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

For the Pine Point operations there is the flexibility to hire certain equipment as needed from
contractors in Hay River or Fort Resolution.
First Fills and Containers
Containers for the concentrate movement between the TLP and Pine Point have been specified
as 45 t capacity containers. Initially two sets of containers will be required (one at Pine Point
and one at the TLP) and then a third and fourth set are required when the operating rate is
doubled. An estimate of first fills cost is provided in Table 18-35.
Table 18-35 First Fills and Containers Capital Cost Estimate
Avalon Rare Metals Inc. – Thor Lake Project
C$ '000
First Fills (Mill) 20,457
First Fills (Fuel) 18,700
Warehouse Spares 5,324
Second Set Containers 33,399
Hydrometallurgical Spares and 1st Fills 3,500
Recovery of Stores (32,967)
Total 48,414
For the start of operations at Thor Lake a supply of reagent and fuel will be required. Then
when the operation is expanded the quantity will need to be increased. Scott Wilson RPA has
included a full year of reagents and fuel to ensure that there is not a reduction in production due
to a lack of fuel or reagents.
Indirect Costs
The indirect costs are estimated to be C$80.7 million as summarized in Table 18-36.
Engineering for the facilities and operations will be carried out through the permitting and the
construction phases. Regulators are expected to require a significant level of detail especially
for any facilities related to water. Engineering costs for the completion of the detailed
engineering is included in this estimate.
Technical Report 43-101 – March 13, 2011 Page 18-113
Prepared by Avalon Rare Metals Inc.