TORONTO, ONTARIO, Jul 06 (MARKET WIRE) --
Avalon Rare Metals Inc. (TSX: AVL) ("Avalon" or the "Company") is pleased
to announce final assay results from the 2009 winter drilling program on
the Lake Zone Rare Earth Elements ("REE") deposit, Thor Lake, NWT,
located 100 km southeast of Yellowknife. These results confirm some
exceptional grades and thicknesses in the southern part of the deposit
within the high-grade sub-zone called the Basal Zone. An updated resource
estimate incorporating all the latest results is in preparation and
drilling has now resumed at the site. This program will complete the
required definition drilling in the southern part of the Lake Zone
deposit to upgrade more of the resource to the Indicated level of
confidence as required for the pre-feasibility study.
Some highlights from the latest assays include:
- Drill hole L09-152 with the highest grade over the whole Basal Zone
intercept of 2.96% TREO (total rare earths oxides) with 27.2% HREO (heavy
rare earth oxides) over 11.6 metres, including 4.41% TREO with 28.7% HREO
over 2.3 metres
- Drill hole L09-160 with two HREO enriched intervals including 2.12%
TREO with 37.6% HREO over 5.3 metres and 2.24% TREO with 28.4% HREO over
16 metres
- Drill hole L09-161 with the widest Basal Zone intercept of this release
at 2.17% TREO with 18.5% HREO over 28.5 metres
The winter drilling program concluded on April 22, 2009 at a total of
5,476.8 metres in 26 holes (Table 1). The program concentrated on
promising target areas in the deposit covered by lakes that could not be
drilled in summer. Earlier results (News Release 09-05, April 22, 2009)
highlighted new drill results on Long Lake in the previously unexplored
southern extension of the deposit. Drill holes L09-153 to 155 and 157 to
162 were all drilled on Long Lake at approximately 50 metres spacing as
recommended by Wardrop Engineering to define Indicated Resources. All of
these drill holes with the exception of 162 intersected significant
widths of Basal Zone higher than the cutoff grade of 1.6% TREO.
Two holes, L09-151 and L09-152, were drilled near North Tardiff Lake.
Both holes intersected Basal Zone with 152 highlighted above having the
highest grade over the whole Basal Zone of all the holes announced in
this release. Overall, the winter drilling program has extended the
deposit about 150 metres further south than previously known, to the
south side of Long Lake where it still remains open beneath barren cover
rocks exposed on the shore of Long Lake. One step-out hole, L09-156, was
drilled about 450 metres further to the south, it but did not reach the
zone which appears to be deeper in this area than projected and had to be
abandoned when it reached the maximum depth range for the drill as
presently equipped.
Drill hole L09-152 contained exceptional heavy rare earth enrichment,
with one 2.3 metres sub-interval from 141.4 metres to 143.7 metres
averaging 4.41% TREO (note: previously reported as 3.96% TREO and since
corrected) and containing 28.7% HREO. This included 0.74% (7.4 kg/t)
Nd2O3 (neodymium oxide), 0.07% (7.0 kg/t) Y2O3 (yttrium oxide), 1349 ppm
(parts per million) (1.35 kg/t) Dy2O3 (dysprosium oxide), 215 ppm (0.20
kg/t) Eu2O3 (europium oxide) and 252 ppm (0.25 kg/t) Tb2O3 (terbium
oxide). In addition, this mineralized interval contained 6.755% (67.55
kg/t) ZrO2, 0.87% (8.7 kg/t) Nb2O5 and 0.089% (0.89 kg/t) Ta2O5. The
complete breakdown of individual REE for the sample intervals reported is
provided in the Thor Lake section of the corporate website.
Recent bid prices for these REE oxides as reported for June 25, 2009 by
Metal-Pages.com on an FOB China basis (USD$) are: $340/kg Tb, $450/kg Eu,
$103/kg Dy, $15/kg Y and $14/kg Nd compared to just US$4.55/kg for the
more abundant Light REE cerium. These elements are vital to many high
demand applications in electronics (colour phosphors) and hybrid cars
(high strength magnets). Prices for several of the more scarce heavy rare
earths such as dysprosium and europium as well as yttrium, have remained
relatively stable over the past year compared to many other commodities.
