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Toronto, ON -- Avalon Rare Metals Inc. (TSX:AVL,
OTCQX:AVARF) ("Avalon" or the "Company") is pleased
to provide the following progress report on its 2010 work programs on the
East Kemptville tin-indium project, Yarmouth Co., NS. These programs
involved 1) continuing evaluation of the development potential of
historical tin resources on the Company's Special Licence at the
past-producing East Kemptville mine and 2) a grass-roots exploration
program on the Company's neighbouring Ike's Ridge tin indium prospect.
Total expenditures during the 12 months ended August 31, 2010 were
$574,673
East Kemptville Special Licence
In 2009, Avalon retained Wardrop
Engineering Inc. to complete a Preliminary Economic Analysis
("PEA") on the potential for renewed production of tin and
by-product indium plus base metals at East Kemptville. Completion of this
report is on hold pending the execution of a $540,000 work program on the
Special Licence, involving sampling and confirmation drilling on the
historical tin resource, to meet the requirements of NI 43-101.
Accordingly, a work program proposal was submitted to the government of
Nova Scotia and Rio Algom Ltd. ("Rio"), the holder of surface
tenure at the East Kemptville mine site, to access the site to carry out
sampling on the site in connection with the PEA. Avalon has requested
permission from Rio to proceed with this work. In the meantime, the
Company applied for, and received, a 12 month extension of time to
complete the expenditure obligations under the Special Licence which
total approximately $1.5 million.
Since January 2010, tin prices have
increased by 50% from approximately US$8/lb to over US$12/lb as currently
quoted on the LME, making the historical resources look even more
attractive as a development opportunity. Indium prices have remained
steady in the range of US$500-560/kgFOB China.
Ikes Ridge Property
A $500,000 grass roots exploration
program was carried out in 2010 program to test targets for additional
tin / rare metal resources on the Company's 100% owned, 12,520 acre Ikes
Ridge property, neighbouring the Company's East Kemptville Special
Licence.
Three promising target areas,
Gardners Meadow (GM), Ikes Ridge (IK) and the Northeast Extension (NE)
Area were identified from regional compilation, prospecting and
geochemical sampling work. All are located within 6 kilometres of the
East Kemptville mine property. The field programs consisted of line
cutting, soil geochemistry (MMI and ICP analyses), Induced Polarization
("IP") surveys and limited gravity surveying, followed by 2219
meters of diamond drilling in 12 NQ-sized holes testing each of the 3
target areas (Table 1).
The most encouraging results were
obtained from the Gardners Meadow Area where coincident geochemical and
geophysical targets returned several 0.10 to 3.00 metre
wide zones of highly anomalous, polymetallic, tin-indium mineralization
associated with weakly developed zones of quartz-sulphide veining and
alteration in meta-sedimentary rocks (Table 2). The best
individual assay returned 0.26% tin. 0.96% zinc, 0.12% copper, 3.0g/t
silver and 22 ppm indium across 1.75 metres.
Narrow, semi-massive sulphide
mineralization (mainly pyrrhotite) encountered in the drilling explains
the IP responses. The model was to test for a
mineralized East Kemptville style granite at depth but no
definitive evidence for such a body was observed, although it could still
exist at greater depths. The Ikes Ridge area produced similar narrow
intersections in two of the three holes, ranging from 0.3 to 0.8 metres
assaying 0.12 to 0.26% tin associated with greisen style sulphide
mineralization at the granite sedimentary contact. The third hole at Ikes
Ridge intersected a barren shear zone.
Three drill holes, NE-10-01 to 03,
were completed to the northeast of the East Kemptville mine, referred to
as the Northeast Extension area. The holes were targeted on IP and
geochemical anomalies on trend with the known deposits. No significant
tin mineralization was intersected in these holes, but hole NE-10-03 did
encountered numerous low grade zinc intercepts including 0.121% Zn over
2.2m and 0.255% Zn over 1.1m. This suggests potential for additional East
Kemptville style mineralization in the area.
There are no immediate plans for
further drilling on the Ike's Ridge property while additional compilation
and target definition work is completed. Future work on the East
Kemptville project will be focused on the Special Licence and completion
of a Preliminary Economic Assessment of the tin-indium resources in that
area, once access is obtained.
