Avalon Rare Metals Inc is provide an update on the advancement of the pre feasibility study on the Nechalacho rare earth elements deposit at the Thor Lake Project, NWT and a progress report on the East Kemptville Tin Indium project in Nova Scotia.
The 2009 summer drilling program on the Nechalacho deposit which commenced on July 8th 2009 concluded on October 14th 2009 with 44 holes totaling 9,098 meters being drilled. All 44 holes were drilled in the southern part of the deposit, in the area overlapping with and immediately north of Long Lake where new indicated mineral resources, estimated at 4.4 million tonnes of 1.97% TREO1 and 25.4% HREO, were defined last winter.
These drill holes were designed to intersect the heavy rare earth rich Basal Zone on 50 meter centers, to confirm internal continuity and outline additional indicated resources. Analytical results from the summer drilling are slowly being received, and will be disclosed once a sufficient number are compiled to allow for a meaningful update of the inventory of indicated resources in the Basal Zone. An interim update should be available by early December and a complete update by early January, 2010.
Engineering work related to the pre feasibility study led by independent consultant Scott Wilson RPA is progressing well. Mine design parameters are being developed and will be finalized upon completion of the updated block model from the present drill program. A report on process criteria for the concentrator has been received which will provide the basis for plant design and cost estimation to be carried out by Melis Engineering. Hydrometallurgical test work on the mineral concentrate to optimize recoveries of REE and evaluate by product recovery of other rare metals contained in the concentrate is continuing. Hydrometallurgical process flow sheet development sufficient for a pre feasibility study is expected to be completed early in the New Year.
By drilling large diameter "HQ" core in the summer program, over 4 tonnes of Basal Zone ore was recovered for mini-pilot plant flotation testing planned for early 2010. This will provide data to determine the scope of the bulk sampling program required for the bankable feasibility study.
The drill rig has been kept on site ready for a winter drilling program scheduled to begin in mid to late January, 2010. This program will include further in fill drilling in areas inaccessible during the summer, to define additional indicated mineral resources in the highest grade parts of the Basal Zone, as well as condemnation and geotechnical drilling for engineering purposes. Some exploration drilling will also be carried to test for potential extensions of the Basal Zone to the south of Long Lake, where some of the best grade mineralization has been identified to date and to test for potential stacked mineralized zones at depth below the Basal Zone as predicted from recent geological modeling work.
