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Gold/Mining/Energy : AVL.V - AVALON VENTURES -- Ignore unavailable to you. Want to Upgrade?

To: DRT who wrote (505)	1/29/1998 5:56:00 PM
From: Sergio R. Mejia	Respond to of 1474

Avalon Ventures Ltd - News Release Estimate prepared for Big Whopper petalite deposit Avalon Ventures Ltd AVL Shares issued 16,615,897 Jan 28 close $1.88 Thu 29 Jan 98 News Release Mr Donald Bubar reports The company has received results from a preliminary resource calculation on the Big Whopper petalite deposit, on the Separation Rapids rare metals project. Using a 0.5% Li2O cut off grade and a measured specific gravity of 2.6 tonnes per cubic metre, the phase I drilling program has delineated a resource in the petalite zone of at least 7,081,700 tonnes grading 1.285% Li2O and 0.346% Rb2O over a strikelength of 600m and to a maximum depth of 250m, where the deposit remains open. A separate resource was calculated for the thickest part of the Big Whopper deposit between lines 3+00W and 6+00W, where it is envisioned that an open pit would initially be developed. This area contains a minimum of 5,238,500 tonnes averaging 1.313% Li2O and 0.325% Rb2O, to an average depth of 200m. Because of the exceptional widths in this part of the deposit, averaging 55 to 60m, and minimal overburden cover, it is believed that an open pit centred on section 4+60W could be mined for several years with a near zero waste to ore stripping ratio. The resource calculation was completed under the supervision of David Trueman, consulting geologist to the company. The average grades calculated include internal dilution by narrow zones of barren amphibolite and feldspar mica rock, but are consistent with an average petalite content in excess of 30%. The rubidium is contained largely in K feldspar which is a marketable commodity recoverable as a by product of petalite production, along with accessory tantalite. The most recent posted price for petalite concentrates (4.2% Li2O) is US$270 per tonne. The metallurgical research work and market studies initiated in November to quantify the value of the ore, market size and mineral processing costs are still in progress. Preliminary indications are that there is growing demand for low iron lithium minerals such as petalite in the glass industry, where lithium is being increasingly used by container glass producers to lower their production costs, make a more durable product and reduce toxic stack emissions. Lithium minerals can provide similar benefits to ceramics and fibreglass producers, which represent large potential new markets. These observations suggest that the Big Whopper pegmatite has excellent economic potential as a primary petalite producer, particularly given its favourable location with respect to transportation infrastructure in northwestern Ontario and potential markets in the northeastern US. Upon receipt of the final reports on the market and metallurgical studies, both expected in February, the company will proceed with a pre-feasibility study on the Big Whopper petalite deposit. The company is also set to begin a phase II drilling program on the Separation Rapids property by February 1, which will primarily involve in fill drilling on 25m centres on the near surface, open pitable portion of the petalite deposit. The program will also include further exploration along strike to the west where several promising new targets for separate zones of economic grade tantalum and/or cesium mineralization have been identified. (c) Copyright 1998 Canjex Publishing Ltd. canada-stockwatch.com