Mr. Don Bubar reports
AVALON PROVIDES UPDATE ON 2015 WORK PROGRAM ON THE EAST KEMPTVILLE TIN-INDIUM PROJECT, NOVA SCOTIA, CANADA
Avalon Rare Metals Inc. has provided the following update on the $1.3-million 2015 work program on the East Kemptville tin-indium project in Yarmouth county, Nova Scotia. This program includes diamond drilling on the three known mineralized zones, metallurgical process test work and preliminary environmental assessment studies. The environmental and metallurgical work will be incorporated (along with the October, 2014, resource estimate) in a preliminary economic assessment scheduled for completion before Nov. 30, 2015.
The current drilling program is designed to collect additional metallurgical sample material from the previously mined Main and Baby zones and test other known mineralized zones, including the Duck Pond deposit, to delineate additional economic resources for a feasibility study. An updated resource estimate will be prepared in early 2016 once all the results from the 2015 drilling have been received and compiled.
The site access agreement with the surface rights holder has been further extended until Nov. 30, 2015, to provide sufficient time to complete the 2015 work program. In the meantime, discussions continue toward reaching an agreement to transition full title to the property to Avalon. The parties expect to be able to conclude an agreement by year-end 2015.
2015 drill program
The 2015 drill program commenced on July 13, 2015, and, to date, 17 drill holes have been completed for a total of 3,301 metres. This includes eight holes on the Baby zone, four holes on the Main zone and five holes on the Duck Pond zone. Costs are coming in under budget, which will allow for at least four more drill holes in the program, focused on the northeast extension of the Main zone, before the program is concluded later this month. Proposed drilling on the South Grid zone has been deferred until 2016.
The assays for the eight holes drilled on the Baby zone have been received and compiled. Results are in line with expectations and confirm continuity of the mineralized zone to depth. Highlights include intersections of 0.46 per cent tin, 25.2 parts per million indium and 0.63 per cent zinc over 82.3 metres (EKAV-15-10), 0.23 per cent tin, 15.6 parts per million indium and 0.33 per cent zinc over 36.25 metres (EKAV-15-09), and 0.25 per cent tin, 29.4 parts per million indium and 0.64 per cent zinc over 18.67 metres (EKAV-15-11)(1).
A summary of significant intercepts is presented in an attached table. The drilling on the Baby zone has successfully recovered about one tonne of sample for metallurgical test work purposes and increased the confidence level of the Baby zone resources.
In addition, certain sections of 2014 drill core that were not sampled last year (due to apparent low levels of visible mineralization) were sampled and submitted for assay this summer. These produced some surprising results indicating significant widths of mineralization adjacent to existing known mineralized intervals. The intercepts given in a separate attached table are examples located outside the boundaries of the existing October, 2014, resource estimate that, in effect, have potential to increase the total near-surface resource estimate in the Baby zone.
Metallurgical test work program
The comprehensive bench-scale metallurgical test work currently being undertaken in the United Kingdom is nearing completion. This extensive test program is evaluating the metallurgical flow sheet from grinding through copper and zinc sulphide flotation to tin recovery by both gravity and flotation methods. The recovery of indium to the zinc concentrate is also being measured as microprobe data of the zinc ore mineral sphalerite show very high levels of contained indium (up to 0.25 per cent). Some metallurgical test results are still outstanding, but preliminary analysis of the data suggests that the recoveries and grades for all three concentrates are in line with expectations.
Preliminary economic assessment report preparation
Avalon has retained the services of Micon International Ltd. of Toronto, Ont., to prepare a National Instrument 43-101-compliant preliminary economic assessment for the East Kemptville project. The preliminary economic assessment will be based upon the existing NI 43-101 resource estimate (disclosed in the company's news release dated Oct. 31, 2014), together with the final results from the metallurgical test work program and environmental input provided by Stantec Consulting Ltd. of Halifax, N.S. Work on the preliminary economic assessment is progressing well and is on schedule for completion by the end of November, 2015.
Environmental assessment work
Stantec's Halifax office has considerable experience with the East Kemptville site and is conducting the key studies required as part of the environmental and social impact assessment for the permitting process and a planned feasibility study. Through the innovative use of low-permeability tailings disposal technology, processing of the low-grade ore stockpiles and engineered oxygen barriers (water covers), a cost-effective tailing and waste rock management strategy has been developed. This strategy has the potential to greatly reduce the risk from existing acid-generating waste rock and tailings at the site and could result in a site closure plan that will eliminate the need for expensive perpetual water treatment.
Update on tin markets
Avalon recently joined the United Kingdom-based International Tin Research Institute (ITRI), which is dedicated to supporting the global tin industry and expanding tin use while providing its members with frequent updates on new developments in global tin markets. For further information, please visit the ITRI website. Recent ITRI market commentary highlights the need for new tin mines to be developed to replace steadily declining production capacity from existing mines in Peru, Indonesia and China. This is creating opportunities for emerging new tin producers.
