Avalon Advanced Materials Inc. · TSX:AVL
Avalon Advanced Materials — Investor Presentation (February 2021)
24 slides from Avalon Advanced Materials's investor presentation, February 2021
Slide 1: An Emerging Canadian Producer of Technology Metals: Lithium
An Emerging Canadian Producer of Technology Metals: Lithium February 2021 Donald S. Bubar TSX: AVL President & CEO OTCQX: AVLNF OTCQB:
Slide 2: Safe Harbour Statement
2 Safe Harbour Statement Forward looking information This corporate presentation contains or incorporates by reference “forward looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995 and applicable Canadian securities legislation, which may not b
Slide 3: Avalon Advanced Materials: Corporate Info
3 Avalon Advanced Materials: Corporate Info › Toronto-based, operating in Canada since 1995 › Listed: TSX (AVL), OTCQB (AVLNF), Frankfurt (OU5) › Market Cap: CAD$110m (348m S/O, 381m fully-diluted) with over 20,000 shareholders worldwide › Working Capital: CAD $3.5 million Sustainability: committed
Slide 4: Avalon is a leader in the implementation of sustainability in mineral development
4 Avalon is a leader in the implementation of sustainability in mineral development › Focused on the supply of the critical materials that enable clean technology, such as: • renewable energy (tin, indium, REE) • energy storage (lithium, tin) • electric vehicle motors (REE) • space technology, drill
Slide 5: Lithium Demand forecast to 2040
5 Lithium Demand forecast to 2040 Source: Benchmark Minerals Lithium Forecast 2020
Slide 6: Lithium Demand by Application (2019)
6 Lithium Demand by Application (2019): Batteries dominate with demand growing rapidly, but ceramics and glass and ceramics remain major markets that are also growing. Source: Roskill
Slide 7: Advanced Ceramics Industry (US)
7 Advanced Ceramics Industry (US) IBIS World, April 2020 › Ceramics Industry Revenue: $2.6 billion; advanced ceramics products account for 37% of total industry revenues • IBISWorld expects industry revenue to increase at an annualized rate of 1.5% to $2.8 billion by 2025 › Ceramics are one of three
Slide 8: Lithium is not just a battery material: also critical for high strength glass-ceramic products
8 Lithium is not just a battery material: also critical for high strength glass-ceramic products › Lithium additions create thermal shock resistance in: Stovetops, Corningware® Cookware, Fireplace Shields › Now being used in many new high strength glass products, such as Corning’s Gorilla Glass (dis
Slide 9: Separation Rapids Lithium: Avalon's most advanced project
9 Separation Rapids Lithium: Avalon’s most advanced project A large LCT pegmatite enriched in the rare lithium mineral petalite 10 million tonne resource amenable to open pit mining, discovered in 1996 › Pre-Feasibility Study completed in 1999 on model to produce petalite for glass-ceramics. › New P
Slide 10: First Nations Relationships: Separation Rapids Lithium Project
10 First Nations Relationships: Separation Rapids Lithium Project › 2013: Renewed MOU with Wabaseemoong Independent Nations (WIN) first signed in 1999 › Committed to maximizing business & partnership opportunities for WIN during operations and post closure › WIN leadership are supportive of the Proj
Slide 11: Separation Rapids is located close to transportation and power infrastructure
11 Separation Rapids is located close to transportation and power infrastructure
Slide 12: Separation Rapids Mineral Tenure and Regional targets
12 Separation Glitter, Wolf and Rattler pegmatites Rapids New Snowbank Mineral Tenure pegmatite discovery and Regional targets Regional trend of lithium pegmatites, where exploration commenced in summer 2018 and several new targets developed. Map includes new claims acquired in 2017 to the north and
Slide 13: Lithium Minerals at Separation Rapids
