Avalon Advanced Materials Inc. · TSX:AVL
Avalon Advanced Materials — Investor Presentation (February 2021)
33 slides from Avalon Advanced Materials's investor presentation, February 2021
Slide 1: Developing the Supply Chain for the Clean Economy in Canada
Developing the Supply Chain for the Clean Economy in Canada Lithium, Cesium, Tantalum & Rare Earths February 2021 Don Bubar TSX: AVL President & CEO OTCQB: AVLNF
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's Sustainable Resource Development Strategy
4 Avalon’s Sustainable Resource Development Strategy › Focus on materials that enable clean technology › Design the operation to minimize environmental impacts and plan for productive use of the land post closure › Minimize GHG emissions and water impacts › Focus on process efficiency, minimizing wa
Slide 5: Avalon's Strategy for Growth and Value Creation
5 Avalon’s Strategy for Growth and Value Creation Staged development: Create a platform for growth with a demonstration scale production facility to prove process and introduce products to cleantech customers for approval › Achieve initial production and positive cash flow at a small scale with scal
Slide 6: Critical Minerals for Clean Technology Project Pipeline
6 Critical Minerals for Clean Technology Project Pipeline
Slide 7: Cleantech materials, such as lithium and rare earths, are not basic commodities!
7 Cleantech materials, such as lithium and rare earths, are not basic commodities! › They are highly refined chemical products with demanding specifications designed to meet the needs of end-users › Define the market to be served and design an appropriate mineral recovery and extraction process to d
Slide 8: 2 Year Stock Price / 15 Year Stock Price
8 Since 2010, Avalon has been 15 Year Stock Price known primarily as a Rare Earths equity in the US Rare Earths see price spike and major media publicity because of China imposing export quotas 2 Year Stock Price Price jumps in reaction to news on rare earths in context of US/China trade war
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: Lithium Minerals at Separation Rapids
Clear Crystalline Petalite above; 12 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 13: Lithium is not just a battery material: also critical for high strength glass-ceramic products
13 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 (di
Slide 14: 2018 Updated PEA Highlights
14 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 15: Separation Rapids Lithium Deposit Mineral Resources Estimate (May 22, 2018)
15 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 16: Separation Rapids Next Steps: Moving toward Phase 1 Production Facility
16 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 17: Battery materials supply chains in Ontario
17 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 18: Rare earths are found everywhere - from your smartphone to motor vehicle
18 Rare earths are found everywhere - from your smartphone to motor vehicle
Slide 19: Rare Earths Markets: What has changed since 2013?
19 Rare Earths Markets: What has changed since 2013? › Escalating demand for neodymium and praseodymium for use in high strength magnets - vital for electric motors in EV’s plus wind power, electronics and defense technology › Rising prices of neodymium and praseodymium › Limited supply sources outs
Slide 20: Closed Mine Sites offer new Critical Minerals Opportunities
Field of Sunflowers on the 20 Glencore Sudbury tailings Closed Mine Sites offer new Critical Minerals Opportunities › Many historical mining operations were developed to produce one bulk commodity such as copper, but the resource contained critical minerals that were discarded as waste (as there was
Slide 21: Lilypad Cesium-Tantalum-Lithium Property
Lilypad Cesium-Tantalum-Lithium Property
Slide 22: Cesium: another high tech material with very limited supply
22 Cesium: another high tech material with very limited supply › Tech applications include: Atomic clocks and GPS, Catalyst in plastics, Speciality glasses, Ion-propulsion motors, High density alkaline batteries, Coatings for solar cells, Pharmaceuticals › ~ 75% of cesium production is used to make
Slide 23: History & Recent Project Work
23 History & Recent Project Work › Cesium-rich Pollucite Dyke first drilled in 2001 › Preliminary historic resource estimated in 2001 to contain roughly 340,000 tonnes grading 2.294% Cs2O and 0.037% Ta2O5* based on 9 holes drilled to a maximum vertical depth of 250 metres. • Open to depth and along
Slide 24: Lithogeochemical Survey
Lithogeochemical Survey Rock units adjacent to the pegmatites are highly anomalous in cesium over a broad area suggestive of a large source North Anomaly Pollucite Dyke Cs in bedrock >50ppm Rubellite Dyke 25->50ppm 10-25ppm <10ppm 500 m
Slide 25: Lilypad Pollucite Dyke
Lilypad Pollucite Dyke › 340,000 tonnes @ 2.294% Cs2O and 0.037% Ta2O5 delineated in 2001-2003 drilling programs* › Cesium grades increase with depth, open at 300m below surface › “Western extension” new, undrilled zone of dykes 200m to southwest with two grab samples containing 4.62% and 2.11% Cs2O
Slide 26: Planned 2021 Work Program
October 2020 field program to collect samples Planned 2021 Work Program › Continue process testwork on 250 kg bulk sample collected in 2020, including Selfrag electric pulse disaggregation and sensor-based ore-sorting technologies › Block modelling of the resource delineated in the 2001 drilling pro
Slide 27: Nechalacho Rare Earths Property Regional Infrastructure
27 Nechalacho Rare Earths Property Regional Infrastructure Snare ] Hydro Dam Whati Proposed N Behchoko Bluefish ] Hydro Dam National Park Lutsel K’e Yellowknife Great Thor Lake Slave (Nechalacho Mine and Concentrator) Lake Fort Resolution Hay River/ Potential K’atl’odeeche Pine Point Hydro Line ] Ta
Slide 28: Nechalacho 2013 Feasibility Study Basal Zone Development Concept
28 Nechalacho 2013 Feasibility Study Basal Zone Development Concept › Mining underground drift and fill/long- › Planned initial production of 7,000 tpy hole stoping at 2,000 tpd, or 730,000 separated REE oxides plus EZC (with Nb, Ta, HREE) tonnes per year (tpy) › CAPEX: › Flotation process to produc
Slide 29: Measured and Indicated Resources in the Basal Zone at Various NMR Cut-offs (August 2013)
29 Measured and Indicated Resources in the Basal Zone at Various NMR Cut-offs (August 2013) Tonnes % % % HREO/ % % % Basal Zone (millions) TREO HREO TREO ZrO2 Nb₂O₅ Ta₂O₅ US$345 NMR Cut-Off (Reflects entire Basal Zone) Measured 12.56 1.71 0.38 22.50 3.20 0.405 0.0404 Indicated 49.33 1.62 0.35 21.27
Slide 30: Co-ownership agreement with Cheetah Resources
30 Co-ownership agreement with Cheetah Resources › Avalon and Cheetah Resources Pty Ltd. signed a purchase and sale agreement in June 2019 under which Cheetah acquired ownership of the near surface T-Zone and Tardiff Zone resources for C$5 million cash and Avalon retains its 3% NSR type royalty (sub
Slide 31: The Nechalacho Property hosts multiple polymetallic deposits
31 The Nechalacho Property hosts multiple polymetallic deposits For illustrative purposes only. Not to scale.
Slide 32: Experienced Management Team and Diversified Board of Directors
32 Experienced Management Team and Diversified Board of Directors MANAGEMENT & SENIOR STAFF › Chris Pedersen, P.Geo. › Jim Andersen, CA, CPA Senior Project Geologist V.P. Finance, CFO & Corporate Secretary › Zeeshan Syed, M.Sc. › Donald S. Bubar, P.Geo. Senior Advisor, Government Affairs President &
Slide 33: 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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