Toronto, Ontario–(November 3, 2015) – Toronto, Ontario — Avalon Rare Metals Inc. (TSX: AVL) (NYSE MKT: AVL) (“Avalon” or the “Company”) is pleased to provide the following update on the $1.3 million 2015 work program on the East Kemptville Tin-Indium project, Yarmouth Co., Nova Scotia. This program includes diamond drilling on the three known mineralized zones, metallurgical process testwork and preliminary environmental assessment studies. The environmental and metallurgical work will be incorporated (along with the October, 2014 resource estimate) in a Preliminary Economic Assessment (“PEA”) scheduled for completion before November 30, 2015.
The current drilling program is designed to collect additional metallurgical sample material from the previously-mined Main and Baby Zones and test other known mineralized zones including the Duck Pond deposit to delineate additional economic resources for a feasibility study. An updated resource estimate will be prepared in early 2016 once all the results from the 2015 drilling have been received and compiled.
The site access agreement with the surface rights holder has been further extended until November 30, 2015 to provide sufficient time to complete 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 be able to conclude an agreement by year-end 2015.
2015 Drill Program
The 2015 drill program commenced on July 13th and to date seventeen drill holes have been completed for a total of 3,301 metres. This includes 8 holes on the Baby Zone, 4 holes on the Main Zone and 5 holes on the Duck Pond Zone. Costs are coming in under budget which will allow for at least 4 more drill holes in the program, focused on the northeast extension of the Main Zone, before the program is concluded later this month. Proposed drilling on the South Grid Zone has been deferred until 2016.
The assays for the eight holes drilled on the Baby Zone have been received and compiled. Results are in line with expectations and confirm continuity of the mineralized zone to depth. Highlights include intersections of 0.46% tin (Sn), 25.2 ppm indium (In) and 0.63% zinc (Zn) over 82.3 metres (EKAV-15-10), 0.23% Sn, 15.6 ppm In and 0.33% Zn over 36.25 metres (EKAV-15-09) and 0.25% Sn, 29.4 ppm In and 0.64% Zn over 18.67 metres (EKAV-15-11).1
A summary of significant intercepts is presented in Table 1 and the detailed drill hole locations are provided in Table 2. The drilling on the Baby Zone has successfully recovered about one tonne of sample for metallurgical testwork purposes and increased the confidence level of the Baby Zone resources.
In addition, certain sections of 2014 drill core that were not sampled last year due to apparent low levels of visible mineralization were sampled and submitted for assay this summer. These produced some surprising results indicating significant widths of mineralization adjacent to existing known mineralized intervals (Table 3). The intercepts given in Table 3 are examples located outside the boundaries of the existing October, 2014 resource estimate that, in effect, have potential to increase the total near surface resource estimate in the Baby Zone.
Metallurgical Testwork Program
The comprehensive bench scale metallurgical test work currently being undertaken in the UK is nearing completion. This extensive test program is evaluating the metallurgical flowsheet from grinding, through copper and zinc sulphide flotation, to tin recovery by both gravity and flotation methods. The recovery of indium to the zinc concentrate is also being measured as microprobe data of the zinc ore mineral sphalerite shows very high levels of contained indium (up to 0.25%) . Some metallurgical test results are still outstanding but preliminary analysis of the data suggests that the recoveries and grades for all three concentrates are in line with expectations.
PEA Report Preparation
Avalon has retained the services of Micon International Limited Toronto, Ontario to prepare a NI 43-101 compliant PEA for the East Kemptville project. The PEA will be based upon the existing NI 43-101 resource estimate (disclosed in the Company’s news release dated October 31, 2014), together with the final results from the metallurgical testwork program and environmental input provided by Stantec Consulting Limited Halifax, Nova Scotia (“Stantec”). Work on the PEA is progressing well and is on schedule for completion by the end of November 2015.
Environmental Assessment Work
Stantec’s Halifax office has considerable experience with the East Kemptville site and is conducting the key studies required as part of the Environmental and Social Impact Assessment for the permitting process and a planned feasibility study. Through the innovative use of low permeability tailings disposal technology, processing of the low grade ore stockpiles and engineered oxygen barriers (water covers), a cost effective tailing and waste rock management strategy has been developed. This strategy has the potential to greatly reduce the risk from existing acid-generating waste rock and tailings at the site and could result in a site closure plan that will eliminate the need for expensive perpetual water treatment.
