www.avalonraremetals.com
Avalon Rare Metals is a mineral exploration and development company focused on rare metals deposits in Canada. Its flagship project, the 100%-owned Nechalacho Deposit, Thor Lake, NWT, is emerging as one of the largest undeveloped rare earth elements resources in the world. Its exceptional enrichment in the more valuable 'heavy' rare earth elements, which are key to enabling advances in green energy technology and other growing high-tech applications, is one of the few potential sources of these critical elements outside of China, currently the source of 95% of world supply. Avalon is well funded, has no debt and its work programs are progressing steadily.
Avalon Rare Metals increases indicated resource category at Nechalacho deposit by 40%
Avalon Rare Metals (TSX:AVL, OTCQX:AVARF) has increased its indicated mineral resources assessment by 40% to 20.45 million tonnes in the Basal Zone at the company`s Nechalacho rare earth elements (REE) deposit in Thor Lake, Northwest Territories.
The update is a result of the company`s 2010 winter definition drilling program in the area referred to as West Long Lake, which saw new, higher grade REE mineralization in the Basal Zone.
The winter drilling has increased the indicated mineral resources in the Basal Zone part of the deposit by 40%, with an additional 5.97 million tonnes grading 1.57% TREO with 25.5% HREO/TREO. This means that the total indicated mineral resources in the Basal Zone now stands at 20.45 million tonnes grading 1.75% TREO with 23% HREO/TREO.
Nechalo`s enrichment in the more valuable 'heavy' rare earth elements, which are key to enabling advances in green energy technology and other growing high-tech applications, is one of the few potential sources of these elements outside of China, currently the source of 95% of world supply.
"The increase in indicated mineral resources in the Basal Zone will have a positive effect on the economics of the project, through extension of the mine life used in the financial model," the company said in a statement.
The company has also defined a high grade sub-zone in the Basal Zone, which yields 1.87 million tonnes grading 2.19% TREO, with 28.8% HREO/TREO, 4.29% Zirconium Oxide, 0.50% Niobium Oxide and 0.06% Tantalum Oxide, representing 30% of the total indicated resources in the West Long Lake area.
The definition of higher grade sub-zones is beneficial for Avalon, as areas that can be mined immediately after start-up will allow increased revenues during the early years of production.
The 2010 winter definition drilling program was designed to reduce the average spacing of intercepts in the Basal Zone to 50m and bring the higher grade parts of the deposit into the indicated resource category, said the company.
This included the West Long lake area where 13 holes totalling 3808 metres were drilled from the ice to follow up on two rather encouraging intercepts drilled in 2009, which assayed up to 1.90% TREO with 27% HREO/TREO over 43.0m.
Avalon also updated its total inferred mineral resources for the Upper and Basal Zones slightly, to 182.56 million tonnes grading 1.40% TREO with 15% HREO/TREO.
The summer drill program continues at the site with production from two drill rigs, one producing HQ, and the second producing a large size PQ core.
Since drilling resumed in late June, 34 holes totalling 8757 metres have been completed.
Initial assays from the summer drilling are expected by late October this year.
The company has also said that positive discussions are advancing with aboriginal communities regarding potential partnership and participation opportunities in the development of the Nechalacho deposit.
Avalon Rare Metals is focused on rare metals deposits in Canada. Its flagship project, the 100%-owned Nechalacho Deposit, Thor Lake, NWT, is emerging as one of the largest undeveloped rare earth elements resources in the world.
