Avalon Announces a Substantive 20% Increase in Deposit Size at Its Flagship Separation Rapids Joint-Venture Lithium Project
Avalon Announces a Substantive 20% Increase
in Deposit Size at Its Flagship Separation
Rapids Joint-Venture Lithium Project
Toronto, Ontario--(Newsfile Corp. - August 10, 2023) - Consistent with its dual-market strategy to supply
both the global glass-ceramics market and North American EV battery manufacturing,
Avalon
Advanced Materials Inc.
(TSX: AVL) (OTCQB: AVLNF) ("Avalon" or the "Company") is pleased to
announce an updated Mineral Resource Estimate ("MRE") for the Avalon-Sibelco joint venture lithium
deposit at Separation Rapids. This updated MRE, compliant with NI 43-101, reports 10.08 million
tonnes (Mt) averaging 1.35% of Measured and Indicated Lithium Oxide ("Li
2
O"), a 20% increase
compared to previous results.
Separation Rapids MRE Highlights:
Open Pit with a Measured and Indicated category of 9.39 Mt averaging 1.34% Li
2
O with the start
of an underground resource of 0.68 Mt averaging 1.43% Li
2
O
10.08 Mt averaging 1.35% Li
2
O in Measured and Indicated, a
20%
increase in size as compared
to 2018 results
2.81 Mt averaging 1.38% Li
2
O in the Inferred category, a
57%
increase in size as compared to
2018 results
136,000 tonnes of Li
2
O in Measured and Indicated, a
15%
increase in size as compared to 2018
results
39,000 tonnes Li
2
O in the Inferred category, a
60%
increase in size as compared to 2018 results
Exploration Potential of an additional 3 Mt to 6 Mt of resource, grading between 1.0% and 1.4%
Li
2
O which could relate to an increase in Li
2
O by 30,000 to 80,000 tonnes.
Note: This potential additional
quantity and grade are conceptual in nature. There has been insufficient exploration to define this additional mineral resource and it is
uncertain if further exploration will result in the target being delineated as a mineral resource. The basis for this exploration potential has
been determined using the same methodology as for the MRE.
Located near Kenora, ON, the Separation Rapids deposit is owned by the recently announced joint
venture between Avalon and SCR-Sibelco NV ("Sibelco"), an Antwerp-based company and leader in the
global glass-ceramics and materials solutions business, with projects in over 30 countries.
"This updated estimate reveals the quality and quantity of the resource at Separation Rapids, and
underscores the rationale for the strategic partnership between Avalon and Sibelco. It confirms that the
deposit can deliver sufficient volumes of commercial-grade feedstock suitable for both the glass-
ceramics and lithium battery markets," said Scott Monteith, Avalon CEO. "This data gives Avalon and
Sibelco the confidence to pursue the next phase of development at Separation Rapids, finalizing a
definitive feasibility study and moving towards production."
Mineral Resource Estimate ("MRE")
The MRE for the Separation Rapids lithium deposit (Table 1 below) was conducted by SLR Consulting
(Canada) Ltd. ("SLR"), an independent global mining advisory and consulting firm, using available drill
hole data as of June 16, 2023.
The MRE was prepared in accordance with
National Instrument 43-101
Standards of Disclosure for Mineral Projects
("NI 43-101"). This updated MRE replaces the Company's
previous MRE dated May 23, 2018. The updated MRE is based on 98 surface diamond drill holes for a
total of 17,444m of drilling. This includes 13 new surface diamond drill holes totaling 4,128.3m
1
drilled
since the 2018 resource estimate.
The new resource estimate will be incorporated into a definitive feasibility study of Separation Rapids, to
be completed by early to mid-2024, with the intention of commencing on-site operations in 2026.
