Avalon Continues to Progress its Advanced Critical Materials Projects Towards Development
Avalon Continues to Progress its Advanced Critical
Materials Projects Towards Development
Toronto, Ontario--(Newsfile Corp. - April 2, 2019) -
Avalon Advanced Materials Inc.
(TSX: AVL) (OTCQB: AVLNF) ("Avalon"
or the "Company") is pleased to report on progress made over the past quarter on all three of its advanced critical materials
development projects in Canada. Significant progress, as described below, has been made towards the goal of achieving near-
term, small-scale production on each of the Nechalacho Rare Earth Elements Project, East Kemptville Tin-Indium Project, and
Separation Rapids Lithium Project.
Demand for rare earth elements, lithium minerals, tin and other critical materials are all growing at rates exceeding the rate of
growth in new supply, creating opportunities for new producers to emerge and fill looming supply deficits. The ability to bring
these new supplies to emerging markets quickly is key to taking advantage of the opportunities. Small-scale initial development
facilitates achieving that goal, while also accommodating future growth in production capacity.
Nechalacho Rare Earth Elements Project, Thor Lake, NWT
As disclosed in the Company's news release dated
January 30, 2019
, Avalon signed a binding Terms Sheet with Cheetah
Resources Pty Ltd. ("Cheetah") under which Cheetah will acquire ownership of the near-surface rare earth resources in the T-
Zone and Tardiff Zones for a total cash consideration of C$5 million. Avalon President & CEO, Don Bubar recently visited
Yellowknife and the Nechalacho site with Cheetah's Managing Director, Geoff Atkins, in order to meet with local government
officials, Indigenous leaders, businesses and the media. Considerable interest was expressed by these parties in the
Company's small-scale rare earth development model for its minimal environmental impact and for the commercial opportunities
it will provide for local Indigenous business.
Mr. Bubar commented: "I was pleased with the positive reaction we received in the local community for our innovative, new
small-scale development model that we plan to implement with Cheetah. Cheetah shares our values on sustainability in mineral
development and our vision for this model representing the future of critical materials mineral production globally. This will
provide an opportunity for the Northwest Territories and Canada to take advantage of the vast, untapped specialty minerals
wealth in the North to become global leaders in the sustainable development of new critical materials supply chains. Our local
Indigenous partners will have the opportunity to become the leaders of this new business opportunity and share in the wealth
created."
Cheetah and Avalon are now working on finalizing the formal acquisition agreement and a detailed work program and budget, to
be funded by Cheetah, and executed over the next 12 months. The goal is to complete the permitting process in parallel with this
work so that production can be initiated in 2020. Central to achieving this goal is confirming the appropriate ore-sorting
technology to be applied to the simple bastnaesite-quartz mineralogy of the T-Zone rare earth mineral resources to sustainably
extract neodymium and praseodymium ("Nd-Pr"). This work is now in progress and the summer work program will include a
diamond drilling program to confirm the resource along with further testwork on defining the optimal rare earth extraction process
for the T-Zone rare earth (bastnaesite) mineral concentrates.
In the meantime, demand for Nd-Pr, the rare earths needed in the permanent magnet applications for electric vehicles, continues
to grow while supply sources remain limited outside China. China is now reportedly a net importer of rare earth concentrates.
Separation Rapids Lithium Project, Kenora, Ontario
The market for lithium minerals to serve the glass and ceramics industry is experiencing supply shortages, particularly for
petalite: the principal lithium mineral contained in the Separation Rapids resource and in Avalon's nearby Snowbank Pegmatite
discovery. This has created new opportunities to attract development partners that are interested in Avalon's petalite product.
Discussions have recently accelerated with several parties. Accordingly, the Company is now beginning to make plans for
extraction of up to a 5,000 tonne bulk sample this summer for trial processing to recover larger quantities of the petalite product
for customer evaluation and process flowsheet optimization.
