Mining Explorers 2011: Avalon Rare Metals Inc.
Last updated 11/6/2011 at Noon
President and CEO: Donald S. Bubar, M. Sc., P. Geo.
Vice-President, Finance and CFO: R.J. (Jim) Andersen, CA, CPA, CFP
Vice-President, Exploration: William Mercer, Ph.D., P. Geo.
Formed in 1991, Avalon Rare Metals is a mineral exploration and development company primarily focused on the rare metals and minerals that are in increasing demand for environmentally-beneficial high technology applications. These include lithium, tantalum, cesium, indium, gallium, rare earth elements, such as neodymium, dysprosium and terbium, and rare minerals such as calcium feldspar.
Avalon's strategy for growth is to develop its rare metals and minerals projects to production and cash flow, expand the markets for these materials and acquire additional compatible rare metals assets.
The company is in the process of exploring or developing three of its six mineral resource properties.
All active projects (Thor Lake, Separation Rapids, and East Kemptville) are rare minerals or rare metals properties that are at an advanced stage with identified mineral resources that are potentially economic, provided that sales contracts with customers can be secured and project financing arranged.
Thor Lake, the company's flagship project, is emerging as one of the largest undeveloped rare earth elements resources in the world.
It is located 100 kilometers (60 miles) southeast of Yellowknife, Northwest Territories.
In 2010 Avalon said the Nechalacho deposit at Thor Lake ranked as the second-largest REE deposit in the world by reported total rare earth oxides and the third-largest contained-niobium deposit in the world by reported Nb2O5.
An NI 43-101-compliant resource estimate established in 2010 was updated in January to incorporate data generated in the company's 2010 drilling of 106 holes covering 27,586 meters.
The total inferred resource at Thor Lake is estimated to be 226.88 million tons averaging 1.3 percent TREO, 0.19 percent heavy rare earth oxides, with heavy rare earth oxides making up 14.33 percent of the total rare earth oxides estimated to be in the Nechalacho deposit at Thor Lake.
The explorer has proposed spending C$43.5 million to advance the project, including C$19.5 million for exploration, upgrade drilling and geology.
During the nine months ended May 31, Avalon spent nearly C$12.86 million, up 28 percent from the C$9.4 million it spent during the comparable period of the previous fiscal year.
The majority (95 percent) of the latest expenditures were incurred on Thor Lake, primarily for drilling, metallurgical and market studies, environmental studies, permitting and community consultation.
A winter drill program was completed April 28, and assays are pending.
Meanwhile, the company began geotechnical drilling in June with the initial objective of testing a proposed route for a production ramp from the planned plant site to the location of an underground crusher station.
A second rig equipped to recover large diameter PQ core for bulk sample recovery began drilling in July 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.
Results of this drilling are expected to reclassify additional indicated resources to the measured category.
A bankable feasibility study for the Thor Lake project is targeted for completion in late 2012, and production startup is anticipated in 2015.
Cash and short-term deposits: C$31.45 million (May 31, 2011)
Working capital: C$30.68 million (May 31, 2011)
Market capitalization: C$292.5 million (Sept. 23, 2011)
Suite 1901 - 130 Adelaide St. West Toronto, ON Canada M5H 3P5
Tel: 416-364-4938 Fax: 416-364-5162