DESCRIPTION: Avalon Rare Metals Inc. is a mineral exploration and development company focused on rare metals deposits in Canada. Its flagship project, the 100%-owned Nechalacho 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 progressing steadily. Social responsibility and environmental stewardship are corporate cornerstones.
Avalon featured in Mining Weekly regarding offtake for rare-earths mine (8/31/10)
Listen to CEO Donald Bubar featured in BBC rare earth documentary (5/19/10)
The information provided below is based on the most recent information we have received from analysts, newsletters and other contributors to Streetwise Reports' The Gold Report or The Energy Report. We encourage you to visit the company's web site and call the company for more specifics on this company before you decide to invest.
"Avalon is a company with which I have a long history of coverage, both privately and publicly. It is rapidly progressing on its Thor Lake rare earth element project where I visited twice. . .Avalon announced a new resource estimate on its Nechalacho deposit, comprehensive bench-scale metallurgical results, a PFS and final winter drill results. The PFS was a very positive step in its progression toward a development decision and was the first economic analysis by any REE company. A new resource and reserve estimate incorporating winter drilling is pending and pilot plant metallurgy will commence when bulk sample material is produced from this summer's drill program. I publicly covered Avalon in September 2008 at $1.00; it, subsequently, went as low as $0.51 with tax-loss selling in mid-December 2008, reached an all-time high of $4.24 about 10 months ago and closed July 26th at $2.70. I am bullish on Avalon's long-term prospects."
Phillip Arnheim, Asian Metals (07/20/10)
"On July 9th. . .the largest movers in that one day following [China's export quota] release were Avalon Rare Metals, which gained 17%. . .Avalon's Nechalacho deposit in NWT Canada has a roughly 20/80 ratio of heavy to light rare earths but is likely to be the first mine to actually produce heavies in North America. The company is planning on beginning production in 2014. Instead of directly competing with Molycorp, Avalon intends to focus on more critical heavy rare earths, including yttrium, europium, dysprosium, terbium and neodymium—metals that neither Molycorp nor Lynas have on their concessions. Avalon and other heavy rare earth mining prospects should see long-term gains as a result of the latest China export cuts as both pricing and availability tighten in the upcoming months."
Michael Montgomery, Rare Earth Investing News (07/19/10)
"Avalon's primary operation is the Nechalacho REE deposit located in the Northwest Territories, Canada. It is an advanced-development mining project, 100%-owned by Avalon, with a higher amount of 'heavy rare earths' than the average REE projects. The company also has a project at Thor Lake that is of significant size. . .The project is still in an exploratory phase with a projected start date of late 2014."
The Gold Report Interview with Mickey Fulp (07/16/10)
"Avalon just put out the first economic study of any junior in the sector, a prefeasibility study. . .I was very pleased. Western world consumers of REEs are very worried about mid-term supplies and are positioning themselves for product. . .I expect some movement in this regard in the short term. Consumers will line themselves up and make sure they have a secure source. They're concerned about where their raw materials will come from."
View Entire Article: Mickey Fulp: Summer Slump Good for Gold
Canaccord Capital, Morning Coffee
(07/12/10)
"Avalon announced the completion of a PFS for the Nechalacho project. The PFS envisages an underground mine on the Nechalacho basal zone commencing at 1,000 t/d, ramping to 2,000 t/d in year four and recovering ~12M tons of ore over the 18-year mine life. The hydrometallurgical plant is designed to recover four saleable products in hydrated oxide form averaging 10,000t total rare earth oxide, 18,000t zirconium oxide, 1,700t niobium oxide and 100t tantalum oxide annually. The total Nechalacho project capital cost is estimated at $900M including 22% contingency, $81M in project EPCM and $73M in sustaining capital. A bankable feasibility study is planned to study optimal throughput rates, selective mining of higher-grade sub-zones, lower-cost alternative power options, alternative hydrometallurgical plant sites, process options and potential gallium extraction."
Listen to CEO Donald Bubar featured in BBC rare earth documentary (5/19/10)
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