Clean Air Metals, Inc. · TSXV:AIR
Clean Air Metals — Investor Presentation (January 2023)
58 slides from Clean Air Metals's investor presentation, Jan 4, 2023
Slide 1: Thunder Bay North Critical Minerals Project
METALS FOR THE CLEAN AIR REVOLUTION THUNDER BAY NORTH CRITICAL MINERALS PROJECT PRELIMINARY ECONOMIC ASSESSMENT & PATH FORWARD JANUARY 2023 TSXV AIR OTCQB CLRMF FRA CKU CLEANAIRMETALS.CA
Slide 2: Forward Looking Statements
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
Slide 3: Executive Chair, CEO and COO Backgrounds
Pt:Pd Ratio 1:1 geologically, lending JIM GALLAGHER, P.ENG EXECUTIVE CHAIR perfect optionality on price trend Most recently the CEO of North American Palladium (TSX:PDL), which operated the Lac Des Iles mine, at the sale to Impala Platinum Holdings (JSE:IMP) in December 2019 for approximately $1 Bil
Slide 4: 2023 Performance Metrics/Objectives
2023 PERFORMANCE METRICS/OBJECTIVES Highlights • 10-year LOM project w/ $425m pretax NAV and 31% IRR; 25% post tax (PEA Jan-2022) • Recent C$15 million mining royalty investment (for 2.5% NSR) by Triple Flag Precious Metals, majority owned by Elliot Investment Management LLC • Domestic North America
Slide 5: Thunder Bay North Project Location
THUNDER BAY NORTH PROJECT LOCATION WHERE INFRASTRUCTURE MEETS GRADE • 40 km North of Thunder Bay • 65 km S of Lac des Iles Mine • Paved provincial Hwy thru NW corner of claims • 230 KVA tx line through SE corner of claims • Natural Gas 20 km north Favorable Mining Jurisdiction + proximity to major m
Slide 6: Thunder Bay North Magma Conduit System
THUNDER BAY NORTH MAGMA CONDUIT SYSTEM, ONTARIO, CANADA (>22 MT I&I MINERAL RESOURCES INSITU) Current Deposit • Indicated Resource of 10,388,964 tonnes at 8.32 PtEq (g/t) containing 2,780,251 ounces PtEq • Inferred Resource of 5,274,798 tonnes at 3.83 tdEq (g/t) containing 650,277 ounces PtEq 0 500
Slide 7: PEA Summary: A Solid Foundation
PEA SUMMARY A SOLID FOUNDATION Production Profile Life of Mine 10 Years Total Milled Tonnage (kt) 12,284 Processing Rate 3,600 tpd/ 1.296Mtpa Highlights Operating Costs ($/t) Mining Cost (per tonne) 47.37 • 10 year mine life with strong project economics Processing Cost (per tonne) 25.03 G&A Costs (
Slide 8: Mine Production Profile Platinum Equivalent AISC
MINE PRODUCTION PROFILE PLATINUM EQUIVALENT AISC Thunder Bay North Project Platinum equivalent revenue vs AISC +90% of revenue from 3 highly recoverable Critical elements Palladium, Platinum and Copper T S X V AI R O T C Q B C L R M F F R A C K U CLEANAIRMETALS.CA 8
Slide 9: TBN Project FCF and EBITDA
TBN PROJECT FCF AND EBITDA Thunder Bay North Project FCF and EBITDA of operations offers a post-tax 2.6-year payback Total Revenue C$ 2,244.8 million Total Pre-Tax FCF C$ 651.6 million Payback Period (Pre-Tax) 2.4 Years T S X V AI R O T C Q B C L R M F F R A C K U CLEANAIRMETALS.CA 9
Slide 10: Surface Infrastructure Site Map
SURFACE INFRASTRUCTURE SITE MAP See Full 3D Vrify Presentation Link – (Click Here) T S X V AI R O T C Q B C L R M F F R A C K U CLEANAIRMETALS.CA 10
Slide 11: Current & Escape Deposit Resource
CURRENT & ESCAPE DEPOSIT RESOURCE VRIFY SLIDE T S X V AI R O T C Q B C L R M F F R A C K U CLEANAIRMETALS.CA 11
Slide 12: Current Deposit Underground
CURRENT DEPOSIT UNDERGROUND T S X V AI R O T C Q B C L R M F F R A C K U CLEANAIRMETALS.CA 12
Slide 13: Escape Deposit Underground
ESCAPE DEPOSIT UNDERGROUND T S X V AI R O T C Q B C L R M F F R A C K U CLEANAIRMETALS.CA 13
Slide 14: Escape & Current Deposit Underground
ESCAPE & CURRENT DEPOSIT UNDERGROUND T S X V AI R O T C Q B C L R M F F R A C K U CLEANAIRMETALS.CA 14
Slide 15: Metallurgy Results Blue Coast Research
METALLURGY RESULTS BLUE COAST RESEARCH Mineralogy • Pt, Pd, Au and Rh are very fine grained but are associated with the sulphide minerals BULK SULPHIDE CONCENTRATE and therefore float well at a medium fine grind. • Cu primarily in chalcopyrite. • Ni primarily in sulphide form in pentlandite. • Gangu
Slide 16: PEA Base Case Recoveries
PEA BASE CASE RECOVERIES Cu Ni Pt Pd Rh Au Ag Co S Average Mill Feed % % g/t g/t g/t g/t g/t % % 0.41 0.215 1.62 1.59 0.042 0.098 2.20 0.015 1.73 Grade Recovery Split Concentrate Option Mass Cu Ni Pt Pd Rh Au Ag Co Cu Ni Pt Pd Rh Au Ag Co % % % g/t g/t g/t g/t g/t % % % % % % % % % Cu Concentrate 1.
