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INTERVIEW: Avalon VP Discusses Lithium Markets and Separation Rapids Project

Posted by AGORACOM-JC at 11:00 AM on Thursday, October 22nd, 2015

Avalon VP Discusses Lithium Markets and Separation Rapids Project

Why Lithium?

  • Lithium has been used in ceramics and glass for many decades.
  • The largest use for lithium is in rechargeable batteries and this use for lithium was invented in the 70’s.
  • The use of lithium in batteries has tripled since 2008 (20,026 t LCE in 2008 to 64,398t LCE in 2014) and the forecasted growth rate of lithium demand growth is 8% per year to 2025 and the predicted growth rate for li in battery use is 13% (CAGR).

About Our Guest

  • Pierre brings leadership and international marketing, sales and trading experience in London Metal Exchange (LME) traded metals, industrial chemicals and industrial minerals to Avalon.
  • Has over 25 years of experience in LME and non-LME traded commodities.
  • At Avalon, responsible for understanding the markets and creating strategic partnerships with potential customers and investors.

Hub On AGORACOM / Corporate Profile / Watch Interview

 

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Avalon Provides Update on Separation Rapids Lithium Project Kenora, Ontario

Posted by AGORACOM-JC at 8:16 AM on Thursday, October 8th, 2015

  • Provides an update on its $750,000 pilot plant program on the Company’s Separation Rapids Lithium Project
  • 30 tonne bulk sample of crushed ore that was shipped this summer has arrived at its destination in Germany and process work is now underway
  • Pilot plant program will be completed, and concentrate available for distribution, in Q1 2016.

Toronto, Ontario–(October 8, 2015) – Avalon Rare Metals Inc. (TSX: AVL) (NYSE MKT: AVL) (“Avalon” or the “Company”) is pleased to provide an update on its $750,000 pilot plant program on the Company’s Separation Rapids Lithium Project (“Separation Rapids Project” or “the Project”) located near Kenora, Ontario, first announced in its news release of August 17, 2015.

The 30 tonne bulk sample of crushed ore that was shipped this summer has arrived at its destination in Germany and process work is now underway. The sample will be processed using the Company’s proven flow sheet to produce a high purity lithium mineral (petalite) concentrate for the following purposes:

1) to deliver further product samples to potential customers in the glass-ceramics industry who have already tested and approved smaller samples;
2) to provide initial test samples to a number of new potential customers; and
3) to generate concentrate for additional process development work with the objective of producing high purity lithium chemical products for the lithium ion battery manufacturing business.

 

The pilot plant program will be completed, and concentrate available for distribution, in Q1 2016.

Lithium chemicals process optimization work continues at the laboratories of the Saskatchewan Research Council (“SRC”) in Saskatoon, Saskatchewan. Laboratory test work performed earlier this year at SRC provided encouraging results with a battery-grade lithium carbonate (>99.5% pure) being readily produced. Progress is being made toward the production of an enhanced grade product with a target purity of 99.9%. The potential for production of high grade lithium hydroxide was also demonstrated previously and optimization of this flowsheet is currently in progress. These programs are being conducted under the direction of David Marsh, Senior Vice-President, Metallurgy and Technology Development.

Rehabilitation work on the access road to the site initiated in September has now been completed. This road will provide ready access to the deposit for large scale bulk sampling in 2016. Several hundred tonnes of petalite concentrate is expected to be produced from this bulk sample and will be used for full-scale production trials in the glass-ceramics industry and for piloting the lithium chemical production processes.

Update on Lithium Markets

Growing demand for rechargeable batteries in electric vehicles and home energy storage is expected to result in continued growth in consumption of lithium. Critical materials consulting firm Stormcrow Capital estimates that demand could reach 410,000 tonnes of lithium carbonate equivalent per year in 2025, compared to 200,000 tonnes in 2015. This translates into a compounded annual growth rate of a 7.8%. In their May 2015 Industry Report, Stormcrow further predicts that a supply deficit will emerge in the market as existing producers struggle to meet the rapidly growing demand.

This sentiment was echoed at The Battery Show in Novi, Michigan September 15-17, attended by Vice-President, Sales and Marketing, Pierre Neatby, where some 5,000 industry participants gathered to discuss the current and future state of rechargeable batteries. The consensus was that lithium ion battery demand would grow significantly over the next decade in electric and hybrid vehicles and energy storage applications.

