Avalon Advanced Materials (TSX: AVL; US-OTC: AVLNF) has begun a new drill campaign at its 100% owned Separation Rapids lithium project, 70 km by road from Kenora, Ont. It aims to drill seven holes totaling 1,500 metres in an attempt to increase its resource.
As of a Nov. 15, 2017, resource estimate, Separation Rapids contains 8.12 million measured and indicated tonnes grading 1.37% lithium oxide and 0.36% rubidium oxide.
According to a 2016 preliminary economic assessment (PEA), the 24 sq. km property could produce 14,600 tonnes of lithium hydroxide plus 100,000 tonnes of feldspar mineral concentrate per year for at least 10 years.
Total capital expenditure for this model was estimated at $514 million, inclusive of $86 million in contingencies and $7 million in sustaining capital. This includes the mine, concentrator and a hydromet plant assumed to be in Kenora. The hydromet plant accounts for approximately 50% of the total expenditure.
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