Mike Fagan's Precious Portfolio: Special Alert No. 5: Tier-3 Portfolio Addition

Mike Fagan's Precious Portfolio


Alert No. 5

Special Alert: Tier-3 Portfolio Addition

Dear Precious Portfolio subscriber,

In today’s alert, we’re announcing a new portfolio addition from Tier-3 (Juniors).

Precious Portfolio: Alert #5

 Tier-3: Clean Air Metals (OTC: CLRMF)(TSX-V: AIR)

pyramid-clean-air-metals


 Tier-3: Clean Air Metals (OTC: CLRMF)(TSX-V: AIR)

clean-air-metals-logo

Clean Air Metals Inc. is a Canadian-based palladium and platinum exploration company focused on advancing its flagship Thunder Bay North project located in the Thunder Bay region of Ontario, Canada.

Our entry into Clean Air Metals provides exposure to the exploration side of the PGM (Platinum Group Metals) sector via a well-run company with a large land package in a Tier-1 jurisdiction (Ontario, Canada) with significant exploration upside.


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The commodity prices for palladium and platinum are sharply on the rise thus far in 2020 due to increased demand from the automobile industry as a result of tightening environmental standards and a global shift toward lower emissions.

  • Palladium, which is used primarily in the catalytic converters of automobiles, is currently trading above $2,340 an ounce after trading as low as $1,600/oz in March of this year.
  • Platinum, also used in catalytic converters, is currently trading above $950 an ounce after trading as low as $590/oz in March of this year.

The company’s Thunder Bay North project also hosts meaningful copper and nickel mineralization, which are important metals for the electric vehicle market:

  • Copper is currently trading around $3.25 per pound after trading as low as $2.09/lb in March of this year.
  • Nickel is currently trading around $7.25 per pound after trading as low as $5/lb in March of this year.

Clean Air Metals’ executive chairman, Jim Gallagher, is the former CEO of North American Palladium, which was purchased by Impala Platinum for US$750 million in October of last year.

That acquisition, which includes the Lac des Iles Mine, underscores the globally recognized significance of the PGM-rich Thunder Bay North region – and Mr. Gallagher’s intimate knowledge of the district and what it takes for a project to be acquired by a major is an enviable asset for Clean Air Metals.

The Thunder Bay North (TBN) project is located 37 miles southeast of the Lac Des Iles Mine. TBN has seen significant drilling with over 800 holes drilled to-date and around C$100 million spent on exploration by previous owners.

The project, which has infrastructure in-place including roads and power, currently has two rigs actively drilling with potential for a third rig to be added next year.

  • Thunder Bay North Property consists of 300 unpatented claims covering an aggregate area of 73,450 acres and includes a historic estimate in various zones (“Current Lake Deposit”) of 741,000 ounces platinum and palladium in 9.8 million tonnes at 2.3 g/t PtEq Indicated.
  • Escape Lake Property consists of 20 unpatented claims with an area of 1,385 acres and includes a significant previous discovery by Rio Tinto, including an intercept of 33.4 meters at 7.28 g/t Pt+Pd+Au and 2.26% Cu+Ni.
  • Escape North Property consists of 24 unpatented claims with an area of 4,255 acres and is situated directly north of and adjacent to the northern boundary of the TBN claims.

clean-air-metals-properties-map


Last month, the company released its latest set of drill results from TBN wherein all 7 holes drilled intersected the targeted mineralized zone, including a highlight of 98.9 meters of 1.89 g/t Palladium, 1.40 g/t Platinum, 0.69% Copper, and 0.35% Nickel.

As a result of encouraging results from the program to-date, Clean Air announced an extension of the program by an additional 10,000 meters, thereby increasing the present drill program to 30,000 meters.

Abraham Drost, CEO of Clean Air Metals, stated: "The new results continue to confirm dimensions and extend the Escape Lake deposit that remains open to the northwest and southeast. This has implications for upside tonnage potential as part of the upcoming mineral resource evaluation by Nordmin Engineering at both the Current Lake and Escape Lake deposits. The Current Lake deposit is being evaluated by Nordmin as a ramp-accessible, underground high-grade selective extraction operation. The Escape Lake magma conduit is being looked at a potential future source of feed. With the emerging greenfields exploration play being generated with magnetotelluric survey techniques, the Thunder Bay North asset is quickly becoming a three-in-one project situation with a number of possibilities to increase shareholder value."

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Joe Mazumdar of Exploration Insights studying drill core from previous operators’ campaigns at the TBN Current Lake Project along with Clean Air Metals’ Board of Directors.


Clean Air Metals has approximately 140 million shares outstanding with strong institutional backing [Eric Sprott, 7.1%; Benton Resources, 17.6%; Institutional, 50%] for a current market cap of US$29.3 million.

The company, which is well-funded through Q2 of next year having raised a total of C$21.7 million in 2020, is working toward completion of a PEA (Preliminary Economic Assessment) on TBN within that same timeframe.

Current price: US$0.23 per CLRMF share: Buy up to US$0.24

Establish your Clean Air Metals Inc. (OTC: CLRMF)(TSX-V: AIR) position incrementally and look for opportunities to buy on weakness. Learn more about Clean Air Metals at www.CleanAirMetals.ca.


Upcoming…

In our next bi-weekly alert, we’ll be adding an additional 1 to 2 stocks to our Precious Portfolio; we are currently reviewing a number of small-cap, mid-tier, and large-cap resource stocks that meet our criteria.


Yours In Profits,

Mike Fagan
mike fagan

Mike Fagan 
Editor, Precious Portfolio 



Previous Alerts

Alert No. 1   |   Alert No. 2   |   Alert No. 3   |   Alert No. 4

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