Slide 17: Flow Sheet
FLOW SHEET TAILINGS GRINDING ORE HANDLING FLOTATION THICKENING, FILTRATION, AND LOADOUT T S X V AI R O T C Q B C L R M F F R A C K U CLEANAIRMETALS.CA 17
Slide 18: Pre-Feasibility Study (PFS) Update
PRE-FEASIBILITY STUDY (PFS) UPDATE Scope of Work: Timing • Provide project oversight for PFS • December ‘22 to August ‘23 • Design project to approx. 15% engineering (PFS level) • Prime study consultant. • Based in Quebec, with offices • Mine, Surface Infrastructure, Tailings, Water throughout Ontar
Slide 19: Conceptual Timeline
CONCEPTUAL TIMELINE 2022 2023 2024 2025 2026 2027 2028 2029 2030-38 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 BASELINE STUDIES INDIGENOUS AND STAKEHOLDER ENGAGEMENT CLAIMS TO LEASE PROCESS PROVINCIAL EA OR CLASS EAs POST EA PERMITTING AND APPROVALS PEA SUBMISSION EXPLORATION, DELINEATION, DEFINITION DRILL
Slide 20: Technical Path Forward 2022-2023
TECHNICAL PATH FORWARD 2022-2023 The Goal: Unlock the significant additional potential of this mineral system through further exploration and optimization of the technical plan delivering an enhanced PFS in 2023. Project Optimization • Add tonnage with upgrade drilling on the Current deposit and fur
Slide 21: Hydrogen Economy Driver for PGE Demand
HYDROGEN ECONOMY DRIVER FOR PGE DEMAND “Automobiles only account for 10% of global CO2 loadings. To achieve Net Zero, coal and natural gas must be replaced. The only way to achieve this is Hydrogen.” • PGE anodes and cathodes are critical to high efficiency electrolysis of water to produce Green Hyd
Slide 22: Designed to Be a Significant Contributor of Green Energy and Zero Emission Metals
THUNDER BAY NORTH PROJECT DESIGNED TO BE A SIGNIFICANT CONTRIBUTOR OF GREEN ENERGY AND ZERO EMISSION METALS METALS INVENTORY DESIGNING SUSTAINABLE PRODUCTION Pt – Critical to the Hydrogen economy Striving for Carbon Neutrality Pd – Reduction of internal combustion • 100% renewable grid supply based
Slide 23: Demonstrating Social Responsibility
DEMONSTRATING SOCIAL RESPONSIBILITY T S X V AI R O T C Q B C L R M F F R A C K U CLEANAIRMETALS.CA 23
Slide 24: Signing of the Exploration Agreement
SIGNING OF THE EXPLORATION AGREEMENT T S X V AI R O T C Q B C L R M F F R A C K U CLEANAIRMETALS.CA 24
Slide 25: Capital Structure
CAPITAL STRUCTURE Dec 31, 2022 Shares Issued 224,000,000 Warrants ($0.25/sh.) Feb 22/24 55,410,400 Warrants ($0.55/sh.) Feb 22/23 6,372,550 Cash $10 million Management – 5% Benton Resources (BEX: TSXV) – 11% Institutional – 40% ~ Clean Air Metals Inc. is well positioned to fund its 2022-23 developme
Slide 26: PGE Market Peer Comps In-situ Resource Comparison
PGE MARKET PEER COMPS INSITU RESOURCE COMPARISON Pt Pd Au Ag Rh Co Cu Ni PtEq PdEq Company Flagship Asset Category Tonnes 4E 3E (g/t) (g/t) (g/t) (g/t) (g/t) (% ) (% ) (% ) (g/t) (g/t) New Age Metals River Valley Measured & Indicated 99,255,200 0.20 0.52 0.03 - 0.01 0.01 0.06 0.02 0.76 - - 0.90 Infe
Slide 27: Executive Management & Board
EXECUTIVE MANAGEMENT & BOARD Dean Chambers, P.Eng. ICD.D Independent Director Mr. Chambers is a professional engineer and financial executive with over 35 years of business, technical and financial experience. In 2017, Mr. Chambers retired as Executive Vice President and Chief Financial Officer at S
