Avalon Rare Metals Inc. (TSX:AVL,NYSEMKT:AVL) released a report on the progress it’s made at its Northwest Territories-based Nechalacho rare earth elements project, noting that an updated feasibility study is being prepared.

As quoted in the press release:

Completion of [the feasibility study] awaits a decision on a location for the hydrometallurgical plant and revised cost estimates for this facility. The only significant technical work remaining is to carry out a pilot plant trial of the new hydrometallurgical process flowsheet to finalize engineering and plant design criteria. A bulk sample of Basal Zone material required for this work has been recovered and the trial will proceed once arrangements with a suitable facility are confirmed and the funding required (in the order of $4 million) is in place.
Efforts to arrange Project financing and product off-take agreements continue along with Project implementation planning and permitting. Depressed commodity prices generally and reduced demand for rare earths in particular, have made accessing capital for large scale resource development projects like Nechalacho very challenging in recent months. However, the Company remains optimistic that rare earth demand will recover sufficiently in 2015 to attract Project financing and allow construction work to begin by next summer.

Click here to read the full Avalon Rare Metals Inc. (TSX:AVL,NYSEMKT:AVL) press release.