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

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THOR LAKE INFRASTRUCTURE SURFACE INFRASTRUCTURE The surface facilities will be organized into a compact unit to reduce the need for buses and employee transportation. All facilities will be connected by corridors to provide pedestrian access in all weather conditions between the mill/power house/shops/offices and accommodation units. CONCENTRATE STORAGE – THOR LAKE SITE Concentrate is planned to be stored at the Thor Lake and Pine Point sites and transported in custom-designed, covered containers with removable lids. Each container will hold ~45 t wet solids as a damp filter cake. Initially, 1,600 containers will be required at each end of the supply chain. Avalon will purchase containers for its exclusive use. The first half of the containers are required on site at the start of operations but the purchase and delivery of the second half can be deferred until the first shipments of concentrate are outbound from the site. Containers will be weighed and stored near the mill at the Thor Lake site through the winter months. Over a one year period there will be approximately 1,600 containers filled with concentrate. If the containers are stored in a single layer a 32,000 m 2 storage area is required (before allowance for driveways). As concentrate quality may vary over an operating year a system for tracking loaded containers and their contents will be developed. The same system will be required for returning containers so that supplies can be located in a timely fashion. In the spring when roads have cleared and frost is no longer an issue the loaded containers will be moved to the storage area adjacent to GSL so that they are in position for loading when the annual shipping season commences. Containers will be moved short distances at the Thor Lake plant site and at the dock at GSL by container forklift. For the 8 km haul to the GSL dock the containers will be loaded on container trailers at the TLP site and offloaded at the dock site. Expanded Rate Concentrate Production Handling At the rate of 2,000 tpd the number of containers to be handled at each end each year will increase to 3,200. The additional containers will be purchased as part of the expansion capital. Temporary Storage at Project The storage area at GSL will require space for loaded and empty containers, container movement and loading, fuel storage and some bulk storage space. The yard will be designed to Technical Report 43-101 – March 13, 2011 Page 18-51 Prepared by Avalon Rare Metals Inc.
divert surface drainage away from roads and storage yards and appropriate spill response plans will be developed for the various products that are to be handled in the area. TEMPORARY ORE AND WASTE ROCK STORAGE Mine development will generate approximately 150,000 tonnes of ore, low grade and waste over the course of the mine development. All of this material will be hauled to surface and either used for surface construction or stockpiled in permanent storage areas for waste and in temporary locations for low grade and ore. The ore will be used as plant feed, All of the development rock will be from drift roads and is expected to be less than 250 mm in size. The ore will be passed over a grizzly and then crushed in the surface aggregate crusher before being fed into the mill by a front end loader. A small bin and short feed belt to the grinding mill feed may be needed to add the ore from the surface stockpile. PASTE BACKFILL PLANT Paste backfill is planned for use in the mine. A paste fill preparation and pumping area will be developed adjacent to the mill building as part of the mine expansion project. POWER GENERATION AND DISTRIBUTION An initial estimate of the electrical power requirement for the Thor Lake site is shown in Table 18-13. The table does not include an allowance for separate emergency generators which will be required for the camp and may be required for some areas of the flotation plant. Table 18-13 Power Demand Avalon Rare Metals Inc. – Thor Lake Project Area Max (MW) 1,000 tpd Average (MW) 1,000 tpd Average (MW) 1,500 tpd Average (MW) 2,000 tpd Mill 5.6 3.4 4.7 6.0 Mine 1.0 0.7 1.0 1.2 Camp 0.5 0.4 0.6 0.8 Surface 0.3 0.2 0.3 0.4 Total 7.4 4.7 6.6 8.4 Technical Report 43-101 – March 13, 2011 Page 18-52 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* *
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CUT-OFF GRADE A previous public res
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underneath for SG measurement purpo
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Figure 17-4 Density Measurements AL
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was equal to 60 m by 60 m by 30 m a
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Table 17-12 Detailed Resource Break
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Table 17-13 Indicated Mineral Resou
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Figure 17-7 Outline of Area of Indi
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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 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: non-woven geotextile) to prevent da
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
Page 201 and 202: The balance of niobium supply is co
Page 203 and 204: epresenting about 18% of total zirc
Page 205 and 206: Table 18-25 Historic Chinese Export
Page 207 and 208: Figure 18-16 Tantalum Markets - 200
Page 209 and 210: the price for tantalum chemicals in
Page 211 and 212: Surface Hydrology The Thor Lake dra
Page 213 and 214: seven) have occurred more frequentl
Page 215 and 216: 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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