On September 24, Avalon was one of the sponsors of the Benchmark Mineral Intelligence (“Benchmark”) Lithium Ion Battery supply chain conference in Toronto. The conference provided excellent perspective on the rechargeable battery market and its main raw material needs: lithium, graphite and cobalt. Guy Bourassa, President and CEO of Nemaska Lithium Inc., one of the most advanced lithium chemicals projects in Canada, noted that “the market will need some 100,000 tonnes of new lithium chemicals supply to come into the market to over the next 5 years to meet the growing demand”. Industry panel participants, which included Avalon President & CEO Don Bubar, agreed that this rate of demand growth will require multiple new producers in order to keep the market in balance.

The chart below presented by Benchmark shows the increasing trend of battery grade lithium carbonate prices (US$/tonne) over the past 10 years reflecting the growing supply demand imbalance:

Can&rsquo;t view this image? Please visit: <a href='https://orders.newsfilecorp.com/files/3386/17578_chart-enlarged.jpg' target=

Lithium Carbonate Price Trend

To view an enhanced version of this image, please visit:
https://orders.newsfilecorp.com/files/3386/17578_chart-enlarged.jpg

Don Bubar, President and CEO of Avalon Rare Metals Inc. commented, “We are excited about all the new interest in the lithium sector. The rapid advance in lithium ion battery technology is creating new business opportunities for the Separation Rapids Project that were unimaginable in 1996 when Avalon first began work on the Project. Avalon is now uniquely positioned to be a long term supplier of both high purity lithium minerals to the glass ceramics market and lithium chemicals to the rapidly growing lithium ion rechargeable battery market.”

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), who is a Qualified Person under NI 43-101.

For questions or feedback, please email the Company at [email protected], or phone Don Bubar, President & CEO, at 416-364-4938.

Cautionary Statement
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 regarding the commencement and completion of its work programs, that that the sample will be processed to produce a high purity lithium mineral, that the pilot plant program will be completed, and concentrate available for distribution, in Q1 2016, that the road will provide ready access to the deposit for large scale bulk sampling in 2016, that several hundred tonnes of petalite concentrate is expected to be produced from this bulk sample and will be used for full-scale production trials in the glass-ceramics industry and for piloting the lithium chemical production processes, that growing demand for rechargeable batteries in electric vehicles and home energy storage is expected to result in continued growth in consumption of lithium and that Avalon is now uniquely positioned to be a long term supplier of both high purity lithium minerals to the glass ceramics market and lithium chemicals to the rapidly growing lithium ion rechargeable battery market. 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, the possibility of cost overruns or unanticipated costs and expenses, and unanticipated results from the work programs, 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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Canadian rare earth elements miners band together for survival in pricing downturn

Posted by AGORACOM-JC at 12:48 PM on Thursday, September 17th, 2015

  • China is the world’s major supplier of rare earth elements, prized for their unique properties — including powerful magnetic fields — and used in high-tech goods such as smartphones, laptops and electric cars.
  • Ian London, who heads the Canadian Rare Earth Elements Network, said companies are instead working together to develop new methods for extracting and refining the 17 metals that make up the rare earth group.

TORONTO — Experts say government support for research and development of Canada’s rare earth elements has encouraged new co-operation in the usually dog-eat-dog world of junior mining companies.

China is the world’s major supplier of rare earth elements, prized for their unique properties — including powerful magnetic fields — and used in high-tech goods such as smartphones, laptops and electric cars.

Prices rose dramatically in 2011, and by 2013 there were at least 11 Canadian projects at the advanced exploration stage before a steep slide in value put a halt on development.

Ian London, who heads the Canadian Rare Earth Elements Network, said companies are instead working together to develop new methods for extracting and refining the 17 metals that make up the rare earth group.

“Now that there has been a lull that’s gone on for a little while, folks have become much more realistic and are looking to address those challenges,” he said.

In the 2015 budget, the federal government promised to allocate $23 million over the next five years on top of money it has already invested to help companies work together to address the technical challenges of mining rare earth elements.

London said the money and leadership from Natural Resources Canada has helped the companies work together.

“There are a number of challenges faced by each of the developing companies, and this funding has encouraged them to collaborate and solve them,” London said.

