Avalon Advanced Materials Announces Updated Mineral Resource Estimate for Separation Rapids Project
Toronto, Ontario – Avalon Advanced Materials Inc. (TSX: AVL) (OTCQB: AVLNF) (“Avalon” or the “Company”), in collaboration with its Joint-Venture (“JV”) partner SCR-Sibelco NV (“Sibelco”), is thrilled to unveil the outcomes of an updated Mineral Resource Estimate (MRE) for the Separation Rapids Project, situated in Kenora, Ontario. This announcement follows a year of diligent drilling and data analysis, aiming to enhance the geological model of the previously disclosed mineral resource estimate (MRE) from Avalon’s August 10, 2023, press release.
Improved Geological Model
The updated MRE reflects a more comprehensive understanding of the deposit’s geology, resulting in an increased confidence level for the mineral resources. This enhanced geological model is based on an extensive drilling campaign, including 58 drill holes totaling over 22,000 meters, and the incorporation of new geological data, geochemical data, and geophysical data.
Resource Growth
The updated MRE shows a significant increase in the Indicated Mineral Resource for the Separation Rapids Deposit. The new estimate comprises 188.9 million tonnes (Mt) of Indicated Mineral Resources, containing 2.31 billion pounds of Scandium Trioxide (Sc2O3), 3.31 billion pounds of Neodymium Oxide (Nd2O3), 2.97 billion pounds of Praseodymium Oxide (Pr6O11), and 1.11 billion pounds of Dysprosium Oxide (Dy2O3). This represents a 50% increase in the Indicated Mineral Resources for Sc2O3, Nd2O3, Pr6O11, and Dy2O3 compared to the previous MRE.
Impact on Avalon and Sibelco
This resource growth is a significant milestone for Avalon and Sibelco, as it strengthens the commercial viability of the Separation Rapids Project. With the increased resources, the partners will be able to further optimize the project’s mining plan, processing methods, and overall economics. This could lead to potential expansion of the project and increased profits for both Avalon and Sibelco.
Global Impact
The rare earth element (REE) market has been undergoing significant growth due to the increasing demand for high-tech products, such as electric vehicles, wind turbines, and advanced electronics. The updated MRE for the Separation Rapids Project comes at a time when the global REE market is experiencing a supply crunch, making this project a valuable addition to the global REE supply chain.
Moreover, the Canadian government’s commitment to reducing greenhouse gas emissions and transitioning to a low-carbon economy has placed a strong emphasis on the development of domestic REE resources. The Separation Rapids Project, being located in Ontario, is well-positioned to contribute to Canada’s efforts in this regard. This could result in potential government incentives and support for the project, further boosting its value.
Conclusion
The updated Mineral Resource Estimate for the Separation Rapids Project represents a significant step forward for Avalon Advanced Materials and SCR-Sibelco NV. With the increased Indicated Mineral Resources, the partners will be able to optimize the project’s development and enhance its overall economic potential. This resource growth also has far-reaching implications, as it comes at a time when the global REE market is experiencing a supply crunch and the world is focusing on reducing greenhouse gas emissions. The Separation Rapids Project is poised to play a crucial role in addressing these challenges, making it a valuable asset not only for Avalon and Sibelco but for the global community as well.
- Avalon and Sibelco announce updated Mineral Resource Estimate for Separation Rapids Project
- Geological model refined through extensive drilling and data analysis
- Significant increase in Indicated Mineral Resources for Sc2O3, Nd2O3, Pr6O11, and Dy2O3
- Strengthens commercial viability of the project and potential expansion
- Contributes to global REE supply chain and Canada’s low-carbon economy efforts
