Avalon Advanced Materials Inc. has completed an updated mineral resource estimate for the Basal Zone at its Nechalacho project in the Northwest Territories. The updated estimate, prepared under Subpart 1300 of Regulation S-K, reports 58.6 million tonnes of Measured and Indicated resources grading 1.49% total rare earth oxides (TREO), alongside 130.6 million tonnes of Inferred resources at a 1.31% TREO grade.

The estimate reflects a technical and economic refresh, applying current parameters and a net metal revenue cut-off of US$366.40 per tonne to determine the material with reasonable prospects for economic extraction. The company noted that neodymium, praseodymium, dysprosium, and terbium represent approximately 88% of the estimated in-situ rare earth oxide value.

“At a time when governments and industry are increasingly focused on establishing secure Western supply chains for critical minerals, Nechalacho represents a unique opportunity: a large, extensively studied Canadian resource containing meaningful concentrations across a broad range of commercially important rare earth elements. Our objective now is to build on that foundation and evaluate a development pathway capable of translating this strategic resource into a commercially viable and financeable project.”

— Scott Monteith, President and Chief Executive Officer

The current resource model relies on a database of 582 drill holes totaling approximately 120,000 meters.

“From a technical perspective, the updated MRE is supported by an unusually extensive body of work for a project at this stage of development - reflecting approximately C$70 million in drilling and metallurgical work performed in support of the 2013 DFS and select additional drilling performed after that study's release.”

— Burl Joseph, Project Director, Nechalacho

Avalon is currently advancing a preliminary economic analysis for Nechalacho, which is expected to be completed in the fourth quarter of 2026. Looking ahead, the company also expects to finalize an agreement with a processing partner in the coming quarters to process one ton of material, providing samples intended to support offtake and investment discussions.

Read the full announcement: Avalon Announces Updated Mineral Resource Estimate for Nechalacho Basal Zone, Revalidating Scale and Economic Development Potential of a Large, North American Source of Light and Heavy Rare Earth Elements