Rare earth elements mining projects have been proposed in Ontario, Quebec, Saskatchewan, Labrador and the Northwest Territories.

The elements are called rare not because of scarcity but because they are not found in high concentrations, and are usually dispersed throughout an ore deposit.

Prices for the rare earth elements — the lanthanides, with atomic numbers 57 through 71, as well as scandium and yttrium — reached a peak in 2011 as demand for high-tech devices looked set to explode.

Control over rare-earth elements even became a plot point in the blockbuster video game Call of Duty: Black Ops II.

Yet headlines and heady prices led to oversupply, and prices have crashed. Europium saw some of the biggest swings of the rare earths, going from around US$600 per kilogram for much of 2010 to a peak above $4,200 in the second half of 2011 before falling back below $200 this year.

The downturn in rare earth prices has already resulted in the bankruptcy of Molycorp Inc., one of the largest producers outside of China, and Australian rare earths miner Lynas is struggling to stay afloat as its stock price has fallen more than 98 per cent since 2011.

Gareth Hatch, who founded Toronto-based processor Innovation Metals Corp. in 2011, said mining rare earth minerals has many challenges.

Many of the minerals that contain the elements in Canada have never been used for commercial production, he said, and separating the chemically similar elements from one another during the refining process can be costly in order for processors to avoid significant environmental impacts.

“There are different challenges along the way as you go from a rock to a high-purity valuable technology metal,” he said.

Government funding and co-ordination will be critical to turning the existing research into commercially viable products, Hatch said.

Boyd Davis, a principal at research laboratory Kingston Process Metallurgy, said that companies need to work together to identify the best practices for mining Canadian rare earth deposits because they differ significantly from those in other countries.

“For one group to do it on its own is difficult,” he said. “You end up needing a Canadian solution, not just because you’re patriotic but because you have a different situation.”

Davis said junior mining companies are usually very competitive, and the government’s work in the rare earths sector together was necessary to get them to work together.

“Animals only get together at an oasis, they don’t get together in the middle of the desert,” he said.

Source: http://www.ctvnews.ca/business/canadian-rare-earth-elements-miners-band-together-for-survival-in-pricing-downturn-1.2566604

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Almost a Perfect Battery?

Posted by AGORACOM-JC at 12:43 PM on Thursday, September 17th, 2015

I can’t attest to the headline “Almost a Perfect Battery” claimed by a team of researchers at MIT, but they reported that they have developed a solid-state electrolyte, which can greatly boost modern battery technology. The researchers claim that the new design will allow batteries to endure hundreds of thousands of recharges, pack more juice and be safe from combustion. The research was published in Nature Materials (published August 17, 2015).

Now researchers at MIT’s Advanced Institute of Technology in Cambridge, Massachusetts and Korean consumer electronic producer Samsung have collaborated in developing a new approach to one of the three basic components of batteries: the electrolyte, which transports charged ions from one electrode to another during charging and discharging. Modern lithium-ion batteries use liquid electrolyte, but the MIT group have developed a better all-round solid-state electrolyte. Their invention belongs to a class of materials known as superionic lithium-ion conductors, which are compounds of lithium, germanium, phosphorus and sulfur.

Sourced from Cdn.rt.com
Sourced from Cdn.rt.com

The new solid electrolyte can withstand hundreds of thousands of recharge cycles, meaning a battery made with it would last practically forever. It has superior energy density, packing 20 to 30 percent more energy for a given volume. It is also more stable than a liquid electrolyte, meaning the rare (but widely publicized) cases of battery combustion would no longer be possible. This solid-state electrolyte also has other, unexpected benefits: while conventional lithium-ion batteries do not perform well in extreme cold, and need to be preheated at temperatures below roughly minus 30 degrees Celsius, the solid-electrolyte versions can still function at those frigid temperatures.

The paper in Nature Materials describes a new approach to the development of solid-state electrolytes that simultaneously addresses the greatest challenges associated with improving lithium-ion batteries. The key to making this feasible was finding solid materials that could conduct ions fast enough to be useful in a battery. Apparently, there was a view that solids cannot conduct fast enough, however the research team has dispelled that paradigm. The research team was able to analyze the factors that make for efficient ion conduction in solids, and hone in on compounds that showed the right characteristics.

The team says the principles derived from their research could lead to even more effective materials. So again we see that Rare Metals – the likes of lithium and germanium – Matter.