Unlike the major base metals, little new tin production capacity has come on stream over the past 10 years during the commodities supercycle. While LME (London Metals Exchange) tin prices have come down to the $15,000-(U.S.)-per-tonne level in 2015 from over $20,000 (U.S.) per tonne in 2014, LME tin inventories remain low, and many industry analysts believe that tin prices will rise in the absence of significant new supply. Also, some tin supplies originating in Central Africa are now designated as conflict minerals, which preclude their use by consumers in the United States and European Union under legislation restricting the use of minerals produced to finance armed conflict. The overall conclusion is that new supplies from non-conflict sources, such as Nova Scotia, will be needed over the next five years just to meet continuing demand from the electronics sector.
Avalon will be presenting during the upcoming ITRI London Tin Seminar on Nov. 26, 2015, at 11:30 a.m. GMT at the Brewery, 52 Chiswell St., London, England. For further information on this event or to register, please contact lesley.lewis@itri.co.uk.
The technical information included in this news release has been reviewed and approved by the company's vice-president exploration, Dr. Bill Mercer, PGeo, who is a qualified person under NI 43-101. For questions or feedback, please e-mail the company at ir@avalonraremetals.com or phone Don Bubar, president and chief executive officer, at 416-364-4938.
(1) All widths are drilled widths. True widths are not known.
MINERALIZED INTERCEPTS, 2015 DRILLING, BABY ZONE, EAST KEMPTVILLE
Drill hole From To Width Tin Zinc Copper Indium
(m) (m) (m) (%) (%) (%) (ppm)
EKAV-15-08 10.00 23.50 13.50 0.10 0.06 0.05 3.5
EKAV-15-08 77.50 86.50 9.00 0.16 0.09 0.06 5.7
EKAV-15-09 56.50 65.50 9.00 0.11 0.05 0.09 3.1
EKAV-15-09 74.25 110.50 36.25 0.26 0.33 0.14 15.6
EKAV-15-09 137.50 149.50 12.00 0.05 0.33 0.05 14.1
including 137.50 140.50 3.00 0.14 0.57 0.08 28.2
EKAV-15-10 28.00 37.00 9.00 0.13 0.11 0.06 6.0
EKAV-15-10 46.00 61.00 15.00 0.10 0.08 0.03 2.7
EKAV-15-10 76.00 158.30 82.30 0.46 0.63 0.07 25.2
including 76.00 140.30 64.30 0.54 0.71 0.08 28.9
EKAV-15-11 38.00 57.50 19.50 0.20 0.20 0.06 6.8
EKAV-15-11 68.40 71.25 2.85 0.56 0.69 0.05 24.8
EKAV-15-11 85.33 122.00 36.67 0.16 0.69 0.06 26.5
including 85.33 104.00 18.67 0.25 0.64 0.08 29.4
EKAV-15-12 48.50 71.00 22.50 0.11 0.16 0.03 3.8
EKAV-15-12 84.50 114.80 30.30 0.04 0.21 0.03 7.8
EKAV-15-12 103.50 159.70 56.20 0.06 0.30 0.03 13.1
including 125.50 133.10 7.60 0.13 0.42 0.03 20.3
EKAV-15-13 27.50 50.00 22.50 0.11 0.23 0.06 5.9
EKAV-15-13 86.00 156.50 70.50 0.09 0.38 0.03 13.5
including 86.00 99.50 13.50 0.14 0.57 0.05 16.3
EKAV-15-14 No significant values
EKAV-15-15 71.30 86.00 14.70 0.17 0.51 0.03 18.3
EKAV-15-15 174.00* 194.50 20.50 0.09 0.19 0.06 16.1
EKAV-15-15 238.60* 248.00 9.40 0.48 0.35 0.04 19.5
* This indicates preliminary results, which are subject to further
quality assurance/quality control verification.
Notes:
(1) Drilling utilized an HQ drill rig.
(2) Widths are drilled widths and not considered true widths.
True widths are not known.
(3) All drill core from the program was normally sawn in half to provide
1.5-metre samples at the core logging facility in Yarmouth, N.S., and
submitted to Activation Laboratories Ltd. (ActLabs) in Ancaster, Ont.,
for sample preparation and primary analysis.
(4) Core considered unmineralized or low grade was sampled at 1.5-metre
intervals, but composited at ActLabs to 4.5 metres for analytical purposes.
(5) In-house Avalon standards and blanks were utilized for QA/QC purposes,
along with core duplicates.
(6) Results are monitored for key elements, and in cases of QA/QC issues,
reanalysis is requested.
(7) Zinc, copper and indium were analyzed by sodium peroxide fusion, followed
by ICP-MS (method Ultratrace 7), whilst tin, tungsten and copper were
analyzed by fusion, followed by XRF (method Whole Rock 4C plus Sn and W).
Any overlimit zinc is rerun by peroxide fusion ICP (method 8 -- peroxide).
(8) A cut-off grade of 0.08 per cent tin was used guidance for estimating intercepts.
NEW SIGNIFICANT MINERALIZED INTERCEPTS FROM 2014
DRILL CORE SAMPLED AND ASSAYED IN 2015
From To Width Sn Zn Cu
(m) (m) (m) (%) (%) (%)
EKAV-14-03 16.50 75.00 58.50 0.17 0.15 0.05
EKAV-14-03 previously
released (for comparison) 49.00 65.75 16.75 0.39 0.29 0.08
EKAV-14-05 15.50 35.50 20.00 0.07 0.71 0.06
We seek Safe Harbor.
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