Avalon announces progress on product
marketing initiatives and provides update on development activities on
the Nechalacho REE Deposit, Thor Lake, NWT
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Toronto, ON -- Avalon Rare Metals
Inc. (TSX and NYSE Amex: AVL) ("Avalon" or the
"Company") is pleased to provide a progress report on its rare
metal product marketing initiatives as well as project permitting,
metallurgy and diamond drilling programs on the Nechalacho Rare Earth
Elements deposit, Thor Lake, NWT, Canada.
Product Marketing
Avalon has now entered into
non-binding Memorandums of Understanding ("MOU's") with three
Asian industrial companies seeking to participate in the Project by
investing and /or providing technical expertise in exchange for obtaining
off-take rights. MOU's are commonly used to initiate a formal due
diligence process and frame the discussions between the parties.
The business terms of each of the MOUs are not binding and have therefore
not been announced. However, each MOU requires the Company to
maintain the confidentiality of the identity of the counterparty and the
business terms until the negotiation process is completed and a
definitive agreement is signed.
Pierre Neatby VP Sales and Marketing
stated, "We are encouraged that these companies have already
expressed confidence in the potential of the project by signing an MOU
and initiating a formal due diligence process. While the recent
unprecedented increase in rare earth prices has caused some concern about
substitution risk, in many applications the potential substitutes are
clearly inferior. We remain confident that market demand will resume its
strong growth as new supply comes into the market and technological
advancements develop new applications for these remarkable
commodities."
Project Permitting
Avalon is also pleased to announce
the completion and filing of its Developers Assessment Report
("DAR"), (otherwise known as an Environmental Impact
Statement), required by the Mackenzie Valley Environmental Impact Review
Board (MVEIRB). The development of a DAR is an exhaustive study
that typically takes more than a year to complete upon a company
receiving the final Terms of Reference from MVEIRB. Avalon, with support
from EBA Engineering (A Tetra Tech Company), completed and submitted its
DAR in just three months upon receiving the final terms of reference from
MVEIRB. Such rapid turn-around on submitting the DAR should reduce the
potential for delays in completing the permitting process. A copy of the
DAR can be found on MVEIRB's public registry at www.reviewboard.ca.
The Company also required a new Land
Use Permit to be issued by the Mackenzie Valley Land and Water Board
("MVLWB") for its current activities at the site, as the
existing permit was scheduled to expire on July 4, 2011. The Company is
pleased to report that the new Land Use Permit was issued by the MVLWB on
June 23, for a period of 5 years beginning on July 5, 2011.
Metallurgical Process Development
As announced in the News Release
dated April 5, 2011, the metallurgical testing program
continues with both flotation and hydrometallurgical testwork underway
under the supervision of Avalon's metallurgist, Dezhi Qi, P. Eng. In
addition, Avalon has contracted Hoe Teh, P. Eng., a metallurgist based in
Vancouver, for long term consulting services. Mr. Teh obtained his B.A.Sc in metallurgical engineering from
UBC. He has 38 years experience in metallurgical processing,
studies, engineering and design, including senior positions with Cominco,
Hatch and Barrick. John Goode, P. Eng, continues to give consulting
advice to the Company and input to the metallurgical testing programs.
Bench scale flotation testing is
underway to further enhance the process and a third flotation mini-pilot
plant trial is planned for July. This pilot test is planned to process 3
tonnes of Basal Zone mineralized material and is preliminary to the
planned large scale, 20 to 30 tonne pilot test planned for the fall. It
is intended to produce concentrate to be utilized in on-going,
bench-scale hydrometallurgical testwork, as well as providing additional
information to help finalize flowsheet parameters for the large scale
pilot plant trial planned for the fall.
Bench scale hydrometallurgical
testwork is continuing at SGS Minerals in Lakefield, Ontario with testing
to focus on the solution chemistry, purification and precipitation of
rare earths. A contract was signed with SGS Minerals for a
hydrometallurgical pilot plant, and acquisition of requisite equipment
has commenced. The hydrometallurgical pilot scale work is expected to
commence later this fall and may take up to 40 weeks complete.
Diamond Drilling and Mineral
Resource Estimation
One drill rig was mobilized to the
property on June 20, 2011 to resume geotechnical drilling with the
initial objective being testing of the proposed route for the production
ramp from the planned plant site to the location of the underground
crusher station. This drilling is anticipated to take at least one month.
As of July 2, 2011, 9 drill holes had been completed, including some very
short holes in the shallower parts of the ramp. Once the ramp route
drilling is completed, this drill will commence geotechnical drilling of
the proposed area for the underground crusher. This drilling will also
secure additional intercepts of the Basal Zone.
The second drill rig, equipped to
recover large diameter PQ core for bulk sample recovery, will be commence
drilling this week. It will continue a similar program as in the winter
drilling, with the objective of completing in-fill holes within the
Indicated Mineral Resources in the Basal Zone, focusing on the area where
mining will be initiated. The results of this drilling are expected to
reclassify additional Indicated Resources to the Measured level of
confidence, and will also provide additional mineralized material for
on-going metallurgical test work.