Until soon… Ian

Source: http://raremetalsmatter.com/almost-a-perfect-battery/

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Avalon Announces Start of 2015 Pilot Plant Program on its Separation Rapids Lithium Project, Kenora, ON

Posted by AGORACOM-JC at 10:50 AM on Monday, August 17th, 2015

Logo3

  • $750,000 pilot plant program has commenced on the Company’s Separation Rapids Lithium Project
  • Will provide a trial of the new lithium minerals process flow sheet developed at the bench scale over the past year
  • Project hosts an exceptionally large deposit of the rare lithium mineral petalite, which is noted for its lack of contained impurities

Toronto, Ontario–(August 17, 2015) – Avalon Rare Metals Inc. (TSX: AVL) (NYSE MKT: AVL) (“Avalon” or the “Company”) is pleased to announce that a $750,000 pilot plant program has commenced on the Company’s Separation Rapids Lithium Project (“Separation Rapids Project” or “the Project”) located near Kenora, Ontario. The 2015 pilot plant program will provide a trial of the new lithium minerals process flow sheet developed at the bench scale over the past year under the direction of SVP, Metallurgy and Technology Development, David Marsh. A total of 30 tonnes of crushed ore will be shipped to a laboratory in Germany for processing to produce a minimum of 1 tonne of pure lithium mineral (petalite) concentrate.

This petalite concentrate will be used for two purposes: 1) to provide product samples to potential customers in the glass—ceramics industry who have expressed interest in evaluating these samples and 2) to provide concentrate for additional process development toward producing a high purity lithium chemical product for use by customers in the lithium ion rechargeable battery manufacturing business. The lithium chemicals work will be done at the laboratories of the Saskatchewan Research Council (“SRC”) in Saskatoon. The entire program is expected to be completed over the next 6-8 months.

The Opportunity

The Separation Rapids Project hosts an exceptionally large deposit of the rare lithium mineral petalite, which is noted for its lack of contained impurities. For this reason, petalite has a long history of use in specialty glass-ceramic products that require raw materials with a high degree of purity. Demand for petalite in this application has been growing steadily, with users now looking for new long term sources of supply. Avalon re-activated the Project in 2013 after receiving a number of expressions of interest from glass-ceramic manufacturers. In 2014, the Company successfully re-established and improved upon its original process flowsheet at the bench scale to produce high purity petalite concentrate containing an average of 4.2% lithium oxide and less than 0.01% iron oxide (a glass contaminant). Small samples of this material were subsequently analyzed and approved for further evaluation by a number of glass-ceramic end-users, leading to the decision to proceed with a larger scale pilot plant trial in 2015.

High purities have also been increasingly required for lithium chemicals used in the manufacture of lithium ion batteries. Accordingly, the Company is now investigating how its high purity mineral can be used to make ultra-high purity lithium chemicals relatively inexpensively compared to other existing alternative lithium source materials. Laboratory test work performed earlier this year at SRC provided encouraging results with a battery-grade lithium carbonate (>99.5% pure) being produced using proven leaching and precipitation technologies. Further, there is the potential to produce an enhanced grade product, achieving greater than 99.9% purity, with relatively few additional impurity removal steps. The potential for production of high grade lithium hydroxide was also demonstrated during this work.

The opportunity now exists for Avalon to uniquely position itself as a long term supplier of both high purity lithium minerals to the glass ceramics market and lithium chemicals to the rapidly growing lithium ion rechargeable battery market.

Project Background

The Separation Rapids Project is located approximately 70 km north of Kenora, Ontario in the traditional territory of the Wabaseemoong Independent Nations. The Project is 100% owned by the Company, with the deposit held under a 21 year Mining Lease. Avalon has worked on the Project intermittently since 1996, first completing a Pre-feasibility Study in 1999. Expenditures to date total approximately $6.2 million. In 2006, the Company extracted a 250 tonne bulk sample for new market development purposes. This material is being used for the current bulk sample test program, and earlier in 2015, Avalon shipped 2 tonnes of crushed ore to a potential customer in China for independent analysis and market evaluation. No feedback has been received to date.

Lithium Markets

Over the 5 year period ending in 2014, global consumption of lithium increased 80% while consumption of lithium for battery applications (the largest single market segment) grew by 166%, according to independent industrial minerals market analyst, Roskill Information Services.

