Avalon sees delays at Nechalacho rare earth project
TORONTO (Reuters) - Avalon Rare Metals Inc said on Monday it expects delays in a feasibility study on its flagship Nechalacho rare earth project in Canada's Northwest Territories, as it needs more time to complete metallurgical studies.
Toronto-based Avalon said the feasibility study on the asset will not be completed until the second quarter of calendar 2013. It had originally expected the study to be complete before the end of 2012.
The delay will also push back initial production from the site to late 2016, the company said. It had earlier forecast initial production would begin in late 2015. A detailed production schedule will not be available until the feasibility study is complete.
The company said it currently has $48 million in cash which is sufficient to complete the feasibility study and cover overhead expenses.
(Reporting By Euan Rocha; editing by Jim Marshall)
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