Separation rapids project

Lithium/Tantalum

The 240-hectare Separation Rapids Specialty Minerals Project is located 58 km north of Kenora, Ontario in the highly prospective English River greenstone belt, which hosts lithium, tantalum and cesium mineralization. The Property is situated immediately adjacent to the east of Avalon Advanced Materials Inc.’s Big Whopper property, one of the largest rare metal pegmatite deposits in the world.

During July 2009, the Company undertook a field program at the property that included prospecting, line cutting, local geological mapping of newly-found outcrops, and the collection of 173 soil samples, 28 grab samples and 10 channel samples. The program identified a 50m to 100m wide zone with multiple, east-west trending, sub-parallel pegmatite sill-like bodies that range in width from a few centimetres to more than 5 metres.

The soil sampling program utilized Soil Gas Hydrocarbon (SGH) Geochemistry that was analyzed by Activation Laboratories (Actlabs) of Ancaster, Ontario. SGH is a deep penetrating geochemistry that allows for analysis from various types of media. Actlabs’ SGH analysis identified a strong Level 5 lithium anomaly below a peat bog approximately 100m east of, and along strike of, the most eastern exposures of the zone of pegmatites.

The demand for lithium is growing strongly due to the use of lithium carbonate in battery-powered vehicles and other electrical storage devices. Management believes the highest and best currently known use for material from the Separation Rapids Property may be as an input to the glass industry. However Avalon is making considerable progress in approaching a higher and better use in the lithium ion rechargeable battery market and other more valuable by-products. Avalon is completing a Preliminary Economic Assessment (PEA) on the Big Whopper Deposit. No fieldwork is currently being planned at Gossan’s Property while we wait to assess the economic viability of various aspects of Avalon’s test work.