Location and Ownership
The 100% owned Thor Lake Rare Metals Project is located in the Mackenzie Mining District of the Northwest Territories, about 5 kilometres ("km") north of the Hearne Channel of Great Slave Lake and approximately 100 km southeast of the City of Yellowknife. The property is directly accessible from Yellowknife by float or ski-equipped aircraft.
Topography is typical of the Canadian Shield, gently rolling with abundant bedrock exposure with glacial till cover, numerous shallow lakes. Vegetation is dominated by spruce and poplar which do not grow to a size to be harvested economically. Climate is characterized by long, cold winters extending from October through April, and short, pleasant summers. It is a semi-arid with low annual precipitation levels.
The Thor Lake property is comprised of five contiguous mining leases totalling 10,449 acres (4,249 hectares ("ha")). The mining leases have a 21-year life and each lease is renewable in 21-year increments. The property is subject to two underlying royalty agreements, entitling the royalty holders to a cumulative 5.5% Net Smelter Returns Royalty.
The property is situated in an area known as the Akaitcho Territory which is subject to a comprehensive land claim negotiation between four communities of the Dene First Nations and the federal government. At the present time, there is an interim measures agreement in place and under this agreement an interim land withdrawal was implemented in 2007, precluding new mineral title from being granted by the Crown in the Akaitcho territory for a period of up to five years while a land-use planning process is completed. The rights of existing mineral rights holders in the area are unaffected and Avalon is actively consulting with the four Akaitcho Dene Nations with a view toward implementing a co-operative development approach for the Thor Lake Project.
