Clean Air Metals Withdraws Mineral Resource Estimate and PEA, Thunder Bay North Critical Minerals Project, Pending Restatement

Rhea-AI Summary

Clean Air Metals has announced an ongoing internal review of its mineral resource estimate for the Thunder Bay North Project, revealing a potential 20% to 50% reduction in the metal content of the Current Deposit. This significant adjustment stems from discrepancies in earlier estimates provided by Nordmin Engineering Ltd. The Company has retracted previous assessments, indicating that projected economics may be adversely affected. Meanwhile, the Escape Deposit remains stable, supported by recent drilling data. Additional validation and further assessments are required before finalizing the updated resource estimates.

Positive

• Stable results from the Escape Deposit, aligning with previous estimates.
• Completion of additional drilling data may strengthen future resource assessments.

Negative

• Potential 20% to 50% reduction in metal content for the Current Deposit.
• Retraction of previous mineral resource estimates and PEA can lead to investor uncertainty.
• Adverse effects on the projected economics of the Thunder Bay North Project.

THUNDER BAY, ON, Feb. 15, 2023 /PRNewswire/ - Clean Air Metals Inc. ("Clean Air Metals") (the "Company") (TSXV: AIR) (OTCQB: CLRMF) (FRA: CKU) reports on an ongoing internal review of the mineral resource estimate at the Thunder Bay North Project, under the independent supervision of SLR Consulting (Canada) Ltd. ("SLR"). The Company has determined that there will likely be a material reduction in the metal content in the Current Deposit, one of the two mineral deposits comprising the Thunder Bay North Project, which could be in the range of a 20% to 50% reduction from what was previously reported by the Company.

Previous reporting was based on an independent mineral resource estimate and subsequent preliminary economic assessment ("PEA") prepared by Nordmin Engineering Ltd. (January 20, 2021; December 1, 2021; January 13, 2022). Due to an apparent over-estimation of the original mineral resource at the Current Deposit, the results of the PEA in the technical report "NI 43-101 Technical Report and Preliminary Economic Assessment for the Thunder Bay North Project, Thunder Bay, Ontario" (filed on SEDAR on January 12, 2022) must not be relied upon and the Company retracts both documents.

In July 2022, Clean Air Metals engaged SLR to provide independent oversight and validation of an updated mineral resource estimate that was to be generated for both PGE-Cu-Ni deposits (the Current and Escape deposits) within the Thunder Bay North Project (press release August 2, 2022). The process commenced with the Escape Deposit, which included the addition of approximately 38,980 m of infill drilling data in 78 holes (reported variously through 2021 and 2022) that were completed after the initial PEA cut-off date. This phase of work has upheld the tonnage and grade characteristics of the Escape Deposit. The ongoing mineral resource update work on the Escape Deposit suggests no apparent material change from the Nordmin estimate.

This was followed by the review of the large (approximately 750 drill holes) historical Current Deposit drill hole database, plus an additional 6,480 m of infill drilling in 30 holes completed by the Company after the initial PEA cut-off date. The preliminary resource model review for the Current Deposit has identified a discrepancy with the disclosed resource estimate, as stated.

More work needs to be completed before the final determination of the metal content reduction at the Current Deposit can be estimated. Additional checks on the Current mineral deposit model and mineral resource estimate will be required to estimate the expected variance and are ongoing. Updated mineral resource estimates for both the Escape and Current Deposits will be the basis for a new mineral resource technical report to be authored by SLR (the "SLR technical report").

DRA Americas continues with the metallurgical optimization work that was started in May 2022 (press release May 26, 2022). It is expected that the metallurgical test program will be completed in Q1 2023. Additional work on mill flowsheet and plant design awaits the SLR Technical Report. Similarly, mine design work anticipated by BBA Engineering (reported January 10, 2023) will be reconsidered based on the outcome of the SLR technical report.

Abraham Drost, Chief Executive Officer of Clean Air Metals, commented: "the Company commenced a normal course review of mineral resource estimates on the Escape Deposit and Current Deposit in August, 2022. The mineral resource update commenced initially on the Escape Deposit. Results from re-estimation of the mineral resource at the Escape Deposit are in line with those reported in the disclosed resource statement and PEA, at a higher level of confidence with the addition of approximately 38,980m of infill drilling in 78 holes since the initial PEA cut-off date.

Initial mineral resource update results on the Current Deposit are unexpected and disappointing. They may have a material effect on the projected economics of the Thunder Bay North Project. The outcome of the new, updated mineral resource expected for the Thunder Bay North Project will guide next steps. The Company's technical and management team together with its independent consultants are now solely focused on this important work and will update the market on a priority basis".

Qualified Person

Dr. Geoff Heggie, Ph.D., P.Geo., a Qualified Person under National Instrument 43-101 and Vice President - Exploration for the Company, has reviewed and approved all technical information in this press release.

Social Engagement

Clean Air Metals Inc. and its wholly-owned subsidiary Panoramic PGMs (Canada) Ltd. acknowledge that the Thunder Bay North Critical Minerals Project is on the traditional territories of the Fort William First Nation, Red Rock Indian Band and Biinjitiwabik Zaaging Anishinabek. The parties together are the Cooperating Participants in a Memorandum of Agreement dated January 9, 2021 (press release January 11, 2021) and Exploration Agreement signed April 13, 2022 (press release April 14, 2022).

The Company appreciates the opportunity to work in these territories and remains committed to the recognition and respect of those who have lived, traveled, and gathered on the lands since time immemorial. Clean Air Metals is committed to stewarding Indigenous heritage and remains committed to building, fostering and encouraging a respectful relationship with First Nations and Métis peoples based upon principles of mutual trust, respect, reciprocity and collaboration in the spirit of reconciliation.

About Clean Air Metals Inc.

Clean Air Metals' flagship asset is the 100% owned, high grade Thunder Bay North Critical Minerals Project, a platinum, palladium, copper, nickel project located near the City of Thunder Bay, Ontario and the Lac des Iles Mine owned by Impala Platinum.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Cautionary Note Regarding Forward-Looking Information

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 in this press release include statements related the expected reduction in metal content, mineral resources and the preliminary economic assessment and timing of the updated resource estimate 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 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.

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SOURCE Clean Air Metals Inc.

FAQ

What are the implications of the recent resource estimate revision for Clean Air Metals (CLRMF)?

The revision indicates a potential 20% to 50% reduction in metal content, which may adversely affect project economics and investor confidence.

When did Clean Air Metals announce the withdrawal of its mineral resource estimate?

The announcement was made on February 15, 2023.

What is the current status of the Thunder Bay North Project according to the latest press release?

The Current Deposit's metal content may be significantly lower than previously reported, while the Escape Deposit shows stable characteristics.

Which consulting firm is overseeing the mineral resource update for Clean Air Metals?

SLR Consulting (Canada) Ltd. is overseeing the updated mineral resource estimate.

What additional work is needed following the recent internal review by Clean Air Metals?

Further checks on the Current mineral deposit model and resource estimate are required before finalizing the revised metal content.