Echelon Capital Markets starts coverage on Clean Air Metals, calling its Thunder Bay North project a "game-changer"

Echelon Capital Markets has initiated coverage on Clean Air Metals Inc (CVE:AIR) (OTCQB:CLRMF) with a 'Speculative Buy' rating and a C$0.80 price target. Ontario’s Clean Air Metals is advancing the high-grade Thunder Bay North project, a growing polymetallic resource with high-grade platinum, palladium, copper and nickel showings around 50 kilometres northeast of Thunder Bay, Ontario. In a research note published Monday, the firm’s analysts called Thunder Bay North a “potential game-changer” thanks to its high-grade massive sulphide deposit. READ: Glencore could benefit from metals upside after fatal Norilsk accident, says JP Morgan Echelon analysts expressed their excitement at the possibility that the project hosts “Norilsk-style” mineralization similar to that of Norilsk Nickel, one of the world’s largest nickel and platinum producers. Thunder Bay North hosts an Indicated resource of 16.2 million tonnes at an average grade of 3.5 grams per tonne (g/t) palladium equivalent containing 1.8 million ounces palladium equivalent and a total Inferred resource of 9.9 million tonnes at an average grade of 2.1 g/t palladium equivalent containing 663,660 ounces. A recently updated resource estimate at the project saw platinum and palladium contained in the adjacent Current Lake and Escape Lake deposits more than double to 1.8 million ounces, from 732,000 ounces under a historic resource estimate, Echelon noted. Clean Air is planning to drill 45,000 metres at Thunder Bay North this year. “The Escape Lake deposit remains open and will be subject to extensive systematic drilling in 2021,” Echelon analysts wrote. “Drilling will also aim to upgrade Inferred resources in the Beaver Lake Zone in the adjacent Current Lake deposit area and test geophysical anomalies identified in the Feeder Zone area underlain by the Escape Lake Fault at the southern base of the Current Lake intrusion. The target here is the source of Norilsk-style narrow, high-grade massive sulphide lenses further up. in the Current Lake conduit.” Assay results promising Earlier this month, Clean Air Metals revealed new assay results from just north of the Escape Lake zone, which included a massive sulphide horizon grading 8 g/t palladium, 6.4 g/t platinum, 4.8% copper, 2.5% nickel, and 0.2% cobalt over 0.5 metres from 337 to 337.5 metres downhole. Echelon also cited Thunder Bay North’s ‘green’ potential thanks to its metal mix, which can be used in things like catalytic converters for gas-powered cars and electric vehicles. Clean Air is also envisioning and underground operation at Thunder Bay North, which Echelon noted would have a lower environmental footprint. Clean Air is led by CEO Abraham Drost, most recently CEO at Carlisle Goldfields until its $28.5 million sale to Alamos Gold, and executive chairman Jim Gallagher, former North American Palladium CEO. “Importantly, we note that both officers have been recent buyers of AIR shares, thereby further aligning them with the interests of shareholders,” Echelon analysts wrote. Shares of Clean Air Metals were trading in Toronto at C$0.37 on Tuesday afternoon. Contact Angela at angela@proactiveinvestors.com Follow her on Twitter @AHarmantas