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

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MINERAL AND HYDROMETALLURGICAL PROCESSING THOR LAKE CONCENTRATOR PROCESS DESCRIPTION Basis The flotation and hydrometallurgical plant process is based on metallurgical design data provided by J. R. Goode and Associates, consultant to Avalon, which in turn were collated from testwork completed by SBM Mineral Processing and Engineering Services LTD at SGS Lakefield Research Limited (SBM, 2009). The grinding circuit design is based on test data provided by Starkey & Associates Inc. (2009). The process design criteria developed from these data are summarized below. PROPOSED PROCESS FACILITIES The proposed process comprises crushing, grinding, flotation plants located at Thor Lake and a Hydrometallurgical facility near Pine Point on the south shore of Great Slave Lake. The facility will initially process mineralized material mined at a rate of 1,000 tpd (annual average) but will process 2,000 tpd after one or two years of operation. The proposed process facilities at Thor Lake comprise a crushing plant, sized for the ultimate tonnage, located in the mine and designed to reduce rock from run-of-mine size to -15 mm. Crushed material is stored in a fine ore bin excavated in the rock, and conveyed up the mine access incline to a rod mill – ball mill grinding circuit. Ground ore is conditioned then de-slimed in a series of three hydrocyclones, and pumped to magnetic separation circuit. This circuit comprises a first magnetic separator, a regrind mill to process the concentrate and a cleaner magnetic separator. Non-magnetic product is pumped to a thickener. Thickener underflow is diluted and conditioned ahead of rougher-scavenger flotation. Scavenger tails are initially sent to a tailings storage facility but will be processed for paste backfill production for the mine after the initial couple of years operation. Flotation concentrates are cleaned in four counter-current stages to produce a cleaner concentrate which is subjected to gravity separation then thickened and dewatered in a filter press. The gravity tailings are reground and returned to rougher flotation. Dewatered concentrate is conveyed to special containers able to hold 40 t of concentrate. Filled containers are stored until concentrate transportation is scheduled at which time they are taken across Great Slave Lake to the dock at Pine Point and transported to the hydrometallurgical facility. Technical Report 43-101 – March 13, 2011 Page 18-35 Prepared by Avalon Rare Metals Inc.
The crushing plant is designed for the expansion tonnage. The grinding circuit will require the addition of a second ball mill to handle the expansion tonnage. Additional flotation cells, gravity separation units and filters will also be needed. In the proposed operation, full concentrate containers are stored at the hydrometallurgical facility and retrieved and placed in a thaw shed as required. The concentrate is thawed and then dumped into reclaim system that conveys the material into the hydrometallurgical plant. Concentrate is “cracked” using a combination of acid baking, caustic cracking, and leaching using sulphuric acid and sodium hydroxide as the primary reagents. The solid residue from the cracking system is combined with other waste streams and sent to the hydrometallurgical tailings storage facility. The solution arising from the cracking process is subjected to double salt precipitation, solution pre-treatment and solvent extraction processes to isolate the values. Products are precipitated as basic salts, processed and dried to yield hydrated oxides which are packaged for shipment to markets. Products are be trucked to Hay River for on-shipment by rail. The proposed hydrometallurgical process plant consumes a significant quantity of reagents which will be brought to site by rail to Hay River and then by truck to the plant. Sulphuric acid is to be produced in a 700 tpd capacity double-contact, double absorption plant from elemental sulphur. Excess heat from the sulphuric acid plant is used in the hydrometallurgical process in the thaw shed, to evaporate process solutions, and in the product driers. Limestone is quarried near Enterprise and crushed and ground to -44 µm for use as a neutralizing reagent in the process. Some limestone is calcined to lime for neutralizing purposes. Other reagents, such as sodium hydroxide, fuel, solvent extraction reagents, etc. are stored at site as needed. Most of the hydrometallurgical complex, including the acid plant, is designed and constructed for the ultimate tonnage equivalent to 2,000 tpd of flotation concentrate. Units requiring duplication or addition for the expansion tonnage include the thaw shed, acid bake and caustic cracking facilities, and some of the product driers. PROCESS DESIGN CRITERIA The principal design criteria selected for the pre-feasibility study are tabulated in Table 18-12. The flowsheet used as the basis for flotation recoveries used in the PFS is shown in Figure 18-8 and the flowsheet used as the basis for hydrometallurgical recoveries used in the PFS is shown in Figure 18-9. Technical Report 43-101 – March 13, 2011 Page 18-36 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
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Figure 17-1 Distribution of REO Com
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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 and 146: Communications Mine communications
Page 147 and 148: completion of the 30 m to 50 m long
Page 149: HEALTH AND SAFETY All crew will be
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
Page 197 and 198: in China. On this basis, Avalon is
Page 199 and 200: 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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