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

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estimate is based upon a crew of 80 for a one month period. Costs for the recruitment of the operating team are included. Freight costs for the mill and hydrometallurgical plants are carried in those individual capital estimates. The container freight costs for the concentrate containers are included in the container costs. The freight costs covered in this area are for the mine and services materials as well as the barging of material and fuel over the two summer seasons of construction. The third summer barge lift is covered in the operating costs. Other Capital Costs The remaining capital costs are shown in Table 18-37. The environmental bond is estimated to be C$11 million for the Thor Lake and Pine Point sites. It is assumed that the Murphy Royalty will be bought out at the start of operations. Table 18-37 Contingency and Other Capital Cost Estimates Avalon Rare Metals Inc. – Thor Lake Project C$ '000 Environmental Bond 11,000 Murphy Royalty Buyout 1,200 Contingency 144,502 The cost estimate includes a contingency allowance as shown in Table 18-37 and in more detail in Table 18-38. The contingency levels were assigned to each of the areas and then combined to generate an overall project contingency estimate. Overall, the contingency on the total LOM capital is 19%. Technical Report 43-101 – March 13, 2011 Page 18-115 Prepared by Avalon Rare Metals Inc.
Table 18-37 Contingency Allowance Avalon Rare Metals Inc. – Thor Lake Project Area Capital Cost (S) % Contingency Contingency Cost ($) UG Equipment 17,385 18% 3,110 UG Development 24,314 20% 4,919 UG Services 18,745 24% 4,517 Recovery of Stores (cement) -6,000 0% Mill 128,251 26% 33,191 Thor Lake Tailings 9,093 25% 2,273 Surface Equipment 9,597 21% 1,989 Infrastructure 26,472 25% 6,618 Hydro Met Plant 194,392 25% 48,598 Pine Point Tailings 22,829 25% 5,707 Acid Plant 90,708 10% 9,071 Surface Equipment Pine Point 5,173 20% 1,047 First Fills – Mill 20,457 2% 348 First Fills – Fuel 18,700 0% - Warehouse Spares 5,324 24% 1,281 Second Set Containers 33,399 5% 1,670 Hydromet Spares and First Fills 3,500 0% - Recovery of Stores -32,967 0% Engineering Pine Point &Thor Lake 14,640 25% 3,660 Procurement Pine Point and Thor Lake 8,115 25% 2,029 Construction Management Thor Lake 21,554 25% 5,389 Owners Costs 13,497 25% 3,374 Construction Freight to Thor Lake 6,315 25% 1,579 Construction Management Pine Point 8,978 25% 2,244 Owners Costs Pine Point 7,557 25% 1,889 Sustaining Capital 73,000 0% Contingency 144,502 144,502 Environmental Bond 11,000 0% Murphy Royalty Buyout 1,200 0% Grand Total 899,733 19% Technical Report 43-101 – March 13, 2011 Page 18-116 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
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Mill Supplies The key mill supplies
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Table 18-15 Surface Equipment Fleet
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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 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: Table 18-36 Indirect Cost Estimate
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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Technical Report 43-101 - March 13,
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