AVALON RARE METALS INC.
Separation Rapids Lithium -Tantalum Project, Kenora, Ontario
Background
The Separation Rapids property is host to one of the largest rare metal pegmatite deposits in the world. Known as the "Big Whopper" Project ("BWP"), it is only the fourth example in the world of a rare metal pegmatite with the size required to be of major economic importance and only the second to be enriched in the rare lithium mineral called petalite. The deposit is a potential source of lithium minerals for use in the glass and ceramics industry and specialty composite materials and is also a potential source of lithium chemicals for the growing rechargeable battery market. There is also potential for production of tantalum and rubidium minerals and a pure form of sodium feldspar.
The Separation Rapids property now consists of ten mineral claims totalling 90 claim units, covering approximately 3600 acres (155 ha) in the Paterson Lake Area, Kenora Mining Division, Ontario. These claims are owned 100% by Avalon. The original vendors retain a 2.0% Net Smelter Return ("NSR") royalty interest in the property, of which 1.0% can be bought back at any time for $1,000,000.
The Separation Rapids property is situated approximately 70 km by road north of Kenora, Ontario and is directly accessible via a newly-constructed private road. The main line of the Canadian National Railway passes through the village of Redditt, just 50 km by road south of the Separation Rapids property. The property lies within the traditional land use area of the Wabaseemoong Independent Nations of Whitedog, Ontario, an aboriginal community located approximately 35 km southwest of the property.
Water for mineral processing and other needs is available in abundance in the project area. The closest hydroelectric power generating station is located at Whitedog Falls. The transmission line comes within 30 km of the Separation Rapids property.
Topography, Climate and Vegetation
The Separation Rapids area is typical of much of northwestern Ontario and the Canadian Shield. The property is relatively flat with an average elevation of approximately 350 m above sea level ("asl"). Local topographic relief is limited to about 50 m. Outcrop exposure is in general less than 40% in the project area, but the area containing the BWP has been stripped of ground cover or trenched. The remainder of the property is covered by thin glacial till deposits and soils, local swamps and marshes and river bottom sediments.
The project area is covered by boreal forest with the dominant species being Jackpine and Black Spruce. Willow shrubs and grasses dominate the low marshy areas and the shoreline of the English River. Land adjacent to and within the sphere of influence of the Separation Rapids property is covered by an extensive area of blowdown caused by a wind storm approximately seventeen years ago. As a result of this, the surrounding forest is comprised of non-merchantable timber.
The climate is typical of Canada´s mid-latitudes. Winters are cold and long, stretching from late October to mid-May with extremes in winter of below -40°C, not including windchill. The spring-summer-fall periods are comparatively short and summer temperatures are typically warm.
Project History
Since acquiring the property in October 1996, Avalon has invested approximately $3.7 million on exploration and development work primarily focused on the lithium minerals potential. This involved geological mapping, trenching, ground magnetic surveys, mineralogical studies and diamond drilling totalling 10,152 m in 69 holes. This work culminated in 1999 with the completion of a comprehensive pre-feasibility study on the viability of producing petalite with by-product feldspars, by independent consultant Micon International Inc. The business model involved production of high purity concentrates of petalite for sale to glass-ceramics manufacturers such as Corning for use in its famous Corningware