Growing demand for rechargeable batteries in electric vehicles and home energy storage is expected to result in continued growth in consumption of lithium which is estimated by industry analyst Stormcrow Capital to reach 410,000 tonnes of lithium carbonate equivalent per year in 2025. This translates into an impressive compounded annual growth rate of a 7.8%. In their May 2015 Industry Report, Stormcrow further predicts that a supply deficit will emerge in the market as existing producers struggle to meet the rapidly growing demand.

Avalon has commissioned a market study to gain a better understanding of how it can use its unique high purity petalite resource to best serve the rapidly evolving market in energy storage technology. This study will be completed during the fourth quarter of 2015.

Future Plans

Avalon is also preparing for a large scale pilot plant trial involving the processing of over 5,000 tonnes of ore to produce several hundred tonnes of petalite concentrate for full scale production trials by prospective customers in the glass-ceramics industry. Some of the petalite concentrate produced would also be utilized for a pilot plant trial of the lithium chemical production process to be designed over the next 12 months. The lithium chemicals produced from this trial would also be used for market development purposes.

To complete the bulk sampling program Avalon will need to rehabilitate its 2003 access road to the site. Avalon has applied for the necessary work permit and expects to complete this work in September 2015. The timing for the bulk sampling program is still to be finalized and is subject to arranging necessary financing. Avalon is also looking at potential sites for establishing future production facilities in the Kenora area, including at the Separation Rapids Project site itself.

The current pilot plant program will provide the Company with the engineering and design information needed to prepare an updated Pre-feasibility Study in 2016.

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), who is a Qualified Person under NI 43-101.

About Avalon Rare Metals Inc.

Avalon Rare Metals Inc. is a mineral development company focused on rare metal deposits in Canada, with three advanced stage projects. Its 100%-owned Nechalacho Deposit, Thor Lake, NWT is exceptional in its large size and enrichment in the scarce “heavy” rare earth elements, key to enabling advances in clean technology and other growing high-tech applications. Avalon is also advancing 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 or feedback, please email the Company at [email protected], or phone Don Bubar, President & CEO, at 416-364-4938416-364-4938416-364-4938416-364-4938 .

Cautionary Statement

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 regarding the commencement and completion of its work programs, that the 2015 pilot plant program will provide a trial of the new lithium minerals process flow sheet, that a total of 30 tonnes of crushed ore will be shipped to a laboratory in Germany for processing, that the petalite concentrate will be used for two purposes, that the lithium chemicals work will be done at the laboratories of SRC, that the entire program is expected to be completed over the next 6-8 months, that there is the potential to produce an enhanced grade product achieving greater than 99.9% purity with relatively few additional impurity removal steps, that growing demand for rechargeable batteries in electric vehicles and home energy storage is expected to result in continued growth in consumption of lithium, that the market study will be completed during the fourth quarter of 2015, that some of the petalite concentrate produced would also be utilized for a pilot plant trial of the lithium chemical production process to be designed over the next 12 months, that the lithium chemicals produced from this trial would also be used for market development purposes, that to complete the bulk sampling program Avalon will need to rehabilitate its 2003 access road to the site and that the current pilot plant program will provide the Company with the engineering and design information needed to prepare an updated Pre-feasibility Study, in 2016. 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, the possibility of cost overruns or unanticipated costs and expenses, and unanticipated results from the work programs, 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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The Molycorp Bankruptcy – Doom or Dawn for Rare Earth Elements?

Posted by AGORACOM-JC at 4:29 PM on Wednesday, July 22nd, 2015

  • Recent bankruptcy (chapter 11) filing by Molycorp prompted many comments about the future of this market sector.
  • Rare earth elements are key components in almost all technology products these days, ranging from smartphones and flat screen TVs to all sorts of electric motors, high performance metal alloys and even automotive catalysts.
  • “If anything, Molycorp’s troubles are a good thing for prices”, commented Matthias Rueth, president of Tradium GmbH, a large REE trader. In fact, because there is so little substitution, the market for REEs is not elastic at all in terms of demand.

By Kitco News
Tuesday July 21, 2015 10:19

The recent bankruptcy (chapter 11) filing by Molycorp, the U.S.’ only producer of rare earth elements, prompted many comments about the future of this market sector. Once an icon for independence from China for these crucial materials the company now appears to have fallen victim to a sustained period of low prices.

