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

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SITE ROADS Site roads will be required to access the following locations from the mill complex: • Mine portal • Mine fresh air raise and mine air heater • Secondary mine exhaust raises (two) • Tailings disposal area • Water reclaim area • Air strip • Dock at GSL. The heaviest use road will be the road to the GSL dock which will see regular use through the spring and summer and into the fall with the shipping of concentrate the resupply for the site. Site roads will be low speed single lane roads with turnouts to permit vehicles to meet. The road to the GSL dock will operate with radio communication so that vehicles can organize to use the turnouts and not be forced to back up. The GSL access road will have regularly spaced turn outs suitable for the concentrate and fuel trucks that will use the road. ACCESS ROAD TLP TO DOCK There is an existing road that connects the TLP with the planned dock site at GSL. For the construction and mine operation the construction of some new sections of road will be required together with the upgrading of the access road so that it is in shape for regular use for the movement of containers, fuel and other supplies and equipment. A new section of road approximately 800 m to 1,000 m long will be constructed so that the grade on the road to the dock facility is reduced to approximately 5%. ANNUAL RESUPPLY The safe barging season on GSL is a 90 day period in the summer. The logistics planning has been focused on completing the task is the minimum period possible to reduce the demurrage and standby costs related to barges and tugs. The current estimate is that the resupply could be completed in less than a month if all of the equipment and supplies are appropriately organized. Technical Report 43-101 – March 13, 2011 Page 18-57 Prepared by Avalon Rare Metals Inc.
Mill Supplies The key mill supplies are listed in the Table 18-14. In addition, there are 1,368 tonnes of grinding media required for a year’s operation. Table 18-14 Annual Reagent Needs Avalon Rare Metals Inc. – Thor Lake Project Supplied As Conc, % State Consumption at Supplied Conc, tpa Ferric Chloride (FeCl 3 ) 98 Solid 83.8 Fluorosilicic Acid (H 2 SiF 6 ) 24 Bulk Liquid 456.0 Flocculant (Magnafloc 156) 100 Solid 5.7 Sodium Hexametaphosphate (NaPO 3 ) 6 98 Solid 74.5 Sodium Hydroxide (NaOH) 99 Solid 73.7 Sodium Silicate (Na 2 SiO 3 ) 100 Solid 73.0 Sodium Sulphide (Na 2 S) 60 Solid 608.0 Sulphuric Acid (H 2 SO 4 ) 94 Bulk Liquid 38.9 KBX3: Flotinor SM15 (1682) 100 Liquid 161.0 Aero 845 100 Bulk Liquid 95.8 Disponil SLS 101/103 30 Bulk Liquid 217.0 Witcomul 3251 100 Liquid 61.3 MLC3: Acumer 9400 43 Liquid 138.0 Rheosperse 3010 100 Bulk Liquid 59.4 Alginic Acid (C 6 H 8 O 6 ) 22 Solid 123.0 MX3: Oxalic Acid (C 2 O 2 (OH) 2 ) 99 Solid 118.0 Citric Acid (C 6 H 8 O 7 ) 100 Solid 117.0 Lactic Acid (C 3 H 6 O 3 ) 88 Liquid 66.4 Tonnes per year 2,570.5 SURFACE EQUIPMENT Technical Report 43-101 – March 13, 2011 Page 18-58 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
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Figure 18-1 Thor Lake Site Layout T
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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 and 168: divert surface drainage away from r
Page 169 and 170: A high pressure (200 psi) compresse
Page 171: Fuel deliveries are assumed to be s
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
Page 219 and 220: Wildlife Early science-based wildli
Page 221 and 222: 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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