Table 1: Mineral Resource Estimate – Separation Rapids, August 7, 2023
Description
Classification
Tonnage (Mt)
Li
2
O (%)
Open Pit
Measured
4.28
1.33
Indicated
5.12
1.35
Measured + Indicated
9.39
1.34
Inferred
1.60
1.34
Underground
Measured
-
-
Indicated
0.68
1.43
Measured + Indicated
0.68
1.43
Inferred
1.21
1.42
Total
Measured
4.28
1.33
Indicated
5.80
1.36
Measured + Indicated
10.08
1.35
Inferred
2.81
1.38
Notes:
1
.
CIM (2014) definitions were followed for Mineral Resources.
2
.
Mineral Resources are reported using a petalite concentrate price assumption of US $1,300/t with an exchange rate of US$1 = C$1.30.
3
.
Open pit Mineral Resources are reported at a 0.29 % Li
2
O cut-off grade (COG) in a Whittle resource shell.
The Whittle resource shell and
open pit COG grade are based on a mining cost of C$5.50/t, general and administration cost of C$3.50/t, a processing cost of C$55.00/t, and
a recovery of 50%.
4
.
Underground Mineral Resources are reported within Deswik resource panels which were generated using a breakeven 0.9 % Li
2
O COG.
The underground breakeven COG grade is based on a mining cost of C$120/t, general and administration cost of C$3.50/t a processing cost
of C$55.00/t, a recovery of 50%, and an exchange rate of US$1 = C$1.30. The Deswik resource panels are 5 m by 5 m by 3 m wide.
5
.
Mineral resources are reported based on a minimum thickness of approximately 3 m.
6
.
Average bulk densities were assigned to the blocks and range between 2.61 t/m
3
and 2.66 t/m
3
for the lithium pegmatite.
7
.
Numbers may not add due to rounding.
8
.
Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.
Figure 1: 2023 Resource Pit Shell, 2018 PEA Pit Design, and 2023 Block Grades
To view an enhanced version of this graphic, please visit:
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The 2023 resource pit shell extends horizontally and vertically for approximately 50m to 100m further than
the 2018 pit design (Figures 1 and 2).
Figure 2: Cross Section Showing 2023 Resource Pit Shell, 2018 PEA Pit Design, and 2023
Block Grades
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Based on the current analysis, SLR estimates that there exists an additional 3 Mt to 6 Mt of exploration
potential at a grade of approximately 1.0% to 1.4% Li
2
O located below the open pit and underground
resources (Figure 3).
Note: This potential additional quantity and grade are conceptual in nature. There has been insufficient exploration
to define this additional mineral resource and it is uncertain if further exploration will result in the target being delineated as a mineral resource.
The basis for this exploration potential has been determined using the same methodology as for the MRE.
Figure 3: Longitudinal Section Showing 2023 Resource Pit Shell, Underground Resources,
and Exploration Potential
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https://images.newsfilecorp.com/files/3386/176687_3.jpg
"SLR's analysis shows a substantive increase of the size of the deposit in overall tonnage and metal
quantity.
As well, the exploration potential in the range of 3 Mt to 6 Mt will allow Avalon to be laser
focused on additional drilling to bring this into at least an indicated category," Rickardo Welyhorsky,
Chief Operating Officer at Avalon, said. "The high definition of the resource and the exploration potential
supports transitioning to a Definitive Feasibility Study while further drilling out and increasing our
resource."
Mineral Resource Estimation Methodology
An updated MRE was created by SLR using Seequent's Leapfrog Geo and Edge software. Wireframes
were created using logged lithology. Initially the pegmatite outlines were modelled, followed by the
creation of sub-domains between the Petalite and Lepidolite-Petalite mineralogical types. Internal waste
horizons of amphibolite have been modelled where continuity exists. Raw assays were capped and then
composited to two metre lengths, broken at domain boundaries. Li
2
O, Cs
2
O, Rb
2
O and Ta
2
O
5
were
interpolated using Ordinary Kriging (OK) into a block model comprising of 5 x 3 x 5 (x, y, z) metre blocks,
with sub-blocking down to one metre. Search ellipses were oriented using dynamic anisotropy. Nearest
Neighbour (NN) estimates were run for validation purposes. Density was assigned using mean values
for each lithological domain.