Update on Tin Markets
Avalon recently joined the UK-based International Tin Research Institute (“ITRI”), which is dedicated to supporting the global tin industry and expanding tin use while providing its members with frequent updates on new developments in global tin markets. For further information, please visit the ITRI website at https://www.itri.co.uk/. Recent ITRI market commentary highlights the need for new tin mines to be developed to replace steadily declining production capacity from existing mines in Peru, Indonesia and China. This is creating opportunities for emerging new tin producers.
Unlike the major base metals, little new tin production capacity has come on-stream over the past 10 years during the commodities super-cycle. While LME tin prices have come down to the US$15,000/tonne level in 2015 from over $20,000/tonne in 2014, LME tin inventories remain low and many industry analysts believe that tin prices will rise in the absence of significant new supply. Also, some tin supplies originating in Central Africa are now designated as conflict minerals which preclude their use by consumers in the US and EU under legislation restricting the use of minerals produced to finance armed conflict. The overall conclusion is that new supplies from non-conflict sources, such as Nova Scotia, will be needed over the next five years just to meet continuing demand from the electronics sector.
Avalon will be presenting during the upcoming ITRI London Tin Seminar on November 26 at 11:30am GMT at the Brewery, Chiswell Street, London, England. For further information on this event or to register, please contact [email protected].
The technical information included in this news release has been reviewed and approved by the Company’s Vice President Exploration, Dr. Bill Mercer, P. Geo, 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
1 All widths are drilled widths. True Widths are not known.
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 environmental and metallurgical work will be incorporated in a PEA scheduled for completion before November 30, 2015, that an updated resource estimate will be prepared in early 2016, that Avalon and the surface rights holder expect to be able to conclude an agreement by year-end 2015, that the Company’s strategy has the potential to greatly reduce the risk from existing acid-generating waste rock and tailings at the site and may result in a site closure plan that will eliminate the need for expensive perpetual water treatment, that many industry analysts believe that tin prices will rise in the absence of significant new supply and that new supplies from non-conflict sources such as Nova Scotia will be needed over the next five years just to meet continuing demand from the electronics sector . 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.
TABLE 1: Mineralized intercepts, 2015 drilling, Baby Zone, East Kemptville
| Drill Hole | From (metres) |
To (metres) |
Width (metres) |
Tin % | Zinc % | Copper % | Indium ppm |
| EKAV-15-08 | 10.00 | 23.50 | 13.50 | 0.10 | 0.06 | 0.05 | 3.5 |
| EKAV-15-08 | 77.50 | 86.50 | 9.00 | 0.16 | 0.09 | 0.06 | 5.7 |
| EKAV-15-09 | 56.50 | 65.50 | 9.00 | 0.11 | 0.05 | 0.09 | 3.1 |
| EKAV-15-09 | 74.25 | 110.50 | 36.25 | 0.26 | 0.33 | 0.14 | 15.6 |
| EKAV-15-09 | 137.50 | 149.50 | 12.00 | 0.05 | 0.33 | 0.05 | 14.1 |
| including | 137.50 | 140.50 | 3.00 | 0.14 | 0.57 | 0.08 | 28.2 |
| EKAV-15-10 | 28.00 | 37.00 | 9.00 | 0.13 | 0.11 | 0.06 | 6.0 |
| EKAV-15-10 | 46.00 | 61.00 | 15.00 | 0.10 | 0.08 | 0.03 | 2.7 |
| EKAV-15-10 | 76.00 | 158.30 | 82.30 | 0.46 | 0.63 | 0.07 | 25.2 |
| including | 76.00 | 140.30 | 64.30 | 0.54 | 0.71 | 0.08 | 28.9 |
| EKAV-15-11 | 38.00 | 57.50 | 19.50 | 0.20 | 0.20 | 0.06 | 6.8 |
| EKAV-15-11 | 68.40 | 71.25 | 2.85 | 0.56 | 0.69 | 0.05 | 24.8 |
