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

excavations are included in the mine development costs but the purchase and installation of the
crusher and ore conveyor are included in the mill capital cost estimate.
Concentrator
Concentrator capital costs were taken from the estimate by Melis based upon the costs factored
against installed equipment cost. For presentation the fuel use during construction was
deducted and moved into the “indirect” category and the contingency was deducted and added
into the overall contingency for the project. Capital spares were also deducted and moved to a
different category. A 1.8% adjustment was added to the loaded labour costs reflecting the NWT
2% payroll tax burden applicable to payroll and bonuses. A summary of the capital cost
estimate is shown in Table 18-32.
Table 18-32 Concentrator Capital Cost Estimate
Avalon Rare Metals Inc. – Thor Lake Project
C$ '000
Mill (TLP) 128,251
Tailings Facility (TLP) 9,093
Total 137,344
The Thor Lake tailings facility design was completed by Knight Piésold who provided the
material quantities for the tailings area. Scott Wilson RPA has provided the unit cost estimates
for the work to generate the cost estimate. The tailings facility will be constructed in two
separate phases with the second phase of construction required when the operation is
expanded.
Surface Infrastructure and Equipment
A surface equipment fleet has been developed for the TLP and is shown in Table 18-33. The
surface equipment has been estimated as a mixture of new and used equipment. Equipment
such as the grader and cranes, which will not see extensive heavy service, will be purchased
used and are expected to be able to meet the operation’s requirements. Wherever possible the
use of good used equipment for this support fleet would be evaluated and used in place of new
units. In the case of the container forklifts, new units are proposed as these units are critical to
the fast turnaround of the barges and regular movement of concentrate containers.
This infrastructure includes all of the roads, yards, airstrip, camp, power and supplies storage
needs for TLP including the materials handling requirements at Great Slave Lake. The camp
has been estimated on the basis of a new camp and the power supply system is a new modular
system designed by Finning and based on the Caterpillar 3516HD diesel generators.
Technical Report 43-101 – March 13, 2011 Page 18-111
Prepared by Avalon Rare Metals Inc.