2018 annual general meeting - avalon rare...
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CRITICAL MATERIALS FOR A SUSTAINABLE FUTURE
TSX: AVL
OTCQX: AVLNF
2018 Annual General Meeting
February 27, 2018
Donald S. Bubar, President & CEO
CRITICAL MATERIALS FOR A SUSTAINABLE FUTURE
Forward looking information
This corporate presentation contains or incorporates by reference “forward looking statements” within the meaning of the United States Private Securities Litigation
Reform Act of 1995 and applicable Canadian securities legislation, which may not be based on historical fact. Readers can identify many of these statements by
looking for words such as “believe”, “expects”, “will”, “intends”, “projects”, “anticipates”, “estimates”, “continues” or similar words or the negative thereof.
Statements that are not based on historical fact contained in this presentation, including through documents incorporated by reference herein, are forward-looking
statements that involve risks and uncertainties that could cause actual events or results to differ materially from estimated or anticipated events or results reflected
in the forward-looking statements . Such forward-looking statements reflect the Company’s current views with respect to future events and include, among other
things, statements regarding targets, estimates and/or assumptions in respect of reserves and/or resources , and are based on estimates and/or assumptions
related to future economic, market and other conditions that, while considered reasonable by the Corporation, are inherently subject to risks and uncertainties,
including significant business, economic, competitive, political and social uncertainties and contingencies. These estimates and/or assumptions include, but are
not limited to: grade of ore; rare metal and by-product commodity prices; metallurgical recoveries; operating costs; achievement of current timetables for
development; strength of the global economy; availability of additional capital; and availability of supplies, equipment and labour. Factors that could cause the
Company’s actual results, performance, achievements, developments or events to differ materially from those expressed or implied by forward-looking statements
include, among others, but are not limited to, market conditions, the possibility of cost overruns or unanticipated costs and expenses, the impact of proposed
optimizations at the Company’s projects, actual results of exploration activities, mineral reserves and mineral resources and metallurgical recoveries,
discrepancies between actual and estimated production rate, mining operational and development risks and delays, regulatory restrictions (including
environmental), activities by governmental authorities, financing delays, joint venture or strategic alliances risks, or other risks in the mining industry, as well as
those risk factors discussed or referred to in the Company’s annual Management’s Discussion and Analysis and Annual Report filed with the securities regulatory
authorities in all provinces and territories of Canada, other than Québec, and available at www.sedar.com. Most of the foregoing factors are beyond Avalon’s
ability to control or predict. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially
from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or
intended. There can be no assurance that the plans, intentions or expectations upon which these forward-looking statements are based will occur. The forward-
looking statements contained herein are qualified in their entirety by this cautionary statement. Readers should not place undue reliance on the forward-looking
statements, which reflect management’s plans, estimates, projections and views only as of the date hereof. The forward looking statements contained herein is
presented for the purpose of assisting readers in understanding the Corporation’s expected financial and operating performance, and the Company’s plans and
objectives, and may not be appropriate for other purposes. Avalon does not undertake to update any forward-looking statements that are contained herein, except
in accordance with applicable securities law. The geological information contained in this presentation has been reviewed and approved by Don
Bubar P. Geo. (ONT) and President & CEO, Avalon Advanced Materials, qualified person for the purposes of National Instrument 43-101.
2
Safe Harbour Statement
CRITICAL MATERIALS FOR A SUSTAINABLE FUTURE
Create shareholder value and
potential for long term growth
by establishing a sustainable,
diversified technology metals
business, building initially on
our lithium and tin assets
3
Avalon’s Business Objective
CRITICAL MATERIALS FOR A SUSTAINABLE FUTURE
• Product design: working with our customers to
create the best quality products to serve their needs
at attractive prices
• Innovative metallurgy: Designing an efficient
process flowsheet to produce the best quality
product at the lowest cost
• Staged development: Start with a demonstration
plant to prove process and scale up after products
specs are optimized
• Minimizing environmental impacts: recycling of
reagents and creating markets for by-products
• Sustainable development: Utilize renewable energy
and maximize use of the ore body
4
A strategic approach to building new
lithium production through…
CRITICAL MATERIALS FOR A SUSTAINABLE FUTURE
2017: Steady progress toward initial production
at Separation Rapids and East Kemptville
Separation Rapids Lithium Project
• Focused on metallurgical process development and defined appropriate
lithium product mix to best serve market opportunities
• Adopted the staged development approach to reduce risk and
evaluated several variants on Phase 1 initial production model
• Produced high purity “Super Petalite” product for glass applications and
identified additional market interest in China for lepidolite concentrates
• Drilled to expand resources and created mineralogical block model
East Kemptville Tin Project
• Largely completed environmental due diligence and created new “profitable site
rehabilitation concept” as part of small scale re-development model
• Presently preparing PEA and lease application to allow for transition of site
tenure to Avalon in 2018.
