January 31, 2008
No. 08-03
Avalon Ventures Ltd. TSX-V: AVL (the
"Company") is pleased to announce that further to its news
release of January 8, 2008, it has now received the balance of the assay
results from the Phase 1 drilling program on the Lake Zone deposit, on its
100% owned Thor Lake Rare Metals project located near Yellowknife, NWT. The
results from the remaining 6 of the 13 completed holes confirm the presence
of a laterally-extensive, relatively high grade, sub-zone of Rare Earth
Element ("REE") mineralization in the Lake Zone deposit, within a
broad mineralized envelope averaging over 100 metres in thickness.
Highlights of the new results tabulated below include sub-intervals of 20m
of 2.58% TREO in hole L07-53, 12m of 2.02% TREO in hole L07-54, 26m of
2.12% TREO in hole L07-55, 16.1m of 1.83% TREO in hole L07-56A, 39m of
1.75% TREO in hole L07-63 (including 9m of 2.43% TREO) and 14m of 1.48%
TREO in hole L07-64 where TREO is defined as the sum of all 14 REE plus
Yttrium, expressed in oxide form. The 100 metre thick mineralized envelope
typically averages around 1.0% TREO. The high grade sub-zone forms a gently
dipping tabular sheet situated near the base of this envelope and has been
traced laterally over distances exceeding 1.2 km. It remains open to the
north under Thor Lake, which is the main target area of the Phase 2
drilling program, now underway.
As noted previously, of greater significance is the confirmation of a
relatively high proportion of the more valuable heavy rare earth elements
Europium through Lutetium ("HREE") in all of these intercepts. The
newly announced results continue to indicate that the content of HREO
(Heavy Rare Earth Oxides) as a percentage of TREO ranges from 7.9% to 17.3%
over the entire mineralized envelope and selected sub-intervals average as
high as 31% HREO over 16.1 metres such as the interval reported
above in hole L07-56A. By comparison, most known rare earth deposits are
dominated by the light rare earths and typically contain less than 3% HREO.
Because of the relatively high value of the HREE (for example, terbium
oxide is now offered at $710/kg compared to $3.85/kg for cerium oxide, FOB
China basis), a mineral concentrate produced from this rock would likely
have a greater unit value and marketability than a typical light rare earth
concentrate.
The Phase 2 drilling program has now commenced, with one hole complete as
of the date of this release. The drilling is focused on completing as
many holes as possible on the lake-covered part of the Lake Zone deposit
while winter conditions prevail. A minimum of 5,000 metres of drilling in
30-40 holes is planned for this phase.
Complete assay data are now available for all of the 2007 drill holes and
full analytical details of all intervals for all of the REEs and other rare
metals received to date are posted on the Company's website along with a
drill hole location plan at:www.avalonventures.com/projects/rare/thor_lake.
All drill core was split on site, sampled on 2m intervals and shipped to
Acme Laboratories facility in Yellowknife for sample preparation.. Analytical
standards were prepared from crushed rejects of historical Lake Zone
samples, then analysed at five separate laboratories to determine
reproducible values. These standards were then routinely inserted into the
sample batches to monitor core analyses.Acme then shipped pulverized splits
from all the samples its laboratory in Vancouver, BC and also to Activation
Laboratories in Ancaster, ON. The results reported to date were produced by
Acme and achieved acceptable standard values. All samples are being
analysed in both laboratories by lithium metaborate/tetraborate fusion and
dilute nitric acid digestion, followed by whole rock and 45 element
multielement ICP analysis. Details of the factors used to calculate rare
earth oxides are posted on the Company website along with complete
analytical data. Drilling operations were performed by Peak Drilling Ltd.
of Courtenay B.C. under the supervision of J.C. Pedersen, P.Geo. and D.L.
Trueman, Ph.D., P.Geo. The Company's Vice-President, Exploration, William
Mercer, Ph.D., P.Geo. provided overall direction on the project.
About Avalon Ventures Ltd.
Avalon Ventures Ltd. (TSX-V: AVL) is a Canadian junior mineral exploration
and development company, with a primary focus on the rare metals and
minerals that are in increasing demand for numerous emerging
"green" technologies in alternative energy and fuel efficient
cars as well as many new electronics and aerospace applications. Avalon
currently holds a portfolio of five such projects, including three that are
at, or close to, the feasibility stage.
Shares Outstanding as at the date of this release: 64,041,748.
Cash resources: $16.0 million.
To find out more about Avalon Ventures Ltd. (TSX-V: AVL), please visit our
website at www.avalonventures.com. This news release is available on the
Company's official on-line investor relations site for investor commentary,
feedback and questions. Investors are invited to visit the "Avalon
Ventures" IR Hub at http://www.agoracom.com/ir/avalon.
In addition, investors are invited to e-mail their questions and
correspondence to AVL@agoracom.com or phone Don Bubar, P.Geo. President, at
416-364-4938. Mr. Bubar and Dr. Mercer are the Qualified Persons
responsible for the technical content of this news release.
The language used in this News Release may contain forward-looking
statements that may involve a number of risks and uncertainties. Actual
events or results could differ materially from the Company's
forward-looking statements and expectations. The TSX Venture Exchange has
not reviewed and does not accept responsibility for the adequacy or
accuracy of this news release.
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