The Nechalacho Basal Zone is owned by Magmic Rare Earths, a dedicated subsidiary of Avalon Advanced Materials.

Nechalacho is a rare earth elements mineral deposit located on the Thor Lake property approx. 110km east of Yellowknife on the north shore of Great Slave Lake in the Northwest Territories, Canada. Magmic  intends to advance the Nechalacho Basal Project to a production underground mine.

The mine will produce ore containing 15 rare earth elements plus by-product metals. From our most recent updated MRE results:

- Light Rare Earth Elements (LREE): Lanthanum, Cerium, Praseodymium, Neodymium, Samarium
- Heavy Rare Earth Elements (HREE):, Europium, Gadolinium, Terbium, Dysprosium, Holmium, Erbium, Thulium, Ytterbium, Lutetium, Yttrium
- Transition metals: Zirconium, Niobium, Tantalum

2000 tonnes of ore per day (730,000 tonnes per year). REE are indispensable to the energy transition and advanced technologies, serving as critical inputs in high-performance permanent magnets used in EV motors, wind turbines, defense systems, and advanced electronics. Current global supply remains highly concentrated in China, creating persistent geopolitical and supply-risk concerns among Western governments.

Rare earths are important particularly heavy rare earths (Y, Eu, Gd, Tb, Dy) are essential for phosphors, high-strength permanent magnets, lasers, and specialized electronics with limited substitutes. China controls the vast majority of global rare earth processing and Western governments are actively working to develop non-Chinese sources to reduce supply chain vulnerability.

Project has completed a detailed $100M Feasibility Study in 2013. Currently Avalon is completing a PEA for an update to the project economics and update to the new processing technology. Project is at a Pre-Construction stage. Final details are being optimized such as updated processing and construction plans for site development are in underway and expected for completion late Fall 2027.

Creating long term jobs within the region and economic benefits regionally which will draw on various local businesses for support to deliver the project.  You can learn more about the economic benefits to the region here

The Nechalacho Basal Project is located in a remote area of the Northwest Territories, in a region with sensitive northern ecosystems, waterbodies, and traditional-use lands. Like any modern mining and processing project, our development considers a range of environmental factors, including:

- Water quality and management: protecting local surface water and groundwater around Long Lake, Thor Lake, and Great Slave Lake;
- Air quality: managing dust from mining and processing activities, and emissions from on-site power generation;
- Land use and habitat: minimizing surface disturbance and protecting wildlife habitat, particularly for species important to northern ecosystems;
- Tailings and waste management: safe long-term storage of process residues at both the mine site and the hydrometallurgical plant
- Traditional land use: respecting Indigenous harvesting rights, cultural sites, and traditional territoryReclamation and closure — planning from day one for progressive reclamation and eventual mine closure

We recognize that operating responsibly in the Northwest Territories requires thoughtful design, ongoing consultation, and transparent reporting.

Magmic's approach to environmental protection is built on three foundations: modern engineered design, continuous monitoring, and adaptive management.

Underground mining with paste backfill: The project will advance as an underground mining operation rather than open-pit methods, significantly reducing surface disturbance.

Cleaner processing methodology: Magmic is advancing a fundamentally cleaner rare earth extraction approach that uses supercritical carbon dioxide as the primary solvent, replacing much of the aggressive acid and organic solvent chemistry of conventional processing. The result is dramatically reduced hazardous waste, lower energy consumption, and a smaller environmental footprint per tonne of rare earth produced.

Engineered water management: Process water is recycled internally wherever possible, and any discharged water is treated to meet or exceed regulatory standards. Water treatment infrastructure is designed to protect Great Slave Lake and surrounding water bodies.

Purpose-built tailings facilities are to be engineered to modern standards, with independent geotechnical review, ongoing monitoring, and closure design built into the original construction.

Progressive reclamation: Reclamation begins during operations, not just at closure. Disturbed areas are restored progressively where possible, and a fully-funded closure plan is maintained throughout the mine life.

Assessment of electrification: As part of ongoing work, Magmic is evaluating electrification of underground operations to reduce greenhouse gas emissions from diesel-powered equipment.

Environmental compliance in the Northwest Territories operates under one of the most transparent regulatory frameworks in Canada. The public has multiple avenues to verify that Magmic is meeting its commitments:
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Robust regulatory oversight: The project operates under the authority of the Mackenzie Valley Land and Water Board (MVLWB), the Mackenzie Valley Environmental Impact Review Board (MVEIRB), and the Government of the Northwest Territories. Each of these bodies has independent authority to inspect, enforce, and — if necessary — take action to protect environmental values.
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Public regulatory records: All permits, water licenses, environmental assessment decisions, monitoring reports, and inspection findings are matters of public record filed with the MVLWB and MVEIRB. Anyone can search these records online, review submitted documentation, and see current compliance status.

Formal public consultation periods: Every permit application, renewal, and amendment includes statutory public comment windows. Community members, Indigenous rights-holders, non-governmental organizations, and other interested parties can submit input directly into the regulatory record.
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Ongoing Indigenous partnership: Magmic works in ongoing consultation with Akaitcho Dene First Nations, the Tłı̨chǫ First Nation, the Northwest Territory Métis Nation, and the North Slave Métis Alliance. Signed accommodation and participation agreements provide formal accountability channels between the project and Indigenous rights-holders.
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Independent monitoring: Environmental monitoring programs are subject to independent review and reporting. Results are shared with regulators and made available through the public regulatory record.
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Environmental assessment history: The Nechalacho Project received formal Environmental Assessment approval in November 2013 following a comprehensive multi-year review process, and continues to operate under updated permits and licenses that reflect current regulatory standards.

As part of the engagement plan, have and will continue to engage with Yellowknife Dene First Nation, Lutsel K’e Dene First Nation, Tlicho Government, North Slave Metis Alliance, NWT Metis Nation, Deninu Kue First Nation. We will further engage with City of Yellowknife, Town of Hay River and Blachford Lake Lodge. You can learn more about our commitment to working with Indigenous Peoples here.

The broader community will be engaged via a public consultation where the community can learn about the project and ask questions in an open forum. It will be planned to occurring in the near future (2027) as we progress the studies. You can learn more about the economic benefits to the region here

Magmic Rare Earths will be the primary contact for the Nechalacho Basal project.

Yes the Tardiff Zone at Nechalacho is owned by another company. There is a contractual agreement in place where it outlines how each company will operate on the project footprint. Additionally in the terms and conditions there are various items for both companies to abide by, such as, no company shall impede the development of each other.