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

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comprises double salt precipitation of the light rare earths followed by sequential solvent extraction steps to isolate zirconium, the rare earths, niobium, and tantalum. Double salt precipitation, which is a classic means of separating the light and heavy rare earths, involves the addition of sodium ion to a sulphate solution of the rare earth elements. This has been tested and the resulting product metathesized and dried to produce a light rare earth hydrated oxide precipitate. The yield of light rare earths to this precipitate was high (up to 96%) but some co-precipitation of yttrium and heavy rare earths was observed. This does not represent a loss of heavy rare earths since they <strong>report</strong> to the light rare earth product but further work is under way to optimize the double salt precipitation step and other solution operations. Solution reduction tests have been completed and a suitable process developed. Solvent extraction tests have been done and more work is planned.. Based on available data and published information from other proposed or actual solvent extraction plants, the plant included in the pre-feasibility study consisted of three sequential solvent extraction circuits for recovery of zirconium, rare earths, and niobium and tantalum. It is expected that testwork will continue on all aspects of the hydrometallurgical process over the next several months and will culminate in a hydrometallurgical pilot plant planned for late 2011. The net recoveries expected, as <strong>report</strong>ed in the earlier Technical Report, are provided in Table 16-1. Testwork is continuing to confirm that these recoveries are obtainable from other samples from the Thor Lake project. Table 16-1 Flotation and Hydrometallurgical Recoveries Avalon Rare Metals Inc. – Thor Lake Project Feed to Concentrate Concentrate to Product Net Recovery ZrO 2 89.7% 90.0% 80.7% TREO 79.5% 93.0% 73.9% HREO 79.5% 93.0% 73.9% Nb 2 O 5 68.9% 80.0% 55.1% Ta 2 O 5 63.0% 50.0% 31.5% Technical Report 43-101 – March 13, 2011 Page 16-4 Prepared by Avalon Rare Metals Inc.
17. MINERAL RESOURCE AND MINERAL RESERVE ESTIMATES MINERAL RESOURCES SUMMARY The last publicly available NI 43-101 <strong>technical</strong> <strong>report</strong> and mineral resource estimate for the Nechalacho deposit was completed by Scott Wilson RPA. The effective date for Scott Wilson RPA’s resource estimate is July 29, 2010. Since that time, updated resource estimates have been released in two press releases (September 8, 2010 and January 27, 2011). The <strong>technical</strong> data used for the January 27, 2011 resource estimate was compiled, validated and evaluated by Avalon. Bill Mercer P.Geo. was the QP for this resource estimate. The January 2011 <strong>technical</strong> data was updated with new drill hole information and assays. Bill Mercer also validated this data set, Finley Bakker P.Geo. updated the wireframe and interpolated values for the fifteen REE elements (plus Zr, Nb, Ga, Hf, Th and Ta) into the block model. Avalon has summarized the January 27, 2011 resource estimate using a Net Metal Return (NMR) per tonne cut-off value (Table 17-1). This is an economic number rather than an oxide cut-off grade. The rationale behind this change in the cut-off parameter is explained further under ‘Cut-Off Grade’. Detailed resource tables, including the individual rare earth oxide grades, are included at the end of this section. In addition a TREO equivalent is also <strong>report</strong>ed. It is similar in sense to the NMR calculation but rather than converting the various metals to a unit price it converts them to an equivalent grade in TREO based on metal prices, recoveries etc. Technical Report 43-101 – March 13, 2011 Page 17-1 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
Page 37 and 38: 5. ACCESSIBILITY, CLIMATE, LOCAL RE
Page 39 and 40: Fort Resolution is located on the s
Page 41 and 42: producing a tantalum concentrate, b
Page 43 and 44: Figure 7-2 Detailed Deposit Geology
Page 45 and 46: The nepheline-sodalite syenite host
Page 47 and 48: LATE TECTONIC FAULTS Faults are pre
Page 49 and 50: 8. DEPOSIT TYPES The mineral deposi
Page 51 and 52: The Ore (Nechalacho) Nepheline Soda
Page 53 and 54: from section to section - this may
Page 55 and 56: Table 9-1 Average Percent of Ore Mi
Page 57 and 58: The Nechalacho deposit alteration s
Page 59 and 60: 11. DRILLING Since 1977, diamond dr
Page 61 and 62: Foraco drill rig was added in Febru
Page 63 and 64: CORE LOGGING AND CORE RECOVERY The
Page 65 and 66: A high R 2 (and all regressions had
Page 67 and 68: 12. SAMPLING METHOD AND APPROACH A
Page 69 and 70: such as Illimausaq in Greenland, a
Page 71 and 72: 13. SAMPLE PREPARATION, ANALYSES AN
Page 73 and 74: limited set of elements; however, s
Page 75 and 76: CONCLUSIONS Avalon’s conclusions
