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

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Table 18-30 Capital Cost Estimate Avalon Rare Metals Inc. – Thor Lake Project C$ '000 Mine 54,445 Concentrator 137,344 Surface Infrastructure 36,069 Hydrometallurgical Facility 313,102 First Fills and Containers 48,414 Indirect Costs 80,657 Sustaining Capital 73,000 Reclamation 11,000 Royalty Buy Out 1,200 Contingency 144,502 Total Capital Costs 899,733 Working capital costs related to the time between the shipment from the site and the receipt of payment for the products is not included in the capital estimate in Table 18-30 but is included in the project cash flow. Capital Cost Exclusions The capital costs do not include: • Costs to obtain permits • Costs for feasibility study • GST/HST • Corporate administration costs in Delta and Toronto • Exploration activities • Salvage value of assets • Severance cost for employees at the cessation of operations CAPITAL COST ESTIMATE DETAILS Underground Capital Cost Estimate Mine equipment costs shown in Table 18-31, are based upon recent budget quotations and estimates from public sources. Technical Report 43-101 – March 13, 2011 Page 18-109 Prepared by Avalon Rare Metals Inc.
Table 18-31 Mine Capital Cost Estimate Avalon Rare Metals Inc. – Thor Lake Project C$ '000 UG Equipment 17,385 UG Development 24,314 UG Services 18,745 Recovery of Stores (cement) (6,000) Total 54,445 The mine equipment will be purchased through the preproduction period with the equipment to be used for the mine development with contract operators and subsequently to be used by company personnel for operations. The long hole drill while included in the total is not purchased until after the start of operations as the early production will all come from drifting in ore, slashing to width and benching or breasting as appropriate. Capital mine development will be undertaken by contractors using mobile equipment provided by Avalon. The mining equipment will be operated and maintained by the contractor while being used by the contractor. Avalon will provide supplies, explosives, fuel, power, and camp accommodations. Stope production is not included in the capital development period as capital development is planned to be stopped at the stope entrance. Scott Wilson RPA used the mine contracting labour and maintenance costs as presented by TMCC and then deleted the equipment ownership costs as the equipment will be purchased by Avalon. Scott Wilson RPA estimated the materials and supplies for the development based on cost estimates for the various items and supplies required for development. Material freight costs are included in the annual barge lift costs. Raise development costs for the ventilation raise and the ore pass were based upon the use of an Alimak raise climber and the costs were based on an estimate from TMCC. The estimated raising cost was C$2,200 for a 3 m by 3 m raise and C$3,000 per metre for a 4 m by 4 m raise plus set up and tear down costs of C$41,000 per raise and C$64,000 for mobilization and demobilization. Underground services include the mine power and ventilation systems as well as a paste backfill distribution system when the mine is expanded to 2,000 tpd. The underground crusher Technical Report 43-101 – March 13, 2011 Page 18-110 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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Lateral Development The access decl
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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
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for closing unused areas and for ch
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Mine Fan Horse Power Using the same
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Paste Fill System A paste fill syst
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Communications Mine communications
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completion of the 30 m to 50 m long
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HEALTH AND SAFETY All crew will be
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The crushing plant is designed for
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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
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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 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
Page 223: TAXES The NWT diesel tax has been i
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
Page 245 and 246: there will be no overhauls in the i
Page 247 and 248: Other supplies and freight will be
Page 249 and 250: Table 18-55 Hydrometallurgical Plan
Page 251 and 252: 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
Page 257 and 258: • 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
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Section 416600 Section 416700 Secti
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Section 417200 Section 417300 Secti
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Technical Report 43-101 - March 13,
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