Avalon Rare Metals has been steadily advancing their 100% owned Nechalacho REE (rare earth elements) deposit up at Thor Lake in the Northwest Territories (about 62 miles east of Yellowknife) and was pleased to announce approval today of the Environmental Assessment report on Nechalacho by the Canadian government.
The mine/mill complex for Nechalacho is near Great Slave Lake in First Nations land, with the hydrometallurgical plant/refinery to be located further south along the shore at Pine Point, where logistics and power are already available. Minister of Aboriginal Affairs and Northern Development Canada, the Honorable Bernard Valcourt, was the one to approve the EA report on behalf of Environment Canada, Transportat Canada, and the Government of the Northwest Territories. These regulatory bodies have determined that the Mackenzie Valley Environmental Impact Review Board (MVEIRB) guidance, as per the implementation of measures and commitments outlined in the company’s July 29 news release, should be followed, with the proposal ultimately subject to satisfaction of those conditions.
The MVEIRB previously concluded a full environmental impact review of Nechalacho was unnecessary and pushed for approval by the Minister of Aboriginal Affairs and Northern Development so long as a series of measures and commitments were fulfilled, including assurances that water release would be comprehensively monitored for environmental impact, that a wildlife habitat protection and monitoring plan be implemented (emphasis on caribou), and that a socio-economic agreement with the Government of the Northwest Territories be put into place before construction kicks off. Today’s decision is thus a real milestone for the project, which is noteworthy for having all the right ingredients to make it one of the only major emerging sources for rare earths, especially HREO, outside of China. This aspect of Nechalacho gives the project a strategic emphasis as well and this should be considered by investors with regard to overall forward developmental momentum when it comes to AVL’s navigating regulatory approval.
Ministerial approval clears the way at this massive undeveloped deposit, also noted for its superb enrichment in the more valuable HREO (heavy rare earth oxides), for formal land use applications to the Mackenzie Valley Land and Water Board to secure the permits, as well as necessary water licenses. Today’s news is a strong endorsement for the project, into which AVL has put some $86M plus as of April this year, with some 502 holes in over 35.6k feet of diamond drilling. Updated August resource calculations look strong with NI 43-101 compliant M&I category resources in the base case clocking in at around 12.56M tonnes averaging 1.71% TREO (total rare earth oxides) and 0.38% HREO (base case net metallurgical return cut-off of $345/tonne is around 22.5% HREO/TREO).
President and CEO of AVL, Don Bubar, hailing today’s approval, emphasized to markets how this announcement dispels many of the concerns over the project’s development timeline, putting a clear trajectory down on the table for all to see. Sentiments echoed by AVL’s Sustainability VP, Mark Wiseman, who went on to reaffirm the company’s commitment to fully instituting and maintaining the environmental impact measures set forth in the report of EA. Wiseman also made a point to assure both the company’s Aboriginal partners, as well as the Government of the Northwest Territories, that AVL was intent on delivering the maximum positive impact to the local communities through fulfillment of their respective agreements. Solid investment in the local communities is going to be a key aspect of Nechalacho’s long-term success and the company has done a good job cultivating local receptivity, with the socio-economic agreement negotiations already well advanced.
To get a closer look at Avalon Rare Metals, visit www.AvalonRareMetals.com
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