Thor Lake Introduction

The Nechalacho Rare Earth Element Project located at Thor Lake, Northwest Territories, is Avalon's 100% owned flagship project and is recognized internationally for its exceptional wealth of heavy rare earth elements.

As of June 2010, over C$20 million and 42,783 metres of drilling has been completed in exploring and developing the property, resulting in a project entering its prefeasibility stage with 14.48 million tonnes of Indicated Mineral Resources at 1.82% TREO. In addition, the project has estimated Inferred Mineral Resources of 175.5 million tonnes at 1.43% TREO. Avalon has taken a multi-dimensional approach in terms of the environment and working with local communities, and in 2010, Avalon received PDAC's 2010 Environmental and Social Responsibility Award. The Projects' description that follows is rather extensive and as such, the material is separated out in sections.

The most current information on the Project is provided first. The Work Programs from years 2005-2008 and corresponding assessments are contained within the section entitled Archives. The Archives also contain links to an array of detailed reports, assessments and filings related to the Project.

Nechalacho, formerly the Lake Zone Deposit

In a formal First Nations ceremony in September 2009, Avalon re-named the Lake Zone Rare Earth Elements Deposit to the Nechalacho Rare Earth Element Deposit. Held at the Thor Lake work camp, the new name was officially unveiled with a traditional Feed the Fire Ceremony, co-hosted by the Yellowknives Dene First Nation Chief Edward Sangris and Chief Ted Tsetta.

To the knowledge of Avalon, this naming ceremony represents the first time that a mineral exploration project has been given an Aboriginal name by a First Nation in this way. In effect, the First Nation is lending the name to the project for the life of its operation.

Nechalacho (‘Nay - Cha - La - Cho') or "a point where you can almost dock" is the traditional place name for the northeast shore of the Hearne Channel on the East Arm of Great Slave Lake, near the deposit location. It evokes a distinct sense of place to traditional land users who have been there for many generations. It is a rocky shoreline with steep cliffs that prevented boaters from pulling ashore during windy weather for which the area is known.

Definitions

The definitions that follow are acronyms used throughout the Thor Lake Project section. The list is to aid in reading and understanding the technical content of our website:

REE = rare earth elements, lanthanum to lutetium by atomic weight plus yttrium
LREE = light rare earth elements, lanthanum to samarium by atomic weight
HREE = heavy rare earth elements, europium to lutetium plus yttrium
TREO = rare earth elements, calculated as oxides, including lanthanum to lutetium plus yttrium
HREO = heavy rare earth elements, as per HREE above, calculated as oxides
LREO = light rare earth elements, as per LREE above, calculated as oxides