Avalon picks up pegmatite property

ronto-based Avalon Ventures (AVL-V) has concluded an agreement with two prospectors, giving it the option to acquire a property near Separation Rapids, 60 km north of Kenora, Ont.

veral pegmatite-hosted rare earth showings were discovered on the property this past summer by an Ontario Geological Survey field party. The occurrences are in the English River gneiss belt, which also hosts the Bernic Lake tantalum-lithium mine, held by privately owned Tantalum.

Pegmatite intrusions can contain tantalum and niobium, both of which are used in steel alloys, as well as the light metals lithium, beryllium, cesium and rubidium, which are used in the electronic, pharmaceutical and chemical industries. The largest of the pegmatites has a known strike length of 1 km and averages 30 metres wide at surface. Grab samples from pegmatites on the property have graded 1-2.96% Li2O, up to 0.56% rubidium and 0.08% Ta2O5. (The average grades at Bernic Lake are 0.12% Ta2O5. and 2.71% Li2O.) Under the agreement, Avalon will pay $100,000 cash and issue 200,000 shares; it is also committed to spending $600,000 on exploration over four years, including a minimum of $50,000 in the first year. The vendors will retain a 2% net smelter return royalty.

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