Avalon bumps Separation Rapids lithium resource by 28% in Ontario

Avalon Advanced Materials (TSX: AVL) has boosted measured and indicated tonnage at its Separation Rapids hard rock lithium project in northwestern Ontario by 28% over a resource from 2023.Measured and indicated resources now total 12.98 million tonnes grading 1.34% lithium oxide (Li2O) for 173,306 contained tonnes Li2O, Avalon reported on Thursday. Inferred tonnage decreased by 18% over the August 2023 resource, to 2.29 million tonnes at 1.46% Li2O for 33,497 tonnes contained Li2O. All tonnes include open pit and underground resources.The project is held in a joint venture with Belgium-based SCR Sibelco NV, which holds a 60% stake in Avalon.“The increase in measured and indicated resources strengthens our understanding of the project’s potential and provides greater confidence as we continue to advance its development,” Avalon president and CEO Scott Monteith said in a release. “We remain committed to a disciplined and methodical approach, working closely with Sibelco to evaluate the best path forward in alignment with market conditions and Canada’s critical minerals strategy.”Avalon shares gained 17% to C$0.03 apiece on Thursday morning in Toronto, giving the company a market capitalization of C$21 million.Third tailwindThe resource gains at Separation Rapids, located about 70 km north of Kenora, come as lithium prices remain in a slump and are down 85% from their peak in 2022. Some analysts foresee long term prices for the battery metal rising, with a potential rebound expected next year followed by an uptrend into the 2030s, according to a S&P Global report from last month.Lithium prices aside, Avalon has made strides in the last five months. Tailwinds have included a C$3.5 million debt financing from SCR-Sibelco last November and a September preliminary economic assessment (PEA) valuing its Lake Superior lithium processing plant at more than three times its estimated costs.That PEA for the Thunder Bay facility outlined an after-tax net present value of C$4.1 billion at an 8% discount rate with a capital cost of C$1.3 billion and 2.5-year payback.The Separation Rapids update also increased open pit measured and indicated resources by 14% to 10.73 million tonnes over the 2023 report, as well as bumping the underground resource grade by 14.7% to 1.64% Li2O.The update is based on 29 new surface holes totaling 8,921 metres since 2023.Avalon is also advancing its Snowbank target at Separation Rapids, and the remote Lilypad lithium-cesium project, located 370 km north of Thunder Bay.While there are no producing lithium mines in Ontario, some explorers in the province’s northwest are advancing promising hard rock projects. Prominent among them are Green Technology Metals’ (ASX: GT1) Seymour project 230 km northeast of Thunder Bay; Pan American Energy’s (CSE: PNRG) Big Mack project, and Frontier Lithium’s (TSXV: FL) PAK project, both north of Kenora.Weiter zum vollständigen Artikel bei Mining.com Weiter zum vollständigen Artikel bei Mining.com