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

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The main mine dewatering pumps will be designed to operate on automatic controls. The low head pumps at the sump will operate on automatic controls such that high levels in the sump activate the operation of the pumps. BACKFILL In order to maximize the extraction of the higher grade resources in the basal unit the use of a fill based mining method is proposed. The selected fill should be competent to stand over a 20 to 30 m vertical height while the secondary stope is being extracted. The key alternatives for back fill are: • Crushed cemented waste rock • Cemented hydraulic fill • Paste fill Scott Wilson RPA considers paste fill to be the best alternative as the material is readily available, it reduces the tailings impoundment needs, suitable strength can generally be attained and there is no addition of water to be handled by the mine dewatering system. Distribution of the paste fill is proposed to be via pipeline installed in the main decline. This location while posing some clean up risk in the event of a broken line, has the advantage of being in a warmer environment and is more readily available for servicing. The paste plant would be installed as part of the process plant to allow operation as part of the mill operations. Satellite plant operation would involve operation of such a plant in a relatively hostile environment. It may be practical to delay the construction of the paste fill plant for one to two years, however at that time the paste fill plant will be required to operate on a continuous basis to fill the voids created by the primary stopes and allow mining of the secondary stopes to commence in a timely fashion. Scott Wilson RPA recommends that paste fill design work be included in the current testing to determine the suitability of the tailings and to estimate the quantity of paste fill which can be generated from the tailings stream. In the shallow sections of the deposit the use of waste fill to provide a mucking floor may be practical. The mine plan does include a large amount of waste development for the generation of waste rock for backfill. Technical Report 43-101 – March 13, 2011 Page 18-27 Prepared by Avalon Rare Metals Inc.
Paste Fill System A paste fill system is required to be in operation in the fifth year of operations. There has been no specific testing of the tailings material to assess its suitability for use in paste fill at this time. Scott Wilson RPA recommends that a specification for the paste fill be developed and as soon as tailings materials are available (from bulk tests or operations) a testing program should be undertaken. For this study Scott Wilson RPA has estimated that a cement addition of 4% will be required for the fill for the primary stopes. The same cement addition rate is planned for the secondary stopes to provide cement for the hydration of water so that water from backfill operations does not become an issue in the mine. There is not a large quantity of waste development forecast after the initial mine development but any waste from development will be used for filling secondary stopes. The annual cement requirement commencing year five of operations is then 36,500 tonnes or 1,825 containers with bulk bags of cement powder. The mill expansion includes a paste fill thickener in the mill. This will be supplemented with a filter system, mixing system and a concrete pumping and distribution system. Scott Wilson RPA has included consideration of the use of foaming agents in the paste fill mix to reduce the density slightly and to generate a product which is easy to pump. From the surface mixing plant the paste fill will be piped on surface to backfill distribution holes for delivery to the stoping areas. MINE MAINTENANCE The larger maintenance work on the mine equipment will be competed in surface heavy equipment shops located within the main mill complex. This work will include all major repairs and major services. The surface shop will be used for the surface and underground mobile equipment at the site. Maintenance Bay A maintenance bay will be constructed underground to accommodate underground vehicles for minor repairs and minor and intermediate service interval work. A level of parts and supplies for routine services and repairs will be maintained in the underground mine. Technical Report 43-101 – March 13, 2011 Page 18-28 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
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In a typical test, for example CCr-
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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 and 138: VENTILATION The mine ventilation is
Page 139 and 140: for closing unused areas and for ch
Page 141: Mine Fan Horse Power Using the same
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
Page 189 and 190: • loparite and eudialyte in alkal
Page 191 and 192: 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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