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

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Table 18-57 Sensitivity Analysis Avalon Rare Metals Inc. – Thor Lake Project Parameter Variables Units -20% -10% Base Case 10% 20% ZrO 2 Price US$/kg 3.02 3.39 3.77 4.15 4.52 TREO Price US$/kg 17.56 19.75 21.94 24.14 26.33 Exchange Rate C$/US$ 0.89 1.00 1.11 1.22 1.33 Revenue C$ millions 5.16 5.80 6.44 7.09 7.73 Operating Cost C$/tonne 214 240 267 294 320 Capital Cost C$ millions 720 810 900 990 1,080 NPV @ 8% Units -20% -10% Base Case 10% 20% ZrO 2 Price C$ millions 169 202 236 269 301 TREO Price C$ millions 43 139 236 330 424 Exchange Rate C$ millions (16) 111 236 358 480 Revenue C$ millions (125) 58 236 409 584 Operating Cost C$ millions 414 325 236 144 53 Capital Cost C$ millions 393 314 236 157 79 Technical Report 43-101 – March 13, 2011 Page 18-139 Prepared by Avalon Rare Metals Inc.
19. INTERPRETATION AND CONCLUSIONS The drilling completed since the PFS has resulted in the estimated mineral resources as indicated in the Table 1-1. Table 19-1 Summary of Mineral Resources BASAL ZONE RESOURCES INDICATED AREA Tonnes (millions) TREO % HREO % HREO/TREO % ZrO2 % Nb2O5 % Ta2O5 ppm TREO equiv Tardiff Lake 41.55 1.61 0.34 20.61 2.99 0.41 397 2.07 West Long Lake 15.94 1.42 0.31 21.01 2.99 0.38 392 1.85 TOTAL 57.49 1.56 0.33 20.72 2.99 0.40 396 2.01 INFERRED Tardiff Lake 19.34 1.66 0.36 20.54 3.08 0.42 423 2.14 Thor Lake 79.27 1.30 0.24 18.80 2.78 0.37 338 1.71 West Long Lake 8.98 1.17 0.21 17.12 2.71 0.33 347 1.56 TOTAL 107.59 1.35 0.26 18.97 2.83 0.37 354 1.77 UPPER ZONE RESOURCES INDICATED AREA TREO % HREO % HREO/TREO % ZrO2 % Nb2O5 % Ta2O5 ppm TREO equiv Tardiff Lake 23.63 1.50 0.15 10.44 2.09 0.32 194 1.89 West Long Lake 7.02 1.40 0.13 9.63 2.14 0.27 186 1.77 TOTAL 30.64 1.48 0.15 10.26 2.10 0.31 192 1.86 INFERRED Tardiff Lake 28.66 1.34 0.12 9.19 1.96 0.32 175 1.71 Thor Lake 81.66 1.24 0.12 9.72 2.54 0.36 206 1.65 West Long Lake 5.67 1.34 0.12 9.44 1.95 0.26 170 1.68 TOTAL 115.98 1.27 0.12 9.57 2.37 0.34 196 1.67 TOTAL COMBINED INDICATED HREO/TREO AREA TREO % HREO % ZrO2 % Nb2O5 % Ta2O5 ppm TREO equiv % UPPER AND BASAL 88.13 1.53 0.26 17.08 2.68 0.37 325 1.96 TOTAL COMBINED INFERRED UPPER AND BASAL 223.57 1.31 0.19 14.10 2.59 0.36 272 1.72 Notes: 1. CIM definitions were followed for Mineral Resources. 2. HREO (Heavy Rare Earth Oxides) is the total concentration of: Y 2 0 3 , Eu 2 0 3 , Gd 2 0 3 , Tb 2 0 3 , Dy 2 0 3 , Ho 2 O 3 , Er 2 0 3 , Tm 2 0 3 , Yb 2 0 3 and Lu 2 0 3 . 3. TREO (Total Rare Earth Oxides) is HREO plus: La 2 0 3 , Ce 2 0 3 , Pr203, Nd 2 0 3 and Sm 2 0 3. Technical Report 43-101 – March 13, 2011 Page 19-1 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
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• Together with the unloading log
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it will be necessary to upgrade the
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Table 18-16 Hydrometallurgical Plan
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Table 18-17 Surface Mobile Equipmen
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Rare Earth FOB China* FOB China** P
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• loparite and eudialyte in alkal
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Table 18-18 Rare Earth supply - 200
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Table 18-20 Rare Earth Demand by Ap
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Table 18-22 Proposed New REO Projec
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in China. On this basis, Avalon is
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Determine Prices for Avalon’s Pro
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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 and 230: Table 18-36 Indirect Cost Estimate
Page 231 and 232: Table 18-37 Contingency Allowance A
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: The sensitivity of the base case 8%
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
Page 279 and 280: Technical Report 43-101 - March 13,
Page 289: Technical Report 43-101 - March 13,
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