5
CRITICAL MATERIALS FOR A SUSTAINABLE FUTURE
2017(1)
Expenditure Summary (CAD $ Millions)
2017 2016
Nechalacho & Other (NB)
0.3
0.3
Separation Rapids 2.0 1.8
East Kemptville 0.3 1.9
General and Administration 2.9 3.2
$5.5 $7.2 (1) From September 1, 2016 to August 31, 2017
6
CRITICAL MATERIALS FOR A SUSTAINABLE FUTURE
Health and Safety Performance
• Avalon was lost-time accident free during the field work completed
in 2017 and so far in 2018
• One medical aid accident at Separation Rapids occurred when a
driller wrenched his neck
• Root cause analysis indicated a modification to the drill intended
to improve safety created an ergonomically difficult position
• The drilling company further modified the rig
• One “near miss” at Separation Rapids occurred when drillers’
truck slid on ice
• No injuries and no significant damage
• Road maintenance improvements to reduce this risk were
implemented
• Avalon received the AME-PDAC Bronze Award or higher for being
Lost Time accident free every year since 2013
CRITICAL MATERIALS FOR A SUSTAINABLE FUTURE
Sustainability- A leader in best practices
• Among Corporate Knights’ Future 40 Responsible
Corporate Leaders in Canada (2015, 2016)
• Avalon’s 6th annual report released November 2017
• Aligns Avalon’s operating philosophy with its
Cleantech customers
• Reduces social licence risk to investors
• Market Cap: CAD$30M (214 million S/O @ $0.14)
• Fully diluted: 250 million
• Recent share price: $0.15 - 0.12
• 52 week High Low: $0.19 – 0.11
• Shareholders: Insiders (15%), Institutional (15%),
Retail (70%); Over 20,000 shareholders worldwide
8
Sustainability and Capital Structure
CRITICAL MATERIALS FOR A SUSTAINABLE FUTURE
Specialty Metals and Minerals
Project Pipeline
9
Lithium Vital to the electric vehicle and
home energy storage industry
Tin, Indium Necessary for lead-free
solders in all electronics
Rare earths, metals Used in technology from wind turbines,
solar panels to electronics, medical
equipment and space exploration
CRITICAL MATERIALS FOR A SUSTAINABLE FUTURE
MANAGEMENT
• Donald S. Bubar, P.Geo.
President & CEO
• Jim Andersen, CA, CPA
V.P. Finance, CFO & Corporate Secretary
• David Marsh, FAusIMM (CP)
Senior V.P. Metallurgy & Technology
Development
• Bill Mercer, Ph.D., P.Geo.
V.P. Exploration
• Pierre Neatby, BA Econ
V.P. Sales and Marketing
• Mark Wiseman, B.Sc., MBA
V.P. Sustainability
• Cindy Hu, CA, CPA
Controller
• Brian St. Louis, BA, G.Dip Public Policy
Manager, Government Affairs
• Melanie Smith, LLB
Senior Legal Counsel (on maternity leave)
• Ron Malashewski, P.Eng (AB)
Manager, Investor Relations
10
Experienced Management Team
and Board of Directors
BOARD OF DIRECTORS
• Brian D. MacEachen, C.A.
Chairman and Audit Committee Chair
• Donald S. Bubar, P.Geo. CEO
• Alan Ferry, CFA
Governance/Compensation Committee Chair
• Kenneth Thomas, Ph.D., P. Eng.
• Jane Pagel, M.Sc.
• Patricia Mohr, B.A., M.A.
CRITICAL MATERIALS FOR A SUSTAINABLE FUTURE
11
A global Lithium supply-demand
imbalance is looming…
Demand growth is likely to exceed new supply
Source: Seeking Alpha. Commentary by
Livio Filice, Nov. 17, 2017
Demand in China alone may
exceed 340,000 tpa LCE by 2021
CRITICAL MATERIALS FOR A SUSTAINABLE FUTURE
…creating upward pressure on lithium
chemical prices
$US/tonne
Lithium hydroxide attracts a premium to lithium carbonate.