As previously reported, the winter
drill program was completed on April 28, 2011. Assaying continues and due
to the large number of samples, special processing requirements of the
large diameter PQ core, quality control checking and backlogs at
commercial laboratories, final assay results from this program are not expected
before late summer. As a result, updating of the mineral resource
estimates will not commence before September.
About Avalon Rare Metals Inc. (TSX and NYSE-Amex: AVL)
Avalon Rare Metals Inc. 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. Social responsibility and
environmental stewardship are corporate cornerstones.
Shares Outstanding: 94,154,915. Cash resources: approximately $30
million.
To find out more about Avalon Rare Metals Inc., please visit our
website at www.avalonraremetals.com. For questions and feedback,
please e-mail the Company at ir@avalonraremetals.com or phone Don Bubar, President at
416-364-4938.
This news release contains "forward-looking statements"
within the meaning of the United States Private Securities Litigation
Reform Act of 1995 and applicable Canadian securities legislation.
Forward-looking statements include, but are not limited to, statements
with respect to the filing of a final base shelf prospectus and
prospectus supplement of the Company and obtaining a receipt therefore
and having the registration statement declared effective. Generally,
these forward-looking statements can be identified by the use of
forward-looking terminology such as "plans",
"expects" or "does not expect", "is
expected", "budget", "scheduled",
"estimates", "forecasts", "intends",
"anticipates" or "does not anticipate", or
"believes", or variations of such words and phrases or state
that certain actions, events or results "may",
"could", "would", "might" or "will be
taken", "occur" or "be achieved".
Forward-looking statements are subject to known and unknown risks, uncertainties
and other factors that may cause the actual results, level of activity,
performance or achievements of Avalon to be materially different from
those expressed or implied by such forward-looking statements.
Forward-looking statements are based on assumptions management believes
to be reasonable at the time such statements are made. Although
Avalon has attempted to identify important factors that could cause
actual results to differ materially from those contained in
forward-looking statements, there may be other factors that cause results
not to be as anticipated, estimated or intended. There can be no
assurance that such statements will prove to be accurate, as actual
results and future events could differ materially from those anticipated
in such statements. Such forward-looking statements have been
provided for the purpose of assisting investors in understanding the
Company's plans may not be appropriate for other purposes.
Accordingly, readers should not place undue reliance on forward-looking statements.
Avalon does not undertake to update any forward-looking statements that
are contained herein, except in accordance with applicable securities
laws.
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Toronto, ON -- Avalon Rare Metals Inc. (TSX and NYSE Amex:
AVL) ("Avalon" or the "Company") is pleased to
provide a progress report on its rare metal product marketing initiatives
as well as project permitting, metallurgy and diamond drilling programs
on the Nechalacho Rare Earth Elements deposit, Thor Lake, NWT, Canada.
Product Marketing
Avalon has now entered into
non-binding Memorandums of Understanding ("MOU's") with three
Asian industrial companies seeking to participate in the Project by
investing and /or providing technical expertise in exchange for obtaining
off-take rights. MOU's are commonly used to initiate a formal due
diligence process and frame the discussions between the parties.
The business terms of each of the MOUs are not binding and have therefore
not been announced. However, each MOU requires the Company to
maintain the confidentiality of the identity of the counterparty and the
business terms until the negotiation process is completed and a
definitive agreement is signed.
Pierre Neatby VP Sales and Marketing
stated, "We are encouraged that these companies have already
expressed confidence in the potential of the project by signing an MOU
and initiating a formal due diligence process. While the recent
unprecedented increase in rare earth prices has caused some concern about
substitution risk, in many applications the potential substitutes are
clearly inferior. We remain confident that market demand will resume its
strong growth as new supply comes into the market and technological
advancements develop new applications for these remarkable
commodities."
Project Permitting
Avalon is also pleased to announce
the completion and filing of its Developers Assessment Report
("DAR"), (otherwise known as an Environmental Impact
Statement), required by the Mackenzie Valley Environmental Impact Review
Board (MVEIRB). The development of a DAR is an exhaustive study
that typically takes more than a year to complete upon a company
receiving the final Terms of Reference from MVEIRB. Avalon, with support
from EBA Engineering (A Tetra Tech Company), completed and submitted its
DAR in just three months upon receiving the final terms of reference from
MVEIRB. Such rapid turn-around on submitting the DAR should reduce the
potential for delays in completing the permitting process. A copy of the
DAR can be found on MVEIRB's public registry at www.reviewboard.ca.
The Company also required a new Land
Use Permit to be issued by the Mackenzie Valley Land and Water Board
("MVLWB") for its current activities at the site, as the
existing permit was scheduled to expire on July 4, 2011. The Company is
pleased to report that the new Land Use Permit was issued by the MVLWB on
June 23, for a period of 5 years beginning on July 5, 2011.
