7/27/2019 project_sheet.pdf
1/2
Thor Lake Location Map
Sustainability Advisory Committee
JeanCinq-Mars
ChiefPhilFontaine(Director)
DenisKemp
ChiefGlennNolan
Technical Advisory Committee
RossMacFarlane
RichardMorland(Director)
JohnGoode
PaulSchmidt
Project
OverviewAvalonRareMetalsNechalachoRareEarthElements(REE)ProjectatThorLake
NWTisnowthemostadvanced,largeheavyrareearthdevelopmentprojectintheworld.Nechalachoisalsohosttothesecondlargesttantalumdepositandthirdlarge
niobiumdepositintheworld,andremainsoneofthefewnewREEprojectstohave
completedfeasibilitystudy.Thefinancialanalysisinthefeasibilitystudyshowsrobu
economicreturnswithapre-taxinternalrateofreturn(IRR)of22.5%andanetpres
value(NPV)at10%discountrateof$1.351billion.Projectdevelopmentworkispro
gressingwithbasicengineering,andinitialpreparationsforpreconstructionwork
scheduledtobeginin2013withtheoverallobjectiveofachievingcommercialopera
tionsby2017,subjecttosecuringoperatingpermitsandnewprojectfinancingona
timelybasis.ThiswillallowtheProjecttobecomethefirstlargeproducerofheavyra
earthelements(HREE)fromoutsideofChina.
Strategic Advantages
Nechalachodepositisexceptionalamonghardrockrareearthdepositsforitslargsizeandhighproportionofheavyrareearths(greaterthan20%oftotalrareearth
idesorTREO)
Naturalflatlyingdepositgeometry,verygoodrockmechanicsandnogroundwate
issuesmaketheNechalachodepositamenabletolow-costundergroundbulkmin
methods
Largesizeofthedepositoffersthepotentialforcreatingascalable,multi-generat
business.
ThorLakeisaccessiblebyairtransport,bargeinthesummerandiceroadsinthe
ter,whiletheHydrometallurgicalPlantandtheHayRiverrailheadareaccessible
roundbyanall-seasonhighway
RefineryinGeismar,LAisaccessiblebyroad,railandmarinetransportation
Environmentallyfriendlyprojectwhichsignificantlyminimizesimpactstowater,la
andair
Energyefficientmineandprocessingdesignstominimizecarbonfootprint
PROJECT FACT SHEE
Nechalacho, Thor Lak
AVALON RARE METALS INC.
130AdelaideStreetWest,Suite1901
Toronto,ONCanadaM5H3P5
T:(416)364-4938 F:(416)[email protected]
www.avalonraremetals.com
INFORMATIONCertainstatementscontainedinorincorporatedbyreferenceintothisdocumentconstitute
orward-lookingstatements.SuchstatementsreflectthecurrentviewsofAvalonRareMetals
nc.withrespecttofutureeventsandaresubjecttocertainrisks,uncertainties,andassump-
ons.Manyfactorscouldcausetheactualresults,performanceorachievementsofAvalon
RareMetalsInc.thatmaybeexpressedorimpliedbysuchforward-lookingstatementsto
aryfromthosedescribedhereinshouldoneormoreoftheserisksoruncertaintiesmaterial-
ze.AvalonRareMetalsInc.doesnotintend,anddoesnotassumeanyobligation,toupdateheseforward-lookingstatements.
Document updated April 16, 2013
MATERIALS FOR CLEAN TECHNOLOGY TSX & NYSE MKT:
Products: Rareearthelementswithby-productsoftantalum,niobium
andzirconium(allasoxides)
Developmentstage: Feasibilitystudycompleted
Productionstart-up: 2016-17
Capitalinvestment: Approximately$90milliontodate
Estimatedminelife:
Over20yearsbasedon14.6milliontonnesofprovenandprobablemineralreservescontainedwithin65.83million
tonnesofmeasuredandindicatedmineralresources.