Recent Lithium
Carbonate pricing
$15-17,000/t
Recent lithium hydroxide pricing $17-19,000/t
Recent prices as reported by Benchmark in January, 2018
Current Price in
China: $22-23,000/t
CRITICAL MATERIALS FOR A SUSTAINABLE FUTURE
China is “driving” the way forward
• Shift to EVs driven by production quotas,
preferred licensing regulations & other
government policies
• >500k EVs sold so far in 2017, 2.4m by 2019
and 7m by 2025 (sold ~24m total cars in 2016)
• China planning to dominate the lithium battery
supply chain
• Internal demand for lithium forecast to reach 340
ktpa LCE by 2021, double 2016 global supply
• Lithium carbonate prices now exceed
$21,000/tonne and are expected to reach
$25,000/tonne by 2021 before supply demand
balance achieved
• China already accounts for >40% of global
lithium demand
CRITICAL MATERIALS FOR A SUSTAINABLE FUTURE
39%
30%
8%
5%
5%
3% 10%
Batteries
Ceramics & Glass
Lubricating Greases
Casting Mold FluxPowders
Polymer Production
Air Treatment
Other (IncludingPharmaceuticals)
14 Lithium Demand by Application (2016):
Batteries now dominate, but ceramics and glass remain a
major market
Lithium demand for all applications in 2016: 170,00 tonnes LCE
Source: USGS Jan 2017
CRITICAL MATERIALS FOR A SUSTAINABLE FUTURE
• Glass and Ceramics
• Lithium creates thermal shock resistance
Glass-ceramic stovetops
Corningware® Cookware
Fireplace Shields
• Lithium additions also strengthen glass and are being used to
develop innovative high strength glass products
• Lithium additions reduce the melting temperature and improve
strength of soda-lime (container) glass, reducing costs of production
& shipping, and reducing GHG emissions from furnace
• Petalite is well-suited for many glass formulations due to
very low impurity content (iron<100 ppm)
15
Lithium Minerals: enable innovation in
high strength glass products
CRITICAL MATERIALS FOR A SUSTAINABLE FUTURE
16
Separation Rapids is located close to
transportation and power infrastructure
CRITICAL MATERIALS FOR A SUSTAINABLE FUTURE
17 Separation Rapids
Mineral Tenure and
Regional targets
Regional trend of lithium pegmatites where exploration commenced in summer 2017 and several new targets developed Map includes new claims acquired in 2017 to the north and west of existing land holdings
Glitter, Wolf and Rattler pegmatites
CRITICAL MATERIALS FOR A SUSTAINABLE FUTURE
• There are two main lithium ore minerals in
the Separation Rapids LCT pegmatite:
petalite & lepidolite.
• Petalite ore comprises 80% of the known
pegmatite deposit and lepidolite ore 20%
• Petalite (Li Al Si4O10) contains up to 4.9%
Li2O & no impurities
• Lepidolite (K(Li,Al,Rb)2(Al,Si)4O10(F,OH)2
contains up to 8% Li2O
• They can each be concentrated to make
separate saleable products
• Petalite can be used both as an industrial
mineral for glass and as a high purity feed
to make lithium hydroxide or carbonate
18
Lithium Minerals at Separation Rapids
Clear Crystalline Petalite
Purple Lepidolite
CRITICAL MATERIALS FOR A SUSTAINABLE FUTURE
2017 Work program: Drilling and
Metallurgical Process Optimization Work
• Optimized flotation flowsheet to improve recoveries of lepidolite
concentrate to over 90% at a grade of 4.5% Li2O
• Added cleaner stage to petalite flowsheet to produce a high grade
(>4.5% Li2O) and very low impurity “Super Petalite” concentrate for
glass applications
• Produced trial quantities of petalite for glass marketing purposes
19
• Optimized hydromet process by
investigating alternative membrane
technologies to improve energy
efficiency & reduce costs (ongoing)
with support from NOHFC
• Diamond drilling in 4 holes to assist
with developing new mineralogy-based
resource block model
CRITICAL MATERIALS FOR A SUSTAINABLE FUTURE
• Minimum $3-5 million program planned for 2018 to prepare for
construction of $50-60 million Phase 1 production facility in 2018-
19 to produce lithium mineral concentrates
20
2018 Work Program: Moving toward Phase 1 Production Facility
• 2018 program priorities:
• Drill to expand resources and finalize mine plan
• Optimize flotation and hydrometallurgical process flowsheets
• Complete PFS-level cost estimates and project engineering
• Complete environmental assessments and project permitting
• Secure off-take agreements and arrange project financing
• Phase 1 Plant will allow ongoing profitable production of lithium mineral
concentrates for sale to glass companies or lithium processors and piloting of
lithium hydroxide hydrometallurgical process
• Phase 2 will initiate battery materials production & scale-up during Phase 3
CRITICAL MATERIALS FOR A SUSTAINABLE FUTURE
Separation Rapids Mineral Resources using 0.6% Li2O Cut-off Grade (November 15, 2017)
21
Footnotes:
1. CIM definitions were followed for Mineral Resources.
2. The Qualified Person for this Mineral Resource estimate is William Mercer, PhD, P.Geo. (ON)
3. The resource estimate is based on 74 drill holes totalling 11,644 metres drilled between 1997 and 2017 by Avalon.
4. Drill data was organised in Maxwell DataShed and for estimation purposes was transferred to the Geovia GEMS 6.8 software, wherein the block model was developed.
5. The geological units were modeled as outlined by drill core logs.
6. Resources were estimated by interpolating composites within a block model of 10 x 10 x 3 metre blocks.
7. Grade interpolation used the Ordinary Kriging method combined with variograms and search ellipses modeled for each rock unit.
8. Measured material was defined as blocks using composites from ≥ 4 drill holes and a distance ≤ 25 m to the nearest composite and additional blocks with excellent geological and grade
continuity, while indicated material includes blocks using ≥ 3 drill holes and a distance ≤ 35 m to the nearest composite and blocks with geological and grade continuity, and inferred material
was defined as blocks with composites from ≥ 2 drill holes and interpolated geological continuity up to 40 m below diamond drill holes.
9. Two metre composites were used and no capping was necessary.
10. The mean density of 2.65 t/m3 was used for unit 6ABC and 2.62 t/m3 for unit 6D.
11. The cut-off grade reported in this resource estimate, 0.6% Li2O, is consistent with the previously published resource estimate by Avalon (Preliminary Economic Assessment, 2016).
12. Mineral resources do not have demonstrated economic viability and their value may be materially affected by environmental, permitting, legal, title, socio-political, marketing, or other issues
Petalite Zone Lepidolite-Petalite Zone Total
Tonnes
(Mt)
Li2O
(%)
Rb2O
(%)
Tonnes
(Mt)
Li2O
(%)
Rb2O
(%)
Tonnes
(Mt)
Li2O
(%)
Rb2O
(%)
Measured 2.86 1.39 0.313 1.18 1.38 0.467 4.04 1.39 0.358
Indicated 3.42 1.36 0.338 0.67 1.40 0.484 4.09 1.37 0.362
Measured + Indicated 6.28 1.37 0.327 1.85 1.38 0.473 8.12 1.37 0.360
Inferred 0.94 1.30 0.321 0.26 1.42 0.505 1.20 1.33 0.361
CRITICAL MATERIALS FOR A SUSTAINABLE FUTURE
22
Separation Rapids Lithium Resource
Geological Model (as at November 2017)
Lepidolite-rich Unit 6d highlighted in purple, petalite in yellow
Open to depth below 200m
CRITICAL MATERIALS FOR A SUSTAINABLE FUTURE
23
Separation Rapids
Resource Block Model
measured
indicated
inferred
CRITICAL MATERIALS FOR A SUSTAINABLE FUTURE
24
Hole SR18-80 drill core:
45 metres of mainly
lepidolite-rich lithium
mineralization (6D)
6D
6A
CRITICAL MATERIALS FOR A SUSTAINABLE FUTURE
25
Geological Cross-Section (looking west)
Hole SR 18-79
North South
200 metres
Holes 79 and 80 extended
lepidolite-petalite resources to depth below 200 m level
CRITICAL MATERIALS FOR A SUSTAINABLE FUTURE
26
Separation Rapids Project Milestones
Q2-2015 Produced 1 tonne of petalite concentrate, meeting customers’ specs
Q3-2016 Created a new process to produce lithium hydroxide from petalite
Q3-2016 Released positive PEA (lithium hydroxide from petalite)
Q1-2017 99.88% pure lithium carbonate product produced from lepidolite
Q2-2017 Lithium ion battery cathode material produced at NRC
Q4-2017 Updated Resource Block Model for Lithium Mineralogy
2017-18 Continue process optimization, environmental, community engagement work
2018 Drilling to expand lithium resources, pilot lithium production processes, define
product mix, complete engineering and arrange financing for Phase 1 plant
2018-19 Phase 1 plant construction and commissioning
2019-21 Phase 1 plant operation and market development
2021-22 Scale-up production in Phase 2 & 3 once products are defined and accepted
Timeline is illustrative: dependant on factors such as
financing, offtake agreements and market conditions
CRITICAL MATERIALS FOR A SUSTAINABLE FUTURE
East Kemptville
Tin Production &
Site Remediation
Project
CRITICAL MATERIALS FOR A SUSTAINABLE FUTURE
Profitable rehabilitation
of a closed mine site
CRITICAL MATERIALS FOR A SUSTAINABLE FUTURE
28
LME Tin Price Trends
Current price:
US$21,600/tonne
1 Year Chart 10 Year Chart
Tin prices have been quite stable since mid 2016 reflecting a relatively balanced market
CRITICAL MATERIALS FOR A SUSTAINABLE FUTURE
Sources of refined tin production vs.