| EKAV-15-11 | 85.33 | 122.00 | 36.67 | 0.16 | 0.69 | 0.06 | 26.5 |
| including | 85.33 | 104.00 | 18.67 | 0.25 | 0.64 | 0.08 | 29.4 |
| EKAV-15-12 | 48.50 | 71.00 | 22.50 | 0.11 | 0.16 | 0.03 | 3.8 |
| EKAV-15-12 | 84.50 | 114.80 | 30.30 | 0.04 | 0.21 | 0.03 | 7.8 |
| EKAV-15-12 | 103.50 | 159.70 | 56.20 | 0.06 | 0.30 | 0.03 | 13.1 |
| including | 125.50 | 133.10 | 7.60 | 0.13 | 0.42 | 0.03 | 20.3 |
| EKAV-15-13 | 27.50 | 50.00 | 22.50 | 0.11 | 0.23 | 0.06 | 5.9 |
| EKAV-15-13 | 86.00 | 156.50 | 70.50 | 0.09 | 0.38 | 0.03 | 13.5 |
| including | 86.00 | 99.50 | 13.50 | 0.14 | 0.57 | 0.05 | 16.3 |
| EKAV-15-14 | No significant values | ||||||
| EKAV-15-15 | 71.30 | 86.00 | 14.70 | 0.17 | 0.51 | 0.03 | 18.3 |
| EKAV-15-15* | 174.00 | 194.50 | 20.50 | 0.09 | 0.19 | 0.06 | 16.1 |
| EKAV-15-15* | 238.60 | 248.00 | 9.40 | 0.48 | 0.35 | 0.04 | 19.5 |
*Indicates preliminary results subject to further QA/QC verification
| Footnotes: | |
| 1. | Drilling utilized an HQ drill rig. |
| 2. | Widths are drilled widths and not considered true widths. True widths are not known. |
| 3. | All drill core from the program was normally sawn in half top provide 1.5 metre samples at the core logging facility in Yarmouth, Nova Scotia and submitted to Activation Laboratories Ltd. (Actlabs), Ancaster, Ontario for sample preparation and primary analysis. |
| 4. | Core considered unmineralized or low grade was sampled at 1.5 metre intervals, but composited to 4.5 metres for analytical purposes. |
| 5. | In-house Avalon standards and blanks were utilized for QA/QC purposes, along with core duplicates. |
| 6. | Results are monitored for key elements, and in cases of QA/QC issues, re-analysis is requested. |
| 7. | Zn, Cu and In were analyzed by sodium peroxide fusion followed by ICP-MS (method Ultratrace 7) whilst Sn, W and Cu were analysed by fusion followed by XRF (method Whole Rock 4C plus Sn and W). Any overlimits Zn is rerun by peroxide fusion –ICP (method 8-peroxide). |
| 8. | A cutoff grade of 0.08% Sn was used guidance for estimating intercepts. |
TABLE 2: Drill Hole locations
| Collar Location | ||||||
| Zone | DDH | Easting (NAD83) | Northing (NAD83) | Dip | Azimuth | Hole depth (metres) |
| Baby Zone | EKAV-15-08 | 284851 | 4886317 | -70 | 300 | 174 |
| Baby Zone | EKAV-15-09 | 284851 | 4886317 | -60 | 300 | 165 |
| Baby Zone | EKAV-15-10 | 284803 | 4886255 | -70 | 300 | 192 |
| Baby Zone | EKAV-15-11 | 284803 | 4886255 | -55 | 300 | 122 |
| Baby Zone | EKAV-15-12 | 284769 | 4886221 | -60 | 300 | 185 |
| Baby Zone | EKAV-15-13 | 284769 | 4886221 | -45 | 300 | 161 |
| Baby Zone | EKAV-15-14 | 284704 | 4886190 | -45 | 300 | 155 |
| Baby Zone | EKAV-15-15 | 284665 | 4886366 | -45 | 120 | 251 |
| Main Zone | EKAV-15-16 | 284987 | 4886583 | -50 | 122 | 161 |
| Main Zone | EKAV-15-17 | 284987 | 4886583 | -40 | 122 | 144 |
| Main Zone | EKAV-15-18 | 285328 | 4887080 | -40 | 122 | 182 |
| Main Zone | EKAV-15-19 | 282295 | 4887054 | -45 | 143 | 257 |
| Duck Pond Zone | DPAV-15-20 | 282734 | 4887146 | -90 | 0 | 260 |
| Duck Pond Zone | DPAV-15-21 | 282640 | 4887194 | -45 | 120 | 275 |
| Duck Pond Zone | DPAV-15-22 | 282849 | 4887054 | -45 | 300 | 224 |
| Duck Pond Zone | DPAV-15-23 | 282811 | 4887152 | -45 | 120 | 167 |
| Duck Pond Zone | DPAV-15-24 | 282811 | 4887152 | -70 | 120 | 227 |
TABLE 3: New significant mineralized intercepts from 2014 drill core sampled and assayed in 2015
| From (m) | To (m) | Width (m) | Sn % | Zn % | Cu % | |
| EKAV-14-03 | 16.50 | 75.00 | 58.50 | 0.17 | 0.15 | 0.05 |
| EKAV-14-03 previously released (for comparison) |
49.00 | 65.75 | 16.75 | 0.39 | 0.29 | 0.08 |
| EKAV-14-05 | 15.50 | 35.50 | 20.00 | 0.07 | 0.71 | 0.06 |
By Andy Home
Oct 28 (Reuters) – Industrial metals are caught in a bear vortex of slowing demand growth, first and foremost in China, and oversupply, as producers pay the price for the exuberance of the boom years.
