TORONTO , June 15, 2015 (GLOBE NEWSWIRE) -- Avalon Rare Metals Inc. (TSX:AVL)
(NYSE MKT:AVL) ("Avalon" or the "Company") is pleased to announce the start of a
$1.3 million work program on the East Kemptville Tin-Indium Project in
southwestern Nova Scotia . The program will involve 2,000 metres of diamond
drilling, metallurgical process testwork and preliminary environmental studies.
This work will generate the data required to complete a Preliminary Economic
Assessment ("PEA") by November, 2015. Drilling is scheduled to commence in early
July and be completed in September with initial results expected in late August.
The drilling program will increase confidence in mineral resources in both the
Main and Baby Zones, collect fresh sample material for bench-scale metallurgical
process testwork and test two exploration targets ( Duck Pond and South Grid)
where there are encouraging results from historical drilling.
Bench-scale metallurgical test work has been initiated at a laboratory in the UK
with expertise in processing similar tin ores. This program is designed to
evaluate the metallurgical process flowsheet from grinding through to copper and
zinc sulphide flotation to tin recovery by both gravity and flotation methods.
It is anticipated that advances in process technology achieved since the 1980s
will result in improved recoveries to all three concentrates and also confirm
the presence of significant indium in the zinc concentrate. This work is
targeted for completion in September, 2015 and is required to better define
expected metal recoveries and concentrate grades for the PEA.
Initial environmental field work will also begin this summer with the objective
of determining the scope of environmental management work that will be required
going forward for inclusion in the PEA, and to define the requirements for the
environmental assessment and permitting process to be carried out in conjunction
with a feasibility study. Feasibility study work is expected to begin in early
2016.
Don Bubar , President and CEO stated, "I am delighted with the significant
progress we have made on the East Kemptville Tin-Indium Project over the past
year. This summer's work program will allow us to complete a preliminary
economic assessment by the end of 2015 and move us one step closer to realizing
our goal of re-establishing Nova Scotia as the Tin Capital of North America ".
Drilling Program
The 2015 drilling program will involve some 17 holes with the following primary objectives:
Detailed drilling of the Baby Zone to bring Inferred Resources to the Indicated level of confidence, test potential depth extensions and map the detailed mineralogy of the zone with a focus on possible enrichment in other rare metals such as germanium and lithium. The Baby Zone is the highest grade known tin zone on the property. The 2014 drilling program yielded assays of up to 0.41% Sn, 0.53% Zn and 16.77 ppm In over 67.85 metres in the Baby Zone.
Limited drilling on the Main Zone, largely to collect sample material for mineralogical and metallurgical purposes, but also to test the zone to depth and increase Indicated Resources. See Avalon's news release dated October 31, 2014 for further resource information.
Exploratory drilling at the Duck Pond and South Grid zones. These two known tin zones were drilled at the time of original development of the mine in the 1980s, but saw no subsequent exploration. The Duck Pond zone was tested in the past by more than 20 drill holes, returning intersections assaying up to 0.17% Sn over 42.71 metres. The results are sufficiently encouraging to suggest that there is potential to develop further mineral resources at Duck Pond . The South Grid zone is an area along trend southwest of the Baby Zone where limited widely spaced drilling has produced intersections of up to 0.31% Sn over 33.0 metres1.
Ultimately, better defining the known resources to at least the Indicated level
of confidence will allow the inclusion of those resources in a feasibility
study. Expanding these resources will extend the mine life and strengthen the
overall business case for re-development.
Land Tenure
In March 2015 , Avalon was granted a new Special Licence by the Province of Nova
Scotia covering the whole East Kemptville mine area and encompassing all the
known tin deposits. The Special Licence has a three year term expiring January
31, 2018 , renewable for two additional terms of one year each and requires the
Company to spend $5,250,000 , over three years including $750,000 in the first
year.
Following receipt of the new Special Licence, the site access agreement with the
surface rights holder was extended until September 30, 2015 to provide the
necessary access for the 2015 work program. In the meantime, discussions
continue towards reaching an agreement to transition full title to the property
to Avalon. The parties expect to conclude an agreement later in 2015.
Qualified Persons
The technical information contained in this document has been reviewed and approved by Bill Mercer , P. Geo. (NS) and Vice President, Exploration and Donald Bubar , P. Geo. (ONT), President and CEO, who are qualified persons for the purposes of National Instrument 43-101.
About Avalon Rare Metals Inc.
