News News
Contact us
  • Customer service number:64321087
  • Commercial service telephone:13918059423
  • Technical service telephone:13918059423
  • Contact person: Mr. Cui 
  • Service
  • Address: room 107, building 8, no. 100, guilin road, xuhui district, Shanghai

Avalon Attracts Development Partner to Nechalacho Rare Earth Elements Project Yellowknife, NWT

The date of: 2019-02-01
viewed: 0


January 30, 2019 (Source) — Avalon Advanced Materials Inc. (TSX: AVL) (OTCQB: AVLNF) (“Avalon” or the “Company”) is pleased to announce that it has attracted a new partner in private Australian company, Cheetah Resources Pty Ltd. (“Cheetah”) to participate in the development of the rare earth resources on its mining leases collectively comprising the Nechalacho Project at Thor Lake near Yellowknife, NWT, Canada (the “Property”).

Avalon and Cheetah have signed a binding Terms Sheet under which Cheetah will acquire ownership of the near surface resources in the T-Zone and Tardiff Zones for a total cash consideration of C$5 million while Avalon will retain ownership of the resources in the Basal Zone that was the subject of its 2013 Feasibility Study. Avalon will continue to manage work programs on the Property and retain its 3% NSR type royalty. The formal agreement is expected to be completed within the next 60 days following which a new work program will be initiated focusing on the T-Zone rare earth resources.

Cheetah is focused on the small-scale development of rare earth resources enriched in the “magnet rare earths”, neodymium and praseodymium (“Nd-Pr”), presently in short supply and high demand for clean technology applications notably electric vehicles. Such an opportunity was recently recognized by Avalon in the T-Zone and Tardiff Zones (see the Company’s News Release dated October 10, 2018) that appears to be well-suited for very low cost, pilot-scale development utilizing ore-sorting technology. This model also has the important benefit of having minimal environmental impacts. Cheetah is interested in pursuing this opportunity collaboratively with Avalon. Once in operation, the partners will have the opportunity to begin to evaluate by-product opportunities from the T-Zone, notably lithium, and the future growth potential from the other mineralized zones on the Property.

Avalon President and CEO, Don Bubar commented, “We are delighted to have attracted a like-minded partner in Cheetah to the rare earth opportunity at Thor Lake. The agreement structure will allow Avalon to resume its long term development aspirations for the Nechalacho Project, and secure a source of non-dilutive working capital to continue to advance our other near term development aspirations for the East Kemptville Tin and Separation Rapids Lithium Projects.”

Compilation work continues toward preparing a scope of work and budget for a 2019 work program on the T-Zone and Tardiff Zones. This includes preparing a new block model from historical data for the T-Zone resources and initial test work on the application of ore-sorting technology on the North T Nd-Pr-rich bastnaesite mineralization. Re-sampling and analysis of select samples of archived drill core collected during the fall 2018 work program confirmed the high Nd-Pr grades in the bastnaesite-rich F-subzone. For example, a 2.59 metre core length in hole 84-77 averaged 9.0% total rare earth oxides including 2.80% Nd-Pr oxide.

The technical information included in this news release has been reviewed and approved by the Company’s Vice President, Exploration, Dr. William Mercer, P. Geo (Ont), who is a Qualified Person under NI 43-101.

Hot News / Related to recommend
  • 2024 - 03 - 01
    Click on the number of times: 0
    Unraveling the impact of edge cracks on superconducting REBCO tapes: A leap in material durability and efficiency来源:PHYS.ORGIn the realm of superconductivity, the durability and efficiency of material...
  • 2024 - 02 - 29
    Click on the number of times: 0
    source;Phys.orgSkoltech researchers and their colleagues from MIPT and China's Center for High Pressure Science and Technology Advanced Research have computationally explored the stability of the ...
  • 2024 - 02 - 28
    Click on the number of times: 0
    source:Mining reviewRRainbow Rare Earths has achieved group separation of rare earth elements through initial ion exchange test work ongoing in the USA.This achievement marks a significant leap forwar...
  • 2024 - 02 - 27
    Click on the number of times: 0
    Exploring the rich potential of copper and rare earth elements: A deep dive into Rincon Resources’ West Arunta project source:Innovation news workRincon Resources’ exploration of Australia’s newe...
  • Copyright ©Copyright 2018 2020 Shanghai rare earth association All Rights Reserved Shanghai ICP NO.2020034223
    the host:Shanghai Association of Rare Earth the guide:Shanghai Development and Application Office of Rare Earth the organizer:Shanghai rare earth industry promotion center