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

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Table 18-8 Mine Ventilation Quantity at 1,000 TPD Avalon Rare Metals Inc. – Thor Lake Project Units CFM Total CFM Usage CFM LHD- Development 6 m 3 2 18,000 36,000 0.6 21,600 LHD- Production 6 m 3 2 18,000 36,000 0.6 21,600 Jumbo 2 boom 2 7,000 14,000 0.5 7,000 Bolting Jumbo 1 7,000 7,000 0.6 4,200 Haul Trucks 30 to 40 t 3 25,000 75,000 0.5 37,500 Long Hole Drill 0 7,000 - 0.2 - Scissor Lift 2 7,000 14,000 0.5 7,000 Grader 1 7,000 7,000 0.5 3,500 Utility Truck 2 7,000 14,000 0.5 7,000 ANFO Loader 1 7,000 7,000 0.5 3,500 Man Carrier 2 5,000 10,000 0.5 5,000 Mechanic's Vehicle 1 5,000 5,000 0.5 2,500 Electrician’s Vehicle 1 5,000 5,000 0.5 2,500 Service Truck 1 5,000 5,000 0.5 2,500 Crusher/Conveyor Service 1 5,000 5,000 0.5 2,500 Light Vehicles 6 4,000 24,000 0.5 12,000 Tractor/Back Hoe 1 5,000 5,000 0.5 2,500 Bobcat 1 5,000 5,000 0.5 2,500 Tool Handler 1 7,000 7,000 0.5 3,500 Portable Compressors 3 3,000 9,000 0.5 4,500 Air Drills/Stopers Lot Total 290,000 152,900 Losses 0.2 30,580 Requirement 183,480 Rounded To 200,000 Mine ventilation air will enter the fresh air raise and be pushed to the lower levels of the mine where it will be split to feed the production levels and the crushing plant. The air flow will be regulated to provide appropriate ventilation airflows to the working areas. The exhaust air will recombine in the access decline and be exhausted to surface. At this time it has been assumed that the presence of radon and thoron gas from the rock will not be an issue and will be appropriately diluted and exhausted with the mine air. Procedures Technical Report 43-101 – March 13, 2011 Page 18-23 Prepared by Avalon Rare Metals Inc.
for closing unused areas and for checking areas prior to reopening unventilated areas will be established to ensure that areas are suitably ventilated and that there are no noxious gases present before work commences in a new area or an area which has been closed for some time. MINE AIR HEATING In light of the sub-zero temperatures and the need to maintain the mine in an unfrozen state to prevent freezing of water lines and or ground water the mine air will be heated using direct fired mine air heaters located at the mine air intake. The mine air heaters will be approved units with appropriate controls and automated shut down and alarms in the event of no flame or excessive carbon monoxide. Based upon the air flow of 200,000 cfm and heating of mine air to 35°F and the average annual temperatures for Yellowknife the mine air heater will operate from late October to late April in each year. The estimated propane consumption in this period is 1.5 million litres. Mine Fan Horse Power Scott Wilson RPA has estimated the mine resistance based using a friction factor “k” of 100 based on estimates from literature. The mine resistance in inches WG is then The estimated headings were 800 ft of 12’ by 12’ intake raise and 6,000 ft of 16’ by 16’ drift between the base of the raise and the exhaust generate a head loss of 2.76” WG at a flow rate of 200,000 cfm. The air horsepower is then estimated as flow times the head loss divided by 6,350. At 200,000 cfm and 2,76” WG head loss the air horse power is estimated to be 86 hp. Scott Wilson RPA estimates that a 100 HP main fan will provide the desired 200,000 cfm of ventilation air flow. Ventilation at 2,000 tpd Mining Rate With the planned production rate increase to 2,000 tpd after year three there will be an increase in the underground mine operating fleet and accordingly an increase in the mine ventilation requirements. Scott Wilson RPA estimates that the required air flow will increase to 300,000 cfm as shown in Table 18-9. Technical Report 43-101 – March 13, 2011 Page 18-24 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
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Tb and Dy) were routinely monitored
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As part of the QA/QC program, Avalo
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Table 14-4: Comparison of Niobium,
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shows more deviation, with ALS MS81
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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 and 128: Table 18-2 Development Tonnage Brea
Page 129 and 130: Until the crusher is in place and t
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: VENTILATION The mine ventilation is
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
Page 179 and 180: • Together with the unloading log
Page 181 and 182: it will be necessary to upgrade the
Page 183 and 184: Table 18-16 Hydrometallurgical Plan
Page 185 and 186: Table 18-17 Surface Mobile Equipmen
Page 187 and 188: 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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