If prices are to recover from their current bombed-out levels, everyone agrees more production will have to be taken off line, whether through voluntary restraint or forcible cash-burn attrition.
Glencore’s well-flagged cuts to its copper, zinc and lead production portfolio have at least halted the price declines in those markets, although they have not reversed long-running downtrends.
Significant cuts in either aluminium or nickel supply remain conspicuous by their absence, which is one reason both metals are particularly out of favour even in the context of the general doom and gloom pervading the complex.
And then there is tin.
Often the contrarian of the metals traded on the London Metal Exchange (LME), tin is once again defying the broader bear narrative.
If there’s a problem with supply in the tin market, it is that there’s not enough of it right now.
Visible stocks are low by just about any historic yardstick. Those registered with the LME total just 5,010 tonnes, of which 540 tonnes are earmarked for physical load-out.
Moreover, exchange stocks have remained low despite a persistent premium for cash metal, which might reasonably have been expected to incentivise the delivery of more metal into LME sheds.
The LME’s benchmark cash-to-three-months spread CMSN0-3 traded out to $510 backwardation at one stage in August, the tightest the period’s been since 2009. It’s still tight, valued at $67 backwardation as of Tuesday’s close.
So how come tin is not overstocked and oversupplied like just about every other industrial metal? And is it a temporary problem or something more structural?
******************************************************
Graphic on Indonesian tin exports:
Graphic on LME tin stocks and spreads:
******************************************************
A TALE OF TWO EXPORTERS
As ever with this small market, supply and availability is largely a function of two key countries, one highly visible, one bathed in statistical shadow.
Indonesia, the world’s largest exporter of the soldering metal, is going through one of its periodic shipment spasms.
And although some of the country’s smaller producers will undoubtedly be struggling to remain in operation at current price levels, this, as ever with Indonesia, is more about government policy.
The authorities have been waging a long-running campaign to try and control the free-wheeling tin miners and smelters clustered on the islands of Bangka and Belitung.
Export rules have been steadily tightened to prevent smuggling and now the authorities are targeting illegal mines with a requirement that exporters hold “clean and clear” certification, proving the metal has come from government-registered operations.
Delays in processing such applications meant no tin exports at all in August and although shipments resumed in September, there is considerable doubt as to whether many smaller operators can meet the new government requirements.
Cumulative exports fell by 10 percent to 52,079 tonnes in the first nine months of this year, which is shaping up to be the third consecutive year of falling shipments.
China is the world’s largest producer and user of tin. It is a net importer of refined metal.
Well, it is, if you believe the official customs figures, which show imports running at 7,400 tonnes and exports at just 65 tonnes in the first nine months of 2015.
The problem is that official appearances can be misleading. Tin industry body ITRI, for example, calculates that receipts of refined tin from China by importing countries amounted to over 2,200 tonnes “based on incomplete data up to August”.
Such shadow exports from China have been sleuthed down by ITRI in the past and have often confounded analysts’ price-positive supply-demand expectations.
