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

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• The stope schedule was developed on the basis of mining the highest grade stopes first. Further refinement of the stope schedule may lead to small increases in feed grades in the early years. • Mining of the secondary stopes is dependent upon the use of a suitable backfill, assumed to be paste fill with 4% cement added as a binder. Testwork to demonstrate that a suitable paste fill can be generated from the tailings has yet to be completed. Processing – Concentrator • Mineral processing testwork indicates that the TREO, ZrO 2 , Nb 2 O 5 and Ta 2 O 5 can be recovered in a flotation circuit after crushing and grinding to 80% minus 38 µ with recoveries of 80% of the TREO, 90% of the zirconium oxide, 69% of the niobium oxide and 63% of the tantalum oxide to a flotation concentrate. The processing circuit also includes magnetic and gravity separation stages. The design basis for the PFS was to take 18% of the feed to the concentrate. • The concentrate will be stored in covered containers at Thor Lake and shipped to the hydrometallurgical facility at Pine Point each summer using barges to cross Great Slave Lake. • Tailings from the flotation plant will be stored in a Tailings Management Facility (TMF) located north-east of the mill site. Processing – Hydrometallurgical Plant • Metallurgical process testwork for the extraction of the TREO, zirconium oxide, niobium oxide and tantalum oxide from the flotation concentrate was carried out and the recoveries of 96% of the TREO, 93% of the zirconium oxide, 82% of the niobium oxide and 60% of the tantalum oxide were demonstrated in the laboratory. • The hydrometallurgical plant will consist of a concentrate “cracking” process, using a combination of acid baking, caustic cracking, and leaching using sulphuric acid and sodium hydroxide as the primary reagents. • The hydrometallurgical process plant will consume a significant quantity of reagents, which are brought to site by rail to Hay River and then by truck to the plant. A standalone sulphuric acid plant is included to provide acid for the process. • The products from the hydrometallurgical plant will be a mixed rare earth oxides concentrate, and separate zirconium oxide, niobium oxide and tantalum oxide concentrates. Technical Report 43-101 – March 13, 2011 Page 1-5 Prepared by Avalon Rare Metals Inc.
• The products will be shipped in one tonne capacity plastic sacks on pallets (or steel drums for the tantalum oxide) and will be taken by truck to the rail head at Hay River and then by rail to Vancouver or to a central location in the USA. • Tailings from the hydrometallurgical process will be stored in a TMF to be constructed on top of the existing tailings facility near the plant site. It is envisioned that tailings from the Project will be kept separated from the historical tailings by a plastic liner. • Pine Point was selected as a reasonable location within the NWT for the hydrometallurgical facility, due to the existing disturbance at the brown-field site, reasonable logistics for concentrate and reagent transportation, and access to infrastructure. Both Avalon’s aboriginal partners and the Government of the NWT have expressed a preference for keeping the hydrometallurgical plant in the north. Infrastructure – Thor Lake • The Thor Lake site is isolated and access will be limited to year-round aircraft, and summer barges. Winter ice roads on Great Slave Lake are also feasible, but are not included as an integral part of the PFS. • A temporary barge dock and a materials storage area will be constructed on the shore of Great Slave Lake. • A camp, offices, shops, yards, diesel tank farm, propane storage facility, and access roads to the TMF and the barge dock on Great Slave Lake will be developed. • The initial site power will be provided by a 4.7 MW capacity diesel generating station. This will be expanded to 8.4 MW as part of the planned increase in production rate. The diesel plant design is based upon having two spare units at any given time. Infrastructure – Pine Point • The Pine Point site is accessible by all-weather roads and highways. • A temporary barge dock and yard at the shore of Great Slave Lake will be developed for the movement of concentrate and supplies. • Offices, shops, yards, and access roads to the TMF and the temporary barge dock on Great Slave Lake will be developed. • Power will be taken from the southern NWT power grid, with hydroelectricity taken from the Taltson Dam hydroelectric facility. Technical Report 43-101 – March 13, 2011 Page 1-6 Prepared by Avalon Rare Metals Inc.
Page 1 and 2: TECHNICAL REPORT ON THE NECHALACHO
Page 3 and 4: TABLE OF CONTENTS 1. SUMMARY ......
Page 5 and 6: QUALITY ASSURANCE / QUALITY CONTROL
Page 7 and 8: Warehouse..........................
