Medium Nwt

Jun

Medium Nwt

by sexy lady

Medium Nwt

Avalon BFS full swing, the second REE deposit world on track for 2015 production

• Booth # 2303 target = "_blank"> avalonraremetals.com • 416.364.4938

Donald S. Bubar
President and CEO

After reach an important milestone on June 21, 2010 with the publication of a pre-feasibility study for its subsidiary Property Nechalacho REE project Thor Lake, NWT, Avalon Rare Metals (TSX: title = "Rare Metals Inc. Avalon"> AVL) is forging full steam ahead with a feasibility study for completion by mid-2012. As further evidence of its confidence in the project and the commitment value for shareholders to maintain, the company has, meanwhile, met the team of operations necessary to bring it to full production. President and CEO Don Bubar why Avalon is a notch above other potential suppliers of new heavy rare earths.

Resource Intelligence: PDAC 2010 Congratulations on your environment and
Social Responsibility Award. Could you please say more about that?

Don Bubar: The award is in recognition of our community mobilization efforts in the exploration of the earth elements Nechalacho deposit in the Thor Lake rare. We put up with the Mine Training Society, a program designed to maximize employment opportunities for local aboriginal youth. Under this program, we have provided skills training to work on a diamond drill. Twelve have graduated from it and three have since been used on the site and one of them rose to get her full certification to be a diamond driller. The program was very successful and we won some respect with the local community.

Al: Could you tell us about your flagship Thor Lake project?

DB: We have reached an important milestone in 2010 when we completed a pre-feasibility study on development of the deposit elements Rare earth Nechalacho, showing we have an opportunity to develop economically viable. It also allowed us to begin engagement with the end users of rare earths finally, we must develop relationships with. Rare earths are not traded, we must find customers for products, if you will be able to develop the project. In September, we raised $ 40 million we needed to fund a bankable feasibility study mid-2012.

RI: What are the results so far with the participation of end users?

DB: He's fine. We had discussions with potential customers in Japan, Europe and other parts of the world dates back to 2007 when we started working there. It mainly because our resources have a high proportion of HREE, unlike other resources that are mostly LREE. Many these customers are looking for new potential suppliers of HREE to emerge outside of China. Avalon is positioned as the most advanced these new potential suppliers that can provide a significant new supply of heavy artillery on the market by 2015. It is attracting attention consumers locally and, combined with the completion of the pre-feasibility study, it is also what allows us to have a more serious discussion which could lead to strategic alliances with some of the end users.

RI: What is the projected annual production project and how global demand will be met?

DB: The pre-feasibility study envisaged a production of 10,000 tons per year of total rare earth oxides and by-products of zirconium, niobium and tantalum. We focus all at the same time and the production of these products automatically. The REE constitute 5% of demand in 2015.

It is important to note that we are not limited by the size of the resource for the production rate. We determined that depending on market demand expected for the elements and what is our market share could be in 2015. We are certainly able to revise this figure upwards if we see the justification.

Senior Geologist Chris Pedersen content analysis of land rare in rocks using Niton XRF analyzer

RI: What is your van and what are your projected income to be?

DB: The prices have moved a fair bit, because we did the prefeasibility study. If you plug the current price, it would be quite somewhat higher than we previously forecast. The baseline scenario was used in the pre-feasibility study has been very cautious because they are always designed to be. We see clear opportunities for optimizing the NPV at a discount rate of 8%, or nearly $ 1 billion on a pre-tax and the IRR in the mid 20s.

RI: Are you still on track for 2015 production?

DB: Yes, we're still on track. We must do an environmental assessment under the authorization procedure Territories Northwest and is a long process. We believe it is important to ensure that we are very thorough environmental assessment and not try to rush.

IR: China's decision to restrict exports boosted your stock price as well as other similar businesses. Do you see this for the long term?

