Avalon Rare Metals will shortly commence a new exploration drilling programme on the site of the old East Kemptville mine in Nova Scotia, Canada. The C$1.3 million work programme will involve 2,000 metres of diamond drilling, metallurgical process test work and preliminary environmental studies. This work will generate the data required to complete a Preliminary Economic Assessment (“PEA”) by November, 2015. Drilling is scheduled to commence in early July and be completed in September with initial results expected in late August.
Bench-scale metallurgical test work has been initiated at a laboratory in the UK to evaluate the production of tin, copper and zinc-indium concentrates. This work is targeted for completion in September, 2015 and is required to better define expected metal recoveries and concentrate grades for the PEA. Initial environmental field work will also begin this summer. Work on a more detailed feasibility study is then expected to begin in early 2016.
Under the terms of a special exploration licence granted by the Province of Nova Scotia which covers all known tin deposits in the area, Avalon is committed to spending C$5.25 million in the next three years. The company is also in discussion to acquire surface rights during the course of this year. Based on the previous mining history from 1985 to 1992, an initial conceptual study published earlier this year indicated that a proposed revived 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.
