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News Releases Avalon announces completion of updated PEA for the Separation Rapids Lithium Project, Kenora, ON August 21, 2018 Toronto, Ontario--(Newsfile Corp. - August 21, 2018) - Avalon Advanced Materials Inc. (TSX: AVL) (OTCQX: AVLNF) ("Avalon" or the "Company") is pleased to report that it has completed an updated Preliminary Economic Assessment ("PEA") for the Separation Rapids Lithium Project near Kenora, Ontario, Canada (the "Project"). The updated PEA 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. This smaller scale development model reduces capital expenditure requirements substantially from the original model completed in September 2016, while generating attractive returns and reducing overall business risk. The PEA has been prepared by independent consultant Micon International Limited under the direction of David Marsh, SVP, Metallurgy and Technology Development and will be filed online (SEDAR) within the next few weeks. The updated PEA utilizes a plant throughput rate of 475,000 tonnes per annum ("tpa") compared to the 950,000 tpa rate used in the 2016 PEA. This will result in a 20 year operating life, based on the present known mineral resources, with annual production of 71,500 tonnes of petalite concentrate; 11,800 tonnes of lepidolite concentrate (both for 18.5 years); and, commencing in Year 6, 100,000 tonnes of feldspar (through to Year 20). The upfront capital expenditure requirement is C$77.7 million with a further C$13.7 million planned for the feldspar circuit in Years 5/6 (or once payback of the initial capital is complete). Average annual revenue is estimated at C$90 million versus average annual costs of C$60 million, resulting in a pre-tax Net Present Value ("NPV") (at 8% discount rate) of C$156 million and a pre-tax Internal Rate of Return ("IRR") of 27.1%. The post-tax NPV is calculated at C$102 million and the IRR at 22.7%. While much of the new demand and long term growth prospects for lithium supply are centred on the rechargeable battery industry, lithium remains a critical ingredient in many other applications such as glass and ceramics, which now must compete for supply with battery makers. Petalite is ideally suited in many of these applications as an industrial mineral due to its high purity and unique crystal structure. Petalite is the primary lithium mineral at Separation Rapids and the results of recent process testwork, disclosed in the Company's news release dated November 16, 2017, demonstrated that a high purity petalite product can be produced from the Separation Rapids resource. This product, called "Super Petalite," has attracted considerable interest from consumers in the glass and ceramics industry, leading to the conclusion that petalite concentrates should be the initial focus of production from Separation Rapids. Discussi |
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| aus der Diskussion: | Avalon Advanced Materials - Lieferant von kritischen Metallen für neue Technologien |
| Autor (Datum des Eintrages): | bmuesli (22.08.18 18:43:53) |
| Beitrag: | 47 von 1,097 (ID:58510326) |
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