Blocks were classified following CIM (2014) definitions using a combination of drillhole spacing and
grade continuity.
Drill hole spacings of up to approximately 25 m for Measured, 50 m for Indicated, and
100 m for Inferred have been used to support the classification. Mineral Resources have been
constrained with an optimized pit shell, using a cut-off grade of 0.29 % Li
2
O, for the open pit material and
resource panels, that were generated at a cut-off grade of 0.9 % Li
2
O, for the underground material.
Qualified Person
The MRE for Separation Rapids was prepared by Volker Moeller, Ph.D., P.Geo., SLR Senior Resource
Geologist, under the supervision of Luke Evans, M.Sc., P.Eng., SLR Principal Resource Geologist.
Mr.
Evans is an "Independent Qualified Person" as defined by NI 43-101. The Qualified Person is not aware
of any environmental, permitting, legal, title, taxation, socio-economic, marketing, political, or other
relevant factors that could materially affect the MRE.
About Avalon Advanced Materials Inc.
Avalon Advanced Materials Inc. is a Canadian mineral development company focused on vertically
integrating the Ontario lithium supply chain. The Company, through its joint venture with Sibelco NV, is
currently developing its Separation Rapids lithium deposit near Kenora, ON, while continuing to advance
other mineral projects in its portfolio, including the joint venture owned Lilypad Spodumene-Cesium-
Tantalum Project located near Fort Hope, ON.
In addition to these upstream activities, Avalon is executing on its key strategic objective of developing
Ontario's first midstream lithium hydroxide processing facility in Thunder Bay, ON, a vital link bridging the
lithium production in the north with downstream EV battery manufacturing markets in the south. Social
responsibility and environmental stewardship are corporate cornerstones. Avalon is listed on the TSX.
About SCR-Sibelco NV
Headquartered in Antwerp, Belgium, SCR-Sibelco NV is a global leader in material solutions. Sibelco
mines, processes and sells specialty industrial minerals – particularly silica, clays, feldspathics and
olivine – and is a leader in glass recycling. Sibelco's solutions serve a diverse range of industries
including semi-conductors, solar photovoltaic, glass, ceramics, construction, coatings, polymers and
water purification. The Sibelco Group has production facilities in more than 30 countries and a team
of more than 5,000 people worldwide.
For investor relations and media inquiries, please e-mail the Company at
, or
phone Zeeshan Syed, President, at (647) 300-4706.
1
In Avalon’s public announcement of May 4, 2023, it was reported that total new drilling was 4,179m. The actual figure was 4,128.3m.
Forward-Looking Statements
Statements included in this news release, including any with respect to the Company's future financial
or operating performance and other statements that express management's expectations or estimates
of future performance, including statements in respect of the completion of the joint venture, the use of
proceeds of the Private Placement, prospects and/or development of the Company's projects, other
than statements of historical fact, constitute forward-looking information or forward-looking statements
within the meaning of applicable securities laws (collectively referred to herein as "forward-looking
statements") and such forward-looking statements are based on expectations, estimates and
projections as of the date of this news release. Forward-looking statements in this news release
include, but are not limited to, statements with respect to: the Company's strategic review of certain of
its assets; the development of the Company's material lithium projects, the Company's plans with
respect to the exploration and development of its properties, costs of production, expected capital
expenditures, operations outlook, expected benefits from the joint venture, the expected receipt of
permits; permitting timelines, the future price of commodities; foreign exchange rates and currency
fluctuations; requirements for additional capital; the Company's capital allocation; the estimation of
mineral reserves and mineral resources; the realization of mineral reserve and mineral resource
estimates, and government regulation of mining operations. Forward-looking statements are provided
for the purpose of providing information about management's current expectations and plans relating
to the future. Forward-looking statements are generally identifiable by the use of words such as "may",
"will", "should", "continue", "expect", "budget", "forecast", "anticipate", "estimate", "believe", "intend",
"plan", "schedule", "guidance", "outlook", "potential", "seek", "targets", "suspended", "strategy", or
"project" or the negative of these words or other variations on these words or comparable terminology.