consumption to 2021 (‘000/tonnes refined tin)
Source: ITRI
April 2017
CRITICAL MATERIALS FOR A SUSTAINABLE FUTURE
East Kemptville Location and
Regional Infrastructure
30
Power lines
69kV
138kV
● On paved highway
● Grid power on site
● Yarmouth (55 km) & other
communities within
commuting distance
● Ample water
● Skilled labour available
locally
East Kemptville
location, 270 km
west of Halifax
CRITICAL MATERIALS FOR A SUSTAINABLE FUTURE
31
East Kemptville Site Layout and
Mineral Resources
Baby Zone Pit
Low-grade Ore Stockpile
Inferred Resource:
5.87M tonnes @ 0.112% tin
North Waste Pile:
1.29M tonnes @ 0.089% tin`
Main Zone Pit
Existing Tailings Dam
with spare capacity
In-ground resources:
Indicated:18.5Mt @ 0.176% tin
Inferred:17Mt @ 0.148% tin (Resources as of October 31, 2014 (NR 14-13) Don Hains (P.Geo) is QP under NI 43-10)
`
*The stockpile resources are considered Inferred under NI43-101 guidelines and should therefore not be relied upon
CRITICAL MATERIALS FOR A SUSTAINABLE FUTURE
Low Grade Ore Stockpile
32
Two Composite Views of Low Grade Ore Stockpile at East Kemptville
CRITICAL MATERIALS FOR A SUSTAINABLE FUTURE
Drill plan for stockpile to
confirm internal grade
distribution for process plant
scheduling
• Use Reverse circulation
type drill
• 10 drill holes each to a
depth of about 25 metres
• Drill holes locations based
on ease of access
• Sample every metre
33
Drill Plan for Low Grade Ore Stockpile
Possible drill sites
CRITICAL MATERIALS FOR A SUSTAINABLE FUTURE
Near-Surface Resources utilized in small scale development model:
• 5.87Mt Low Grade Ore Stockpile (@0.112% tin)
• 1.1Mt Baby Zone Pit* (@0.292% tin)
• 0.6Mt in Main Zone Pit North* (@0.192% tin)
• 2.4Mt in Main Zone Pit South* (@0.192% tin)
* Subzones identified from Micon “High Grade” Mining Analysis of 2014 NI 43-101 resource block model
Other Potential Resources (not included in model)##:
• “North” Waste Stockpile (1.29Mt @ 0.089% tin)**
• “South” Waste Stockpile (2.82Mt @ 0.046% tin)**
• Stacked tailings may also contain recoverable tin
**Potential to upgrade material ahead of processing
##Resources in italics and bold are historic resources and not prepared under NI 43-101. They have not been verified by a
Qualified Person and should not be relied upon.
