The mining newspaper for Alaska and Canada's North
The mining newspaper for Alaska and Canada's North
AVL: TSX
President and CEO: Donald Bubar
Senior Vice President, Metallurgy: Dave Marsh
Vice-President, Exploration: William Mercer
Avalon Rare Metals is focused on developing a mine at its Nechalacho rare earth elements deposit at Thor Lake in Northwest Territories.
During 2014, the company is continuing exploration while optimizing a feasibility study completed in 2013.
Drilling in 2013 identified high-grade rare earth mineralization near the proposed access ramp location, with one hole intersecting 12.1 meters averaging 2.82 percent total rare earth oxides, with 29.9 percent of the TREO being the higher valued heavy rare earth oxides in the lower part of the Basal Zone.
A 15-hole drill program completed during the winter months of 2014 obtained about 1.5 metric tons of bulk sample material from the Basal zone for on-going metallurgical process.
The company said the 3,135 meters of drilling also helped define the geometry of Basal.
The balance of the five metric tons of needed bulk sample material was collected during the summer program.
Based on the results of recent exploration, Avalon intends to incorporate new resource model for Nechalacho into a revised mine plan that will be included in an updated technical report for the rare earths project.
In June, Avalon grossed roughly C$6 million through the completion of two financings.
The net funds raised will be used for drilling, exploration, engineering, permitting and market development for Nechalacho; and exploration at the East Kemptville tin-indium property in Nova Scotia.
In April, the company received a Class A Land Use Permit from the Mackenzie Valley Land and Water Board to start pre-construction work at Nechalacho.
This permit allows Avalon, in a phased approach, to carry out identified low-impact activities including site preparation, early camp erection, portal development and associated infrastructure such as roads, power and water treatment.
The company said it is continuing the application process for securing full construction and operations permits by early 2015.
Avalon said its plans to achieve commercial production at Nechalacho by 2018 are contingent on securing a strategic or financial partner for the rare earths project.
Cash and short-term deposits: C$4.4 million (May 31, 2014)
Working capital: C$3.1 million (May 31, 2014; raised C$6.2 million in financings that closed in June and July, 2014)
Market capitalization: C$57.5 million (Sept. 9, 2014)
130 Adelaide Street West Suite 1901
Toronto, ON M5H 3P5
Tel: 416 364-4938 Fax: 416 364-5162
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