Rare earth elements are key components in almost all technology products these days, ranging from smartphones and flat screen TVs to all sorts of electric motors, high performance metal alloys and even automotive catalysts.

Image courtsey of Molycorp

Analyst comments that Molycorp’s demise was in part due to substitution of rare earth elements are lacking substance, though. Despite statements by Tesla published a while ago saying the electric motors used for propulsion of their Model S are free from REEs, there are plenty of REEs in many other places of the car (power windows, power tailgate, electric seat adjustment, power mirrors, speakers, cameras, sensors,… ect.).

Even comments talking about “the end of the line” for Molycorp seem inaccurate. Only the company’s North American operation is affected by the chapter 11 filing; plants in other parts of the world remain untouched, at least for the time being. The company also reports on its website that short-term financing has been obtained, making a debt restructuring plan and return to normal operation a possibility.

“If anything, Molycorp’s troubles are a good thing for prices”, commented Matthias Rueth, president of Tradium GmbH, a large REE trader. In fact, because there is so little substitution, the market for REEs is not elastic at all in terms of demand. After the price explosion in 2010, more new operations were encouraged to add capacity than was healthy for the market. As a result, prices plummeted in subsequent years to all-time lows.

Recent months did, however, see a much improved conscience in China with respect to environmental and safety issues leading to higher production costs that are now more in line with international levels. On top, China restructured its taxes and tariffs to comply with WTO rulings. The country also shut down some illegal mines, leading to increased legal export volumes. All signs indicate that China is regaining control over this market, which – if successful – would have a positive impact on prices.

Markets will continue to be cyclical but growing. The premise remains: in the absence of non-physical markets for REEs, investing in this exciting group of metals will remain a matter of long term strateiges.

Bodo Albrecht
President – BASIQ Corp.
www.basiq.com
www.bodoalbrecht.com

Source: http://www.kitco.com/news/2015-07-21/The-Molycorp-Bankruptcy-Doom-or-Dawn-for-Rare-Earth-Elements.html

-Doom-or-Dawn-for-Rare-Earth-Elements.html

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INTERVIEW: Avalon Rare Metals Discusses Advancement on Past Producing East Kemptville Tin-Indium Project

Posted by AGORACOM-JC at 12:22 PM on Friday, June 26th, 2015

  • East Kemptville Tin-Indium Project was re-activated in 2014 and is advancing steadily with a new NI 43-101 resource estimate and a conceptual re-development study completed Feb 2015

Avalon is focused on rare metal deposits in Canada, with three advanced stage projects. Its 100%-owned Nechalacho Deposit, Thor Lake, NWT is exceptional in its large size and enrichment in the scarce “heavy” rare earth elements, key to enabling advances in clean technology and other growing high-tech applications. Avalon is also advancing its Separation Rapids Lithium Minerals Project, Kenora, ON and its East Kemptville Tin-Indium Project.

Hub On AGORACOM / Corporate Website / Watch Interview Now!

 

 

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Avalon Commences $1.3 Million Work Program on the East Kemptville Tin-Indium Project, Yarmouth Co., Nova Scotia

Posted by AGORACOM-JC at 4:42 PM on Monday, June 15th, 2015

  • Announced start of a $1.3 million work program on the East Kemptville Tin-Indium Project in southwestern Nova Scotia
  • Program will involve 2,000 metres of diamond drilling, metallurgical process testwork and preliminary environmental studies
  • Qork will generate the data required to complete a Preliminary Economic Assessment by November, 2015

TORONTO, June 15, 2015 — 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.

Avalon Rare Metals Inc. is a mineral development company focused on rare metal deposits in Canada, with three advanced stage projects. Its 100%-owned Nechalacho Deposit, Thor Lake, NWT is exceptional in its large size and enrichment in the scarce “heavy” rare earth elements, key to enabling advances in clean technology and other growing high-tech applications. Avalon is also advancing its Separation Rapids Lithium Minerals 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.

