• Clean Air Metals’ updated PEA outlines a pre-tax NPV of C$219.4 million and 39 per cent IRR
• Benton holds a 9.8 per cent stake in Clean Air Metals and a 0.5 per cent NSR on Thunder Bay North and Escape Lake
• Project near Thunder Bay designed as low-cost, high-margin operation with 2.5-year payback
Benton Resources Inc. (TSXV:BEX) has reported that Clean Air Metals (TSXV:AIR), in which it holds a 9.8 per cent equity interest, has released a new preliminary economic assessment (PEA) for the Thunder Bay North platinum-palladium-copper-nickel project in Ontario.
The PEA assigns the project a C$219.4 million pre-tax net present value (8 per cent) and a 39 per cent internal rate of return (IRR) against an estimated capital cost of C$89.5 million.
This content has been prepared as part of a partnership with Benton Resources and Clean Air Metals, and is intended for informational purposes only.
On an after-tax basis, the NPV is C$157.5 million with a 32 per cent IRR. At spot pricing, Clean Air Metals estimates a pre-tax NPV of C$316 million and a 52 per cent IRR.
The study highlights a two-and-a-half-year capital payback from start-up and healthy operating margins of 45 per cent.
The project is described as a low-cost, high-margin producer that plans to use toll milling and temporary infrastructure to shorten time to production.
Clean Air Metals also updated the resource to 14.9 million tonnes indicated grading 2.66 g/t 2PGE₂, 0.40 per cent copper and 0.24 per cent nickel, plus 2.49 million tonnes inferred at 1.62 g/t 2PGE₂, 0.31 per cent copper and 0.19 per cent nickel. No reserves have yet been declared.
Benton currently owns 24.6 million Clean Air Metals shares and retains a 0.5 per cent net smelter return (NSR) on the lower portion of the Thunder Bay North deposit and the entire Escape Lake deposit.
The Thunder Bay North project lies near the City of Thunder Bay, where highway and power infrastructure are in place. Baseline environmental studies are largely complete, and Clean Air Metals says it is working closely with Indigenous communities on permitting and participation.
Benton, meanwhile, continues to advance its wholly owned Great Burnt copper-gold project in central Newfoundland, which hosts indicated resources of 667,000 tonnes grading 3.21 per cent copper and inferred resources of 482,000 tonnes grading 2.35 per cent copper.
Shares of Benton Resources are up by 5.56 per cent trading at C$0.095 as of 10:39 am ET.
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