Page 77 and 78: Tb and Dy) were routinely monitored
Page 79 and 80: As part of the QA/QC program, Avalo
Page 81 and 82: Table 14-4: Comparison of Niobium,
Page 83 and 84: shows more deviation, with ALS MS81
Page 85 and 86: 16. MINERAL PROCESSING AND METALLUR
Page 87: In a typical test, for example CCr-
Page 91 and 92: 9. TREO equivalent is estimated by
Page 93 and 94: Table 17-4 Sample Information Avalo
Page 95 and 96: Figure 17-1 Distribution of REO Com
Page 97 and 98: Assay Statistics for Upper Zone* *
Page 99 and 100: CUT-OFF GRADE A previous public res
Page 101 and 102: underneath for SG measurement purpo
Page 103 and 104: Figure 17-4 Density Measurements AL
Page 105 and 106: was equal to 60 m by 60 m by 30 m a
Page 107 and 108: Table 17-12 Detailed Resource Break
Page 109 and 110: Table 17-13 Indicated Mineral Resou
Page 111 and 112: Figure 17-7 Outline of Area of Indi
Page 113 and 114: The recoveries estimated for the fl
Page 115 and 116: grades were based upon the grades w
Page 117 and 118: Figure 18-1 Thor Lake Site Layout T
Page 119 and 120: Scott Wilson RPA recommends the use
Page 121 and 122: During discussions with the mine de
Page 123 and 124: Figure 18-4 Mine Layout Some of the
Page 125 and 126: Figure 18-5 Mine Development Schema
Page 127 and 128: Table 18-2 Development Tonnage Brea
Page 129 and 130: Until the crusher is in place and t
Page 131 and 132: Lateral Development The access decl
Page 133 and 134: Equipment will be selected based up
Page 135 and 136: Table 18-6 Estimated Electrical Loa
Page 137 and 138: 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
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epresenting about 18% of total zirc
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Table 18-25 Historic Chinese Export
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Figure 18-16 Tantalum Markets - 200
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the price for tantalum chemicals in
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Surface Hydrology The Thor Lake dra
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seven) have occurred more frequentl
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elative to uranium, the overall eff
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interviews conducted for the nearby
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Wildlife Early science-based wildli
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Other environmental permits/approva
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TAXES The NWT diesel tax has been i
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Table 18-31 Mine Capital Cost Estim
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Table 18-33 Surface Infrastructure
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Table 18-36 Indirect Cost Estimate
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Table 18-37 Contingency Allowance A
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Operating Cost Exclusions The opera
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Table 18-40 Underground Mine Cost S
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Table 18-41 Mine Cost Details Avalo
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Thor Lake Surface The Thor Lake sur
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Table 18-45 Sales and Marketing Cos
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Table 18-47 Rail Car Load Limits Av
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there will be no overhauls in the i
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Other supplies and freight will be
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Table 18-55 Hydrometallurgical Plan
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Table 18-56 Cash Flow Summary Techn
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The sensitivity of the base case 8%
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19. INTERPRETATION AND CONCLUSIONS
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• The Mineral Reserves, which hav
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20. RECOMMENDATIONS The authors of
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21. REFERENCES BCC Research (2009):
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MDN Inc (2010): News Release Melvil
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Wardrop Engineering Inc. (2009): Th
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23. CERTIFICATES OF QUALIFIED PERSO
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CERTIFICATE OF QUALIFIED PERSON I,
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CERTIFICATE OF QUALIFIED PERSON I,
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Section 416000 Section 416100 Secti
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Technical Report 43-101 - March 13,
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