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

adjusted these data to 3% per annum for the whole period. The combined impact of the
projected increase in demand for steel and world inflation when applied to the current (2010)
price for FeNb of US$29/kg yields a projected price of US$45/kg for Nb in 2014. This is the price
used in the financial analysis.
ZIRCONIUM
Zirconium Market
Avalon will produce a hydrated zirconium dioxide (ZrO 2 ) product at the hydrometallurgical plant
for Thor Lake in either of two forms: zirconium oxychoride (ZrOCl 2 .8 H 2 0), also referred to as
‘ZOC’ or zirconium basic sulphate (ZBS). ZOC and ZBS are used in a wide variety of end use
applications, detailed in Figure 18-13.
Figure 18-13 ZOC and ZBC Applications
Source: TZMI
While the primary uses for zircon (zirconium silicate) are as an opacifying agent in ceramics and
as a refractory material in metal casting, zircon is also converted into a wide variety of
chemicals and to zirconium metal. In 2008, approximately 160,000 tonnes of zircon,
Technical Report 43-101 – March 13, 2011 Page 18-87
Prepared by Avalon Rare Metals Inc.