Avalon Advanced Materials Inc. (TSX:AVL) (OTCQX:AVLNF) (“Avalon” or
the “Company”) is pleased to provide a progress report on the
Separation Rapids Lithium Project (“Separation Rapids”) 2016 work
program, last updated in the Company’s news release dated May 25,
2016. Avalon remains focused on the lithium chemicals process
development work, along with environmental studies, a mineral
resource update and the engineering work needed to complete a
Preliminary Economic Assessment (“PEA”). The PEA, which will be
focused on the lithium ion battery materials market opportunity, is
expected to be completed before the end of August, 2016.
Expenditures on Separation Rapids for the nine month period ended
May 31, 2016, totaled $1.4 million out of a budget of $2.0 million
to August 31, 2016.
Lithium Hydrometallurgical Process
Development Work
Bench-scale hydrometallurgical testwork
initiated in May, 2016 to confirm the lithium hydroxide production
process conceived for the lithium mineral (petalite) concentrate
has essentially been completed. The Company is only awaiting
analytical results for the lithium hydroxide product that was
successfully produced from the low impurity lithium sulphate
solution produced earlier using an established electrolysis
process. A final report is expected in the next two weeks following
which the data will be incorporated into the PEA.
Further work to optimize the process flowsheet
is already underway, including evaluation of a fluidized bed
roasting process as an alternative to a rotary kiln which, if
successful, will create significant energy savings and improved
overall metallurgical performance. Avalon is also in discussions
with various laboratories and equipment vendors for conducting
further pilot plant operations for both the flotation and
hydrometallurgical processes in early 2017. These pilot programs
will generate further samples for prospective customers, as well as
provide necessary design information for future feasibility study
work.
Market studies continue to indicate that lithium
ion battery manufacturers are moving toward greater use of lithium
hydroxide as the preferred lithium chemical feedstock in the
battery chemistries being adopted for electric vehicles. Hardrock
lithium deposits such as Separation Rapids are well suited to
produce lithium hydroxide directly from the mineral concentrate
utilizing a relatively efficient flowsheet that greatly reduces
reagent consumption and the volume of waste material requiring
disposal. Petalite from Separation Rapids offers the further
advantage of being relatively free of impurities needing removal
from the final product.
Environmental Studies
Minimizing environmental impacts remains a key
objective of the project development model. Chemical analysis of
the tailings and waste rock material has largely been completed.
This information is being utilized for PEA design and costing of
the waste rock dumps, the tailings management facilities and water
treatment facility. Both the mill tailings and the mined waste rock
are free of acid generating minerals or other materials that may
create unwanted environmental impacts. This will reduce the cost of
future treatment of waste water discharged from the site.
The sustainable use of the ore body has been
improved by recovering by-product minerals such as feldspars,
reducing reagent consumption by over 50% and total tailings
produced by 17% in the most recent flowsheet. Total energy
intensity per tonne of product has decreased by almost 40% and
concentrator water use per tonne of product is down by 61% from
initial estimates due in part to recycling initiatives. In addition
to the environmental benefits, these process improvements will also
enhance overall project economics.
Mineral Resource Update
An internal mineral resource estimate has been
completed to bring the historic resource into compliance with
current resource reporting protocols under NI 43-101. This involved
re-defining confidence levels on the resources and re-sampling of
drill core to incorporate modern QA/QC protocols into the database.
No significant variances historic resource estimates were detected.
The updated resource estimate will now be reviewed by independent
Qualified Persons for inclusion in the PEA. Diamond drilling to
delineate additional lithium resources at depth and along strike is
planned for later in 2016 or early 2017.
Preliminary Economic
Assessment
Internal work on the PEA is progressing steadily
and it is now scheduled for completion sometime before the end of
August, 2016. Micon International Inc., Toronto, ON has been
retained as the independent consultant to serve as Qualified
Person(s) to review and finalize the PEA. Many of the sections have
been prepared and completion awaits the receipt of environmental
test results and the cost estimates for the hydrometallurgical
plant.
Other Project Activities
A desktop study into the feasibility of
generating hydro-power near the site using “run-of-river”
technology is now being implemented. In addition, Avalon is also
exploring the possibility of using locally-generated waste wood
products (currently transported long distances for disposal) as a
source of feed for a biomass power generator.
The Company will be proceeding with work this
summer to upgrade the access road to an all-weather condition. This
will facilitate all-season access for heavy equipment needed for
future bulk sampling and diamond drilling programs. Local sources
of aggregate required for this work have been identified.
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), and Donald S. Bubar, P.Geo. both Qualified Persons
under NI 43-101.
About Avalon Advanced Materials Inc. Avalon
Advanced Materials Inc. (formerly Avalon Rare Metals Inc.) is
a Canadian mineral development company specializing in niche market
metals and minerals with growing demand in new technology. The
Company has three advanced stage projects, all 100%-owned,
providing investors with exposure to lithium, tin and indium, as
well as rare earth elements, tantalum, niobium, and zirconium.
Avalon is currently focusing on 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 ir@AvalonAM.com, 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 that the PEA is expected to be completed
before the end of August, 2016, that the data [from the final
report] will be incorporated into the PEA,that further work, if
successful, will create significant energy savings and improved
overall metallurgical performance, that pilot programs will
generate further samples for prospective customers as well as
provide necessary design information for future feasibility study
work, that the nature of mill tailings and waste rock will reduce
the cost of future treatment of waste water discharged from the
site, that process improvements will also enhance overall project
economics and that the Company will be proceeding with work this
summer to upgrade the access road to an all-weather condition.
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 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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