Avalon to Pursue Staged Development Approach for the Separation Rapids Lithium Project, Kenora, ON
NEWS RELEASE
April 25, 2017 No. 17-08
Avalon to Pursue Staged Development Approach for the
Separation Rapids Lithium Project, Kenora, ON
Toronto, ON – Avalon Advanced Materials Inc. (TSX: AVL and OTCQX: AVLNF) (“Avalon” or the
“Company”) is pleased to announce that it will be pursuing a staged development approach for the
Separation Rapids Lithium Project involving initial construction of a demonstration scale process
plant in the Kenora area. This approach will satisfy the need to produce large volume trial samples
of the Company’s various lithium products for its customers. The facility would incorporate capacity
both for lithium mineral concentration and for piloting Avalon’s proprietary hydrometallurgical
process to produce lithium battery materials including both lithium hydroxide and carbonate from
petalite concentrates.
The Company’s Preliminary Economic Assessment (“PEA”), disclosed in the news release dated
September 27, 2016 , outlined a scenario for economic production of a high purity lithium hydroxide
product from its concentrate of the lithium mineral petalite using an innovative new
hydrometallurgical technique. The Company developed a proprietary flotation process in 1998-99 for
concentrating the petalite which was further optimized during the 2016 pilot plant program and
incorporated into the PEA model. This petalite concentrate can also be used as a direct input into
high strength and thermal shock resistant specialty glass and ceramics products. Surging demand
for lithium from battery makers is disrupting traditional supply sources for innovators in the glass
industry, which still accounts for 30% of global lithium demand as reported by the USGS. This
creates an opportunity for new producers of high purity lithium minerals to fill the growing supply
gap. Avalon’s high purity petalite concentrate is ideally suited to meet this need.
In addition, under the non-binding Letter of Intent entered into with Lepidico Ltd., disclosed in the
Company’s news release dated February 6, 2017, the Company has a potential buyer for a lepidolite
mineral concentrate which will also be produced from the Company’s demonstration plant. Lepidico
has disclosed its desire to gain ready access to this high grade lithium product by co-locating its
planned lithium carbonate demonstration plant facility with Avalon’s demonstration plant in the
Kenora area.
Recent work by Avalon has determined that a phase 1 demonstration plant designed to process 11
tonnes of ore per hour (90,000 tpa) could satisfy the initial requirements of Lepidico and potential
glass customers, as well as provide sufficient feed for the lithium hydroxide hydrometallurgical
process circuit in the same facility. It will also provide facilities for confirming other by-product
opportunities including feldspar. Lastly it will demonstrate the efficiency of Avalon’s innovative
processes and confirm the ability to scale up and expand this technology in an operational
130 Adelaide St. W., Suite 1901, Toronto, ON M5H 3P5
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www.AvalonAdvancedMaterials.com
environment. Preliminary estimates of the capital requirements for the demonstration plant are in the
order of US$25 million, which the Company expects to finance with the support of the customers for
its lithium products.
The Company now plans to proceed with an update of its 2016 PEA Technical Report to reflect the
potential for petalite and lepidolite lithium concentrate production in addition to value-added lithium
battery materials, using the staged development approach. This update will provide a more detailed
cost estimate for the phase 1 demonstration plant and an update on the lithium battery materials
price assumptions to reflect reports of recent price appreciation for both lithium carbonate and
lithium hydroxide. The independent Qualified Persons from Micon International Limited that
supervised the preparation of the Company’s 2016 PEA have agreed to provide the technical
support for this updated study.
A suitable industrial property with all required infrastructure including grid power, natural gas and rail
access has already been identified in the Kenora area. With the availability of an industrial site, the
Company anticipates that an efficient permitting process can be applied which could see the
demonstration plant commence operations in less than two years.
Avalon’s Senior Vice President for Metallurgy and Technology Development, Dave Marsh
commented, “This staged approach has the potential to reduce overall investment risk for the
Separation Rapids Project by establishing a small-scale demonstration plant to confirm the
commercial viability of our innovative lithium processing technology before proceeding to a full-scale
operation. This facility will also have the capacity to generate large volume trial samples of our
lithium products for our customers, particularly consumers of petalite in the glass industry.”
