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

Table 18-40 Underground Mine Cost Summary
Avalon Rare Metals Inc. – Thor Lake Project
1,000 tpd 2,000 tpd
C$ pa C$ pa
Development 1,963,600 1,035,600
Stoping 1,948,676 2,472,000
Backfill 0 5,990,400
Mine G&A
Engineering 765,332 873,683
Geology 522,754 1,033,508
Supervision 978,242 990,242
Labour 5,576,225 6,461,891
Fuel 1,318,920 2,101,253
Equipment and Supplies 2,934,690 5,233,454
Total 16,008,440 26,192,031
Cost per tonne $43.85 $35.87
The key mine supplies are explosives, ground support, fuel and propane for mine air heat. Mine
power costs are included in the overall power cost estimate for the site which is described
below.
Explosives costs are based on the use of ANFO as the main explosive with an allowance of
10% for packaged slurry explosives and the use of Nonel detonators. Explosive usage is
estimated to be 0.8 kg/ tonne.
Diesel fuel costs were estimated from the estimated hourly consumption for the prime
underground units coupled with an estimate of the annual operating hours. Fuel consumption
was estimated to be 820,000 litres per year in the underground mine at 1,000 tpd and 1.3 million
litres per year at 2,000 tpd.
Propane for mine air heating was estimated based upon the annual average temperatures and
the use of mine air heating to bring the intake air to 35 degrees F for those months where the
average annual temperature is below freezing. The propane cost was estimated as C$0.43 per
litre. The annual consumption for mine air heating is estimated to be 1.5 million litres at 1,000
tpd and 2.2 million litres per year at 2,000 tpd.
Salary and wages have been included as single line items and have not been allocated to the
various activities in the mine.
Technical Report 43-101 – March 13, 2011 Page 18-120
Prepared by Avalon Rare Metals Inc.