Thunder Bay North and Escape Lake Projects - Corporate Presentation | February 2020 - Clean Air Metals
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
Thunder Bay North and Escape Lake Projects Corporate Presentation | February 2020
Forward Looking Statements
Information set forth in this presentation may contain forward-looking statements. Forward-looking statements
are statements that relate to future, not past events. In this context, forward-looking statements often address
a company's expected future business and financial performance, and often contain words such as
"anticipate", "believe", "plan", "estimate", "expect", and "intend", statements that an action or event "may",
"might", "could", "should", or "will" be taken or occur, or other similar expressions. By their nature, forward-
looking statements involve known and unknown risks, uncertainties and other factors which may cause our
actual results, performance or achievements, or other future events, to be materially different from any future
results, performance or achievements expressed or implied by such forward-looking statements. Such factors
include, among others, risks associated with project development; the need for additional financing;
operational risks associated with mining and mineral processing; fluctuations in commodity prices; title matters;
environmental liability claims and insurance; reliance on key personnel; the absence of dividends; competition;
dilution; the volatility of our common share price and volume; and tax consequences to U.S. Shareholders.
Forward-looking statements are made based on management's beliefs, estimates and opinions on the date
that statements are made and the Company undertakes no obligation to update forward-looking statements if
these beliefs, estimates and opinions or other circumstances should change. Investors are cautioned against
attributing undue certainty to forward-looking statements.
Abraham Drost, P.Geo. a Qualified Person under NI 43-101, has reviewed and approved dissemination of the
content herein.
2
Introducing Jim Gallagher, Executive Chairman
“The recent acquisition of the Lac des Iles Mine by Impala Platinum
underscores the globally recognized significance of the PGE-rich
Thunder Bay North region. Clean Air Metals has consolidated two
prospective PGE properties with a significant amount of historical
exploration drilling with some impressive PGE-Ni-Cu intercepts in
North America and is focused on expanding these results.”
Jim Gallagher
Executive Chairman
3
Creation of Clean Air Metals Inc. (Presently Regency Gold Corp. V:RAU:H)
Canada’s Newest High Grade Palladium-Platinum Exploration Company
Clean Air Metals Inc.’s Core Attributes
✓ 2 high quality platinum-palladium projects in the Thunder Bay region (Pt-Pd 1:1 ratio)
• Thunder Bay North – Current Lake Deposit with an Historical Indicated mineral
resource of 741,000oz PtEq. (9.8mT @ 2.3gpt PtEq) based on 2012 metal prices
• Escape Lake – Rio Tinto asset with previously drilled high grade zone and open
geologically; mineral intercepts not previously published
✓ Significant historical exploration across assets (808 drill holes total; 647 ddh define
resource
✓ Best-in-class management and board, including: incoming Executive Chairman Jim
Gallagher (recently CEO of North American Palladium prior to sale to Impala Platinum)
and Abraham Drost, incoming CEO, former Senior Officer of a number of successful
junior mining companies including Sabina, Premier Royalty and Carlisle.
✓ $5M pro forma cash to fund exploration expenditures
✓ Shareholder value creation by upgrading existing drill-indicated targets to resources,
expanding known zones along strike and further targeting the feeder zone source areas
for high grade massive sulphide deposits.
4
Management and Board of Clean Air Metals Inc.
Jim Gallagher P.Eng. Executive Chairman
Mr. Jim Gallagher, P.Eng. Mr. Gallagher is a seasoned mining executive and Professional Engineer with a 35-year track record of optimizing
operational performance, leading successful projects and consulting with global scope. Mr. Gallagher was most recently the President and CEO of
North American Palladium Ltd. (“NAP”). During his 6 year tenure at NAP, Mr. Gallagher rebuilt the senior management team, introduced advanced
technologies and mining methods at the Lac des Iles Mine and achieved an operational and financial turnaround that made the Lac des Illes Mine
one of the largest and lowest cost underground mines in Canada, culminating in the 2019 sale of NAP for $1 billion to Impala Platinum. Prior to NAP,
Mr. Gallagher spent 24 years with Falconbridge Inc., in a variety of operational and project management roles and eight years as Global Director of
Mining for Hatch, leading one of the largest mining EPCM teams in North America. Mr. Gallagher is currently the chair of the technical committee on
the board of Directors for Harte Gold and also serves on the board of the Ontario Mining Association.
Abraham Drost M.Sc, P.Geo. CEO & Director
Mr. Drost is a former President and Director of Sabina Gold and Silver (SBB:TSX), former President and Director of Sandspring Resources Inc.
