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

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CONCENTRATE HANDLING Concentrate will arrive from the TLP in containers from the annual sealift over the summer season. The first containers would be expected to arrive commencing in late July with ongoing arrival over a one month period. The containers will be unloaded to a storage facility immediately adjacent to the dock at Pine Point before being shipped by truck to the process facility at Pine Point. If space permits the concentrate could be stored in that location for an extended (months) period and slowly moved to the Pine Point treatment facility. Concentrate which was loaded and stored at TLP over the winter months will be frozen and will not be amenable to rapid unloading. Containers will be tracked by number to determine those that are in all likelihood frozen so that they can be exposed to summer heating whereas those that are thawed can be emptied to a covered concentrate storage area. Facilities for the thawing of concentrate containers will be installed at Pine Point to use waste heat to allow the thawing of concentrate so that it can be unloaded from the containers over the year. . While it would be advantageous to unload and return the container to the TLP as quickly as possible to reduce the number of containers in the circuit it is unlikely that this will be possible and the current plan is to have enough containers to have a full set of empty containers and a full set of full containers. The shipment of concentrate in closed containers eliminates the risks of dusting and is expected to reduce the potential for loss of concentrate during transportation. POWER The planned installed electrical load at the Pine Point facility is 10.4 MW for the 1,000 tpd case and 11.4 MW at the 2,000 tpd rate broken down as shown in Table 18-16. Technical Report 43-101 – March 13, 2011 Page 18-67 Prepared by Avalon Rare Metals Inc.
Table 18-16 Hydrometallurgical Plant Electrical Load Avalon Rare Metals Inc. – Thor Lake Project 1,000 tpd 2,000 tpd Installed Electrical Equipment Acid plant kW 3,000 3,000 Hydromet kW 6,478 7,478 Lime kiln and slaking kW 400 400 Limestone grinding kW 500 500 Total Installed kW 10,378 11,378 Estimated Operating Electrical Load Acid plant kW 1,791 2,115 Hydromet kW 2,210 4,487 Lime kiln and slaking kW 130 260 Limestone grinding kW 225 450 Total Power Draw kW 4,356 7,312 Energy Use MW-hrs/a 33,025 55,435 The power cost estimates are based upon the supply of 6 MW of electrical power from the grid in one quarter of a year and the provision of up to 9 MW of electrical power from the grid in the other three quarters of the year. Diesel generation of 1.3 MW will be required in one quarter of a year at the 2,000 tpd rate. Electrical energy is available at the substation with that power coming from the NWT Energy grid from the Taltson dam in the southern NWT. SURFACE MOBILE EQUIPMENT The surface mobile equipment at the Pine Point site will be required to support the operation. In light of the potential to hire local equipment from Fort Resolution, Hay River or other local area communities it will not be necessary to be completely self sufficient as at the TLP. A list of the surface mobile equipment for the Pine Point site is show in Table 18-17. AIRSTRIP AT PINE POINT When Pine Point Mines was in operation there was an airstrip that was in service near the town. This strip is no longer available for use and it is not planned for rehabilitation in this study. Technical Report 43-101 – March 13, 2011 Page 18-68 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
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During discussions with the mine de
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Figure 18-4 Mine Layout Some of the
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Figure 18-5 Mine Development Schema
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Table 18-2 Development Tonnage Brea
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Until the crusher is in place and t
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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
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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 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: it will be necessary to upgrade the
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
Page 223 and 224: TAXES The NWT diesel tax has been i
Page 225 and 226: Table 18-31 Mine Capital Cost Estim
Page 227 and 228: Table 18-33 Surface Infrastructure
Page 229 and 230: Table 18-36 Indirect Cost Estimate
Page 231 and 232: 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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