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

Processing – Concentrator, Hydrometallurgical Plant
• No new processing results are available at present that require changing the
assumptions utilized in the resource estimate.
Infrastructure – Thor Lake, Pine Point
• No new studies have been completed that require changing the assumptions relating to
infrastructure in this <strong>report</strong>.
Environment
• Baseline studies have been completed for the Project locations.
• Avalon has prepared and submitted a project description <strong>report</strong>, completed preliminary
screening and commenced the Environmental Assessment process necessary for the
permit application process in the NWT.
• Rock characterization studies indicate that the rock is not an acid producer.
• Nechalacho mineralization has uranium levels that are higher than average naturally
occurring granite, but below levels typically experienced in other rare earth deposits.
The thorium levels in the Nechalacho deposit are anomalous, but given the lower
radioactivity equivalency of thorium relative to uranium, the overall effect of typical
Nechalacho mineralization as a rock mass is predicted to be very low. The rare earth
concentration process planned at the Flotation Plant will concentrate the rare earths,
including the low levels of thorium in the rock minerals. The overall radiation level in the
concentrate is expected to be below Canadian TDGR regulations, and will not require
special handling as Dangerous Goods.
Economics
• It is recommended that the new resource estimate provided in this <strong>report</strong> be utilized to
develop and new mine plan, and subsequently, a revised economic model for the
Nechalacho deposit.
Technical Report 43-101 – March 13, 2011 Page 19-4
Prepared by Avalon Rare Metals Inc.