Page 9 and 10: LIST OF TABLES Table 1-1 Summary of
Page 11 and 12: Table 18-9 Mine Ventilation Quantit
Page 13 and 14: Table 18-54 Table 18-55 Pine Point
Page 15 and 16: LIST OF APPENDICES APPENDIX A Block
Page 17 and 18: Table 1-1 Summary of Mineral Resour
Page 19: Royalties. The net revenue generate
Page 23 and 24: • Income taxes and NWT mining roy
Page 25 and 26: 2. INTRODUCTION This report
Page 27 and 28: Figure 2-2 Project Sites, Thor Lake
Page 29 and 30: Table 2-1 Rare Earth Element Data A
Page 31 and 32: LIST OF ABBREVIATIONS Units of meas
Page 33 and 34: 4. PROPERTY DESCRIPTION AND LOCATIO
Page 35 and 36: The mining leases have a 21-year li
Page 37 and 38: 5. ACCESSIBILITY, CLIMATE, LOCAL RE
Page 39 and 40: Fort Resolution is located on the s
Page 41 and 42: producing a tantalum concentrate, b
Page 43 and 44: Figure 7-2 Detailed Deposit Geology
Page 45 and 46: The nepheline-sodalite syenite host
Page 47 and 48: LATE TECTONIC FAULTS Faults are pre
Page 49 and 50: 8. DEPOSIT TYPES The mineral deposi
Page 51 and 52: The Ore (Nechalacho) Nepheline Soda
Page 53 and 54: from section to section - this may
Page 55 and 56: Table 9-1 Average Percent of Ore Mi
Page 57 and 58: The Nechalacho deposit alteration s
Page 59 and 60: 11. DRILLING Since 1977, diamond dr
Page 61 and 62: Foraco drill rig was added in Febru
Page 63 and 64: CORE LOGGING AND CORE RECOVERY The
Page 65 and 66: A high R 2 (and all regressions had
Page 67 and 68: 12. SAMPLING METHOD AND APPROACH A
Page 69 and 70: such as Illimausaq in Greenland, a
Page 71 and 72:
13. SAMPLE PREPARATION, ANALYSES AN
Page 73 and 74:
limited set of elements; however, s
Page 75 and 76:
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,
Page 83 and 84:
shows more deviation, with ALS MS81
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16. MINERAL PROCESSING AND METALLUR
Page 87 and 88:
In a typical test, for example CCr-
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17. MINERAL RESOURCE AND MINERAL RE
Page 91 and 92:
9. TREO equivalent is estimated by
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Table 17-4 Sample Information Avalo
Page 95 and 96:
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
Page 109 and 110:
Table 17-13 Indicated Mineral Resou
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Figure 17-7 Outline of Area of Indi
Page 113 and 114:
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
Page 119 and 120:
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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Lateral Development The access decl
Page 133 and 134:
Equipment will be selected based up
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Table 18-6 Estimated Electrical Loa
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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
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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
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Figure 18-9 Hydrometallurgical Plan
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The Pine Point hydrometallurgical f
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Decant pipeworks have been included
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• Development of pre-feasibility
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Design Basis The pre-feasibility le
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non-woven geotextile) to prevent da
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divert surface drainage away from r
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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
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• Together with the unloading log
Page 181 and 182:
it will be necessary to upgrade the
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Table 18-16 Hydrometallurgical Plan
Page 185 and 186:
Table 18-17 Surface Mobile Equipmen
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Rare Earth FOB China* FOB China** P
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• loparite and eudialyte in alkal
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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
Page 233 and 234:
Operating Cost Exclusions The opera
Page 235 and 236:
Table 18-40 Underground Mine Cost S
Page 237 and 238:
Table 18-41 Mine Cost Details Avalo
Page 239 and 240:
Thor Lake Surface The Thor Lake sur
Page 241 and 242:
Table 18-45 Sales and Marketing Cos
Page 243 and 244:
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
Page 253 and 254:
The sensitivity of the base case 8%
Page 255 and 256:
19. INTERPRETATION AND CONCLUSIONS
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• The Mineral Reserves, which hav
Page 259 and 260:
20. RECOMMENDATIONS The authors of
Page 261 and 262:
21. REFERENCES BCC Research (2009):
Page 263 and 264:
MDN Inc (2010): News Release Melvil
Page 265 and 266:
Wardrop Engineering Inc. (2009): Th
Page 267 and 268:
23. CERTIFICATES OF QUALIFIED PERSO
Page 269 and 270:
CERTIFICATE OF QUALIFIED PERSON I,
Page 271 and 272:
CERTIFICATE OF QUALIFIED PERSON I,
Page 273 and 274:
Section 416000 Section 416100 Secti
Page 275 and 276:
Page 277 and 278:
Page 279 and 280:
Technical Report 43-101 - March 13,
Page 281 and 282:
Page 283 and 284:
Page 285 and 286:
Page 287 and 288:
Page 289:
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