"The initial PEA for the Thunder Bay North project brings together two previously independent deposits into one mining plan which is relatively low risk, low capital, quick to production and generates robust financial metrics," executive chair Jim Gallagher said.
Gallagher was previously CEO of North American Palladium, which had the Lac Des Iles mine and was acquired by Impala Platinum in 2019 for about C$1 billion.
The PEA looked at mining TBN's Current and Escape deposits, which were expected to produce a total 629,000 ounces of platinum, 618,000oz of palladium, 111 million pounds of copper, 57Mlb of nickel, 38,000oz of gold and 850,000oz of silver, or 2.9Moz platinum-equivalent, over 10 years.
Initial capex was put at C$367.2 million, including a contingency allowance of 20-25% for major items.
After-tax NPV5 was $478.4 million, IRR was 29.8% and payback was 2.4 years from the start of production.
The plan included a new stand-alone 1.3Mtpa milling complex and waste storage facility.
Clean Air Metals has the right to purchase Thunder Bay North and Escape Lake through agreements with Benton Resources.
The company had $9.2 million in cash at July 31.
It had raised $11.5 million in a February bought deal placement priced at 42c per flow-through share and 51c per flow-through unit.
Its shares (TSXV: AIR) have ranged from 17-48.5c over the past year and closed up 2.3% yesterday to 22c, valuing it at $36.8 million (US$28.8 million).