technical report on the nechalacho deposit, thor lake project ...

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15 m width over the length of the stope as will the undercut. The intervening ore from 6 to 20 m in thickness will be recovered by long hole stoping. After development the ore will be drilled with upholes and after extraction of a slot raise the ore will be blasted and extracted at the lower level using remote controlled LHD’s for mucking. Vertical long holes will be used to provide competent walls of what will be the secondary stope. If the height of the deposit exceeds 30 m the long hole stopes will be developed to be taken in lifts not exceeding 30 m from sill to hanging wall. Secondary stopes will be mined after the adjoining primary stopes have been filled. The secondary stopes will be developed with a 5 to 6 m wide drift down the center of the stope. The balance of the secondary stope will be ring drilled to the paste fill boundaries. Ore will be mucked remotely. The design of the secondary stopes includes a 1 m thick skin to be left between the secondary stope and the backfill in the adjacent stope(s). Blast hole layouts will be designed to leave this skin though in reality some parts of the skin are expected to be broken and taken with the ore. The skins are left to reduce the potential dilution from back fill material. Grade Control Grade control will be achieved with a combination of visual analysis and a handheld analyzer. The Nechalacho deposit Basal Zone has a distinct footwall contact which will make the bottom cut of each stope simple to follow by the miners. The grade control program will include daily face inspections and direction provided by trained geologists. The mine geologist will complete regular examinations of the working faces, which are planned to number about five at any one time. While mapping the faces, the mine geologist would use a handheld XRF analyzer, and the samples for analysis would be to check the mapping completed using the handheld instrument. Over the course of mine development there will be waste, low grade and ore grade material encountered and it will be necessary to stockpile the different materials separately as each will be handled in a separate manner in the future. Ore and Waste Haulage Ore will be hauled from the stope by LHD or by truck to the ore pass feeding the ROM bin located ahead of the crusher. Technical Report 43-101 – March 13, 2011 Page 18-13 Prepared by Avalon Rare Metals Inc.
Until the crusher is in place and the conveyor is in service all ore will be hauled to surface using low profile haul trucks. Development waste will also be hauled to surface in the same manner through this period. After the crusher and conveyor are in place the ore will be transported to surface by conveyor. Development waste will either be hauled to surface, crushed and conveyed to surface, or diverted to stopes for use as fill combined with the planned paste backfill. The annual haulage requirements are shown in Table 18-3. Table 18-3 Annual Haulage Distance and Tonnage Avalon Rare Metals Inc. – Thor Lake Project Tonnage One way haul ‘000 t Metres Year 1 335 403 Year 2 365 294 Year 3 419 388 Year 4 730 446 Year 5 730 368 Year 6 730 414 Year 7 730 391 Year 8 730 374 Year 9 730 412 Year 10 730 393 Year 11 730 356 Year 12 730 420 Year 13 730 300 Year 14 730 492 Year 15 730 417 Year 16 730 352 Year 17 730 412 Year 18 675 78 Total 12,014 375 Technical Report 43-101 – March 13, 2011 Page 18-14 Prepared by Avalon Rare Metals Inc.
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TECHNICAL REPORT ON THE NECHALACHO
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TABLE OF CONTENTS 1. SUMMARY ......
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QUALITY ASSURANCE / QUALITY CONTROL
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Warehouse..........................
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LIST OF TABLES Table 1-1 Summary of
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Table 18-9 Mine Ventilation Quantit
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Table 18-54 Table 18-55 Pine Point
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LIST OF APPENDICES APPENDIX A Block
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Table 1-1 Summary of Mineral Resour
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Royalties. The net revenue generate
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• The products will be shipped in
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• Income taxes and NWT mining roy
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2. INTRODUCTION This report
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Figure 2-2 Project Sites, Thor Lake
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Table 2-1 Rare Earth Element Data A
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LIST OF ABBREVIATIONS Units of meas
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4. PROPERTY DESCRIPTION AND LOCATIO
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The mining leases have a 21-year li
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5. ACCESSIBILITY, CLIMATE, LOCAL RE
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Fort Resolution is located on the s
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producing a tantalum concentrate, b
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Figure 7-2 Detailed Deposit Geology
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The nepheline-sodalite syenite host
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LATE TECTONIC FAULTS Faults are pre
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8. DEPOSIT TYPES The mineral deposi
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The Ore (Nechalacho) Nepheline Soda
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from section to section - this may
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Table 9-1 Average Percent of Ore Mi
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The Nechalacho deposit alteration s
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11. DRILLING Since 1977, diamond dr
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Foraco drill rig was added in Febru
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CORE LOGGING AND CORE RECOVERY The
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A high R 2 (and all regressions had
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12. SAMPLING METHOD AND APPROACH A
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such as Illimausaq in Greenland, a
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13. SAMPLE PREPARATION, ANALYSES AN
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limited set of elements; however, s
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CONCLUSIONS Avalon’s conclusions
Page 77 and 78: Tb and Dy) were routinely monitored