Summer Drilling Program and Metallurgical test work
The summer drilling program began on July 1, 2009 to complete the
definition drilling over the areas in the southern part of the Lake Zone
deposit that were not tested in the winter program and are accessible
during the summer months. Approximately 4,000 metres in 20 holes are
planned, with Foraco Drilling Ltd. continuing as the contractor. Two
updates to the resource estimate are also planned, one to be announced in
the next few weeks incorporating the results from the winter drilling
program followed by another in the fall, including all the results from
the summer program.
In addition, the core diameter is being increased to HQ in order to
produce more samples from the current target area for future
metallurgical testing. Avalon has investigated using drill core samples
for mini-pilot plant testing following the present phase of bench scale
metallurgical tests for the pre-feasibility study. The conclusion is that
mini-pilot plant testwork should provide sufficient confidence in the
process flowsheet for a future (final) bankable feasibility study. The
current metallurgical test program at SGS Minerals Services, Lakefield is
continuing and Avalon anticipates issuing a progress report within the
next few weeks.
Sustainability Initiatives
As part of the environmental baseline work, Jacques Whitford Stantec AXYS
has completed further fieldwork at the Thor Lake site during May-June,
including bird and mammal surveys, hydrology and fisheries work.
Additional fieldwork will take place in July.
Community engagement initiatives are also continuing and following a
series of community consultation meetings held this winter, Avalon has
begun work on a Memorandum of Understanding which would set out the
principles for a participation arrangement with local aboriginal groups.
Discussions with community leadership is planned to begin in July.
Avalon representatives will be participating in the Dene National
Assembly to be held in LutselK'e, NWT this week, where President, Don
Bubar will be speaking and Vice-President, Exploration, Dr. William
Mercer, will be participating in a youth career program to highlight
career opportunities in the mineral exploration and development industry.
Finally, Avalon and Dr. Mercer are participating in the National
Aboriginal Science Camp that is being held in the NWT for the first time
ever during the week of July 12.
Sampling Protocol
All drill cores were split on site, sampled on 2 metre intervals and
shipped to ALS Chemex facility in Yellowknife for sample preparation.
Analytical standards were prepared from crushed rejects of historical
Lake Zone samples, then analysed at five separate laboratories to
determine reproducible values. These standards were then routinely
inserted into the sample batches to monitor core analyses. ALS Chemex
ships crushed splits of all the samples to its laboratory in Vancouver,
BC. Selected duplicates are also analyzed at an alternative independent
laboratory. The results reported to date were produced by ALS Chemex and
achieved acceptable standard values for the main REE elements of economic
interest (Nd, Tb and Dy).
All samples are being analysed by lithium metaborate/tetraborate fusion
and dilute nitric acid digestion, followed by whole rock and 45 element
multi-element ICP analysis, being ALS sample method ME-MS81. Commencing
with hole L09-144, all samples contained within intercepts above the 1.6%
cutoff criteria and any additional samples exceeding analytical limits
are rerun using similar ALS method ME-MS81H for higher concentration
levels. ME-MS81H is a similar method but with greater dilution in the
analytical procedure. Details of the factors used to calculate rare earth
oxides are posted on www.avalonraremetals.com along with complete
analytical data. Drilling operations were performed by Foraco Drilling
Ltd. of Yellowknife, NWT under the supervision of J.C. Pedersen, P.Geo.
Bruce Hudgins, P.Geo., maintains the geological database and monitors
QAQC on the laboratory analyses. Avalon's Vice-President, Exploration,
William Mercer, Ph.D., P.Geo. provided overall direction on the project.
The qualified persons for the purposes of this news release are William
Mercer and D.S. Bubar, P. Geo., President.
About Avalon Rare Metals Inc. (TSX: AVL)
Avalon Rare Metals Inc. is a mineral exploration and development company
focused on rare metals deposits in Canada. Its flagship project, the
100%-owned Lake Zone Deposit, Thor Lake, NWT, is emerging as one of the
largest undeveloped rare earth elements resources in the world. Its
exceptional enrichment in the more valuable 'heavy' rare earth elements,
which are key to enabling advances in green energy technology and other
growing high-tech applications, is one of the few potential sources of
these critical elements outside of China, currently the source of 95% of
world supply. Avalon is well funded, has no debt and its work programs
are unaffected by market volatility. Social responsibility and
environmental stewardship are corporate cornerstones.
Shares Outstanding: 69,854,448. Cash resources: approximately $6.5
million.