Slide 28: Executive Management & Board (continued)
EXECUTIVE MANAGEMENT & BOARD (...CONTINUED) Ewan Downie Independent Director Now CEO of the new i80 Gold, Mr. Downie was most recently President and CEO of Premier Gold Mines Limited since its inception in 2006. He has been working in the mineral exploration and mining industry for more than 25 year
Slide 29: Executive Management & Board (continued)
EXECUTIVE MANAGEMENT & BOARD (...CONTINUED) Abraham Drost, 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
Slide 30: Investment Highlights – Thunder Bay North Project
INVESTMENT HIGHLIGHTS – THUNDER BAY NORTH PROJECT Mid-Continent Rift PGE-Nickel-Copper District with Operating Mines • Jan ‘22 PEA features a 10 year ramp-access underground mine plan on both Current and Escape Deposits; 3600tpd (1.3 mtpy) • Pre/Post Tax NPV C$425/$293m; Pre/Post-Tax IRR 31/25% on i
Slide 31: The Life Cycle of a Mineral Discovery
THE LIFE CYCLE OF A MINERAL DISCOVERY THUNDER BAY NORTH CRITICAL MINERALS DEPOSIT (Pt-Pd-Cu-Ni) Nov. 2022 T S X V AI R O T C Q B C L R M F F R A C K U CLEANAIRMETALS.CA 31
Slide 32: Jim Gallagher, P.Eng. Executive Chairman Abraham Drost, MSc P.Geo. CEO Mike Garbutt, MBA P.Eng.
Jim Gallagher, P.Eng. Executive Chairman 705.690.7997 jgallagher@cleanairmetals.ca Abraham Drost, MSc P.Geo. CEO 807.252.7800 adrost@cleanairmetals.ca Mike Garbutt, MBA P.Eng. COO 705.207.2111 mgarbutt@cleanairmetals.ca Geoff Heggie, PhD P.Geo. VP Exploration 807.631.4654 gheggie@cleanairmetals.ca T
Slide 33: Mining Appendix
MINING APPENDIX T S X V AI R O T C Q B C L R M F F R A C K U CLEANAIRMETALS.CA
Slide 34: PEA In-situ Resource Update
PEA INSITU RESOURCE UPDATE Thunder Bay North Project Grade Profile (at US$93/tonne for Current & US$100/tonne for Escape Cutoff) Grade Pd Pt Au Ag Cu Ni Co Rh PtEq PdEq 4PGE Category Area Tonnes (g/t) (g/t) (g/t) (g/t) (%) (%) (g/t) (g/t) (g/t) (g/t) (g/t) Indicated - Current Deposit Upper Current 1
Slide 35: Operating & Capital Costs
OPERATING & CAPITAL COSTS Total Capital Cost Estimates Total Operating Cost Estimates Ongoing & Category Life of Mine Life of Mine Average Category Units Initial Closure Total $M $/t (Total Mill Feed) Underground Capital Development $M $15 $62 $77 Underground Mine Operating Costs $577 $47.37 Undergr
Slide 36: Smelter Payables Off-take Terms
SMELTER PAYABLES OFF-TAKE TERMS • Engaged with 5 potential smelters (all under an NDA) Copper Concentrate Bulk Sulphide Concentrate both domestically and abroad as well as reference Metal Payable % Deductions Payable % Deductions numbers from CRU. Platinum 90 1.5 g/t 90 1.5 g/t • Concentrate specifi
Slide 37: Commodity Summary
COMMODITY SUMMARY CRU 2-Year Trailing Average (US$) Smelter Revenue – Metal (CA$ million) Commodity Price Metal Revenue Platinum (oz) 969.00 Platinum 543.80 Palladium (oz) 2214.00 Palladium 1,278.11 Gold (oz) 1723.00 Copper 336.77 Silver (oz) 21.60 Nickel 153.03 Rhodium (oz) 13626.00 Gold 29.71 Coba
Slide 38: IRR Sensitivity Analysis Commodity Price & Costs
