Avalon announces a substantive 20% increase in deposit size at its flagship Separation Rapids joint-venture lithium project.
Consistent with its dual-market strategy to supply both the global glass-ceramics market and North American EV battery manufacturing, Avalon Advanced Materials Inc. (TSX: AVL) and (OTCQB: AVLNF) (“Avalon” or the “Company”) announce an updated Mineral Resource Estimate (“MRE”) for the Avalon-Sibelco joint venture lithium deposit at Separation Rapids.
This updated MRE, compliant with NI 43-101, reports 10.08 million tonnes (Mt) averaging 1.35% of Measured and Indicated Lithium Oxide (“Li2O”), a 20% increase compared to previous results.
Separation Rapids MRE Highlights:
- Open Pit with a Measured and Indicated category of 9.39 Mt averaging 1.34% Li2O with the start of an underground resource of 0.68 Mt averaging 1.43% Li2O
- 10.08 Mt averaging 1.35% Li2O in Measured and Indicated, a 20% increase in size as compared to 2018 results
- 2.81 Mt averaging 1.38% Li2O in the Inferred category, a 57% increase in size as compared to 2018 results
- 136,000 tonnes of Li2O in Measured and Indicated, a 15% increase in size as compared to 2018 results
- 39,000 tonnes Li2O in the Inferred category, a 60% increase in size as compared to 2018 results
- Exploration Potential of an additional 3 Mt to 6 Mt of resource, grading between 1.0 and 1.4% Li2O which could relate to an increase in Li2O by 30,000 to 80,000 tonnes.
Located near Kenora, ON, the Separation Rapids deposit is owned by the recently announced joint venture between Avalon and SCR-Sibelco NV (“Sibelco”), an Antwerp-based company and leader in the global glass-ceramics and materials solutions business, with projects in over 30 countries.
Scott Monteith, Avalon CEO, said:
This updated estimate reveals the quality and quantity of the resource at Separation Rapids, and underscores the rationale for the strategic partnership between Avalon and Sibelco.
“It confirms that the deposit can deliver sufficient volumes of commercial-grade feedstock suitable for both the glass-ceramics and lithium battery markets.”
“This data gives Avalon and Sibelco the confidence to pursue the next phase of development at Separation Rapids, finalizing a definitive feasibility study and moving towards production.”
Mineral Resource Estimate (“MRE”)
The MRE for the Separation Rapids lithium deposit (Table 1 below) was conducted by SLR Consulting (Canada) Ltd. (“SLR”), an independent global mining advisory and consulting firm, using available drill hole data as of June 16, 2023. The MRE was prepared in accordance with National Instrument 43-101 Standards of Disclosure for Mineral Projects (“NI 43-101”).
This updated MRE replaces the Company’s previous MRE dated May 23, 2018. The updated MRE is based on 98 surface diamond drill holes for a total of 17,444m of drilling. This includes 13 new surface diamond drill holes totaling 4,128.3m1 drilled since the 2018 resource estimate.
The new resource estimate will be incorporated into a definitive feasibility study of Separation Rapids, to be completed by early to mid-2024, with the intention of commencing on-site operations in 2026.
Table 1: Mineral Resource Estimate – Separation Rapids, August 7, 2023
Figure 1: 2023 Resource Pit Shell, 2018 PEA Pit Design, and 2023 Block Grades
The 2023 resource pit shell extends horizontally and vertically for approximately 50m to 100m further than the 2018 pit design (Figures 1 and 2).
Figure 2: Cross Section Showing 2023 Resource Pit Shell, 2018 PEA Pit Design, and 2023
Block Grades
Figure 3: Longitudinal Section Showing 2023 Resource Pit Shell, Underground Resources,
and Exploration Potential
Based on the current analysis, SLR estimates that there exists an additional 3 Mt to 6 Mt of exploration potential at a grade of approximately 1.0% to 1.4% Li2O located below the open pit and underground resources (Figure 3).
Rikardo Welyhorsky, Chief Operating Officer at Avalon, said:
SLR’s analysis shows a substantive increase of the size of the deposit in overall tonnage and metal quantity.
“As well, the exploration potential in the range of 3 Mt to 6 Mt will allow Avalon to be laser focused on additional drilling to bring this into at least an indicated category.
“The high definition of the resource and the exploration potential supports transitioning to a Definitive Feasibility Study while further drilling out and increasing our resource.”
Mineral Resource Estimation Methodology
An updated MRE was created by SLR using Seequent’s Leapfrog Geo and Edge software. Wireframes were created using logged lithology. Initially the pegmatite outlines were modelled, followed by the creation of sub-domains between the Petalite and Lepidolite-Petalite mineralogical types. Internal waste horizons of amphibolite have been modelled where continuity exists.
Raw assays were capped and then composited to two metre lengths, broken at domain boundaries. Li2O, Cs2O, Rb2O and Ta2O5 were interpolated using Ordinary Kriging (OK) into a block model comprising of 5 x 3 x 5 (x, y, z) metre blocks, with sub-blocking down to one metre. Search ellipses were oriented using dynamic anisotropy. Nearest Neighbour (NN) estimates were run for validation purposes. Density was assigned using mean values for each lithological domain.
Blocks were classified following CIM (2014) definitions using a combination of drillhole spacing and grade continuity. Drill hole spacings of up to approximately 25 m for Measured, 50 m for Indicated, and 100 m for Inferred have been used to support the classification.
Mineral Resources have been constrained with an optimized pit shell, using a cut-off grade of 0.29 % Li2O, for the open pit material and resource panels, that were generated at a cut-off grade of 0.9 % Li2O, for the underground material.
Qualified Person
The MRE for Separation Rapids was prepared by Volker Moeller, Ph.D., P.Geo., SLR Senior Resource Geologist, under the supervision of Luke Evans, M.Sc., P.Eng., SLR Principal Resource Geologist. Mr. Evans is an “Independent Qualified Person” as defined by NI 43-101. The Qualified Person is not aware of any environmental, permitting, legal, title, taxation, socio-economic, marketing, political, or other relevant factors that could materially affect the MRE.
About Avalon Advanced Materials Inc.
Avalon Advanced Materials Inc. is a Canadian mineral development company focused on vertically integrating the Ontario lithium supply chain. The Company, through its joint venture with Sibelco NV, is currently developing its Separation Rapids lithium deposit near Kenora, ON, while continuing to advance other mineral projects in its portfolio, including the joint venture owned Lilypad Spodumene-Cesium-Tantalum Project located near Fort Hope, ON.
In addition to these upstream activities, Avalon is executing on its key strategic objective of developing Ontario’s first midstream lithium hydroxide processing facility in Thunder Bay, ON, a vital link bridging the lithium production in the north with downstream EV battery manufacturing markets in the south. Social responsibility and environmental stewardship are corporate cornerstones. Avalon is listed on the TSX.
Avalon announces a substantive 20% increase in deposit size at its flagship Separation Rapids joint-venture lithium project, TORONTO, August 10, 2023