Methodology, Analytical Protocols
and QA/QC
Drill holes were spotted on local
cut grids and upon completion were cemented. Down-hole surveys were
performed on all holes using the Reflex system and NAD83 / Zone 20
coordinates for each hole were established with a handheld GPS unit upon
completion. All drill sites were cleaned upon completion with any
suitable timber cut and stacked at roadside
All drill core
from the 2010 program was split on site and shipped to SGS Mineral
Services Lab in Don Mills, Ontario for sample preparation and analysis.
Core samples were split from intervals based on geological criteria.
Sample widths ranged from 0.10 to 3.20 meters and averaged 1.12 meters.
All samples submitted for
multi-element analytical work used the ICM90A method. This method
determines the concentrations of 54 elements by sodium peroxide fusion followed
by ICP-OES and ICP-MS. Several of the mineralized pulps were also checked
for Sn by the XRF method at SGS Lakefield. The results compared well. Zn
and Cu results over detection limits of 10,000 ppm were re-assayed using
SGS ore grade analyses method ICP90Q..
Blanks and "in house"
standards were inserted into the sample shipments to SGS. In house
standards were prepared from polymetallic, mineralized reject samples
acquired from historic drilling at the East Kemptville Mine. Results from
these standards were compared to previous results by SGS using similar
methods during Avalon's 2007-2009 work programs. Blanks were prepared
from barren drill core recovered from hole
NE-10-01.
Sample prep work on the samples at
SGS involved weighing of samples (WGH79), crushing to 90% passing 2mm
(PRP90), riffle splitting a 250 gram sample out and pulverizing the pulp
to 85% passing 75 microns..
Final results for the submitted
standards and blanks are considered to be acceptable for an early
exploration stage, however, it is recognized that certified standards
covering a range of Sn and Zn-In-Cu-Ag grades will have to be prepared
prior to any delineation drilling program on the zones of interest.
Drilling operations were performed
by Logan Drilling of Stewiacke, Nova Scotia under the field direction of
consulting geologist Derek Thomas. Bruce Hudgins, P.Geo.,
Consulting Geologist and Avalon's Vice-President, Exploration, William
Mercer, Ph.D., P.Geo. are providing overall
direction on the project. The qualified persons for the purposes of this
news release are William Mercer and D.S. Bubar, P. Geo., President.
About Avalon Rare Metals Inc. (TSX:AVL, OTCQX:AVARF) Avalon Rare Metals Inc.
Avalon Rare Metals Inc. is a
mineral exploration and development company focused on rare metals
deposits in Canada. Its flagship project, the 100%-owned Nechalacho
Deposit, Thor Lake, NWT, is emerging as one of the largest undeveloped
rare earth elements resources in the world. Its exceptional enrichment in
the more valuable 'heavy' rare earth elements, which are key to enabling
advances in green energy technology and other growing high-tech
applications, is one of the few potential sources of these critical
elements outside of China, currently the source of 95% of world supply.
Avalon is well funded, has no debt and its work programs are progressing
steadily. Social responsibility and environmental stewardship are
corporate cornerstones. Avalon's performance on community engagement in
the north earned it the 2010 PDAC Environmental and Social Responsibility
Award.
Shares Outstanding:
92,316,470. Cash resources: approximately $42 million.
To find out more about Avalon Rare
Metals Inc., please visit our website at www.avalonraremetals.com. For questions and feedback,
please e-mail the Company at ir@avalonraremetals.com or phone William Mercer, Ph.D., P.Geo., VP Exploration, at 416-364-4938.
This news release contains
forward-looking information and is subject to a variety of risks and
uncertainties and other factors that could cause actual events or results
to differ materially from those projected in the forward-looking
information. Forward-looking information is based on the opinions and
estimates of management at the date the information is given, and is
subject to a variety of risks and uncertainties and other factors that
could cause actual events or results to differ materially from those
projected in the forward-looking information. The forward-looking
information contained herein is given as of the date hereof and the
Company assumes no responsibility to update or revise such information to
reflect new events or circumstances, except as required by law.
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