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

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• loparite and eudialyte in alkaline intrusives (Kola Peninsula, Russia; Dubbo, Australia)<br />

• Pegmatites, hydro<strong>the</strong>rmal quartz and fluorite veins (Nor<strong>the</strong>rn Territories, Australia;<br />

Kar<strong>on</strong>ge, Burundi; Naboomspruit, South Africa)<br />

O<strong>the</strong>r generic types which may c<strong>on</strong>tain rare earths are:<br />

• Phosphates (Phosphoria Formati<strong>on</strong>, western USA),<br />

• Uranium <strong>deposit</strong>s in sandst<strong>on</strong>e and black shales (Wheeler River, Alberta; Willist<strong>on</strong><br />

Basin, Saskatchewan),<br />

• Myl<strong>on</strong>ites in limest<strong>on</strong>es (Nam-Nam-Xe, Vietnam),<br />

• Scheelite skarns (Ingichke, Uzbekistan),<br />

• Nickel <strong>deposit</strong>s (Sudbury Basin, Ontario).<br />

By far <strong>the</strong> most important of current sources are <strong>the</strong> Bayan Obo ir<strong>on</strong> rare earth <strong>deposit</strong>s near<br />

Baotou, Inner M<strong>on</strong>golia, <strong>the</strong> bastnaesite <strong>deposit</strong>s in Sichuan, China and <strong>the</strong> i<strong>on</strong>ic clay <strong>deposit</strong>s<br />

in sou<strong>the</strong>rn China. China is <strong>the</strong> dominant source of all rare earth oxides, accounting for<br />

approximately 97% of world producti<strong>on</strong> in 2009. Light rare earths are primarily produced in<br />

nor<strong>the</strong>rn China (Inner M<strong>on</strong>golia) and south-western China (Sichuan). The heavy rare earths are<br />

primarily produced in sou<strong>the</strong>rn China (Guangd<strong>on</strong>g), from i<strong>on</strong>ic clays.<br />

There are distinct differences in <strong>the</strong> elemental compositi<strong>on</strong> of various rare earth sources, as<br />

illustrated in Table 18-18.<br />

As a c<strong>on</strong>sequence of <strong>the</strong> mix of <strong>the</strong> individual elements within a raw material source, <strong>the</strong><br />

distributi<strong>on</strong> of supply of <strong>the</strong> individual elements does not match <strong>the</strong> distributi<strong>on</strong> of demand for<br />

<strong>the</strong> elements. The mixed compositi<strong>on</strong> of rare earth minerals necessitates <strong>the</strong> producti<strong>on</strong> of all<br />

of <strong>the</strong> elements within a given ore source. Such producti<strong>on</strong> does not necessarily equal <strong>the</strong><br />

demand for <strong>the</strong> individual oxides, leaving some in excess supply and o<strong>the</strong>rs in deficit. Overall<br />

producti<strong>on</strong> of rare earths <strong>on</strong> an oxide basis is <strong>the</strong>refore typically greater than <strong>the</strong> sum of<br />

demand for <strong>the</strong> individual elements in any given year.<br />

Total supply of rare earth oxides for 2008 was estimated at between 121,600 t<strong>on</strong>nes and<br />

127,100 t<strong>on</strong>nes, as illustrated in Table 18-19.<br />

Technical Report 43-101 – March 13, 2011 Page 18-74<br />

Prepared by Aval<strong>on</strong> Rare Metals Inc.

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