grade nickel, copper and cobalt. “We are fortunate to have a number of employees and consultants who cut their professional teeth at Voisey’s Bay, including Dawn Evans-Lamswood, Clean Air’s VP of exploration who was with the project in the early days of Archean Resources, at the sale to Diamond Fields and ultimately to Inco, now Vale. Rio Tinto made a significant discovery at Escape Lake in 2011/12 when they encountered multiple high-grade intercepts up to 33.4m at 7.28 gpt Pt+Pd+Au and 2.26 per cent Cu+Ni in the Escape Lake intrusion. This discovery will be the focus of the company’s initial Phase One drill campaign of 10,000 metres,” says Drost.

Of the pending drill program, Drost says, “This multi-phase drill campaign should allow Clean Air Metals to better define the Escape Lake discovery and mineralized magma conduit to the northwest, towards completion of an NI43-101 compliant resource, which we are targeting to complete in the next 12 to 18 months.”

Upon resumption of trading, the company will have 125.08 million shares outstanding and will trade on the TSX Venture Exchange (TSX.V) under the symbol “AIR”. A current presentation may be viewed at www.cleanairmetals.ca. l

Providing Quality Analyses, Excellent Turnaround Time and Customer Service for the Exploration and Mining Industry.