SOMBA K'E/YELLOWKNIFE - On the heels of its entry into a new phase of development, Avalon Rare Metals has stepped up efforts to spread the word about its Thor Lake rare earth elements deposit with recent visits to Yellowknife, Lutsel K'e and Hay River.

Don Bubar, president of Avalon Rare Metals, looks over some rare earth element core samples at the company's Thor Lake deposit, located 100 km southeast of Yellowknife. - Guy Quenneville/NNSL photo

The Toronto-based junior exploration company has selected a company to conduct the pre-feasibility for the project, located 100 km southeast of Yellowknife. The report will outline the rate, method, length and cost of producing the elements, which serve as crucial components in items as varied as IPods and air conditioners.

"The next step after we disclose the results of the pre-feasibility is to use that to access additional capital to fund the feasibility study," said president Don Bubar.

Last week, Bubar and Bill Mercer, vice-president of exploration for the company, visited Yellowknife to give an investor presentation on Thor Lake to members of the Yellowknife Chamber of Commerce.

They followed that up with a talk at the Dene National Assembly, where Mercer also spoke to several community members aged 13 to 21 about the types of careers that exploration and mining bring with them.

At the assembly, Dettah Chief Ed Sangris brought up a recurring concern about the unkempt promises made by companies wanting to work on First Nations land.

"There's no doubting that companies have made a number of mistakes in the past," said Bubar. "But part of the reason we're here is to talk face-to-face and address those problems."

Following the assembly, Bubar and Mercer stopped in Hay River to speak with Mayor Jean-Marc Miltenberger, K'atlodeeche First Nation Chief Roy Fabian, Hay River Chamber of Commerce president Leah Miltenberger and several local businesses, including NTCL and Midnight Petroleum, to discuss the possibility of locating the mine's process plant in Hay River. The meeting was instigated by the Hay River parties.

No similar meeting has yet been scheduled by potential stakeholders in Yellowknife, which is also a candidate for the plant, said David Connelly, a spokesperson for Avalon.

When speaking to a Yellowknife-based audience, "they always want to know what the potential impacts and benefits are for the local communities," said Bubar.

The Thor Lake project, which will require an operational staff of 2,000 people, could begin production in 2013 or 2014, said Bubar.

Lou Covello, president of the NWT & Nunavut Chamber of Mines, recently said Thor Lake could have a mine life as long as 100 years - a contention that is supported by Bubar, who added Thor Lake would not operate at an annual production rate anywhere near the Yellowknife diamond mines, which is what would allow it to sustain its operations over decades.

"With commodities like these that have smaller markets, you don't size the project based on the parameters of the resource," said Bubar, "you size it based on the size and the market for the products so you don't overwhelm the markets by building it."

The market for rare earth elements is different in that it has to be cultivated over time, he added.

"That's why I think you can say with some confidence that this thing will go for decades and who knows maybe it is 100 years because the markets will grow and there's no limit to the resource there yet," he said.