Toronto, ON -- November 19, 2009
-- Avalon Rare Metals Inc. (TSX:AVL, OTCQX:AVARF) ("Avalon"
or the "Company") is pleased to provide an update on the
advancement of the prefeasibility study ("PFS") on the Nechalacho
rare earth elements ("REE") deposit at the Thor Lake Project, NWT
and a progress report on the East Kemptville Tin-Indium project in Nova
Scotia.
The 2009 summer drilling program on the Nechalacho deposit, which commenced
on July 8, concluded on October 14 with 44 holes totaling 9,098 metres
being drilled. All 44 holes were drilled in the southern part of the
deposit, in the area overlapping with and immediately north of Long Lake
where new indicated mineral resources, estimated at 4.4 million tonnes of
1.97% TREO and 25.4% HREO, were defined last winter.
These drill holes were designed to intersect
the heavy rare earth rich Basal Zone on 50 metre centres, to confirm
internal continuity and outline additional indicated resources. Analytical
results from the summer drilling are slowly being received, and will be
disclosed once a sufficient number are compiled to allow for a meaningful
update of the inventory of indicated resources in the Basal Zone. An
interim update should be available by early December and a complete update
by early January, 2010.
Engineering work related to the
prefeasibility study led by independent consultant Scott Wilson RPA is
progressing well. Mine design parameters are being developed and will be
finalized upon completion of the updated block model from the present drill
program. A report on process criteria for the concentrator has been
received which will provide the basis for plant design and cost estimation
to be carried out by Melis Engineering. Hydrometallurgical testwork on the
mineral concentrate to optimize recoveries of REE, and evaluate by-product
recovery of other rare metals contained in the concentrate (notably niobium
and zirconium), is continuing. Hydrometallurgical process flowsheet
development sufficient for a prefeasibility study is expected to be
completed early in the new year.
By drilling large diameter "HQ"
core in the summer program, over 4 tonnes of Basal Zone ore was recovered
for mini-pilot plant flotation testing planned for early 2010. This will
provide data to determine the scope of the bulk sampling program required
for the bankable feasibility study.
The drill rig has been kept on site ready
for a winter drilling program scheduled to begin in mid to late
January, 2010. This program will include further in-fill drilling in areas
inaccessible during the summer, to define additional indicated mineral
resources in the highest grade parts of the Basal Zone, as well as
condemnation and geotechnical drilling for engineering purposes. Some
exploration drilling will also be carried to test for potential extensions
of the Basal Zone to the south of Long Lake, where some of the best grade
mineralization has been identified to date, and to test for potential
stacked mineralized zones at depth below the Basal Zone as predicted from
recent geological modeling work.
Drilling operations were performed by Foraco
Drilling Ltd. of Yellowknife, NWT under the supervision of J.C. Pedersen,
P.Geo., Senior Geologist. Bruce Hudgins, P.Geo., maintains the analytical
database and block model and monitors QA/QC on the laboratory analyses. The
Company's Vice-President, Exploration, William Mercer, Ph.D.., P.Geo.,
provided overall direction on the project. The qualified persons for the
purpose of this news release are William Mercer and D.S. Bubar, P. Geo.,
President.
Avalon continues to dialogue with key local
aboriginal groups with a view toward developing partnership arrangements. A
draft Memorandum of Understanding (MOU) has been prepared for discussion
which defines principles for revenue sharing models, environmental
protection, employment and training initiatives that would form the basis
for an ultimate Impacts & Benefits (IBA) type agreement.
The Company has already taken a proactive
approach to hiring and training local aboriginal people with about 40% of
the workers at the Thor Lake site being from local aboriginal communities.
This includes two graduates from the recent Mine Training Society Driller
Helper Training course that the Company co-sponsored.
East Kemptville Tin
- Indium Project
Work on a Preliminary Economic Assessment
("PEA") of the East Kemptville tin-indium (copper-zinc) deposit,
Yarmouth County, NS, being prepared by Wardrop Engineering is also
progressing well. Of significance, are the results from preliminary
metallurgical testwork on drill core samples provided from the Nova Scotia
government core library that have demonstrated considerable improvement in
tin recoveries compared to that achieved while the mine was in production.
In particular, the application of flotation to remove the sulphides prior
to a gravity separation with Falcon� concentrators has resulted in a
projected tin recovery rate of 88% into combined gravity and sulphide
flotation concentrates compared to historical recovery rates of just
40-75%. The recent tests indicated that recovery to gravity concentrate
only was 76.5 to 79.4%.
Indium reports to the zinc-copper bulk
concentrate where indium recoveries of 85% were achieved using a
conventional flotation process. Further flotation tests to individual
copper and zinc concentrates are necessary to establish recoveries to
copper and zinc concentrates but it is presently projected that 85%
recoveries should be achievable. The metallurgical work included
comminution tests conducted by Starkey and Associates in Ontario, flotation
and gravity separation testing by Met-Solve Laboratory in British Columbia
and QEMSCAN� mineralogy analysis by SGS Minerals Services of Ontario under
the supervision of Wardrop Engineering, a Tetra-Tech Company. Significantly
improved tin recoveries coupled with relatively strong recent tin prices
and potential for additional revenue streams from indium, zinc and copper
is expected to favourably impact on the economic analysis to be prepared
for the PEA. This is expected to be completed in the first quarter of 2010.
Georgi Doundarov, P.Eng., PMP, CCE, Senior
Metallurgist of Wardrop Engineering is the Qualified Person for the
Metallurgical Test Program under National Instrument 43-101.
The Company also reports that it has
commenced a $500,000 exploration program to test other tin-indium targets
on its wholly-owned, 8,960 acre, Ike's Ridge property located immediately
south and west of the East Kemptville Special Licence. This will involve
ground geophysical surveys to define targets for a follow-up diamond
drilling program planned for early in 2010.
The Ike's Ridge field work is being
conducted under the supervision of Bruce Hudgins, P.Geo. (Nova Scotia),
under the direction of the Company's Vice-President, Exploration, William
Mercer, Ph.D., P.Geo. (Ontario).
About Avalon Rare
Metals Inc. (TSX:AVL, OTCQX:AVARF)
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.
Shares Outstanding: 78,504,448. Cash resources: approximately $20
million.
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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