IRR SENSITIVITY ANALYSIS COMMODITY PRICE & COSTS Pre-Tax IRR Sensitivity (%) Sensitivity Item -20% -15% -10% -5% 0% 5% 10% 15% 20% Revenue Pt 26.9 28.0 29.0 30.1 31.1 32.1 33.1 34.2 35.2 Revenue Pd 21.1 23.8 26.3 28.7 31.1 33.4 35.7 37.9 40.0 Revenue Au 30.9 30.9 31.0 31.1 31.1 31.2 31.2 31.3 31.3 R
Slide 39: Post Tax Sensitivity Analysis
POST TAX SENSITIVITY ANALYSIS Post-Tax NPV Sensitivity (CA$million) Sensitivity Item -20% -15% -10% -5% 0% 5% 10% 15% 20% Revenue Pt 238.4 252.3 265.8 279.4 293.0 306.6 320.2 333.8 347.4 Revenue Pd 163.9 196.3 229.1 261.3 293.0 324.7 356.5 388.2 419.8 Revenue Au 290.0 290.8 291.5 292.2 293.0 293.7 2
Slide 40: Post Tax Sensitivity Analysis
POST TAX SENSITIVITY ANALYSIS Post-Tax NPV Sensitivity (CA$million) Sensitivity Item -20% -15% -10% -5% 0% 5% 10% 15% 20% Initial Capital 357.8 341.6 325.4 309.2 293.0 276.8 260.6 244.4 228.2 Ongoing Capital 318.4 312.1 305.7 299.4 293.0 286.6 280.3 273.9 267.5 Underground 348.9 335.2 321.1 307.0 29
Slide 41: Mining Summary
MINING SUMMARY Parameter Value Long-hole Open Stoping Size Length (Maximum) 20m Height (Maximum) 25m Width (Range) 5m to 15m Drift and Fill Stoping Dimensions Height 5m Width 5m Development Drift Dimensions Ramp 5m (height) x 5m (width) Cross-cut 4.5m (height) x 5m (width) Mining Dilution & Recovery
Slide 42: Exploration Appendix
EXPLORATION APPENDIX T S X V AI R O T C Q B C L R M F F R A C K U CLEANAIRMETALS.CA
Slide 43: Thunder Bay North Magma Conduit System
THUNDER BAY NORTH MAGMA CONDUIT SYSTEM, ONTARIO, CANADA (>22 MT I&I MINERAL RESOURCES INSITU) Current Deposit • Indicated Resource of 10,388,964 tonnes at 8.32 PtEq (g/t) containing 2,780,251 ounces PtEq • Inferred Resource of 5,274,798 tonnes at 3.83 tdEq (g/t) containing 650,277 ounces PtEq 0 500
Slide 44: Escape Deposit Indicated & Inferred Mineable Inventory
ESCAPE DEPOSIT INDICATED & INFERRED MINEABLE INVENTORY T S X V AI R O T C Q B C L R M F F R A C K U CLEANAIRMETALS.CA 44
Slide 45: Escape Deposit Drill Results Map
CLEAN AIR METALS INC Legend A Drillhole trace N Faults Projection of mineralized zone >1 g/t Pt+Pd (2021/22) Projection of high grade zone >5 g/t Pt+Pd Water Bodies Host mafic-ultramafic intrusion surface projection | of Massive sulfide veinlets Escape North __ Proposed Underground Development Colla
Slide 46: Current Deposit Indicated & Inferred Mineable Inventory
CURRENT DEPOSIT INDICATED & INFERRED MINEABLE INVENTORY T S X V AI R O T C Q B C L R M F F R A C K U CLEANAIRMETALS.CA 46
Slide 47: Current Deposit Drill Results Map
CLEAN AIR METALS INC Legend 2021 Collars A Collars N Drillhole trace | CL21-023 1.05 gft PtePd 0.21 % Ni#Cu Over 2m at 135.71m Faults MT Survey Lines Projection of mineralized zone >2.65 g/t PtEq Water Bodies 3.53 git Pt+Pd 0.89% NitCu Over 1.05m at 141.3m A CL21-021 CL21-022 © 2.37 git PtePd CL21-0
Slide 48: Greenfields Exploration Targeting Massive Sulphides
GREENFIELDS EXPLORATION TARGETING MASSIVE SULPHIDES SIMILAR TO Talnakh Field Thunder Bay NORIL’SK DEPOSIT Historic Production/ North Project Current Reserves TBN INTRUSIVE (Noril’sk) COMPLEX, ESCAPE LAKE 13Mt Ni Escape Lake Fault 24 Mt Cu FAULT 250 Moz PGM Current Intrusion COMPARISON WITH TALNAKH F
Slide 49: Greenfields Exploration Targeting Massive Sulphides
