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Avalon Advanced Materials Inc.
Summary
| Project: | East Kemptville | |
|---|---|---|
| Deposit: | East Kemptville | |
| Location: | Canada | |
| Commodities: | Tin-Indium | |
| Date: | 9/7/2018 | |
| Report Code: | NI43-101 | |
| Report Type: | PEA | |
| Project Stage: | Pursuing Feasibility Study | |
| Report details: | 7-9-2018: Avalon Advanced Materials Inc. announces a PEA report for its East Kemptville deposit at the East Kemptville project. PEA results incl. post-tax NPV of CAD $5.6M (8%), IRR of 10.6%, 18.5yr LOM at project. Micon International Limited (Micon) has | |
| Resources: | (Resource, M+I): 22.97Mt @ 0.153% Sn at Main Zone and Baby Zone | |
| CP/QP: | [Resources]: William Mercer (Internal) | |
| ABSTRACT: | Micon International Limited (Micon) has been retained by Avalon Advanced Materials Inc. (Avalon) to prepare a Technical Report under Canadian National Instrument (NI) 43-101 which discloses the results of the preliminary economic assessment (PEA) for the East Kemptville Tin Project (East Kemptville Project), Yarmouth Co., Nova Scotia. Avalon intends to recommence operations at the East Kemptville tin mine in Nova Scotia, Canada and in so doing will concurrently rehabilitate the mine site by remediating the existing environmental liability. The re-development model, as presented in this PEA, is essentially an environmental remediation project that will be financed through the sale of conflict-free tin concentrates recovered in large part from previously-mined mineralized material on the site. From Day 1 of operations, it is Avalon’s intent to continually reduce the long-term environmental liability and eventually result in the full rehabilitation of this brownfields site. The PEA mine plan as developed by Micon is based on the updated mineral resource estimate disclosed in the Company’s new release dated June 28, 2018. The redevelopment model primarily involves processing of the 5.87 million tonne (Mt) stockpile of previouslymined oxidized low-grade mineralization, supplemented by the selective mining of 9.2 Mt of near-surface fresh higher-grade tin mineralization from the Main and Baby Zone deposits. The development model utilized by the PEA contemplates a production schedule averaging 1,300 tonnes per annum of a 55% tin concentrate for 19 years, with tin concentrates being sold and shipped for treatment in international markets. The PEA concludes that the smallscale re-development model is economically viable at current tin prices in the range of USD20,000 to USD22,000/t. Assuming an average go-forward tin price of USD21,038/tonne (as forecast by the World Bank Commodity Price outlook for 2020), and an exchange rate of CAD1.30/USD, the Project has an indicated pre-tax IRR of 15.0% and an NPV of CAD17.9 million at an 8% discount rate. This is after taking into account all costs associated with the proposed environmental rehabilitation process. The initial capital cost is estimated at CAD31.5 million. | |
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