To find out more about Avalon Rare Metals Inc., please visit our website
at www.avalonraremetals.com. For questions and feedback, please e-mail
the Company at office@avalonraremetals.com or phone Don Bubar, P.Geo.,
President, at 416-364-4938.
For general discussion and commentary on the rare metals, please visit
www.raremetalblog.com.
This news release contains forward-looking information and is subject to
a variety of risks and uncertainties and other factors that could cause
actual events or results to differ materially from those projected in the
forward-looking information. Forward-looking information is based on the
opinions and estimates of management at the date the information is
given, and is subject to a variety of risks and uncertainties and other
factors that could cause actual events or results to differ materially
from those projected in the forward-looking information. The
forward-looking information contained herein is given as of the date
hereof and the Company assumes no responsibility to update or revise such
information to reflect new events or circumstances, except as required by
law.
Table 1: Drill Hole Locations (all holes drill to date)
----------------------------------------------------------------------------
Drill Hole Northing Easting Dip Azimuth
Number (NAD83) (NAD83) EOH (m) (degrees) (degrees)
----------------------------------------------------------------------------
L09-137 6886377 417030 199.78 -75 90
------- ------- ------
----------------------------------------------------------------------------
L09-138 6886376 417025 184.71 -70 270
----------------------------------------------------------------------------
L09-139 6886009 416952 199.95 -90 n/a
----------------------------------------------------------------------------
L09-140 6886015 416950 166.42 -75 0
------- ------- ------
----------------------------------------------------------------------------
L09-141 6886009 416956 199.95 -70 90
----------------------------------------------------------------------------
L09-142 6885869 416952 224.33 -90 n/a
----------------------------------------------------------------------------
L09-143 6885962 416801 197.21 -90 n/a
----------------------------------------------------------------------------
L09-144 6886424 417131 200.25 -90 n/a
----------------------------------------------------------------------------
L09-145 6886324 417125 203.30 -90 n/a
----------------------------------------------------------------------------
L09-146 6886374 417128 194.16 -90 n/a
----------------------------------------------------------------------------
L09-147 6886200 417343 212.14 -90 n/a
----------------------------------------------------------------------------
L09-148 6886147 417287 214.88 -90 n/a
----------------------------------------------------------------------------
L09-149 6886098 417286 215.19 -90 n/a
----------------------------------------------------------------------------
L09-150 6886147 417402 215.19 -90 n/a
----------------------------------------------------------------------------
L09-151 6886295 417423 215.19 -90 n/a
----------------------------------------------------------------------------
L09-152 6886269 417134 193.85 -90 n/a
----------------------------------------------------------------------------
L09-153 6885868 417051 215.19 -90 n/a
----------------------------------------------------------------------------
L09-154 6885819 416956 230.43 -90 n/a
----------------------------------------------------------------------------
L09-155 6885870 416851 230.43 -90 n/a
----------------------------------------------------------------------------
L09-156 6885429 416609 309.68 -90 n/a
----------------------------------------------------------------------------
L09-157 6885919 416854 206.04 -90 n/a
----------------------------------------------------------------------------
L09-158 6885869 416901 206.04 -90 n/a
----------------------------------------------------------------------------
L09-159 6885916 416804 203.00 -90 n/a
----------------------------------------------------------------------------
L09-160 6885872 416802 224.33 -90 n/a
----------------------------------------------------------------------------
L09-161 6885967 416704 199.95 -90 n/a
----------------------------------------------------------------------------
L09-162 6885999 416603 215.19 -90 n/a
----------------------------------------------------------------------------
Note: Northing and Easting coordinates are in NAD83 (Zone 12) in metres.
Drill hole locations of 137 and 140 by handheld GPS, and remainder are
coordinates from registered surveyor.
