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

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MINE DEVELOPMENT Mine development will commence with the development of the decline to the crusher elevation. The advance will be single heading advance until the decline passes the first stope access ramp junction. The development required for mine development is shown in Table 18-10. Table 18-10 Life of Mine Development Schedule Avalon Rare Metals Inc. – Thor Lake Project Total Lateral Development in Waste Total Lateral Development in Ore Total Lateral Development Total Raising (m) (m) (m) (m) Year -2 2,088 0 2,088 0 Year -1 1,675 710 2,385 195 Year 1 660 850 1,510 110 Year 2 100 896 996 0 Year 3 0 1,319 1,319 0 Year 4 0 2,820 2,820 0 Year 5 542 3,459 4,001 105 Year 6 0 3,839 3,839 0 Year 7 0 3,790 3,790 0 Year 8 0 3,649 3,649 0 Year 9 0 3,506 3,506 0 Year 10 0 550 550 0 Year 11 0 0 0 0 Year 12 0 0 0 0 Year 13 0 0 0 0 Year 14 0 0 0 0 Year 15 0 0 0 0 Year 16 0 0 0 0 Year 17 0 1,596 1,596 0 Year 18 0 0 0 0 Total 5,065 26,984 32,049 410 The goal of the initial mine development will be to get to and develop the crusher station and to get to the base of the ventilation raise. In the course of this development there will be at least five primary stopes and five secondary stopes that will be available for production with Technical Report 43-101 – March 13, 2011 Page 18-31 Prepared by Avalon Rare Metals Inc.
completion of the 30 m to 50 m long stope access crosscuts (some of which will be developed for material storage as the access to the ventilation raise is being driven). Initial mine development will be undertaken by a mine development contractor to provide the skills needed to complete the work. As the main development is completed the work will shift to company crews and equipment for the production phase of the operation. The initial mine development will not leave a large amount of access development to be completed by company crews for the mineral reserves as known and as included in this <strong>report</strong>. The development schedule does not include any allowance for exploration development or for the development of underground diamond drill stations for further exploration of the deposit. PRODUCTION SCHEDULE Mine production will come from primary stopes which are planned to be developed from the stope access crosscut. Each 5 m high by 15 m wide cut will generate approximately 20,000 tonnes of ore. The mine production schedule has been set at 1,000 tpd for years one to four and 2,000 tpd thereafter. Initial production will be attained without backfill to allow deferral of the cost of the backfill plant construction and accordingly the production for the first 60 months will all be from primary stopes. Thereafter the backing of primary stope voids will be a high priority task and by month 61 production will start to be obtained from secondary stopes. The production schedule was developed based on mining of the highest value ore in the early years. Feed grades at Thor Lake do not vary over a wide range but there are higher grade areas and the zone at the bottom of the Basal Zone carries the highest grades. The Production schedule is shown in Table 18-11. The deposit is flat lying but there are variations in elevation interpreted at the bottom of the ore body. To minimize dilution stopes were, as much as practival, aligned perpendicular to the dip of the footwall of the orebody. Material at the upper elevations will have decreasing grades as the stope moves up and the control for the upper limits will be an assay control. At the planned production rates this generates a mine life of 18 years from the Basal Zone Probable Mineral Reserves. Technical Report 43-101 – March 13, 2011 Page 18-32 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
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9. TREO equivalent is estimated by
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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 and 142: Mine Fan Horse Power Using the same
Page 143 and 144: Paste Fill System A paste fill syst
Page 145: Communications Mine communications
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
Page 193 and 194: Table 18-20 Rare Earth Demand by Ap
Page 195 and 196: 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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