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

Thor Lake Surface
The Thor Lake surface costs include the operation and maintenance of the camp and surface
facilities (but not the power house) and the operation of the surface equipment for the
maintenance of roads and movement of materials and supplies excluding the summer barge lift
costs and the associated handling of concentrate, fuel and freight. The annual Thor Lake
surface budget is shown in Table 18-43.
Table 18-43 Surface Plant Costs
Avalon Rare Metals Inc. – Thor Lake Project
1,000 tpd 2,000 tpd
C$ pa C$ pa
Water Supply 24,000 36,000
Sewage 6,000 60,000
Heating System 60,000 84,000
Plant Services 182,034 225,968
Safety and First Aid 12,000 60,000
Plant Operation – Labour 2,633,297 2,844,855
Plant Supervision 572,051 572,051
Small Tools 12,000 12,000
Building and Installations 18,000 60,000
Heavy Equipment 120,000 180,000
Light Vehicles 12,000 60,000
Access Road Maintenance 9,000 60,000
Air Strip and Site Road Maintenance 60,000
Camp Operations 30,000 60,000
Compressors 12,000 24,000
Other 57,264 60,856
Total 3,759,647 4,459,730
Cost per tonne $10.30 $6.11
Thor Lake Administration
The administrative costs for the Thor Lake site cover the mine site administration on the basis
that the operation is a stand alone site with site management, purchasing, payroll and accounts
payable handled by site personnel. Health and safety and environment are also included in the
mine administration. The administrative cost estimate is summarized in Table 18-44.
Technical Report 43-101 – March 13, 2011 Page 18-124
Prepared by Avalon Rare Metals Inc.