Right now, though, they have stopped, ITRI citing a customs department investigation into local operators suspected of bypassing China’s 10 percent export tax.
“Some of the owners have been arrested,” according to ITRI, and “local sources reported that no-one would like to take the risk to export tin” in whatever form.
This clampdown on unofficial Chinese exports has coincided with the more visible interruption to shipments from Indonesia, draining the international market of units.
PEAK TIN?
Such are the short-term constraints on tin availability.
But there is an underlying story of structural supply challenges. Simply put, the supercycle largely passed tiny tin by in terms of investment in new mines.
Production from older mines in countries such as Peru and Brazil, meanwhile, is steadily falling, as it has been for some time.
Indeed, the only reason tin has avoided a more serious supply crunch is the emergence of a totally new producing country in the form of Myanmar.
It burst onto the radar in 2013 as a major supplier of raw materials to Chinese smelters. China’s imports from Myanmar grew from virtually zero in 2012 to 89,000 tonnes (bulk weight, not metal contained) in 2013 and further to 173,000 tonnes in 2014.
This year’s imports are up again at 178,000 tonnes in the first nine months alone.
But, according to ITRI, local operators are having to work ever harder to maintain such output levels. Actual production may have been declining this year but “the considerable expansion of processing capacity” has allowed the “treatment of previously stockpiled or discarded low-grade ore.”
ITRI forecasts Myanmar to produce around 38,000 tonnes of contained tin this year and “a further small increase may be possible next year”.
Note the conditionality in that forecast.
The sustainability of production in Myanmar is a known unknown in the tin market. It may be close to a peak. It may, indeed, have already peaked.
If it has, tin’s structural supply problems will come back to bite the market, even allowing for the same Chinese demand headwinds that are hitting every industrial commodity.
In a metallic landscape where supply is the differentiator, tin’s prospects don’t look nearly as dire as markets such as nickel, where producers have seriously mistimed the new wave of production capacity.
Within the current broader narrative of too much supply and too much inventory, tin has neither, hence that persistent backwardation on the LME.
Indeed, the supply strain may get worse.
After all, if new mines weren’t incentivised at prices above $20,000 per tonne, they are certainly not going to be so at current prices trading around $15,000 per tonne.
Source: http://uk.reuters.com/article/2015/10/28/tin-market-ahome-idUKL8N12S3VZ20151028
Avalon VP Discusses Lithium Markets and Separation Rapids Project
Why Lithium?
About Our Guest
Hub On AGORACOM / Corporate Profile / Watch Interview
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:
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.
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.
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/
Avalon recently received a letter from NYSE MKT LLC dated July 30, 2015 which states that due to the Company’s recent low selling share price, it has been deemed to be not in compliance with the continued listing standards of the Exchange. The Company’s continued listing is contingent upon the Company effecting a share consolidation within a reasonable period of time or upon a sustained increase in its share price. The company goes “Beyond The Press Release†to discuss this matter further.
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 416-364-4938416-364-4938
416-364-4938
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 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.
Toronto, ON — Avalon Rare Metals Inc. (TSX and NYSE MKT: AVL) (the “Companyâ€) has received a letter from NYSE MKT LLC (“NYSE MKT” or the “Exchange”) dated July 30, 2015 which states that due to the Company’s recent low selling share price, it has been deemed to be not in compliance with the continued listing standards of the Exchange. Pursuant to Section 1003(f)(v) of the Exchange’s Company Guide, the Company’s continued listing is contingent upon the Company effecting a share consolidation within a reasonable period of time or upon a sustained increase in its share price. A potential share consolidation, if required, will need to be approved by the Company’s shareholders at the Company’s next annual general meeting currently planned for February, 2016.
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 continued listing of the Company’s securities. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as “potentialâ€, “scheduledâ€, “anticipatesâ€, “continuesâ€, “expects†or “does not expectâ€, “is expectedâ€, “scheduledâ€, “targetedâ€, “plannedâ€, or “believesâ€, or variations of such words and phrases or state that certain actions, events or results “mayâ€, “couldâ€, “wouldâ€, “might†or “will be†or “will not be†taken, reached or result, “will occur†or “be achievedâ€. 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, 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.
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.
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| 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 pricesâ€, 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