Cautionary Statement

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 regarding the commencement and completion of its work programs, that these programs will increase confidence in mineral resources and generate the data required for a PEA, that results will be available in late August, 2015, that advances in process technology achieved since the 1980s are anticipated to result in improved recoveries, that feasibility study work is expected to begin in early 2016, that a PEA will be completed by the end of 2015, that better defining the known resources to at least the Indicated level of confidence will allow the inclusion of those resources in a feasibility study, that expanding these resources will extend the mine life and strengthen the overall business case for re-development and that Avalon and the surface rights holder expect to reach an agreement later in 2015. 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, the possibility of cost overruns or unanticipated costs and expenses, and unanticipated results from the work programs, 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.

Cautionary Note to U.S. Investors Concerning Estimates of Reserves and Resources

Unless otherwise indicated, all reserve and resource estimates and other technical information included in this press release have been prepared in accordance with NI 43-101. NI 43-101 is a rule developed by the Canadian Securities Administrators which establishes standards for all public disclosure an issuer makes of scientific and technical information concerning mineral projects.

Canadian standards for disclosure of information, including NI 43-101, differ significantly from the requirements of the United States Securities and Exchange Commission (the “SEC”), and reserve and resource information contained in this press release may not be comparable to similar information disclosed by United States companies. In particular, and without limiting the generality of the foregoing, the term “resource” does not equate to the term “reserve”. Under United States standards, mineralization may not be classified as a “reserve” unless the determination has been made that the mineralization could be economically and legally produced or extracted at the time the reserve determination is made. The SEC’s disclosure standards normally do not permit the inclusion of information concerning “measured mineral resources”, “indicated mineral resources” or “inferred mineral resources” or other descriptions of the amount of mineral in mineral deposits that do not constitute “reserves” by United States standards in documents filed with the SEC. The requirements of NI 43-101 for identification of “reserves” are also not the same as those of the SEC, and reserves reported by Avalon in compliance with NI 43-101 may not qualify as “reserves” under SEC standards. Accordingly, information concerning mineral deposits set forth herein may not be comparable with information made public by companies that report in accordance with United States standards.

1 The historic drill intercepts are reported in reports filed with the Nova Scotia government (i) a qualified person has not done sufficient work to verify these historical assays as reliable under NI 43-101; and (ii) the historical results should not be relied upon.

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Avalon Closes Public Offering for Gross Proceeds of $4 Million

Posted by AGORACOM-JC at 9:31 AM on Wednesday, May 27th, 2015

  • Closed its previously announced public offering of flow-through common shares and units as described in the Company’s news release of April 29, 2015. The Offering has resulted in gross proceeds to the Company of $4.007 million.
  • Company intends to use the gross proceeds from the sale of the Flow-Through Shares for work on three mineral properties: the Nechalacho Rare Earth Elements Project, the East Kemptville Tin-Indium Project and the Separation Rapids Lithium Project and the net proceeds from the sale of the Units for working capital and general corporate purposes

Toronto, Ontario–(May 27, 2015) – Avalon Rare Metals Inc. (TSX: AVL) (NYSE MKT: AVL)(“Avalon” or the “Company“) is pleased to announce that it has closed its previously announced public offering (the “Offering“) of flow-through common shares (the “Flow-Through Shares“) and units (the “Units“) as described in the Company’s news release of April 29, 2015. The Offering has resulted in gross proceeds to the Company of $4.007 million.

The Company issued 6,410,254 Flow-Through Shares priced at $0.39 per Flow-Through Share and 4,431,970 Units priced at $0.34 per Unit. Each Unit consists of one common share (a “UnitShare“) and one-half of one non-transferrable common share purchase warrant (each whole warrant, a “Warrant“). Each Warrant entitles the holder to purchase one common share of the Company at a price of $0.425 per share, until November 27, 2016. Each Flow-Through Share will qualify as a “flow-through share” within the meaning of the Income Tax Act(Canada).

The Company intends to use the gross proceeds from the sale of the Flow-Through Shares for work on three mineral properties: the Nechalacho Rare Earth Elements Project, the East Kemptville Tin-Indium Project and the Separation Rapids Lithium Project and the net proceeds from the sale of the Units for working capital and general corporate purposes.

Secutor Capital Management Corp. (“Secutor“) acted as the agent for the Offering, and was paid a cash fee of $240,412 and was issued 650,533 agent compensation warrants. Each agent compensation warrant is exercisable into one common share of the Company at an exercise price of $0.34 per share until November 27, 2016.