34
East Kemptville Tin Project
Near-Surface Mineral Resources
CRITICAL MATERIALS FOR A SUSTAINABLE FUTURE
• Process low grade ore stockpile and near-
surface, higher grade ore zones in existing pits at
rate of 2,400 tpd for tin recovery only
• Crushing-Milling-Gravity Concentration to recover
cassiterite concentrates grading 55% tin
• Produce ave.1300 tpy tin concentrate for 13 yrs
• Keep operation as simple and cost effective as
possible with low CAPEX of approx. $30 million
• “Modular” type plant:
equipment/sumps/pumps/structures etc. pre-
assembled off site (containerized where possible)
• Pre-designed and fabricated building
• Use existing tailings facilities and infrastructure
• Removes current sources of acid mine drainage -
reducing liability and creating a progressive site
remediation model
35
Proposed Small Scale Re-Development
Model utilizing a modular gravity plant
CRITICAL MATERIALS FOR A SUSTAINABLE FUTURE
• Utilize existing on-site
infrastructure
• Remove or isolate historical
sources of acid mine drainage
• Eliminate long term
environmental liabilities
• Utilize proven technologies
• Minimize closure and financial
assurance costs
• No new environmental
impacts
36
East Kemptville Site Rehabilitation
Concept
Canola grown on paper mill bio-
solids on tailing, Sudbury, Ontario
CRITICAL MATERIALS FOR A SUSTAINABLE FUTURE
The problem is oxidation of sulphide minerals in waste
MS + 3O2 + 2H2O 2H2SO4 + M ̄
metal sulfide rock + oxygen + water makes sulfuric acid + dissolved metals
• All East Kemptville tailing and waste rock is acid generating
• Preventing acid mine drainage involves:
• Eliminating contact of sulphides with oxygen or
water or both
• Oxidation Process
can then be reversed
Present Environmental Liability:
AMD (Acid Mine Drainage)
CRITICAL MATERIALS FOR A SUSTAINABLE FUTURE
• Move from perpetual treatment (+40 years) of existing
AMD to full closure using standard technologies including:
• Processing and elimination of low grade ore stockpile
• Place all potentially AMD-producing waste rock and tailing sub
aqueously in existing tailing management area (TMA) and pits
• Produce a low permeability desulfurized tailing to cover and isolate
the historical tailing & revegetate
• Place any remaining AMD sources under water in pit, if required
• Sell, recycle and demolish facilities,
revegetate and close site permanently
Eliminates long term financial assurance
38
Site Rehabilitation Strategy
e.g. Caribou Mine
CRITICAL MATERIALS FOR A SUSTAINABLE FUTURE
Examples of Innovative Application of
Proven Technologies in Tailing Reclamation
Sunflowers
on clean
Strathcona
Tailing,
Sudbury,
Ontario
Wetland
Treatment,
Falconbridge
Ontario
CRITICAL MATERIALS FOR A SUSTAINABLE FUTURE
• Eliminates the historical environmental
liability
• Minimizes financial assurance costs
• Minimizes waste management operating
and capital costs
• Minimizes GHG production
• No new disturbance area
• Has support of the local
communities
• Potential beneficial use of
tailing area post closure
• Has easier and timely permitting
• Generates profits from tin
concentrate sales
40
East Kemptville Development Concept as
currently designed:
East Kemptville site ca.1985
CRITICAL MATERIALS FOR A SUSTAINABLE FUTURE
• Arrange project financing and off-take agreements
• Prepare new resource block model, mine plan and closure plan
• Prepare and submit application for mining lease and transfer of surface
tenure
• Complete PEA on small re-development model
• Detailed design and costing of modular gravity plant
• Drilling of stockpile to map internal grade distribution
• Finalize tailings management operating philosophy and design
• Complete environmental studies and permitting process
2018-19: Construction and initial production within 16 months of arranging
project financing
41
East Kemptville Project
Next Steps for 2018
CRITICAL MATERIALS FOR A SUSTAINABLE FUTURE
• Both the Main and Baby Zone resources
are open to depth - potential for future
underground mining operation
• A flotation circuit can be added to
recover copper and zinc concentrates
from in-ground ore
• Zinc concentrates are highly enriched in
indium (0.25%) from which an indium
product could be derived
• The wall rocks contain potentially
recoverable lithium
• Model for extracting value from old mine
sites can be likely be applied elsewhere
42
Future Expansion Potential at East
Kemptville
• Production capacity can be increased if future tin demand and prices
justify additional capital investment in mine expansion
CRITICAL MATERIALS FOR A SUSTAINABLE FUTURE
Outlook for Avalon in 2018
Focus on getting small scale initial production facilities
established at both advanced projects
• Separation Rapids Lithium Project: Phase 1 production
facility to produce 50,000 - 70,000 tpy of petalite
concentrate for sale to glass customers and to feed lithium
hydroxide battery material demonstration plant
Produce lepidolite by-product for Lepidico’s L-Max pilot plant in
Sudbury and potentially other customers in China
• East Kemptville Tin Project: On-site 2,400 tpd gravity
concentrator to produce average of 1,300 tpy of tin
concentrate as part of site rehabilitation concept
43
CRITICAL MATERIALS FOR A SUSTAINABLE FUTURE
Contact us: 1901-130 Adelaide St. W.
Toronto, Ontario, Canada
M5H 3P5
+1 (416) 364-4938
ir@AvalonAM.com
www.AvalonAdvancedMaterials.com
TSX: AVL
OTCQX: AVLNF
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