NEWS RELEASE
August 30, 1999 Working Capital $0.6 million
Symbol AVL:VSE Shares Outstanding 20,156,731
SEC 12g3-2(b): 82-4427
Significant Tantalum Mineralization discovered in new Raleigh Lake
Pegmatite Field near Ignace, Ontario
Avalon Ventures Ltd. (the "Company") is pleased to announce the discovery
of high-grade tantalum mineralization in a new pegmatite dyke identified on
the Company's Raleigh Lake rare metal property, near Ignace, Ontario. A
grab sample from this dyke yielded a value of 0.22% Ta2O5 accompanied by
anomalous lithium, rubidium and cesium values. The dyke is one of five
shallow-dipping pegmatite dykes of unknown thickness which have been
identified by the Company over an area of 2 km x 4 km, all of which contain
highly anomalous rare metal mineralization and represent a new rare metal
pegmatite field.
Results from a summer reconnaissance mapping program show that 82% of the
pegmatitic samples analysed to date from the Raleigh Lake property have
returned anomalous tantalum values of greater than 37 ppm Ta2O5, with five
samples from different areas producing potentially-economic grades of
greater than 0.04% Ta2O5. Furthermore, highly-evolved tantalum minerals
such as microlite and manganotantalite have been identified in these
pegmatites in association with strong albitization, an alteration
phenomenon commonly associated with economic-grade tantalum mineralization.
The Company is now planning a preliminary diamond drilling program for
September to determine the vertical and lateral extent of the tantalum-rich
dykes in the Raleigh Lake pegmatite field, which has never been previously
explored for rare metal deposits.
Tantalum is a rare metal which is currently in high demand because of its
preferred use in the manufacture of electronic capacitors and other
high-technology applications. Tantalum mineral concentrates are currently
quoted in The Northern Miner at US $32.00/lb mid-market spot. At this
price, rock grading 0.22% Ta2O5 has an in-situ value of US$155.90/tonne.
Tantalum values were determined by ICP-MS at Chemex Laboratories Ltd.,
Vancouver. Check assays on selected samples will be performed by Neutron
Activation Analysis.
The Raleigh Lake property is situated just 5 km south of the Trans-Canada
highway near Ignace, which is located 235 km west of Thunder Bay, Ontario.
Existing logging roads provide good access to the property.
The original property, consisting of seven claims covering 1,600 acres, was
optioned from three prospectors in May, 1998 under terms giving the Company
the right to acquire a 100% interest by issuing 20,000 shares, making
$100,000 in cash payments and incurring $400,000 in exploration
expenditures over four years. From regional mapping work done by the
Company this summer, it was concluded that the prospective area for
economic rare metal mineralization extends beyond the limits of the
original seven claims and the Company has recently staked an additional 28
claims bringing its total land holdings in the area to 18,250 acres in 35
claims.
Recent regional mapping by the Ontario Geological Survey identified a unit
of "two-mica" granite near Raleigh Lake which is considered a likely
parental granite for the rare-metal pegmatites in this area. Proximity to
this granite, the presence of highly-evolved tantalum minerals and the
shallow-dipping nature of the five known pegmatites indicate that the
Raleigh Lake area has excellent potential for hosting a Tanco-type rare
metals deposit. Follow-up mapping and sampling work will be carried out in
early September, with diamond drilling scheduled to begin later in the
month.
For further information contact Donald S. Bubar, at (416) 364-4938.
Corporate Information may also be accessed on the internet at
www.avalonventures.com
ON BEHALF OF THE BOARD
"Donald S.Bubar"
Donald S. Bubar, President
*No stock exchange has either approved or disapproved the information
contained herein* |