Clear Crystalline Petalite above; 13 Purple Lepidolite below Lithium Minerals at Separation Rapids › There are two main lithium ore minerals in the Separation Rapids LCT pegmatite: petalite & lepidolite › Petalite is the predominant lithium mineral, with lepidolite occurring in distinct subzones com
Slide 14: Separation Rapids 2015-17 Work programs
14 Separation Rapids 2015-17 Work programs: Focused on metallurgical process and lithium battery material product design › Pilot plant produced 1 tonne of high purity petalite concentrate • Petalite product quality confirmed for high strength glass › New hydromet process produced high purity (99.9%)
Slide 15: Avalon's lithium hydroxide product successfully used as lithium ion battery cathode material
National Research Council 15 of Canada’s unique 2325- type coin cell technology/ components. Photo credit: National Research Council Avalon’s lithium hydroxide product successfully of Canada used as lithium ion battery cathode material › Proprietary two-step hydrometallurgical process: • Reduces Gre
Slide 16: 2017-19 Work program: Drilling and Metallurgical Process Optimization
16 2017-19 Work program: Drilling and Metallurgical Process Optimization Work › Added cleaner stage to petalite flowsheet to produce a high grade (>4.5% Li2O) and very low impurity “Super Petalite” concentrate for specialty glass applications › Produced quantities of petalite for marketing purposes
Slide 17: Snowbank Petalite Pegmatite Discovery
Snowbank Petalite Pegmatite – 17 August 2018 Snowbank Petalite Pegmatite Discovery › Large exposure of a new petalite pegmatite discovery averaging 6 metres wide and traceable for over 100 metres along strike open on both ends. › Assays of up to 2.51% Li2O over Coarse white crystals of 1.1m in chann
Slide 18: 2018 Updated PEA Highlights
18 2018 Updated PEA Highlights › Simplified business model with initial focus on production of lithium mineral concentrates for glass and ceramics › Production of 71,500 tpa petalite, 11,800 tpa lepidolite › Initial CAPEX: C$77.7 million (475,000 tpa mill capacity) › Feldspar circuit added in Year 6
Slide 19: Separation Rapids Next Steps: Moving toward Phase 1 Production Facility
19 Separation Rapids Next Steps: Moving toward Phase 1 Production Facility › 2020 work: Continued process optimization work and secured permit to extract up to 5,000 tonne bulk sample for pilot plant processing in 2021 • Investigated sites for lithium battery materials refinery in northwestern Ontar
Slide 20: Battery materials supply chains in Ontario
20 Battery materials supply chains in Ontario › Ontario government now committing to establishing more EV and battery manufacturing capacity • Opportunity to take advantage of the mineral resource wealth in northern Ontario to build out the entire supply chain November 2020: joint announcement betwe
Slide 21: Separation Rapids Lithium Deposit Mineral Resources Estimate (May 22, 2018)
21 Separation Rapids Lithium Deposit Mineral Resources Estimate (May 22, 2018) Petalite Zone PZ (PZ) Lepidolite-Petalite LPZ Zone (LPZ) Mt % Li2 O % Ta2 O5 % CsO % Rb2 O Mt % Li2 O % Ta2 O5 % CsO % Rb2 O Measured 2.425 1.440 0.005 0.010 0.322 0.939 1.410 0.008 0.027 0.473 Indicated 3.992 1.391 0.006
Slide 22: Separation Rapids Lithium Deposit Block Model (May 22, 18)
22 Separation Rapids Lithium Deposit Block Model (May 22, 2018) Looking North & showing four 2018 drill holes LPZ (purple) PZ (yellow) Open to depth
Slide 23: Geological Cross-Section (looking west) Hole SR 18-79
Lepidolite core 23 Geological Cross-Section (looking west) Hole SR 18-79 South Hole 79 demonstrated increased widths of lepidolite–petalite (LPZ) mineralization below 200 metres PZ 200 metres LPZ PZ= Petalite Zone
Slide 24: Contact us
www.AvalonAdvancedMaterials.com TSX: AVL OTCQB: AVLNF Contact us: 1901-130 Adelaide St. W. Toronto, Ontario, Canada M5H 3P5 +1 (416) 364-4938 ir@AvalonAM.com Thor Lake, NWT
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