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Avalon Advanced Materials Inc.
Summary
| Project: | Separation Rapids | |
|---|---|---|
| Deposit: | Separation Rapids | |
| Location: | Canada | |
| Commodities: | Lithium | |
| Date: | 5/23/2018 | |
| Report Code: | NI43-101 | |
| Report Type: | Resource Estimation | |
| Project Stage: | Pursuing PEA | |
| Report details: | 23-5-2018: Avalon Advanced Materials Inc. announces a Resource Estimation report for its Separation Rapids deposit at the Separation Rapids project. Updated mineral resource estimate at the project. Toronto, Ontario--(Newsfile Corp. - May 23, 2018) - Aval | |
| Resources: | (Resource, M+I): 8.405Mt @ 1.408% Li2O, 0.007% Ta2O5, 0.015% CsO, 0.365% Rb2O | |
| CP/QP: | [Resources]: William Mercer (Internal) | |
| ABSTRACT: | Toronto, Ontario--(Newsfile Corp. - May 23, 2018) - Avalon Advanced Materials Inc. (TSX: AVL) (OTCQX: AVLNF) ("Avalon" or the "Company") is pleased to announce a mineral resource estimate update for the Separation Rapids lithium deposit which includes results from the 2018 winter drilling program disclosed in the Company's news release dated April 3, 2018. In this program, four holes extended the known deposit to depth on both its east and west ends, resulting in a 10% increase in overall tonnage. This brings the total Measured and Indicated Resources to 8.405 million tonnes at 1.408% Li2O, with an additional Inferred Resource of 1.791 million tonnes at 1.349% Li2O (as summarized in Table 1 below). The deposit remains open to depth. The new resource estimate will be incorporated into an updated Preliminary Economic Assessment ("PEA") now in preparation and targeted for completion by June 30, 2018. Project Development Update Development has been focused on evaluating several variants on the project model based on the relative proportions of the various potential lithium products. The current model, which will be the basis for the updated PEA, contemplates a staged development approach which begins with a Phase 1 plant capable of initially producing 75,000 tonnes per annum ("tpa") of lithium mineral concentrate (petalite) for sale as an industrial mineral product to consumers in the glass industry, in addition to a further 40,000 tpa of lepidolite concentrate for sale to lithium chemical producers. Once scaled up, this plant will produce almost 180,000 tpa of lithium mineral concentrate. The plant will also have the potential to produce a feldspar concentrate by-product for other markets. Phase 2 would involve a demonstration-scale hydrometallurgical pilot plant to begin producing trial quantities of the lithium battery material derivative product (lithium hydroxide or carbonate) for evaluation by potential end-users. Following acceptance of the product in the market, the Company would then proceed with a scale-up of the hydrometallurgical plant in Phase 3 to produce up to 10,000 tpa of lithium battery materials in addition to continuing to serve its other customers with industrial mineral products. This development model has several potential significant economic benefits that could greatly reduce overall investment risk compared to the model used in the Company's 2016 PEA that contemplated a relatively large initial capital investment ($450 million) to construct a 14,500 tpa dedicated lithium hydroxide production facility. These benefits include the potential of a relatively low initial CAPEX, (targeting in the range of $50-70 million), early positive cash flow from industrial minerals product sales and flexibility in product design to ensure broad market acceptance before incurring the larger capital investment required to build the Phase 3 hydrometallurgical plant. | |
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