Avalon’s President, Don Bubar, added, “Getting a lithium battery materials demonstration plant up
and running in the Kenora area will establish northwestern Ontario as a new regional centre for the
production of the critical materials needed for Canada’s growing cleantech supply chains.”
The technical information included in this news release has been reviewed and approved by the
Company’s Senior Vice President, Metallurgy and Technology Development, Mr. David Marsh,
FAusIMM (CP), and Donald S. Bubar, P.Geo. both Qualified Persons under NI 43-101.
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 its Separation Rapids Lithium Project, Kenora, ON and its East Kemptville Tin-Indium
Project, Yarmouth, NS. Social responsibility and environmental stewardship are corporate
cornerstones.
For questions and feedback, please e-mail the Company at [email protected], 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 R eform Act
of 1995 and applicable Canadian securities legislation. Forward-lo oking statements include, but are not limited to, the stateme nt that
Avalon will be pursuing a staged development approach for the Separation Rapids Lithium Project, that this approach will satisfy the need
to produce large volume trial samples, that the facility wo uld incorporate capacity both for lithium mineral concentration and for piloting
Avalon’s proprietary hydrometallurgical process to produce lithium battery mate rials including both lithium hydroxide and carbo nate from
petalite concentrates, that the Company’s petalite concentrate can also be used as a direct input into high strength and therma l shock
resistant specialty glass and ceramics products , that surging demand for lithium from battery makers is disrupting traditional supply
sources for innovators in the glass indus try, and this creates an opportunity for new producers of high purity lithium minerals to fill the
growing supply gap, that Avalon’s high purity petalite concentrate is ideally suited to meet this need, that the Company has a potential
buyer for a lepidolite mineral concentrate which will also be produced from the Company’s demonstration plant, that Lepidico i s co-
locating its planned lithium carbonate demonstration plant facility with Avalon’s demonstration plant in the Kenora area, that the plant
could satisfy the initial requirements of Lepidico and potential gl ass customers, as well as provide sufficient feed for the li thium hydroxide
hydrometallurgical process circuit in the same facility, that the plant will also provide facilities for confirming other by-p roduct opportunities
including feldspar, that it will demonstrate the efficiency of Avalon’s innovative processes and confirm the ability to scale up and expand
this technology in an operational environment, that preliminary estimates of the capital requirements for the demonstration plant are in the
order of US$25 million, and that the Company expects to finance this with the suppor t of the customers for its lithium products , that the
Company now plans to proceed with an update of its 2016 PEA Technica l Report, that this update will provide a more detailed cos t
estimate for the phase 1 demonstration plant and an update on the lit hium battery materials price assumptions to reflect report s of recent
price appreciation for both lithium carbonate and lithium hydroxide, that with the availability of an industrial site, the Comp any anticipates
that an efficient permitting process can be applied which could see the demonstration plant commence operations in less than tw o years,
that a staged approach has the potential to reduce overall investm ent risk for the Separation Rapids Project and that lithium battery
materials demonstration plant in the Kenora area will establish no rthwestern Ontario as a new re gional centre for the productio n of the
critical materials needed for Canada’s growing cleantech supply chains. Generally, these forward- looking statements can be iden tified by
the use of forward-looking terminology such as “potential”, “scheduled”, “anticipates”, “continues”, “expects” or “does not exp ect”, “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 fr om those expressed or implied by such forward-looking statem ents.
Forward-looking statements are based on assumptions management belie ves to be reasonable at the time such statements are made.
Although Avalon has attempted to identify important factors that c ould cause actual results to diff er materially from those con tained in
forward-looking statements, there may be other factors that caus e results not to be as anticipated, estimated or intended. Fact ors that
may cause actual results to differ materially from expected re sults described in forward-looking statements include, but are no t limited to
market conditions, and the possibility of cost overruns or unant icipated costs and expenses as well as those risk factors set o ut in the
Company’s current Annual Information Form, Management’s Discussi on 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 Com pany’s plans and objectives and may not be appropriate for other
purposes. Accordingly, readers should not place undue reliance on forward-looking st atements. Avalon does not undertake to upda te any
forward-looking statements that are contained herein, except in accordance with applicable securities laws.