DB: China has given every indication that they intend to continue to exercise tight control on production and export of primary products and rare earth until there are new sources of supply rare earth outside of China, the equipment will continue to be in short supply. Demand continues to grow and prices could go even higher in the short to medium term. You can also continue to see a lot of concerns about this and more media coverage questions that current shortages for Western consumers.

RI: You are planning to produce heavy rare earths separated rather than concentrated. Can you explain the rise?

DB: The pre-feasibility study modeled the development on the basis of producing a concentrated mixed rare earth that we sell to processors. We have developed a pricing model based on our vision of where the Prices are going and then come with a price for this products, reduce prices to reflect the separate costs of separation. We found that there is little value added by the separation, even if it is expensive to build a plant. As we engaged with consumers worldwide, the message we received is that they want us to produce a separate oxide and not have to rely on separation facilities China. There is no facility at present outside China of the size we would need to produce the amount of HREE on a separate basis that we think we can. So if we do we must find our own solution and it is attractive to do so, because it represents a Avalon opportunity to position itself as the leading provider of new separated heavy rare earth oxides in the world outside China.

RI: Do you plan to plant to be here in Canada?

DB: That's possible. We did an exploratory study on the separation plant in the fall and considered a possible location in southern Ontario, but it could be anywhere, where we have access to reagents chemicals needed to process the concentrate.

RI: What business developments in the past year have added value to Avalon?

DB: We've added a lot of people and we now have over 20 people involved in project development and continue to add this outlook. We decided that we want to build an operations team to take the project through feasibility ourselves and began to meet the operations team needed to reach full production.

RI: For this year, what are your priorities as
a company?

DB: We will continue to make progress on all these fronts that are necessary for the feasibility study is bankable. A key objective here is to develop customer relationships that could evolve into a strategic partnership and a new people we set last year was an expert in sales and marketing, Pierre Neatby, who is doing exactly that.

RI: Where do you see Avalon over the next three to five years?

DB: How will the project into production, but we're not limiting ourselves to that. We have an exploration team talent and we will examine the development of some new exploration projects.

RI: If I were an investor I give three reasons why should I invest in Avalon.

DB: If you like rare earth as a place to invest and if you like history with the increasing demand and clean technologies and limited supplies from China, then we are an attractive game because we are one of the most advanced. We have HREE in our group of rare earth elements to offer the market. Advanced is important because the first-mover advantage is key success in a market that is growing, but still not as great as copper or iron ore markets. We see is perhaps room for a handful new players to enter this market and to meet this demand outside of China. This share is available on a first come, first served, and being five or six years more advanced than most other newcomers, Avalon has a great advantage to do so, first, ensure that the market share, and maintain.

RI: Are there any other information you think investors should know?

DB: We focus on the responsibility as a social focus and operating in the philosophical enterprise. These days, it is important to demonstrate that you are a responsible operator both environmentally and socially. We see real value for society. We produce products that are essential to clean technology and a world more sustainable if we can couple this aspect of our business with a philosophy of social functioning and environmentally friendly, so we created a single Business in the world of mineral production. Hopefully this will allow us to expand our reach in the global financial community and include clean technology-oriented and socially responsible investors.

Investor Highlights:

Stage: Stage bankable feasibility on the deposit Nechalacho
Market Capitalization: 695 million at February 25, 2011
Share price: up to 191% in 12 months, 1150% in 24 months
Share price: $ 7.25 as of February 25, 2011
Li, Rare Commodity earth elements, zirconium, niobium, tantalum, indium, gallium, tin
Expected production: 2015
Expected life: 20 years minimum
Cash: $ 37 million from January 29, 2011

Highlights:

Avalon Nechalacho deposit has the highest proportion of higher value rare earth heavy (over 20% in the basal zone)
With production scheduled for 2015, Avalon is the only company able to provide HREE
by 2015
This first mover advantage is also Avalon able to establish itself as the leading provider of new separated heavy rare earth oxides in the world outside China
Mineral Indicated Resources: 57.49 million tonnes, Inferred: 226 880 000 tonnes
Early adoption of a formal business and the policy of social responsibility in its corporate culture