IM 2016 August 2016 | Page 20

OP FOCUS- LITHIUM STAMPEDE_proof 26/07/2016 10:45 Page 5 PROJECT FOCUS preferred over other lithium alternatives in glassceramic products for technical reasons, notably its consistently low impurity levels.” The petalite in the deposit contains very low levels of impurities, also offering potential for a high purity lithium chemical product at a relatively low-cost, to serve the needs of lithium ion re-chargeable battery manufacturers. Avalon says: “Growing demand for rechargeable batteries in electric vehicles and home energy storage is expected to result in continued rapid growth in global consumption of lithium. Many industry analysts are predicting that the demand for lithium will double over the next five to ten years, creating a supply deficit, as existing producers struggle to meet the new demand.” Diamond drilling delineated an Indicated petalite resource of 8.9 Mt and an Inferred petalite resource of 2.7 Mt, with both resources grading 1.34% Li2O, 0.007% Ta2O5 and 0.30% Rb2O. This resource was defined over a strike length of 600 m and to a vertical depth of 250 m. It remains open for expansion to depth and along strike. The lithium grades are consistent with a petalite content averaging about 25%. The mineralised zone is well exposed at surface in a low dome-shaped hill, where it averages 55 m in width over a 400 m strike length. It is an advanced project at pilot plant stage, preparing for full-scale demonstration plant and feasibility study. It is expected to start as an open-pit mine, potentially transitioning to underground mining in later years. Mined ore will be crushed and processed at site to produce a petalite concentrate. This petalite will either be sold directly into the ceramics industry or transported to a new refinery for the production of lithium compounds predominantly for the battery and energy storage industries. Next steps: n Demonstration plant to produce 800 t of petalite product for glass-ceramic production trials (finance depending) n Conduct further process development work on recovering lithium chemicals, leading to a PEA n 2016 summer exploration drilling program to delineate additional lithium resources n Investigate alternatives for delivery of clean, low-cost power to the project site. Engineering work continues for the PEA, which is currently scheduled for completion this summer. Avalon is advancing capital and operating cost estimates and evaluating various production scenarios. Samples of products from the flotation plant process have been sent for environmental testing as part of the project permitting process. Following the completion of the PEA Visit u sa this summer, Avalon ExpoM t Booth ina intends to proceed into #B-161 a full feasibility study and environmental assessment work with a target date for completion in Q2 2017. Avalon continues to investigate the possibility of developing a clean, low cost ‘run-ofriver’ hydro-power supply to the mine site with potential Bits Mining development partners. Rods Construction Couplings Quarrying At least three sites have Shanks Tunneling been identified along DTH Water-well the English River near ® the deposit that offer R o c k M o r e® International this potential. Rock Drilling Tools Lithium Wilsonville, Oregon USA Judenburg, Austria hydrometallurgical Tel +1 (503) 682-1001 Tel +43 3572-86300 process development [email protected] [email protected] work is underway at the facilities of Thibault and Drill More with RockMore 18 International Mining | AUGUST 2016 The 100% owned Separation Rapids property lies some 70 km by road north of Kenora, Ontario. The main line of the Canadian Pacific Railway passes through the City of Kenora, south of the property, while CN Rail passes through the small community of Redditt, also south of the property. Mineral tenure for the resource is held under a 421 ha mining lease Associates in New Brunswick, using a bulk concentrate sample produced in the winter. Thibault are experts in applied process chemical engineering, with considerable experience in rare metals including lithium. The focus of the hydrometallurgical process development is to produce a lithium hydroxide product from a petalite concentrate suitable for use in lithium ion batteries. Preliminary work demonstrated that this product could be achieved employing a flowsheet using sulp huric acid as the primary solvent. Recent work has successfully produced a very high purity lithium sulphate solution from the petalite concentrate. This is currently being converted to lithium hydroxide solution via an established electrolysis process using another service provider. Preliminary observations indicate a lithium hydroxide conversion efficiency matching, and possibly exceeding, original expectations. Alternative processes and technologies in key aspects of the proposed flowsheet include the use of fluidised bed roasting in place of conventional processing via rotary kilns. This technology offers significant reductions in energy requirements as well as better operating control. Other potential opportunities for optimisation were also identified with regard to up-front ore sorting, modularised flotation plant design and acid roasting equipment. Avalon has been active in finalising the logistics for piloting the complete process flowsheet from optical ore sorting through to battery grade lithium hydroxide production. To this end, Avalon is in discussion with vendors and technology centres both in Europe and North America and plans to proceed with these programs later in 2016. IM