Avalon Rare Metals Inc. (TSX and NYSE MKT: AVL) has announced the completion of a conceptual redevelopment study for its East Kemptville Tin-Indium project in Nova Scotia, Canada, and has revealed plans for further work at the site.
The economic study, the first since the closure of the original East Kemptville mine in 1992, was undertaken by Hains Engineering Company Limited and has indicated the potential for attractive economics if the site were to be redeveloped. The proposed model for development envisages a conventional open pit, truck and shovel operation with construction of a refinery to produce tin ingots as the final product. The study suggests tin recoveries of 87% are possible using recent innovation in metal recovery technology, which will also improve the recovery of copper and zinc by-products that could account for some 15% of revenue. Capital costs for the proposed development plan would be in the region of US$160 million.
The optimised pit is calculated to contain 49.3 million tonnes of both Indicated and Inferred resources at average diluted grades of 0.113% tin. 0.131% zinc and 0.053% copper. The proposed operation would extract and process 3.5 million tonnes of ore each year, producing some 3,350 tonnes of tin annually over a 14 year mine life. The site has excellent infrastructure with all-year-round road access, an existing power line to the site and a deep water port within 60km, in additional to a skilled local workforce and strong government support for mineral development.
After its special license has been renewed, the company plans to undertake metallurgical process testwork and environmental studies. In addition, a request for bids has been sent out to complete a 2,000 m in-fill diamond drilling program in spring 2015, with the aim of upgrading the classification of the known mineral resources.
Don Bubar, President and CEO stated:
“With the Study in hand we see an opportunity for Nova Scotia to re-emerge as the Tin Capital of North America.”