Page 79 and 80: As part of the QA/QC program, Avalo
Page 81 and 82: Table 14-4: Comparison of Niobium,
Page 83 and 84: shows more deviation, with ALS MS81
Page 85 and 86: 16. MINERAL PROCESSING AND METALLUR
Page 87 and 88: In a typical test, for example CCr-
Page 89 and 90: 17. MINERAL RESOURCE AND MINERAL RE
Page 91 and 92: 9. TREO equivalent is estimated by
Page 93 and 94: Table 17-4 Sample Information Avalo
Page 95 and 96: Figure 17-1 Distribution of REO Com
Page 97 and 98: Assay Statistics for Upper Zone* *
Page 99 and 100: CUT-OFF GRADE A previous public res
Page 101 and 102: underneath for SG measurement purpo
Page 103 and 104: Figure 17-4 Density Measurements AL
Page 105 and 106: was equal to 60 m by 60 m by 30 m a
Page 107 and 108: Table 17-12 Detailed Resource Break
Page 109 and 110: Table 17-13 Indicated Mineral Resou
Page 111 and 112: Figure 17-7 Outline of Area of Indi
Page 113 and 114: The recoveries estimated for the fl
Page 115 and 116: grades were based upon the grades w
Page 117 and 118: Figure 18-1 Thor Lake Site Layout T
Page 119 and 120: Scott Wilson RPA recommends the use
Page 121 and 122: During discussions with the mine de
Page 123 and 124: Figure 18-4 Mine Layout Some of the
Page 125 and 126: Figure 18-5 Mine Development Schema
Page 127: Table 18-2 Development Tonnage Brea
Page 131 and 132: Lateral Development The access decl
Page 133 and 134: Equipment will be selected based up
Page 135 and 136: Table 18-6 Estimated Electrical Loa
Page 137 and 138: VENTILATION The mine ventilation is
Page 139 and 140: for closing unused areas and for ch
Page 141 and 142: Mine Fan Horse Power Using the same
Page 143 and 144: Paste Fill System A paste fill syst
Page 145 and 146: Communications Mine communications
Page 147 and 148: completion of the 30 m to 50 m long
Page 149 and 150: HEALTH AND SAFETY All crew will be
Page 151 and 152: The crushing plant is designed for
Page 153 and 154: Table 18-12 (Cont’d) Principal Pr
Page 155 and 156: Figure 18-9 Hydrometallurgical Plan
Page 157 and 158: The Pine Point hydrometallurgical f
Page 159 and 160: Decant pipeworks have been included
Page 161 and 162: • Development of pre-feasibility
Page 163 and 164: Design Basis The pre-feasibility le
Page 165 and 166: non-woven geotextile) to prevent da
Page 167 and 168: divert surface drainage away from r
Page 169 and 170: A high pressure (200 psi) compresse
Page 171 and 172: Fuel deliveries are assumed to be s
Page 173 and 174: Mill Supplies The key mill supplies
Page 175 and 176: Table 18-15 Surface Equipment Fleet
Page 177 and 178: Figure 18-10 Thor Lake Temporary Ba
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• Together with the unloading log
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it will be necessary to upgrade the
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Table 18-16 Hydrometallurgical Plan
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Table 18-17 Surface Mobile Equipmen
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Rare Earth FOB China* FOB China** P
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• loparite and eudialyte in alkal
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Table 18-18 Rare Earth supply - 200
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Table 18-20 Rare Earth Demand by Ap
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Table 18-22 Proposed New REO Projec
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in China. On this basis, Avalon is
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Determine Prices for Avalon’s Pro
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The balance of niobium supply is co
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epresenting about 18% of total zirc
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Table 18-25 Historic Chinese Export
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Figure 18-16 Tantalum Markets - 200
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the price for tantalum chemicals in
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Surface Hydrology The Thor Lake dra
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seven) have occurred more frequentl
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elative to uranium, the overall eff
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interviews conducted for the nearby
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Wildlife Early science-based wildli
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Other environmental permits/approva
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TAXES The NWT diesel tax has been i
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Table 18-31 Mine Capital Cost Estim
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Table 18-33 Surface Infrastructure
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Table 18-36 Indirect Cost Estimate
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Table 18-37 Contingency Allowance A
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Operating Cost Exclusions The opera
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Table 18-40 Underground Mine Cost S
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Table 18-41 Mine Cost Details Avalo
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Thor Lake Surface The Thor Lake sur
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Table 18-45 Sales and Marketing Cos
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Table 18-47 Rail Car Load Limits Av
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there will be no overhauls in the i
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Other supplies and freight will be
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Table 18-55 Hydrometallurgical Plan
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Table 18-56 Cash Flow Summary Techn
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The sensitivity of the base case 8%
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19. INTERPRETATION AND CONCLUSIONS
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• The Mineral Reserves, which hav
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20. RECOMMENDATIONS The authors of
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21. REFERENCES BCC Research (2009):
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MDN Inc (2010): News Release Melvil
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Wardrop Engineering Inc. (2009): Th
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23. CERTIFICATES OF QUALIFIED PERSO
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CERTIFICATE OF QUALIFIED PERSON I,
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CERTIFICATE OF QUALIFIED PERSON I,
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Section 416000 Section 416100 Secti
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Technical Report 43-101 - March 13,
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