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

there will be no overhauls in the initial two years. Operating costs include an allowance for the
average annual overhaul costs starting in the third year.
Table 18-51 Power Generation Costs
Avalon Rare Metals Inc. – Thor Lake Project
1,000 tpd 2,000 tpd
C$ pa C$ pa
Power
General Materials 24,000 80,000
Generator Rebuilds 0 300,000
Mech/Elect Repair Parts and Materials 24,000 36,000
Diesel Fuel 13,047,253 19,223,896
Lubricants and Grease 120,000 120,000
Total 13,215,253 19,759,896
Cost per tonne $36.21 $27.07
GW-hrs generated 54.8 80.7
Cost per kW-hr $0.24 $0.25
The annual fuel requirement for power generation at Thor Lake is 14.8 million litres at 1,000 tpd
and 21.8 million litres at 2,000 tpd.
Summer Freight
The details of the annual summer freight costs are shown in Table 18-52. This cost area
includes the annual barge charters for both the docks at Pine Point and Thor Lake, the tug and
barge charters for hauling material and the materials handling costs for goods and concentrate
at Pine Point and Thor Lake. Materials at Thor Lake will be offloaded and then moved up to the
plant site.
Technical Report 43-101 – March 13, 2011 Page 18-130
Prepared by Avalon Rare Metals Inc.