Clean Air Metals PEA Delivers C$219.4 M pre-tax NPV, 39% IRR for the Thunder Bay North Project
Executive Summary
- Clean Air Metals released a PEA for the Thunder Bay North project showing a pre‑tax NPV₈ of C$219.4 M, after‑tax NPV₈ of C$157.5 M and an IRR of 39% (pre‑tax) / 32% (after‑tax).
- Updated resource totals 14.90 Mt indicated and 2.49 Mt inferred, grading 2.66 g/t 2PGE, 0.40 % Cu and 0.24 % Ni; no reserves are declared.
- The study outlines an 11‑year mine life (plus 2 years pre‑production), 2,500 t/d production rate, initial CAPEX C$89.5 M, sustaining CAPEX C$162.7 M, and a payback period of ~2.5 years with operating margin of ~45%.
Key Details
- Economic Highlights
- Pre‑tax NPV₈: C$219.4 M; After‑tax NPV₈: C$157.5 M
- Pre‑tax IRR: 39%; After‑tax IRR: 32%
- Spot‑price scenario NPV₈ (pre‑tax): $316 M; IRR: 52%
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Capital payback: 2.5 years from production start
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Project Scope
- Mine life: 11 years + 2 years pre‑production
- Production: 2,500 t/d (0.91 Mtpa) from underground ramp‑access operation
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Total mill feed: 8,705 kt; LOM feed grade: 4.92 g/t Pt‑eq
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Capital & Cost Structure
- Initial CAPEX: C$89.5 M (including 25% contingency)
- Sustaining CAPEX: C$162.7 M (total capital C$257.2 M)
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Operating cost: $100.40/tonne feed; Mine operating cost $66.80/tonne, Toll‑milling $33.60/tonne
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Resource Update
- Indicated: 14.90 Mt @ 2.66 g/t 2PGE, 0.40 % Cu, 0.24 % Ni
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Inferred: 2.49 Mt @ 1.62 g/t 2PGE, 0.31 % Cu, 0.19 % Ni
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Metallurgical & Payability (toll‑milling scenario)
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Consolidated payability: Pt 68%, Pd 77%, Au 40%, Ag 21%, Cu 84%, Ni 32%
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Sensitivity Analyses – economics most sensitive to operating cost variations and metal price changes (tables detail NPV impacts for ±10‑20 % cost shifts and metal price scenarios).
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Strategic Intent & Next Steps
- Board approved fast‑track to final production decision.
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Planned activities: advance NI 43‑101 studies, permitting, Indigenous consultation, explore processing options (including potential acquisition of nearby LDI toll‑milling assets), raise capital, and develop construction financing plan.
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Quotes
- CEO Mike Garbutt: “The PEA is a critical step…low‑risk, quick‑payback project…strong government support…best time to move forward.”
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Chair Jim Gallagher: “Board pleased with results…high‑grade material close to surface…potential for longer mine life.”
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Technical Review – Independent Qualified Persons (SLR, Technica Mining, XPS, Story Environmental) prepared the PEA; full report to be filed on SEDAR+ within 45 days.
Notable Quotes
“The PEA is a critical step in advancing the Thunder Bay North Project and more importantly, it adds to the list of significant critical mineral opportunities in this province…” – Mike Garbutt, CEO
“The Board is quite pleased with the results of the study…low‑risk, quick‑payback project.” – Jim Gallagher, Chair