(SSP:TSXV) and former CEO, Director of Source Exploration Corp. (SOP:TSXV) now Mexican Gold Corp. Mr. Drost is a former Chairman of
Premier Gold Mines USA Inc. and the former CEO and founding Director of Premier Royalty Inc. (NSR:TSX), prior to the sale to Sandstorm Gold. He
was a former CEO and then Director of Mega Precious Metals Inc. (MGP:TSXV) at the sale to Yamana. Mr. Drost was most recently CEO and
Director of Carlisle Goldfields Ltd. (CGJ:TSX) at the sale to Alamos (AGI:TSX).
Dawn Evans-Lamswood, MSc, P.Geo VP-Exploration
Ms. Dawn Evans-Lamswood’s career spans two decades of exploration experience exploring the Voisey’s Bay district after joining the Archean
Resources drilling team in 1995, immediately following the discovery of the Ovoid Zone. Her career continued in the area with Inco and its successor
company Vale Inco, recently retiring with the position of Exploration Manager, Brown Field Exploration, Vale North Atlantic. Ms. Evans-Lamswood
has co-authored numerous publications on the Voisey’s Bay deposit and district.
Alan McTavish, MSc, P.Geo VP-Project Manager
Allan MacTavish is a specialist in PGE-Cu-Ni exploration and obtained a B.Sc. (Honours) Degree in Geology from Laurentian University in 1977 and
a M.Sc. Degree in Geology from Lakehead University in 1992. He has been actively involved in the mineral exploration industry since 1975 with
various major and junior mining/mineral exploration companies and has also worked as a Field Geoscientist for the Ontario Geological Survey. He
has been Exploration Manager, Canada for Magma Metals (Canada) Limited and its successor Panoramic PGMs (Canada) Limited since May
2007, and is based in Thunder Bay, Ontario. He and his staff were instrumental in bringing the Magma/Panoramic Thunder Bay North Pt-Pd-Cu-Ni
deposit from a newly discovered raw prospect to a well-defined, polymetallic, magmatic sulphide deposit with a 9.8 million tonne indicated resource.
Before joining Magma Metals/ Panoramic Resources he was a Consulting Geologist specializing in PGE-Ni-Cu exploration.
5
Description of Core Assets and 2020 Objectives
Core Assets – Thunder Bay North Property Objectives for 2020/21
✓ Significant amount of historical exploration ✓ Consolidate two high-grade platinum-
drilling since 2005 palladium projects in Northern Ontario
Thunder Bay North Project ❑ Complete drill programs at each project
• To be acquired from Panoramic Resources ❑ Expand the Escape Lake mineralized
via Benton Resources as part of Thunder Bay intrusion and conduit trend
North Project
• Current Lake Deposit - 2012 mineral ❑ Target massive sulphide PGE-Ni-Cu
resource: indicated 741,000 oz at 2.3gpt PtEq mineralization in the conduit source feeder
and inferred 49,000 oz at 2.9gpt PtEq systems at Escape Lake and Current Lake
• Massive sulphide intercepts including 2.6m at ❑ Release an updated mineral resource
97.98gpt Pd+Pt+Au and 14.9% Cu+Ni estimate consolidating both former project
areas
Escape Lake Project
❑ Accretive growth and shareholder value
• To be acquired from Rio Tinto via Benton
Resources
• High grade zone drilled by Rio Tinto in
2010-2012 including intercept of 33.4m at
7.28gpt Pt+Pd+Au and 2.26% Cu+Ni
6
Thunder Bay North Area PGE(-Cu-Ni) Asset Locations
Hwy 527
Escape Lake
Impala Canada
Las des Iles Mine Current Lake
~5M oz Palladium Deposit
(75M tonnes @ 2.14g/t Pd)
Impala Canada & Transition Metals
135 kV Tx line
Sunday Lake Deposit
41.2m @ 5.51g/t PGM and 0.57% Cu
(XTM PR April 29,2019)
Transition Metals
Saturday Night Intrusion Clean Air Metals
6.25m @ 1.07g/t Pt+Pd+Au (DDH)
Source: S&P Global Market Intelligence
7
Aerial View of Thunder Bay North (TBN) and Escape Lake Projects
Escape Lake
8
3D View of Current Lake and Escape Lake Intrusive Complex
Current Lake Intrusion &
Resource Area
Feeder Zone
Phase 3 proposed
Escape Lake Intrusion & High drilling
Grade Zone (Open)
Phase 1, 2 proposed drilling
9
Escape Lake Project – Phase 1 & 2 Proposed Drilling
103D Grade Distribution of Current Lake and Escape Lake Deposits
Beaver Lake Zone
2.6m@97.98gpt Pd+Pt+Au
+14.9% Cu+Ni
Feeder Zone
Escape Lake Zone Massive Sulphide Source Area -
33.4m@7.28gpt Pd+Pt+Au Phase 3
+2.26% Cu+Ni (Open)
Phase 1,2 Expansion
11Escape Lake Intrusive Complex – Schematic Cross-Section
Includes Highlighted Drill Hole Results
12TBN Project – Geophysical Interpretation Using Magnetics, Drilling, LIDAR
025 Intrusions
Greenwich Lake
Intrusion
801 Diamond Drill Holes
185,516m
Current Lake Deposit
Escape Lk – Steepledge Lk Steepledge Lake
Minl’d Conduit trend Intrusion
Southeast Anomaly Area
(SEA)
Lone Island Lake Quetico Fault
Intrusions
Escape Lake Fault
EWC Intrusions
Conduit System Source Areas for
0_________ 2km Intensive Exploration Followup
Merged Magma 2006/2008/2010 UTS Airborne Magnetic Surveys
13Current Lake Intrusive Complex – Transported Sulphide Model Hypothesis:
Sulphide Entrainment From a Feeder Zone Source Area
• Established magma system (Keweenawan-age intrusion with subsidiary chonolith)
• Sulphide saturation upstream (at depth ‘lower magma chamber’); currently not observed
• Accumulation of Ni-Cu-PGE sulphides with sulphide fractionation
• Transport of a fractionated portion of the sulphide liquid higher into the system (currently
defined mineralization).
