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

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Proposed Power Generation System Finning Power systems have provided a proposal for the generating facility at the TLP, which consists of six modular Caterpillar 3516 - 1.45 MW diesel generators for the provision of 4.7 MW of power. The six units are based on the N+2 design. Finning provide modular generating units and the electrical switchgear and controls for the generators. The generators and controls are assembled and tested in Finning’s Richmond BC facility and then deliver to the site for installation. Installation of the generators is simplified by simple plug in controls that have been preassembled and tested before shipping. The generators require only a foundation and then the connection of high voltage lines, heat recovery and fuel lines. The units are constructed such that the switchgear enclosure is between the generators often as the center bar in an “H” layout. This configuration has been provided to other northern mines. The proposed system includes: • Six self contained 4,160 V Caterpillar 3516 generators with a capacity of 1.45 MW each. • Heat exchangers and engine and exhaust heat recovery systems. • Roof mounted radiators. • Engines controls and switchgear. • Switch gear enclosure with seven 1200 A feeders in cells plus ne for station service. • Switch gear can be expanded to 12 cells in future. • MCC provided by Finning. The heat exchangers provide 1,250 kW of thermal energy per running unit with 90 degree outlet water and 70 degree return water. The engine after cooler heat recovery is not included as this a low grade heat source of 300 kW but at 50 degrees. The Thor Lake site will be required to provide: • Foundation and space for set up • 5 kV transformer, external to switch room for station power • Piping to connect to heat exchanger • Pump for delivery of heated solution • High voltage wiring and connections • Fuel line connections to external day tanks • High pressure compressed air source for engine exhaust heat exchanger cleaning. Day tanks for fuel are external to the enclosures but all piping for the fuel is plumbed to the enclosure wall at the time of assembly at the factory. Technical Report 43-101 – March 13, 2011 Page 18-53 Prepared by Avalon Rare Metals Inc.
A high pressure (200 psi) compressed air source is required for the cleaning of the exhaust heat exchanger. The cleaner is installed at the factory and includes the controls to cycle the cleaning of the operating engines. The cleaners need to run once every hour for an operating unit. Scott Wilson RPA considers a dedicated compressor for this service to be the appropriate design. Expanded Production Rate Power Requirements The power generation proposal is designed to allow the installation of additional units to provide the necessary power for the expanded operations. For the expansion of operations the power generating facilities will be expanded with the addition of four Caterpillar 3516 1.45 MW diesel generators. The units will be identical to those already in place and as described above. The control unit brought in with the first generators will be equipped to handle the additional units. Emergency Backup Power Standby diesel generators for the camp and critical mill equipment will be required and will be installed in a separate powerhouse so that a major failure or loss of the main power house does not impact the standby units. Two 500 kW units with the ability to synchronize the two will be installed as emergency back-up power. A diesel generator will be required at the GSL dock to provide power for lights, an office and diesel transfer pumps. A 100 kW unit has been included in the plan for this area. The unit would be mounted in a skid equipped container with its own switchgear and a day tank for operation. GREYWATER AND SEWAGE TREATMENT The greywater and sewage from the camp and dry and will be sent to a sewage treatment facility (Biodisk or equivalent) after which the water will be discharged with the tailings. Solids in the sewage treatment unit will be removed on an annual basis. ADMINISTRATION AND DRY FACILITIES Offices for site management personnel will be located within the operations complex. This will include administration, management, mine, process and maintenance personnel. There will be a requirement for approximately 400 m 2 office space for the administration, <strong>technical</strong>, mine and maintenance personnel in a central office location near the dry and camp facility. Mill personnel will have offices in the mill. Technical Report 43-101 – March 13, 2011 Page 18-54 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
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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 and 166: non-woven geotextile) to prevent da
Page 167: divert surface drainage away from r
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
Page 217 and 218: 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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