TORONTO, ONTARIO--(Marketwire - Oct. 19, 2007) - Avalon Ventures Ltd. (TSX VENTURE:AVL) (the "Company") is pleased to announce that processing of the 1000 tonne bulk sample of calcium feldspar (anorthosite) ore collected last winter from the Warren Township Anorthosite Project has been completed and a 460 ton product sample has been delivered to the customer, a major North American glass manufacturer. The material will now be used in a furnace trial to evaluate its performance as an alternative raw material for certain fiberglass applications offering potential product quality, cost and environmental benefits including reduction of furnace greenhouse gas emissions. The project is located approximately 100 km west of Timmins, ON and is 100% owned by the Company.
The Company released its final railcar of ground product to the customer on October 15, 2007. The furnace trial is scheduled to commence on October 25, 2007 and run for a period 24 days, after which results will be evaluated to determine if the anticipated cost benefits were achieved. If the results are positive then a supply contract would be negotiated. Full analysis of the results of the trial and long term supply decisions from the Customer are not expected until early 2008.
The bulk sample program involved shipping of crushed ore to a toll processing facility in southern Alberta, where it was dry milled and magnetically-treated for removal of contained ferro-magnesium minerals. Frequent equipment breakdowns at the process facility delayed production and resulted in significant cost overruns. Total program costs net of recoveries from the customer are now estimated at approximately $850,000.
In anticipation of a successful result to the trial, the Company has submitted its application for a production permit under the Aggregate Resources Act of Ontario and continues with its on-going environmental assessment and community consultation work which are integral to the Company's business practice. The permitting work is being carried out by Fudge & Associates of North Bay, Ontario. If the Company enters into a supply contract with the customer, then construction of a small quarrying operation and process plant would begin in 2008, once project financing is in place. Preliminary estimates indicate capital costs of less than $10 million to build a facility with a production capability of 100,000 tonnes per year.
Commented Company President Don Bubar "This project has demonstrated Avalon's growing capacity to scope, project manage and deliver product. This builds on our strategy to supply a wide range of products offering environmental benefits either directly, as in this application, or indirectly by being used in alternative energy and other "green technology" applications."
Overall project supervision was provided by Don Hains, P.Geo., Hains Technology Associates, under the direction of the Company's Vice-President, Corporate Development, Ian London, P.Eng.
About Avalon Ventures Ltd.
Avalon Ventures Ltd. (TSX VENTURE:AVL) is a Canadian junior mineral exploration and development company, with a primary focus on rare metals and minerals with high technology applications or offering environmental benefits. Avalon currently holds a portfolio of five such projects, including three that are at, or close to, the feasibility stage. The Company operates with high standards for environmental protection and community engagement that meet or exceed current industry norms.
To find out more about Avalon Ventures Ltd. (TSX VENTURE:AVL), please visit our website at www.avalonventures.com. Shares Outstanding as at the date of this release: 52,518,623. Cash resources: $1.3 million. This news release is available on the Company's official on-line investor relations site for investor commentary, feedback and questions. Investors are invited to visit the "Avalon Ventures" IR Hub at http://www.agoracom.com/ir/avalon. In addition, investors are invited to e-mail their questions and correspondence to AVL@agoracom.com or phone Don Bubar, P.Geo., President, at 416-364-4938. Mr. Bubar is the Qualified Person responsible for the technical content of this news release.
The language used in this News Release may contain forward-looking statements that may involve a number of risks and uncertainties. Actual events or results could differ materially from the Company's forward-looking statements and expectations.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release.
