Name of the Project
Separation Rapids lithium project.

Location
The project is located near Kenora, in Ontario, Canada.

Client
Avalon Advanced Materials.

Project Description
Avalon has updated the preliminary economic assessment (PEA) on the Separation Rapids project, which reflects a simplified business model that focuses on initial production of lithium mineral concentrates, with potential for future expansion into production of the battery materials lithium carbonate and lithium hydroxide.

The project has estimated measured and indicated resources of 8.41-million tonnes grading 1.41% lithium oxide, 0.007% tantalum pentoxide, 0.02% caesium superoxide, 0.37% rubidium oxide. Inferred mineral resources are estimated at 1.71-million tonnes grading 1.35% lithium oxide, 0.007% tantalum pentoxide, 0.02% caesium superoxide and 0.37% rubidium oxide.

The updated PEA uses a plant throughput  475 000 t/y, compared with the 950 000 t/y rate used in the 2016 PEA.

This will result in a 20-year operating life, based on the present known mineral resources, with production of 71 500 t/y of petalite concentrate and 11 800 t/y of lepidolite concentrate (both for 18.5 years) and, starting in Year 6, 100 000 t/y of feldspar (until Year 20).

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has a pretax net present value, at an 8% discount rate, of C$156-million and an internal rate of return of 27.1%.

Value
The upfront capital expenditure requirement is C$77.7-million with a further C$13.7-million planned for the feldspar circuit in Years 5 or 6, or once payback of the initial capital is complete.

Duration
Not stated.

Latest Developments
Avalon plans to proceed with a short pilot programme to finalise reagent recycling and water-treatment processes, after which a comprehensive feasibility study will be completed.

This work is expected to proceed later in 2018 once offtake agreements are concluded and additional project financing has been secured.

Some additional drilling will be undertaken to bring more of the inferred resources into the measured and indicated categories.

Further, Avalon continues to explore for new lithium pegmatites, particularly on the western extension of the property, where several new petalite occurrences have been identified, but never previously drilled, including the Glitter pegmatite.

A detailed mapping and sampling programme on the western extension area is in progress.

Key Contracts and Suppliers
Micon International (updated PEA).

On Budget and on Time?
Not stated.

Contact Details for Project Information
Avalon Advanced Materials, tel +1 416364 4938, fax +1 416364 5162 or email office@AvalonAM.com.