Inferred tonnes drive rare earth growth in Avalon update
Contained resource at Nechalacho rare earths project in the Northwest Territories raised by 42%.
An updated resource estimate for Avalon Advanced Materials' Nechalacho rare earths project in the Northwest Territories has increased the global contained resource by 42%. The new figure stands at 875,000 tonnes of contained TREO, double the previously reported 130.6 million tonnes. However, Nechalacho's resource now uses a higher net metal return cut-off of $366.40 per tonne, 14% more than in the 2013 feasibility study.
Avalon CEO Scott Monteith highlights the project's broad range of commercially important rare earth elements, making it an attractive option for governments and industry seeking secure Western supply chains for critical minerals. The mine could potentially produce 9,300 tonnes of TREO annually over 20 years, with a post-tax net present value of $1.3 billion and an after-tax internal rate of return of 20%. Avalon shares fell 2% on Thursday, bringing the company's valuation to approximately $22.8 million.
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