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

Other supplies and freight will be handled as large cargo on deck or in standard sea containers
for shipment to Thor Lake.
Pine Point Administration
The Pine Point administration costs cover the Pine Point site administration functions such as
payroll and payables will be shared between the two sites and that receivables would be
handled by staff at Pine Point. Employee transportation cost allowances are included for daily
transportation between the site and Fort Resolution and Hay River as there is no
accommodation planned for the Pine Point site. Health and safety and environment are also
included in the site administration. The annual budget estimate is shown in Table 18-53.
Table 18-53 Pine Point Administration Costs
Avalon Rare Metals Inc. – Thor Lake Project
1,000 tpd 2,000 tpd
Administration Labor 794,683 791,389
Administrative Services 648,000 552,000
Warehouse Labour 242,979 242,979
Freight 60,000 60,000
Total 1,745,662 1,646,368
Cost per tonne $4.78 $2.26
Pine Point - Surface
The Pine Point surface costs include the operation and maintenance of the surface facilities and
the maintenance and operation of the surface equipment for the maintenance of roads and
movement of materials and supplies. The annual Pine Point surface budget is shown in Table
18-54.
Technical Report 43-101 – March 13, 2011 Page 18-132
Prepared by Avalon Rare Metals Inc.