Table 2: Drill Hole Composites, L08-151 to L08-162
----------------------------------------------------------------------------
Drill Hole From To Width
Number Zone (m) (m) (m) TREO HREO HREO/TREO
----------------------------------------------------------------------------
L09-151 59.00 64.50 5.50 2.04 0.12 6.0%
----------------------------------------------------------------------------
L09-151 120.25 125.40 5.15 2.36 0.43 18.1%
----------------------------------------------------------------------------
L09-151 Basal Zone 159.00 165.00 6.00 2.13 0.57 26.9%
------- ---------- ------ ------ ---- ---- ---- -----
----------------------------------------------------------------------------
L09-152 27.00 32.00 5.00 2.07 0.12 5.6%
----------------------------------------------------------------------------
L09-152 43.00 54.00 11.00 2.07 0.18 8.6%
----------------------------------------------------------------------------
L09-152 Basal Zone 139.00 150.60 11.60 2.96 0.81 27.2%
------- ---------- ------ ------ ----- ---- ---- -----
----------------------------------------------------------------------------
including 141.40 143.70 2.30 4.41 1.27 28.8%
--------- ------ ------ ---- ---- ---- -----
----------------------------------------------------------------------------
L09-153 100.00 105.60 5.60 1.73 0.33 18.9%
----------------------------------------------------------------------------
L09-153 128.00 159.70 31.70 1.96 0.34 17.3%
----------------------------------------------------------------------------
L09-153 including 128.00 134.00 6.00 2.56 0.21 8.0%
----------------------------------------------------------------------------
L09-153 and Basal
Zone 141.75 159.70 17.95 2.06 0.45 22.0%
------- --------- ------ ------ ----- ---- ---- -----
----------------------------------------------------------------------------
L09-154 Basal Zone 152.00 172.00 20.00 1.88 0.39 20.5%
------- ---------- ------ ------ ----- ---- ---- -----
----------------------------------------------------------------------------
L09-155 151.50 159.00 7.50 1.64 0.12 7.5%
----------------------------------------------------------------------------
L09-155 Basal Zone 173.00 191.30 18.30 2.57 0.76 29.4%
------- ---------- ------ ------ ----- ---- ---- -----
----------------------------------------------------------------------------
including 183.00 189.00 6.00 3.35 1.00 29.8%
--------- ------ ------ ---- ---- ---- -----
----------------------------------------------------------------------------
L09-157 93.65 108.00 14.35 2.27 0.31 13.7%
----------------------------------------------------------------------------
L09-157 Basal Zone 146.00 170.00 24.00 2.16 0.62 28.9%
------- ----------- ------ ------ ----- ---- ---- -----
----------------------------------------------------------------------------
L09-158 133.55 148.00 14.45 1.76 0.31 17.8%
----------------------------------------------------------------------------
L09-158 152.00 160.00 8.00 1.58 0.38 24.2%
----------------------------------------------------------------------------
L09-158 Basal Zone 174.00 186.00 12.00 1.83 0.51 28.0%
------- ---------- ------ ------ ----- ---- ---- -----
----------------------------------------------------------------------------
L09-159 Basal Zone 154.00 176.00 22.00 1.77 0.53 30.3%
------- ---------- ------ ------ ----- ---- ---- -----
----------------------------------------------------------------------------
L09-160 Basal Zone 143.95 149.25 5.30 2.12 0.80 37.6%
------- ---------- ------ ------ ----- ---- ---- -----
----------------------------------------------------------------------------
L09-160 Basal Zone 160.00 176.00 16.00 2.24 0.64 28.4%
------- ---------- ------ ------ ----- ---- ---- -----
----------------------------------------------------------------------------
L09-160 including 170.00 172.00 2.00 4.01 1.19 29.7%
------- --------- ------ ------ ----- ---- ---- -----
----------------------------------------------------------------------------
L09-161 Basal Zone 122.50 151.00 28.50 2.17 0.40 18.5%
------- ---------- ------ ------ ----- ---- ---- -----
----------------------------------------------------------------------------
Notes:
1. Widths represent drilled widths. Mineralization dips are close to
horizontal, so drilled widths are generally close to true widths.2. HREO
represents total heavy rare earth oxides, comprising yttrium plus
europium to lutetium. Conversion factors from elements to oxides as per
NI 43-101 report.
3. TREO represents total rare earth oxides, which comprises HREO plus
lanthanum to samarium as oxides. Conversion factors from elements to
oxides as per NI 43-101 report.
4. Cutoff grade for complete zone intercepts at 1.6% TREO or higher for
minimum width of 5 metres.
Please note: To view "Figure 1: Drill Hole Locations, Lake Zone,"
please visit the following link:
http://media3.marketwire.com/docs/avr706.pdf.
Contacts:
Avalon Rare Metals Inc.
Don Bubar, P.Geo.
President
416-364-4938
416-364-5162 (FAX)
office@avalonraremetals.com
www.avalonraremetals.com
Copyright 2009, Market Wire, All rights reserved.
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