FINLAND PROJECT

Southern Finland

The Kietyönmäki deposit was drilled by GTK in 1987-88. Seventeen (17) diamond drill holes, on 3 traverses, were completed on the Kietyönmäki Main Dyke (or “KMD”), a large spodumene-rich pegmatite dyke that can be traced for over 400m. GTK drilling defined the dyke along ~120 metres (“m”) of strike to a depth of 75m – but is still open to the south-east and north-west, with an average width of 12m, and still open at depth.  Assays from GTK, and follow-up check assays by Nortec have delivered results of up to 24m at 1.3% Li2O, including 11m at 2% Li2O. The best intersection was 3m at 4.35% Li2O The mineralisation at Kietyönmäki is considered good quality with low Fe and Mn; other lithium pegmatites have been mapped in a broad 1km area around the KMD that have yet to be drill evaluated.

Avalon Minerals Ltd has identified an exploration target of 8 – 15 Mt at 1.4 – 1.8% Li2O.

The potential quantity and grade is conceptual in nature. There has to date been insufficient exploration to estimate a Mineral Resource and it is uncertain if further exploration will result in the estimation of a Mineral Resource. The Exploration Target is comprised of:

  • 4 – 6Mt at the Main dyke drilled to a depth of 300m below surface, existing drilling has tested the dyke to 65m below surface;
  • 2 – 5Mt from outcropping and lithium bearing pegmatite dykes immediately south-west of the Main Dyke, where there has not been previous drilling;
  • 2 – 5Mt from lithium pegmatite dykes, partially drill tested, to the north-east of the Main Dyke;
  • 2 – 3Mt from mapped dykes within a 1km radius, and primarily along strike, of the Main dyke, where there has not been previous drilling.

During 2016 Avalon completed six diamond drill holes totaling 1,171.9 m confirming a high grade spodumene-bearing pegmatite dyke swarm.  Channel sampling has also been completed on 7 traverses – 3 over the main dyke and 4 over smaller dykes:

  • KMDD001 returned 24.2m at 1.4% Li2O, including 9m at 2.0% Li2O;
  • KMDD006 returned 5.0m at 1.0% Li2O;
  • Channel sampling returned 16.25m at 1.72% Li2

The results suggest continuation of a thickened pegmatite dyke to the southeast and this trend is expected to be tested with future drilling. There are several dykes with known lithium values that have not been explored to date and these will be targeted in future drilling programs.

Next steps:

Compilation of data at Kietyönmäki and planning Stage 2 work program.

During the 1990’s, the Geological Survey of Finland (GTK) drilled 39 holes at the Riukka prospect and 57 holes in the Satulinmäki prospect targeting geochemical anomalies with elevated gold. Nortec inspected 9 holes from Riukka and 6 from Satulinmäki from the GTK core library. The drill core was relogged to identify the styles and controls of gold mineralization. Samples were selected from 13 of the 15 holes logged for a total of 414 samples (141 samples from Riukka and 273 from Satulinmäki). Re-sampling by Nortec geologists of the core drilled by GTK on both Satulinmäki and Riukka gold zones returned significant gold values, including:

  • 37.7 metres @ 1.03 g/t Gold from 51 metres (hole 330), at the Satulinmäki Prospect,
  • 10.0 metres @ 2.47 g/t Gold from 20 metres (hole R356) and 2.50 metres @ 6.81 g/t Gold from 61.35 metres (hole R357) at the Riukka Prospect’

Historical assays by GTK included 22m @ 3.6g/t from 50 metres (hole 391) at Satulinmäki.

In 2016 Avalon completed diamond drilling totalling 1,401.6 metres at the Satulinmaki prospect and 546.6 metres at the Riukka prospect (results as presented in Avalon’s ASX announcement dated 14 November 2016).

Satulinmäki prospect

Historical diamond drilling by the Geological Survey of Finland (GTK) was undertaken from 2001 to 2005 and comprised 57 holes for 4727m. The GTK drilling did not explore below 70m. Within the main system, gold mineralisation has been identified as narrow high grade zones within quartz veins and breccias, and as wide low grade intervals within veined and altered rock. The gold system currently extends over an area of 350m x 400m and has only limited drilling below a depth of 80m. It is open in all directions. There is clear evidence of likely extensions to the northeast and southwest, and an historic working from the 1980’s was found in the southeast corner which has seen only one historic drill hole as follow-up.

Highlights include:

  • 7.0m at 1.2g/t gold from 9m in SMDD001
  • 10.0m at 1.1 g/t gold from 33m in SMDD001
  • 1.0m at 15.2g/t gold from 57m in SMDD001
  • 42.0m at 0.9 g/t gold from 112m in SMDD002
  • 2.0m at 2.1 g/t gold from 237m in SMDD003
  • 13.4m at 2.0 g/t gold from 15.6m in SMDD004
  • 0.8m at 3.5 g/t from 170.5m in SMDD004
  • 2.0m at 10.5 g/t gold from 7m in SMDD005
  • 147.0m at 0.8 g/t gold from 73m in SMDD007, including 23.5m at 3.3g/t from 143m, including 9.0m at 7.3 g/t from 147m

Next Steps:

A 3-D Induced Polarisation (“IP”) program is scheduled to commence with follow-up drilling proposed.

Earn-in terms

Avalon paid Nortec €20,000 and issued 1,000,000 Avalon shares upon the signing of the Heads of Agreement.  Through its subsidiary Scandian Metals, Avalon will fund exploration on the Tammela Project in two stages to earn an 80% interest.

Stage 1 comprises of an expenditure of €500,000 over a 24 month time period to earn a 51% Interest.  This was completed in 2016 with expenditures as of February 21, 2017 at €931,394

As of March 15, 2017 Avalon has elected to undertake Stage 2, payment of €200,000 has been received by Nortec leaving a commitment to complete an additional expenditure of EUR 1,000,000 over two years to earn another 29% for a total 80%.

Avalon and Nortec will form an 80:20 Joint Venture on completion of the Stage 2 program.