The Company cautions the reader that forward-looking statements are necessarily based upon a
number of estimates and assumptions that, while considered reasonable by management, are
inherently subject to significant business, financial, operational and other risks, uncertainties,
contingencies and other factors, including those described below, which could cause actual results,
performance or achievements of the Company to be materially different from results, performance or
achievements expressed or implied by such forward-looking statements and, as such, undue reliance
must not be placed on them. Forward-looking statements are also based on numerous material
factors and assumptions, including as described in this news release, including with respect to: the
completion of the joint venture, use of proceeds from the Private Placement, the Company's present
and future business strategies, operations performance within expected ranges, local and global
economic conditions and the economic environment in which the Company will operate in the future,
legal and political developments in the jurisdictions in which the Company operates, the price of
lithium and other key commodities; projected mineral grades; international exchanges rates;
anticipated capital and operating costs; the availability and timing of required governmental and other
approvals for the Company's projects.
Risks, uncertainties, contingencies and other factors that could cause actual results, performance or
achievements of the Company to be materially different from results, performance or achievements
expressed or implied by such forward-looking statements include, without limitation: the Company's
business strategies and its ability to execute thereon, including the ongoing strategic review of certain
of the Company's assets; political and legal risks; risks associate with the estimation of mineral
reserves and mineral resources; the ongoing impacts of the Ukraine war, the availability of labour and
contractors; the volatility of the Company's securities; management of certain of the Company's
assets by other companies or joint venture partners; the lack of availability of insurance covering all of
the risks associated with a mining company's operations; business risks, including pandemics,
adverse environmental conditions and hazards; unexpected geological conditions; potential
shareholder dilution; increasing competition in the mining sector; changes in the global prices for
lithium and certain other commodities; consolidation in the lithium mining industry; legal, litigation,
legislative, political or economic risks; government actions taken in response to potential future public
health emergencies and pandemics, including new variants of COVID-19, and any worsening thereof;
changes in taxes, including mining tax regimes; the failure to obtain in a timely manner from
authorities key permits, authorizations or approvals necessary for exploration, development or
operations; the availability of capital; the level of liquidity and capital resources; access to capital
markets and financing; the Company's level of indebtedness; the Company's ability to satisfy
covenants under its outstanding debt instruments; changes in interest rates; the Company's choices
in capital allocation; risks related to third-party contractors; the speculative nature of exploration and
development, including the risks of diminishing quantities or grades of reserves; the fact that reserves
and resources, expected metallurgical recoveries, capital and operating costs are estimates which
may require revision; failure to meet operational targets; equipment malfunctions; laws and
regulations governing the protection of the environment; physical and regulatory risks related to
climate change; the potential direct or indirect operational impacts resulting from external factors,
including infectious diseases, public health emergencies or pandemics, such as COVID-19,
unpredictable weather patterns and challenging weather conditions; attraction and retention of key
employees and other qualified personnel; availability and increasing costs associated with mining
inputs and labour; the availability of qualified contractors and the ability of contractors to timely
complete projects on acceptable terms; the relationship with the communities surrounding the
Company's operations and projects; indigenous rights or claims; and the inherent risks involved in the
exploration, development and mining industry generally. Please see the Company's current annual
information form available on www.sedar.com or for a comprehensive discussion of the risks faced by
the Company and which may cause actual results, performance or achievements of the Company to
be materially different from results, performance or achievements expressed or implied by forward-
looking statements.
Although the Company has attempted to identify important factors that could cause actual results to
differ materially from those contained in forward-looking statements, there may be other factors that
cause results not to be as anticipated, estimated or intended. The Company disclaims any intention
or obligation to update or revise any forward-looking statements whether as a result of new information,
future events or otherwise except as required by applicable law.
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