14TBN and Escape Lake Deposits
Similar to Other High Grade Conduit Systems
3 Mt Ni
4Mt Cu
* Footprints (to scale) of magma conduits hosting “world class” Ni-Cu-(PGE) deposits
15Project Highlights
• Current Lake Deposit has a 2012 JORC-compliant Historical Indicated Mineral
Resource in various zones of 741,000 ounces at 2.3gpt PtEq Indicated and 49,000
ounces at 2.9gpt PtEq Inferred
• Current Lake Deposit is primarily a disseminated sulphide deposit with high sulphide
tenor and contains multiple intersections of massive sulphide including an intercept of
2.6m @ 97.9gpt Pt+Pd+Au and 14.9% Cu+Ni in drill hole BL 10-197
• Escape Lake Project has a high grade zone drilled by Rio Tinto in 2010-2012
including an intercept of 33.4m of 7.28gpt Pt+Pd+Au and 2.26% Cu+Ni and is open
geologically
• Current Lake Deposit and Escape Lake mineralization has a 1:1 ratio of Platinum to
Palladium with excellent potential for further high grade discoveries along an interpreted
mineralized conduit intrusive system analogous to a number of world-class deposits
such as Noril’sk and Jinchuan.
16Project Highlights (continued)
• Regency/Clean Air Metals Inc. acquires significant history of exploration in the
project by Panoramic and Rio Tinto since discovery in 2005, with some of the highest
platinum and palladium metal grades and thickness drilled in the Midcontinent Rift
centred around Lake Superior
• Magnetotellurics (MT) and other geophysical surveys by the former Voisey’s Bay
technical team are planned for the source area intrusions and possible feeder system
of the Current Lake and Escape Lake intrusions. The presence of multiple massive
sulphide lenses in this transported disseminated sulphide system may suggest
entrainment from a larger sulphide source.
• Geopolitically, Northern Ontario is one of the most stable mining jurisdictions in the
world. The combined Thunder Bay North and Escape Lake Project is located 55 minutes
drive NE from the City of Thunder Bay and 45 minutes SE of Canada’s operating Lac
des Iles Palladium Mine and Mill. It is relatively close to high voltage power and
adjacent to a 99MW wind farm.
17Transaction Description
Acquisition of Benton Resource Option Change of Business
• Name change to Clean Air Metals Inc.
Regency Gold Corp. has executed a definitive
(TSXV:AIM) – conditional approval
agreement with Benton Resources to acquire its:
1. Right to purchase 100% of Panoramic Concurrent Financing
Resource’s Thunder Bay North (TBN) • Regency has raised C$15M via a brokered
Property for C$9.0M total private placement of subscription receipts
2. Right to purchase 100% of Rio Tinto’s • Shareholder vote is required to approve
Escape Lake Project C$6.0M total share issuance and change of name
Regency will issue the following to each of
Use of Proceeds:
Benton Resources, Panoramic Resources, and
Rio Tinto: 1. $4.5M to Panoramic for TBN Project down
Benton 24,615,384 shares of Regency payment
Resources 0.5% NSR on each project 2. $5M Expand Escape Lake mineralized
intrusive conduit trend (Phase 1,2). Q1/20
Panoramic C$4.5M on closing
start
Resources C$1.5M on each of the 1st, 2nd, and
3. $1.0M Target massive sulphide PGE-Ni-Cu
3rd anniversaries of closing
mineralization in the conduit source feeder
Rio Tinto C$3M on signing of agreement (paid system (Phase 1,2)
by Benton) 4. $1.0M G&A for balance of 2020
C$1M on each of the 1st, 2nd, and 3rd
anniversaries of closing
18Capital Structure – Q1/2020
Current Capital Structure:
Regency Gold Corp.
