Avalon Advanced Materials (TSX:AVL) says its Nechalacho Rare Earths Project was among those being showcased as a ‘strategic critical minerals development opportunity’ at this week’s Canada Investment Summit.
The project, located in the Northwest Territories, was one of 63 mining projects that the Canadian Government included in an investment prospectus for the event.
The summit, which concluded on Tuesday, represents the first national investment forum of its kind under Prime Minister Mark Carney.
The event, hosted in partnership with Canada’s major institutional investment organisations, is part of the federal government’s efforts to attract C$1 trillion ($1.01 trillion) in new investment.
These include a total of 167 projects spanning various sectors, with mining representing the largest category, followed by clean energy.
Canadian rare earth investment opportunity
Nechalacho is presented as one of Canada’s most advanced undeveloped rare earth assets, benefiting from substantial historical technical work including a 2013 Definitive Feasibility Study (DFS).
According to that study, Nechalacho could support a 20-year, 730,000-tonne-a-year rare earth operation, with an after-tax net present value of C$900 million (discounted at 10%) and an internal rate of return of 19.6%.
The inclusion of Nechalacho in the Canada Investment Summit Prospectus provides an important national and international platform to showcase both the project and the Northwest Territories’ broader critical minerals potential, Avalon says.
The company recently announced an updated mineral resource estimate for the Basal zone, totalling 58.6 million tonnes (Mt) measured and indicated at 1.49% total rare earth oxides (TREO), and 130.6Mt inferred at 1.31% TREO.
This resource, provided according to SEC S-K 1300 requirements, was the first comprehensive re-estimation of the deposit resource since the 2013 DFS. The results validated Nechalacho’s scale and economic potential, Avalon said in a press release last month.
Evaluating development pathways
Avalon is also advancing a preliminary economic assessment intended to modernise the development and processing approach outlined in the historical Feasibility Study and evaluate the project’s economics.
The work forms part of Avalon’s broader strategy to advance Nechalacho toward development while evaluating potential processing pathways, strategic partnerships, and financing opportunities, it says.
The company believes that Nechalacho’s scale, advanced technical foundation, exposure to both light and heavy rare earth elements, and location within a stable Canadian jurisdiction position the project “as a compelling opportunity within North America’s critical minerals industry”.
Avalon Advanced Materials is a Canadian critical minerals explorer focused on advancing lithium and rare earth assets.
Write to Jackson Chen at Mining.com.au
Image: Avalon Advanced Materials
