Clean Air Metals (TSX-V:AIR) is actively assessing other properties throughout Ontario that have platinum group metals potential while embarking on a “modest” summer drill program to extend the down plunge extent of its Thunder Bay North project.
The focus continues on refining the Escape down-plunge target at its Thunder Bay North Critical Minerals Project, situated in a well-endowed region of Northwestern Ontario.
CEO Jim Gallagher tells Mining.com.au that with the summer drill results expected to be available by September 2024, Clean Air Metals continues advancing its flagship project, which has a suite of platinum, palladium, copper, and nickel.
“In addition, we are looking at other properties throughout Ontario that have PGM potential and that could benefit from advanced geo-physics and our team’s expertise,” he says.
Earlier this year, Gallagher, who was instrumental in starting Clean Air in 2020, detailed to this news service the importance of its Thunder Bay project having a platinum-palladium ratio of 1:1.
Additionally, the Thunder Bay North Critical Minerals Project is somewhat uniquely a dedicated PGM mine in Canada, which is the fourth-largest producer of mined PGMs globally.
PGMs are also recovered as co-products at many Canadian primary nickel mines and there are currently three advanced exploration projects in northern Ontario focused on PGMs as the primary commodities.
There is a growing need for more PGM mines to advance into production not only in Canada but elsewhere outside of South Africa and Russia, which produce the world’s lion share.
“The global demand for critical minerals will exceed the mining industry’s ability to supply once the full transition begins,” Gallagher says.
“Canada, and in particular Northern Ontario remains one of the best regions in the world to explore for and develop PGE assets due to the abundance of mineral deposits and the mining friendly jurisdiction.”
Canada accounts for about 5.5% of global production. Most of the production occurred in Ontario (78%) in 2022, with the remainder occurring in Quebec, Manitoba, and Newfoundland and Labrador.
An estimated 17.4 million troy ounces of PGMs were supplied globally in 2022, of which 72% was from mined sources and the balance from recycling and scrap sources.
At a time when top miners are reporting declines in Q1 output and reports suggest a waning need for palladium in auto catalysts of gasoline-powered vehicles as the world transitions to EVs, Gallagher reiterates the need for projects such as Thunder Bay to come online.
“The growth in Hybrid and Plug In Hybrids (PHEVs) will be the primary new growth factor for palladium. The growth in the hydrogen economy with both electrolysers and fuel cells being big consumers of PGEs (primarily platinum but some other PGEs) will be the growth area,” the Executive Chair notes.
“The expected price appreciation in platinum will drive other demand back to palladium.”
The palladium price began an upswing in February although it’s since tapered off slightly. In 2022, palladium rocketed, reaching a peak of US$2,583 as Russia’s invasion of Ukraine and resultant sanctions stoked fears of global scarcity.
However, as the protracted war continues palladium has hovered around US$1,000, down by 7% since the beginning of the year, squeezed by a shift to cheaper platinum and the aforementioned slumping auto demand.
As Clean Air’s Executive Chair explains, global auto sales are bouncing back after years of declining sales as a result of the pandemic and the resultant supply chain issues.
“This includes ICE vehicles and more importantly a significant increase in hybrids,” he adds.
“Catalytic converters perform best when very hot therefore hybrids require higher PGE loadings in their catalytic converters to meet emission standards due to the fact that their engines do not run constantly and not as hot.”
In November 2023, Clean Air Metals was granted a three-year exploration permit from the Ontario Ministry of Mines which covers a down plunge extension and encompasses other areas of interest now a focus for drilling and geophysical work.
The Thunder Bay North Critical Minerals Project hosts an indicated mineral resource of 13.8 million tonnes containing 1.2 million ounces of 2PGE (Pt+Pd). It also contains 56,800 tonnes of copper and 33,800 tonnes of nickel between twin magmatic intrusions (chonoliths) known as the Current and Escape deposits, which are twin magma conduits.
Write to Adam Orlando at Mining.com.au
Images: Clean Air Metals