East Kemptville Tin-Indium Project, Yarmouth County, Nova Scotia
As discussed in Avalon's news release dated
September 17, 2018
, the Company is working with Cronimet Mining Processing
SA (Pty) Ltd ("CMPSA") to investigate the benefits of applying sensor-based ore-sorting technology at East Kemptville. In
January 2019, CMPSA and Avalon extracted a 28 tonne bulk sample of the stockpiled tin mineralization. The sample is now en
route to a pilot scale process plant in Europe for the purpose of optimizing the ore-sorting process and bringing equipment
design to a feasibility study level of confidence. This program is expected to be completed in June. Most of the remaining
environmental assessment and permitting work, as well as the agreement on the transfer of the surface tenure from the surface
rights holder, are also expected to be completed in June, potentially allowing for initial site work to begin this summer.
Community engagement with the Acadia First Nation, along with formal consultation with the Assembly of Nova Scotia Mi'kmaq
Chiefs, continued with a site visit by Council members in January to witness the bulk sampling work in progress. Discussions
toward concluding an MOU and partnership agreement are advancing rapidly.
Tin was trading at around US$21,350/mt on the LME last week, with stocks down to just over 1,000 tonnes reflecting strong
demand. According to the International Tin Association, increased use of tin in electric vehicles, including lithium ion battery
technology, could generate additional demand for tin of up to 60,000 tonnes per year by 2030, representing a significant
increase from 2018 global usage of about 360,000 tonnes. New supply sources of conflict-free tin will be needed to meet this
new demand.
About Avalon Advanced Materials Inc.
Avalon Advanced Materials Inc. is a Canadian mineral development company specializing in niche market metals and minerals
with growing demand in new technology. The Company has three advanced stage projects, all 100%-owned, providing investors
with exposure to lithium, tin and indium, as well as rare earth elements, tantalum, niobium, and zirconium. Avalon is currently
focusing on developing its Separation Rapids Lithium Project, Kenora, ON and its East Kemptville Tin-Indium Project, Yarmouth,
NS to production, while continuing to advance its Nechalacho Rare Earths asset. Social responsibility and environmental
stewardship are corporate cornerstones.
For questions and feedback, please e-mail the Company at
, or phone Don Bubar, President & CEO, at 416-
364-4938.
This news release contains "forward-looking statements" within the meaning of the United States Private Securities Litigation
Reform Act of 1995 and applicable Canadian securities legislation. Forward-looking statements include, but are not limited to
statements about supply and demand for rare earth elements, lithium minerals, tin and other critical materials,
that ability to
bring these new supplies to emerging markets quickly is key to taking advantage of the opportunities, that small-scale initial
development facilities will achieve that goal, while also accommodating future growth in production capacity, that production
can be initiated in 2020 and central to achieving this goal is confirming the appropriate ore-sorting technology, that the
summer work program will include a diamond drilling program, that the Company is now beginning to make plans for
extraction of up to a 5,000 tonne bulk sample this summer for trial processing to recover larger quantities of the petalite
product for customer evaluation and process flowsheet optimization, that the ore-sorting program is expected to be completed
in June, and that most of the remaining environmental assessment and permitting work, as well as the agreement on the
transfer of the surface tenure from the surface rights holder, are also expected to be completed in June, potentially allowing
for initial site work to begin this summer. Generally, these forward-looking statements can be identified by the use of forward-
looking terminology such as "potential", "scheduled", "anticipates", "continues", "expects" or "does not expect", "is
expected", "scheduled", "targeted", "planned", or "believes", or variations of such words and phrases or state that certain
actions, events or results "may", "could", "would", "might" or "will be" or "will not be" taken, reached or result, "will occur" or
"be achieved". Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may
cause the actual results, level of activity, performance or achievements of Avalon to be materially different from those
expressed or implied by such forward-looking statements. Forward-looking statements are based on assumptions
management believes to be reasonable at the time such statements are made. Although Avalon 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. Factors that may cause actual results
to differ materially from expected results described in forward-looking statements include, but are not limited to market
conditions, and the possibility of cost overruns or unanticipated costs and expenses as well as those risk factors set out in the
Company's current Annual Information Form, Management's Discussion and Analysis and other disclosure documents
available under the Company's profile at
www.SEDAR.com
. There can be no assurance that such statements will prove to be
accurate, as actual results and future events could differ materially from those anticipated in such statements. Such forward-
looking statements have been provided for the purpose of assisting investors in understanding the Company's plans and
objectives and may not be appropriate for other purposes. Accordingly, readers should not place undue reliance on forward-
looking statements. Avalon does not undertake to update any forward-looking statements that are contained herein, except in
accordance with applicable securities laws.
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