Avalon Advanced Materials (TSX:AVL) has revalidated the scale and economic development potential of the Nechalacho Rare Earth Elements Project in Canada after conducting an updated resource estimate for the Basal zone.
The Basal zone’s updated estimate contains 58.6 million tonnes (Mt) @ 1.49% total rare earth oxide (TREO) in the measured and indicated categories, as well as 130.6Mt @ 1.31% TREO.
Project Director Burl Joseph says the updated resource is supported by an extensive body of work for a project at this stage of development.
“[This work reflects] approximately C$70 million [$71 million] in drilling and metallurgical work performed in support of the 2013 Definitive Feasibility Study (DFS) and select additional drilling performed after that study’s release,” Joseph says.
“The underlying database comprises 582 drill holes totalling approximately 120,000m of drilling.”
Joseph adds the company’s focus is now on building upon that foundation of work through completing a preliminary economic assessment (PEA), which is underway with Wood Canada.
Avalon is also working to establish an agreement with a processing partner to process a minimum of 1 tonne of existing material in the coming quarters, as well as generating samples essential to securing strategic offtake agreements.
Further, the company will also progress a plan to advance toward an updated DFS following the release of the PEA in Q4 2026.
More about Nechalacho
Nechalacho has been the subject of extensive exploration, metallurgical testing, and technical evaluation over several decades. This work culminated in a DFS in April 2013, which established the technical and economic foundation for the project at the time.
Located at Thor Lake, the project lies in the Northwest Territories of Canada. The location provides access to key transportation corridors and is close to established Indigenous communities, supporting regional employment and infrastructure development.
CEO Scott Monteith says Nechalacho offers exposure to four principal magnet rare earths, as well as a broader suite of other light and heavy rare earths.
“Avalon believes this breadth of mineralisation is one of the project’s defining competitive strengths and further differentiates Nechalacho from many other rare earth development projects,” Monteith says.
“At a time when governments and industry are increasingly focused on establishing secure Western supply chains for critical minerals, Nechalacho represents a unique opportunity: a large, extensively studied Canadian resource containing meaningful concentrations across a broad range of commercially important rare earth elements.”
Avalon Advanced Materials is a Canadian critical minerals explorer focused on advancing lithium and rare earth assets.
Write to Aaliyah Rogan at Mining.com.au
Images: Avalon Advanced Materials