The Offering was made outside of the United States by way of a prospectus supplement dated April 29, 2015 to the Canadian base shelf prospectus dated September 10, 2013. The prospectus supplement relating to the Offering was filed with the applicable provinces and territories in Canada and is available on SEDAR at www.sedar.com. The prospectus supplement forms part of the shelf registration statement filed with the United States Securities and Exchange Commission (the “SEC“), File No. 333-190771, which was declared effective by the SEC on September 12, 2013, and was filed with the SEC pursuant to General Instruction II.L. of Form F-10 under the U.S. Securities Act registering for distribution under the U.S. Securities Act the Unit Shares, Warrants and Flow-Through Shares and is available at the SEC’s website www.sec.gov.

This press release shall not constitute an offer to sell or solicitation of an offer to buy these securities, and these securities may not be offered or sold in any jurisdiction in which their offer or sale would be unlawful.

About Avalon Rare Metals Inc.

Avalon Rare Metals Inc. is a mineral development company focused on rare metal deposits in Canada, with three advanced stage projects. Its 100%-owned Nechalacho Deposit, Thor Lake, NWT is exceptional in its large size and enrichment in the scarce “heavy” rare earth elements, key to enabling advances in clean technology and other growing high-tech applications. Avalon is also advancing 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 Reform Act of 1995 and applicable Canadian securities legislation. Forward-looking statements include, but are not limited to, statements related to how the Company plans to use the proceeds from the Offering and the adequacy of cash available to fund planned activities. 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 Report, 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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European Parliament votes in favour of a mandatory monitoring system for conflict minerals

Posted by AGORACOM-JC at 11:26 AM on Monday, May 25th, 2015

  • European Parliament voted in favour of a mandatory monitoring system for minerals, including tin, gold and tantalum, from conflict regions
  • Bill covers not only mineral importers, smelters and refiners, but also obligates manufacturers of consumer products to ensure that their products do not contain materials made with minerals produced to fund armed conflict

In our ongoing efforts to provide you with broader communications and industry information, Avalon Rare Metals Inc. is pleased to issue this Industry Bulletin, which follows up on the April 20, 2015 Industry Bulletin entitled “EU establishes voluntary system for conflict-free mineral certification.”

On May 20, 2015, the European Parliament voted in favour of a mandatory monitoring system for minerals, including tin, gold and tantalum, from conflict regions. This end result was unexpected according to some observers, and goes beyond the proposal of the European Parliament’s International Trade Committee, which recommended self-certification but did not extend beyond smelters and refiners.

This bill covers not only mineral importers, smelters and refiners, but also obligates manufacturers of consumer products to ensure that their products do not contain materials made with minerals produced to fund armed conflict. While this bill has some hurdles to overcome as it goes through the legislative process, it highlights the global trend toward promoting socially and environmentally responsible production of critical raw materials.

Avalon’s East Kemptville tin-indium deposit, located in Yarmouth County, Nova Scotia is currently being evaluated as a potential new North American source of conflict-free tin. Avalon’s Nechalacho Heavy Rare Earth deposit in the Northwest Territories is a potential source of tantalum produced in an environmentally and socially responsible way, along with rare earths and zirconium.

Avalon’s President & CEO, Don Bubar, commented: “This vote by the European Parliament is further confirmation that our commitment to sustainability in all aspects of our business positions us well to serve the future critical raw material needs of responsible manufacturing companies in the European Union and elsewhere around the world.”

For more information please see http://www.euractiv.com/sections/development-policy/parliament-votes-binding-conflict-minerals-regulation-314741. If you have any comments or questions on this article or the rare earths generally, please do not hesitate to contact Avalon directly at[email protected].

ABOUT AVALON RARE METALS INC.

Avalon Rare Metals Inc. (TSX & NYSE MKT: AVL) is a mineral development company focused on rare metal deposits in Canada, with three advanced stage projects. Its 100%-owned Nechalacho Deposit, Thor Lake, NWT is exceptional in its large size and enrichment in the scarce ‘heavy’ rare earth elements, key to enabling advances in clean technology and other growing high-tech applications. Avalon is also advancing its Separation Rapids Lithium Minerals Project, Kenora, ON and its East Kemptville Tin-Indium Project, Yarmouth, NS. Social responsibility and environmental stewardship are corporate cornerstones.

130 Adelaide St. W, Suite 1901
Toronto, ON M5H 3P5
Tel: (416) 364-4938
Email: [email protected]

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