Lithium mine developer hopes to break into glass industry: Avalon Advanced Materials releases new preliminary economic study of Kenora project.

PositionMINING

An exploration company with a lithium project near Kenora is revising its production plans for the future mine property.

Avalon Advanced Materials issued a revised preliminary economic assessment (PEA) of its Separation Rapids project where its plant production plans are being downsized in order to cut capital spending on the project.

In an Aug. 21 news release, the company said the revised PEA presents a "simplified business model" that focuses on producing lithium mineral concentrates for potential glass industry customers with some down-the-road potential to expand into production of battery-grade materials.

The 2, 421-hectare Separation Rapids property is 70 kilometres north of Kenora.

The Toronto-based company wants to develop it into an open-pit mine and go into commercial production by 2021.

The last PEA Avalon released in 2016 said the resource looked favourable enough to proceed with a more detailed feasibility study for a mine capable of producing 950,000 tonnes a year with an annual yield of 14,600 tonnes of lithium hydroxide over a 10year mine life.

The new PEA drops the throughput down to 475,000 tonnes and extends the mine life to 20 years.

The upfront capital expenditure is $77.7 million, with a further C$13.7 million planned to process feldspar.

The average annual revenue is estimated at $90 million versus average annual costs of $60 million.

Lithium is coveted by both the emerging rechargeable battery sector and the traditional glass and ceramic industry.

The company calls Separation Rapids a rare pegmatite deposit enriched in lithium minerals, namely petalite and lepidolite.

Petalite is used to make high strength glass and as a high purity feed to make battery-grade lithium hydroxide or carbonate. Lepidolite concentrate is also used for production of battery-grade lithium carbonate.

Avalon said their "Super Petalite" product has attracted interest and they're at the "advanced stage" of reaching off-take agreements with consumers in...

To continue reading

Request your trial

VLEX uses login cookies to provide you with a better browsing experience. If you click on 'Accept' or continue browsing this site we consider that you accept our cookie policy. ACCEPT