It doesn’t come cheap – what trades at US$981 an ounce?
Palladium is a rare and lustrous silvery-white metal discovered in 1803 by William Hyde Wollaston. He named it after the asteroid Pallas. Being rare palladium does not come cheap, currently trading at US$981/Oz, steadily rising since mid 2016. Platinum Group Metals (PGM) are classified as rare precious metals which include palladium, platinum, rhodium, ruthenium, iridium and osmium. Used in a variety of different applications, the primary use for PGMs (80%) is in catalytic converters, which convert harmful gases produced by hydrocarbon emissions in vehicles, into less-harmful substances.
New Age Metals Inc. (TSXV: NAM | OTCQB: NMTLF) is a mineral exploration company focused on the exploration and development of PGMs and lithium. The Company is divided in to two divisions – Platinum Group Metals and Lithium Canada Development.
River Valley PGM Project
New Age Metals flagship project is Canada’s largest primary Platinum Group Metals deposit. Their 100% owned River Valley PGM Project, is located in the Sudbury region of Northern Ontario. The River Valley project is under two mining leases. Covering an approximate area of 12,000 acres of surface and mining rights. Presently the project is North America’s largest undeveloped primary PGM deposit with a measured and indicated mineral resource of 160 million tonnes at 0.44 g/t palladium, 0.17 g/t platinum, 0.03 g/t gold; with a PdEq metal grade of 0.90 g/t with a cut-off grade of 0.4 g/t PdEq, equating to 3,297,000 ounces PGM plus gold and 4,626,000 PdEq Ounces. This equates to 4,626,000 PdEq ounces in measured and indicated and 2,714,000 PdEq ounces in inferred classification. The Company has 16 km of mineralization with a total investment to date of $45 million, having drilled 710 holes. NAM is currently conducting phase 4 of their proposed 2018 exploration and development program. The current program is based on recommendations of previous geophysical studies and reviews by the Company’s consultants, recent drilling, ongoing advanced metallurgical and mineralogy studies, and selective pit design drill programs. NAM plan to complete River Valley’s Preliminary Economic Assessment (PEA) by Q2/Q3 2019.
Genesis PGM Project Alaska
On April 2018, New Age Metals announced that it had signed an agreement with Anglo Alaska Gold Corp. to purchase a 100% interest in their 10,240-acre Genesis PGM project. The Genesis project sits in the Valdez and Chitina recording district of Alaska. New Age Metals is seeking a joint venture partner to help develop Genesis’s 120 road km north of Valdez. The Genesis PGM Project is a road accessible, under explored, highly prospective multi-prospect drill ready property. The Company is actively seeking an option/joint-venture partner to further develop this project.
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Lithium Canada Development
The Company’s lithium division, Lithium Canada Development, has 8 lithium projects, and is the largest claim holder in the Winnipeg river pegmatite field in SE Manitoba. Field surface sampling at their Lithium One project yielded assays for the silver-leaf pegmatite up to 4.33% Li2O, 2.08% Rb2O and 0.04% Ta2O5. The summer exploration plan has begun for the Company’s lithium division where their budget has allowed 2 of their 3 drill ready projects to be drilled.
As the world’s governments legislate towards cleaner emissions from fossil fueled vehicles, New Age Metals should see demand for PGMs increase. Let’s not forget the need for lithium in the coming years as the world’s use for lithium in batteries continues to grow.
Matthew Bohlsen holds a Graduate Diploma in Applied Finance and Investment (similar to CFA), and a Graduate Diploma in Financial Planning. He has 30 years ... <Read more about Matthew Bohlsen>