Announces Initial Definition of Measured Mineral Resources in Latest Resource Estimate for the Nechalacho Rare Earth Elements Deposit, Thor Lake, NWT
Toronto, July 11, 2012 AEST (ABN Newswire) - Avalon Rare Metals Inc. (
TSE:AVL) (NYSE:AVL) is pleased to announce an updated resource estimate for the Nechalacho Rare Earth Elements Deposit, Thor Lake, NWT (the "Nechalacho Deposit"). The estimate was prepared by Roscoe Postle Associates Inc. ("RPA") based on the assays from all drilling completed up to November, 2011. The updated resource estimate is highlighted by the initial definition of mineral resources in the Nechalacho Deposit at the key Measured level of confidence.
RPA has estimated Measured Mineral Resources of 8.90 million tonnes grading 1.64% TREO[1] and 21.7% HREO/TREO using the base case $260/tonne Net Metallurgical Return ("NMR") cut-off for the key Basal Zone part of the Nechalacho Deposit (see Table 1, in link below). Furthermore, within the Measured Mineral Resources, there are an estimated 8.42 million tonnes at the $400/tonne NMR cut-off grading 1.69% TREO and 21.82% HREO/TREO. Thisdemonstrates that the Measured Mineral Resources continue to be robust at higher cut-off grades (see Table 3). Grades for individual rare earth element oxides are listed in Table 2.
The updated resource estimate for the Basal Zone has also resulted in an increase in the total Indicated Mineral Resources in the deposit to 63.76 million tonnes grading 1.52% TREO with 21.41% HREO/TREO at the $260/tonne NMR base case cut-off (Table 1). The total Measured and Indicated Resources of 72.66 million tonnes of 1.53% TREO and 21.5% HREO/TREO compares with the Indicated Mineral Resources of 57.49 million tonnes grading 1.56% TREO with 20.72% HREO/TREO reported previously for the Basal Zone in the news release dated January 27, 2011.
President and CEO, Don Bubar commented, "The initial definition of Measured Mineral Resources is an important milestone for the Nechalacho Project. This will lead to increased confidence in the Mineral Reserves, a key component for the Feasibility Study, and increased confidence in the continuity of the Basal Zone mineralization as we prepare for mine development."
The drilling programs on the Nechalacho Deposit carried out since January 2011 have focused on three main objectives:
- Detailed definition of the resources within the previously estimated Indicated Mineral Resources in order to refine the mine plan,
- Provision of a 40 tonne bulk sample for metallurgical testing, which was largely dependent on recovery of large diameter PQ core, and
- Geotechnical drilling of the planned ramp route, underground crusher location, tailings area and surface infrastructure locations.
All three objectives have been accomplished, although additional definition drilling is planned for this summer to further augment the inventory of Measured Mineral Resources for inclusion in the Mineral Reserves for the Feasibility Study. Once all the assays from this program are available this fall, a final update of the Mineral Resources and Reserves will be prepared for the Feasibility Study.
The summer drill campaign is planned to begin in early July with one HQ core drill focused on the southern margin of the deposit in the Long Lake area, where some of the highest grade resources in the Nechalacho Deposit are situated. The main objective of this program is to bring these higher grade resources (where the first mining stopes are planned) into the Measured category.
The mineral resource estimates were prepared by Tudorel Ciuculescu, P.Geo., Senior Geologist, RPA. Drilling operations are being performed by Foraco Drilling Ltd. of Yellowknife, NWT under the supervision of J.C. Pedersen, P.Geo. The Company's Vice-President, Exploration, William Mercer, Ph.D., P.Geo. (Ont), P. Geol. (NWT) is providing overall direction on the project and monitors the QA/QC on the laboratory analyses. The qualified persons for the purposes of this news release are Tudorel Ciuculescu, P.Geo. (RPA) and William Mercer, P.Geo., VP-Exploration (Avalon).
The resource estimation procedure employed by RPA was similar to that of the NI 43-101 compliant resource disclosed in the Company's News Release dated June 14, 2010 and resource update of January 27, 2011. The base case cut-off grade was unchanged, and the composite methodology, estimation method (Inverse Distance Squared), block size, domains and estimation parameters were similar. Metal price assumptions were updated to match those used for the Updated Pre-Feasibility Study (as detailed in the news release of July 7, 2011).
NEW TECHNICAL STAFF ADDITIONS
Avalon is pleased to announce additions to the Company's technical staff. Mr. Benjamin Webb has joined the company as Senior Resource Geologist as of May 28, 2012. Mr. Webb has an M.Sc. in Geological Sciences from Brown University. He has six years of mine production experience with Freeport-McMoRan Copper & Gold Inc., first at the Morenci Mine in Arizona, and more recently at the Grasberg mine in Indonesia during commissioning of stope mining. Mr. Webb will be responsible for managing resource estimation on all of the Company's mineral development projects, with the first priority being the Nechalacho Deposit.
In addition, Avalon has hired two junior metallurgists, recent graduates from the University of Toronto Department of Chemical Engineering. Both Ms. JiaYi Guan and Mr. Sami Khan will be assisting the senior metallurgists in advancing the metallurgical testwork and engineering for the Feasibility Study on the Nechalacho Deposit.
[1]Total Rare Earth Oxides (TREO) refers to the elements lanthanum to lutetium, plus yttrium, expressed as oxides. See Avalon's website for conversion factors from elements to oxides.Heavy Rare Earth Oxides (HREO) refers to the elements europium to lutetium, plus yttrium, expressed as oxides. Light rare earths (LREO) refers to the elements lanthanum to samarium, expressed as oxides. HREO/TREO refers to the proportion of heavy rare earth oxides as a percentage of the total rare earth oxide content of the rock.
To view the complete Avalon Rare Metals announcement including Tables, please click the link below:
http://media.abnnewswire.net/media/en/docs/73165-avalon_2012_07_11.pdf
About Avalon Advanced Materials Inc
Avalon Advanced Materials Inc. (TSE:AVL) (OTCMKTS:AVLNF) (formerly Avalon Rare Metals) is a Canadian mineral development company specializing in niche market metals and minerals with growing demand in new technology. The Company has three advanced stage projects, all 100%-owned, providing investors with exposure to lithium, tin and indium, as well as rare earth elements, tantalum, niobium, and zirconium. Avalon is currently focusing on its Separation Rapids Lithium Project, Kenora, ON and its East Kemptville Tin-Indium Project, Yarmouth, NS. Social responsibility and environmental stewardship are corporate cornerstones.
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