East Kemptville

Location

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Yarmouth
Nova Scotia

Project Phase

Exploration

Metals

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Tin, Indium

Location, Ownership and Access

The 100% owned East Kemptville Tin-Indium Project is located approximately 45 km northeast of Yarmouth, Nova Scotia in the vicinity of the former East Kemptville Tin Mine.

The property consists of 4 contiguous exploration licenses and a Special License covering an aggregate of over 10,000 ac (4,000 ha) and 880 ac (356 ha) respectively and is easily accessible by a secondary highway. The Special License requires Avalon to secure permission from current landowners to access the closed East Kemptville mine site.

Project Timeline and Future Plans

In May 2014, Avalon entered into an agreement with the surface rights holder to secure access to lands held under the Special Licence for a limited drilling program, to confirm historic estimates of tin-copper-zinc resources remaining in the ground after production ceased at the East Kemptville mine in 1992, and bring them into compliance with NI 43-101 for reporting purposes. 

Avalon completed a seven hole confirmation drilling program in September 2014. The estimated Indicated Mineral Resources are 18.47 million tonnes averaging 0.176% tin, 0.173% zinc and 0.064% copper and the estimated Inferred Mineral Resources are 16.95 million tonnes averaging 0.148% tin, 0.122% zinc and 0.062% copper at a 0.10% tin cut-off grade, as more fully detailed in the table below.

In February 2015, Avalon announced the completion of a Conceptual Redevelopment Study, including preliminary economics, prepared by Don Hains Engineering Company Ltd. The purpose of the study was to confirm the business case for redevelopment of the deposit before securing the necessary approvals to proceed with physical work at the site. The results of the study indicate that there is potential for attractive economics under the development model proposed by Hains. See Avalon's news release dated February 25, 2015 for further information.  

Note: the  Conceptual Economic Study is preliminary in nature and includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves. There is no certainty that the preliminary economics indicated in the Study will be realized.

A second drilling program conducted in 2015 had the objective of upgrading inferred mineral resources in the Main and Baby Zones into the indicated and measured categories, as well as testing other known tin occurrences in the area. 22 drill holes totalling 4,514 metres were completed during the 2015 drilling program, on the Main, Baby and Duck Pond Zones with initial assay results from the Baby Zone holes released on November 3, 2015. Results were in line with expectations and confirm continuity of the mineralized zone to depth. Highlights include intersections of 0.46% tin (Sn), 25.2 ppm indium (In) and 0.63% zinc (Zn) over 82.3 metres (EKAV-15-10), 0.23% Sn, 15.6 ppm In and 0.33% Zn over 36.25 metres (EKAV-15-09) and 0.25% Sn, 29.4 ppm In and 0.64% Zn over 18.67 metres (EKAV-15-11). 

Current project work is focused on evaluating the economics of a small scale development scenario involving the processing of low grade stockpiles for the recovery of a tin concentrate through a small, modular designed gravity process plant. Further testwork on a simple gravity only circuit has been completed using stockpiled samples and produced higher than targeted concentrate grades. Further work is now planned to maximize recovery.

 

Mineral Resources, East Kemptville Main and Baby Zones

Classification
 
Sn Cut-off Grade
 
Tonnes (mT)
 
Sn %
 
Zn %
 
Cu %
 
IN SITU
INDICATED
>=   0.05
46.07
0.104
0.132
0.051
>=   0.10
18.47
0.176
0.173
0.064
>=   0.15
6.83
0.239
0.204
0.077
>=   0.20
3.16
0.337
0.268
0.093
>=   0.25
2.93
0.344
0.275
0.092
 
IN SITU
INFERRED
>=   0.05
34.29
0.102
0.104
0.052
>=   0.10
16.95
0.148
0.122
0.062
>=   0.15
2.66
0.203
0.130
0.075
>=   0.20
0.82
0.311
0.138
0.120
>=   0.25
0.58
0.342
0.171
0.117

The mineral resource estimate for the East Kemptville Project (October 2014) was prepared by Hains Engineering with its principal, Donald Hains (P. Geo), serving as the independent Qualified Person (“QP”) for the purpose of NI 43-101. The overall direction for the technical work program was provided by the Company's Vice-President, Exploration, William Mercer, Ph.D., P. Geo. (Nova Scotia).

Notes:

  1. CIM definitions were followed for Mineral Resources.
  2. The Independent Qualified Person for this Mineral Resource estimate is Donald Hains, P. Geo.
  3. The resource estimate is based on 275 drill holes totalling 29,587 metres drilled between 1979 and 1991 by previous operators and 7 holes totalling 984 metres drilled by Avalon in 2014.
  4. Drill data was organised in Maxwell DataShed and for estimation purposes was transferred to MineSight 3D software, wherein the block model was developed.
  5. Resources were estimated by interpolating composites within a block model of 5x5x3 m blocks. Interpolation used the inverse distance squared method with localization of higher grades.
  6. Indicated material was defined as blocks with an average distance to interpolated composites of ≤ 50 m while inferred material was defined as blocks with an average distance to interpolated composites of ≤ 75 m, thus limiting the depth of the resource to 75 m below drill holes.
  7. Three metre composites were capped at 1% Sn, 1% Zn, and 0.5% Cu which are the 99th percentiles of assay data for those elements, reducing contained tin by about 1% compared to uncapped resource.
  8. The median density of available data of 2.78 t/m3 was used for all mineralized material.
  9. Several possible cut-off grades are reported in this resource estimate. Based on past mining practice at East Kemptville a cut-off grade of 0.1% Sn is reasonable. However, no value or cost estimates are available at this time.
  10. Mineral resources do not have demonstrated economic viability and their value may be materially affected by environmental, permitting, legal, title, socio-political, marketing, or other issues.

 

Environment and Permitting

Avalon initiated the permitting and environmental assessment process for the proposed redevelopment of the East Kemptville site in June 2015, when a multi-ministry meeting with provincial and federal regulators was held in Halifax.

This meeting included an overview of work completed to date; the proposed project development; planned short term activities; and a review of regulatory requirements. Avalon has selected a Nova Scotia-based consultant experienced in mine development and approvals to assist the company in the preparation of a comprehensive Environmental and Social Impact Assessment (ESIA). 

The ESIA will be integrated into the redevelopment plan to mitigate potential impacts, meet or exceed all regulatory requirements, address concerns about site development and guide the development of the site to ensure environmental best practices are employed. 

In addition, Avalon has had early discussions with the local Acadia First Nation about the Project and contracted a business owned by band members to manufacture and supply core boxes for the 2015 drilling program. Avalon is committed to maximizing employment opportunities for Nova Scotia residents. 

 

Ore samples at East Kemptville

Ore is displayed at Avalon’s East Kemptville Tin-Indium property.

 

Further Information

East Kemptville Project fact sheet