GREENFIELDS EXPLORATION TARGETING MASSIVE SULPHIDES SIMILAR TO NORILSK DEPOSIT EXPLORATION VECTOR MASSIVE SULPHIDES IN THE CURRENT DEPOSIT Beaver Lake Zone 2.6m@97.98gpt Pd+Pt+Au +14.9% Cu+Ni T S X V AI R O T C Q B C L R M F F R A C K U CLEANAIRMETALS.CA 49
Slide 50: Greenfields Exploration Targeting Massive Sulphides – Noril'sk Model
GREENFIELDS EXPLORATION TARGETING MASSIVE SULPHIDES – NORIL’SK MODEL MASSIVE SULPHIDES IN ESCAPE DEPOSIT (HOLE ELR21-041) SIMILAR TO Au (g/t) Pd (g/t) Pt (g/t) Co (%) Cu (%) Ni (%) NORIL’SK 0.23 7.93 6.41 0.151 4.76 2.50 HEAD GRADE T S X V AI R O T C Q B C L R M F F R A C K U CLEANAIRMETALS.CA 50
Slide 51: Greenfields Exploration Targeting Massive Sulphides – Norilsk Model
GREENFIELDS EXPLORATION TARGETING MASSIVE SULPHIDES – NORILSK MODEL MASSIVE SULPHIDES IN THE ESCAPE DEPOSIT (“ ”) WORLD CLASS NI-CU DEPOSIT ASSOCIATIONS Konnunaho, J.P., Hanski, E.J., Karinen, T.K., Lahaye, Y., and Makkonen, H.V., 2018. The petrology and genesis of the Paleoproterozoic mafic intrusi
Slide 52: MT Geophysical Data Targeting Magma Conduits and Massive Sulphides
MT GEOPHYSICAL DATA TARGETING MAGMA CONDUITS AND MASSIVE SULPHIDES See Full 3D Vrify Presentation Link – (Click Here) T S X V AI R O T C Q B C L R M F F R A C K U CLEANAIRMETALS.CA 52
Slide 53: General Appendix
GENERAL APPENDIX T S X V AI R O T C Q B C L R M F F R A C K U CLEANAIRMETALS.CA
Slide 54: Operations Exploration Management
OPERATIONS EXPLORATION MANAGEMENT Geoff Heggie, Ph.D. P.Geo VP Exploration Dr. Geoff Heggie is a Professional Geoscientist (Ontario) and obtained his PhD from University of Western Australia. An expert on Mid-Continent Rift geology, Geoff has been exploring for Ni-Cu-PGE deposits in NW Ontario for t
Slide 55: Engineering Services Provider
ENGINEERING SERVICES PROVIDER Work Package 2 ("WP2") Early Tradeoff Studies The WP2 early trade-off studies for the Current Lake Deposit will be conceptual in nature, at an order of magnitude that is comparable to a scoping/PEA level of study. The principal parameters for a conceptual study are most
Slide 56: PEA In-situ Resource Update
PEA INSITU RESOURCE UPDATE Thunder Bay North Project Grade Profile (at US$93/tonne for Current & US$100/tonne for Escape Cutoff) Grade Pd Pt Au Ag Cu Ni Co Rh PtEq PdEq 4PGE Category Tonnes (g/t) (g/t) (g/t) (g/t) (%) (%) (g/t) (g/t) (g/t) (g/t) (g/t) Indicated - Current Deposit 10,388,964 1.67 1.84
Slide 57: PEA In-situ Resource Update
PEA INSITU RESOURCE UPDATE Thunder Bay North Project Grade Profile (at US$93/tonne for Current & US$100/tonne for Escape Cutoff) Grade Pd Pt Au Ag Cu Ni Co Rh PtEq PdEq 4PGE Category Area Tonnes (g/t) (g/t) (g/t) (g/t) (%) (%) (g/t) (g/t) (g/t) (g/t) (g/t) Indicated - Current Deposit Upper Current 1
Slide 58: PEA In-situ Resource Update
PEA INSITU RESOURCE UPDATE Thunder Bay North Project Grade Profile (at US$93/tonne for Current & US$100/tonne for Escape Cutoff) Metal Pd Pt Au Ag Cu Ni Co Rh PtEq PdEq 4PGE Category Area Tonnes (oz) (oz) (oz) (oz) (Tonnes) (Tonnes) (Tonnes) (oz) (oz) (oz) (oz) Indicated - Current Deposit Upper Curr
Clean Air Metals — Investor Presentation (January 2023) on 6ix