Avalon Advanced Materials: A 28% Resource Boost for Ontario's Lithium Market

Avalon Advanced Materials Inc. (TSX: AVL, OTCQB: AVLNF) has announced a significant increase in Measured and Indicated Mineral Resources at its JV Separation Rapids Project in Ontario, Canada. The updated Mineral Resource Estimate (MRE), released on August 10, 2023, shows a 28% increase in Measured and Indicated Mineral Resources, totaling 10.08 million tonnes (Mt) averaging 1.35% lithium oxide (Li2O). This growth is a testament to the company's commitment to exploring and developing its lithium resources, further strengthening its position in the critical minerals market.

The updated MRE, prepared by SLR Consulting (Canada) Ltd., is based on 98 surface diamond drill holes for a total of 17,444m of drilling, including 13 new surface diamond drill holes totaling 4,128.3m drilled since the 2018 resource estimate. This increased drilling activity has provided more data points, allowing for a more comprehensive understanding of the deposit and its potential. The new MRE reports 10.08 Mt averaging 1.35% Li2O in Measured and Indicated resources, a 20% increase compared to previous results, and 2.81 Mt averaging 1.38% Li2O in the Inferred category, a 57% increase in size as compared to 2018 results.

This resource growth aligns with Avalon's strategic objectives for the project, as it aims to define the total scope of the resource at Separation Rapids and upgrade Inferred resources to Indicated status. The company is actively exploring the deposit to identify additional resources, as indicated by the exploration potential mentioned in the MRE. This exploration potential suggests that there may be additional resources that could be delineated with further exploration, potentially increasing the Li2O content by 30,000 to 80,000 tonnes.

The resource growth at the Separation Rapids project significantly enhances the project's potential to supply both the glass-ceramics and lithium battery markets, as per Avalon's dual-market strategy. The increased resource size and grade confirm the deposit's ability to deliver sufficient volumes of commercial-grade feedstock for both markets. The exploration potential further bolsters the project's potential to supply both markets, ensuring that the project can meet the demands of both markets and contribute to Avalon's broader efforts to build a vertically integrated lithium supply chain.

In conclusion, Avalon Advanced Materials' 28% increase in Measured and Indicated Mineral Resources at the Separation Rapids Project is a significant milestone for the company and the Ontario lithium market. This growth, supported by increased drilling and improved resource classification, strengthens Avalon's long-term production plans and financial projections. The resource growth also aligns with Avalon's strategic objectives for the project and enhances the project's potential to supply both the glass-ceramics and lithium battery markets. As Avalon continues to advance lithium mineral resource development activities at the Separation Rapids Lithium Project, investors can expect to see further progress in the company's efforts to build a vertically integrated lithium supply chain serving the Ontario and North American EV battery market, as well as the glass-ceramics market.