Shares Issued 25.48M
Options @ 0.12 1.275M
Fully Diluted 26.76M
Cash $1.5M
Current Market Cap FD ~$3.5M
Pro Forma Capital Structure:
Clean Air Metals Inc.
*Including 24.6M shares allocated to Benton Resources Inc. and concurrent financing at
indicative pricing of $0.20 per subscription receipt (common share + half warrant)
Shares Issued 126.37M
Options + Warrants 39.00M
Fully Diluted 165.37M
19Advisory Team / Consultants (Post-Closing)
Bruce Mackie Senior Project Advisor
Mr. Bruce W. Mackie, P. Geo., a senior Exploration Geologist with 38 years of progressive experience in all phases of exploration
program management from conceptualization acquisition, budgeting, evaluation and ore reserve definition.
Derek Wilton, PhD, P.Geo Geological Advisor
Dr. Derek Wilton is Honorary Research Professor (from 1995) in the Department of Earth Sciences, Memorial University. Most of his
research has been conducted in Labrador, from Cape Chidley to the Straits to Labrador West. He has authored or co-authored over
40 papers in referenced journals, 30 books, 45 referenced government papers, over 180 published abstracts, and in excess of 225
contract reports for industry government and aboriginal groups. In 2013, he received the inaugural “Geoscientist of the Year” award
from the NL section of the Canadian Institute of Mining and Metallurgy (CIM). He was elected an International Fellow of the Explorers
Club in 2010, and elected as Fellow of the Royal Canadian Geographical Society in 2013. His research was recognized by Royal
Canadian Geographical Society as one of “Seven Amazing Projects in 2018”
Brian Bengert, MSc, P.Geo Geophysical Advisor
Brian received a B.Sc. in Geophysics in 1994, and later obtained his M.Sc. from York University in 1996 specializing in Time series
and Data Analysis. Upon graduation, Brian spent five years as a field Geophysicist working for Quantec Geoscience in North and
South America. Brian worked as a geophysicist 15 years for Inco with major responsibility for the Voisey’s Bay nickel project and was
a principal member of the team that discovered the deposit that would become the future underground operation. Over his career,
Brian has gained extensive experience collecting, processing and interpreting geophysical data. He has been involved in the
development of several geophysical methodologies. His experience was gained from projects covering a wide spectrum of
commodities, including nickel, copper, gold, iron, zinc, lithium, coal, and diamonds.
20Palladium and Platinum Supply & Demand Trends
Palladium breakout
based on supply
dynamics. Increasingly
stringent global auto
emission standards
driven by Climate
Change imperative
Current Pricing
• Platinum $970/oz
• Palladium $2055/oz
Source: Bloomberg (market close on January 7, 2020)
21Environmental Standards Drive Demand
22Palladium Supply Dynamics
23Aboriginal Community Traditional Land Area
• Regency/Clean Air Metals Inc. recognizes that the Thunder Bay North and Escape
Lake project areas are subject to Aboriginal and treaty rights which are protected
under Section 35 of the Constitution Act, Canada.
• Regency/Clean Air Metals Inc. recognizes Aboriginal ties to the land and the right to
quiet use and enjoyment of traditional activities such as hunting, fishing, trapping and
gathering.
• Regency/Clean Air Metals Inc. pledges integrity and meaningful consultation with
affected First Nation communities in the hope of achieving community consensus.
24For Further Information:
Abraham Drost, M.Sc., P.Geo
CEO & Director
1004 Alloy Drive
Thunder Bay, Ontario 807.252.7800
P7B 6A5 Canada adrost@cleanairmetals.ca
25APPENDIX
Massive Sulphide
Current Lake Deposit
~60-115 g/t Pt+Pd,
8-15% Cu, 3-5% Ni
26TBN Project – Current Lake Deposit
Historical Mineral Resource and Geological Controls
27TBN – Current Lake Deposit – Historical Mineral Resource (2012)
https://panoramicresources.com/wp-content/uploads/2018/10/PGM-resources-and-reserves-slides-30-June-2018.pdf
28Current Lake Project Shows Ramp-accessible Underground Mining Potential
Potential future ramp access high-grade
stope development opportunities
29Current Lake Intrusive Complex – Model Drill Assay Sections
30Bridge Zone – Model Drill Assay Sections
31Beaver Lake Zone – Model Drill Assay Sections
32Escape Lake 2020 – Phase 1 & 2 – Section 3
33Escape Lake Proposed Drilling – Phase 1 & 2 – Oblique View
34Possible Toll Milling Routes
35You can also read