Metallurgical Process Development
As announced in the News Release
dated April 5, 2011, the metallurgical testing program
continues with both flotation and hydrometallurgical testwork underway
under the supervision of Avalon's metallurgist, Dezhi Qi, P. Eng. In
addition, Avalon has contracted Hoe Teh, P. Eng., a metallurgist based in
Vancouver, for long term consulting services. Mr. Teh obtained his B.A.Sc in metallurgical engineering from
UBC. He has 38 years experience in metallurgical processing,
studies, engineering and design, including senior positions with Cominco,
Hatch and Barrick. John Goode, P. Eng, continues to give consulting
advice to the Company and input to the metallurgical testing programs.
Bench scale flotation testing is
underway to further enhance the process and a third flotation mini-pilot
plant trial is planned for July. This pilot test is planned to process 3
tonnes of Basal Zone mineralized material and is preliminary to the
planned large scale, 20 to 30 tonne pilot test planned for the fall. It
is intended to produce concentrate to be utilized in on-going,
bench-scale hydrometallurgical testwork, as well as providing additional
information to help finalize flowsheet parameters for the large scale
pilot plant trial planned for the fall.
Bench scale hydrometallurgical
testwork is continuing at SGS Minerals in Lakefield, Ontario with testing
to focus on the solution chemistry, purification and precipitation of
rare earths. A contract was signed with SGS Minerals for a
hydrometallurgical pilot plant, and acquisition of requisite equipment
has commenced. The hydrometallurgical pilot scale work is expected to
commence later this fall and may take up to 40 weeks complete.
Diamond Drilling and Mineral
Resource Estimation
One drill rig was mobilized to the
property on June 20, 2011 to resume geotechnical drilling with the
initial objective being testing of the proposed route for the production
ramp from the planned plant site to the location of the underground
crusher station. This drilling is anticipated to take at least one month.
As of July 2, 2011, 9 drill holes had been completed, including some very
short holes in the shallower parts of the ramp. Once the ramp route
drilling is completed, this drill will commence geotechnical drilling of
the proposed area for the underground crusher. This drilling will also
secure additional intercepts of the Basal Zone.
The second drill rig, equipped to
recover large diameter PQ core for bulk sample recovery, will be commence
drilling this week. It will continue a similar program as in the winter
drilling, with the objective of completing in-fill holes within the
Indicated Mineral Resources in the Basal Zone, focusing on the area where
mining will be initiated. The results of this drilling are expected to
reclassify additional Indicated Resources to the Measured level of
confidence, and will also provide additional mineralized material for
on-going metallurgical test work.
As previously reported, the winter
drill program was completed on April 28, 2011. Assaying continues and due
to the large number of samples, special processing requirements of the
large diameter PQ core, quality control checking and backlogs at
commercial laboratories, final assay results from this program are not expected
before late summer. As a result, updating of the mineral resource
estimates will not commence before September.
About Avalon Rare Metals Inc. (TSX and NYSE-Amex: AVL)
Avalon Rare Metals Inc. 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. Social responsibility and
environmental stewardship are corporate cornerstones.
Shares Outstanding: 94,154,915. Cash resources: approximately $30
million.
To find out more about Avalon Rare Metals Inc., please visit our
website at www.avalonraremetals.com. For questions and feedback,
please e-mail the Company at ir@avalonraremetals.com or phone Don Bubar, President at
416-364-4938.
This news release contains "forward-looking statements"
within the meaning of the United States Private Securities Litigation
Reform Act of 1995 and applicable Canadian securities legislation.
Forward-looking statements include, but are not limited to, statements
with respect to the filing of a final base shelf prospectus and
prospectus supplement of the Company and obtaining a receipt therefore
and having the registration statement declared effective.
Generally, these forward-looking statements can be identified by the use
of forward-looking terminology such as "plans",
"expects" or "does not expect", "is
expected", "budget", "scheduled",
"estimates", "forecasts", "intends",
"anticipates" or "does not anticipate", or
"believes", or variations of such words and phrases or state
that certain actions, events or results "may",
"could", "would", "might" or "will be
taken", "occur" or "be achieved".
Forward-looking statements are subject to known and unknown risks,
uncertainties and other factors that may cause the actual results, level
of activity, performance or achievements of Avalon to be materially
different from those expressed or implied by such forward-looking
statements. Forward-looking statements are based on assumptions
management believes to be reasonable at the time such statements are
made. Although Avalon has attempted to identify important factors
that could cause actual results to differ materially from those contained
in forward-looking statements, there may be other factors that cause
results not to be as anticipated, estimated or intended. There can
be no assurance that such statements will prove to be accurate, as actual
results and future events could differ materially from those anticipated
in such statements. Such forward-looking statements have been
provided for the purpose of assisting investors in understanding the
Company's plans may not be appropriate for other purposes.
Accordingly, readers should not place undue reliance on forward-looking
statements. Avalon
does not undertake to update any forward-looking statements that are
contained herein, except in accordance with applicable securities laws.
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