Agoracom Blog

Mining company testing for possible lucrative future in East Kemptville

Posted by AGORACOM-JC at 3:13 PM on Thursday, June 18th, 2015


YARMOUTH – Avalon Rare Metals Inc. is proceeding with a $1.3 million work program on an East Kemptville tin-indium project. At least 12-13 positions will be created, of which Avalon expects to fill seven with locally based people.

The Rio Algom tin mine formerly operated in the area from the mid-1980s to 1992, employing 200 people in Yarmouth and Shelburne counties. It closed after tin prices dropped to levels reaching well below $3 (US) per pound. Tin is now selling for double that price.

Don Bubar, Avalon Rare Metals president and CEO, says a new mine could generate 200 jobs if findings warrant production.

The exploratory work will involve 2,000 metres of diamond drilling, metallurgical process test work and preliminary environmental studies.

The work will generate the data required to complete a preliminary economic assessment by November.

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 two zones on the property, 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.

It is anticipated that advances in process technology achieved since the 1980s will result in improved recoveries and also confirm the presence of significant indium in the zinc concentrate.

Feasibility study work is expected to begin in early 2016.

Bubar says he is delighted with the significant progress made on the East Kemptville 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,” he said.

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 licence has a three year term expiring Jan. 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.

Discussions continue towards reaching an agreement to transition the property to Avalon. The parties expect to conclude an agreement later in 2015.

In addition to East Kemtpville, Avalon Rare Metals has projects underway in Separation Rapids near Kenora, Ontario and Nechalacho, Thor Lake, NWT.


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