EstimatedCapital
Cost:$1.575billion(includingsustainablecapital)forconstructio
2000t/dundergroundmine,concentrator,hydrometallurg
processingplant,andarareearthrefinerywitha10,000t
capacityofseparatedrareearthoxides
AverageOperating
Cost$361/tonnemined
AverageRevenue $886/tonnemined
APRIL 16, 2
7/27/2019 project_sheet.pdf
2/2
Project
DevelopmentSince2005,Avalonhasinvestedover$90milliontofurtherexploreanddeveloptheNchalachoREEdeposit.Thishasincludedmetallurgical,environmental,marketstudiesover108,565metresofdiamonddrillingin502holesresultinginsubstantialNI43-101pliantmeasured,indicatedandinferredresourcesinahighgradesub-zonecalledtheZone.Pilotplantworkforboththeflotationandhydrometallurgyplantshavebeencomed.StudiesareongoingtooptimizemetallurgicalrecoveriesandprocessesforbothpAnairstripwasconstructedatthesitein2010whichwillbeextendedtoaccommodatelargeraircraftfor2013.
Environmental Studies and
PermittingTheEnvironmentalAssessmentprocesswasinitiatedonMay20,2011whenAvalonfitsDevelopersAssessmentReport,alsoknownasanEnvironmentalImpactStatemewiththeMackenzieValleyEnvironmentalImpactReviewBoard.Theprocessisnearinconclusionfollowingthecompletionofpublichearingsandclosingofthepublicregistrisonscheduleforcompletioninmid-2013,followingwhichrequisitelandusepermitsbeissued.
ProductionTheHydrometallurgicalPlantwhichwillprocessthemineralconcentrateproducedatNechalachositetoproduceamixedrareearthprecipitateandenrichedzirconiumcontrate(EZC)containingby-producttantalumandniobium.TheEZCwillbesoldtoancompanywhiletheRareearthprecipitatewillbeshippedtoaRefinerythatAvalonproestobuildinGeismar,Louisiana.Thefeasibilitystudyestimatescombinedproduction9,286tpaTREO,19,763tpazirconiumoxide,2230tpaniobiumoxideand243tpatanoxide.
Project Location
ThorLakeislocatedapproximately100kmsoutheastofYellow-knife,NorthwestTerritoriesThepropertyisdirectlyaccessiblebybargeinthesummer,iceroadinthewinter,andyear-roundairtransport.AhydrometallurgyplantisplannedforPinePoint,NWTandarefineryistentativelyplannedforGeismar,Louisi-ana,UnitedStates.
Measured and Indicated Resources in the Basal Zone at November
26, 2012
NOTES:
Fordetailsonthemineralresourceestimationprocedures,thereaderisreferredNI43-101TechnicalReport,SEDARfiledonMarch15,2011.CIMdefinitionswerefollowMineralResources.Acut-offNMRvalueofC$320pertonnewasusedfortheBaseCase
isdefinedas"NetMetalReturn"ortheinsituvalueofallpayablemetals,netofestimated
allurgicalrecoveriesandoff-siteprocessingcosts.HREO(HeavyRareEarthOxides)isth
concentrationof:Y2O3,Eu2O3,Gd2O3,Tb2O3,Dy2O3,Ho2O3,Er2O3,Tm2O3,Yb2O3andLu
TREO(TotalRareEarthOxides)isHREOplus:La2O3,Ce2O3,Pr2O3,Nd2O3andSm2O3.
Sustainability Performance
nApril2012AvalonreleaseditsfirstannualCorporateSus-
ainabilityReport,whichincludesaself-assessmentofsus-ainabilityperformanceinaccordancetotheGlobalReporting
nitiative(GRI)LevelCandtheMiningAssociationofCana-
das(MAC)TowardsSustainableMining(TSM)standards.
Avalonreportedon27GRIand21TSMindicatorscovering
economic,environmentalandsocialperformance.Thereport
canbedownloadedfromtheAvalonwebsite.
Project
ScheduleAvalonhasdevelopedacriticalpathprojectscheduletoestimateapossiblestart
forfullcapacityproduction.Thescheduleassumesthattheissuanceofpermits,fi
inganddeliveryofequipmentaretheonlyexternalconstraintthatwouldmodifyth
currentscheduleasplanned.Feasibility Study 2013:Financial
Analysis
Coversmining,mineralconcentration,hydrometallurgical
processing,refiningandallrelatedinfrastructure.
Resultsofthediscountedcashflow(DCF)analysispro-
ducedforthefeasibilitystudysummarizedbelowyieldposi-tiveresultswithapaybackperiodofjust4.3years.
Operatingcostsaverage$264.5millionperyearovertheinitial20yearlifeoftheoperationusedinthefeasibility
study,againstaverageannualrevenuesof$645.8million.
Basal Zone Tonnes(millions)%
TREO%
HREO% HREO/
TREO%
ZrO2%
NbO
Measured 10.88 1.67 0.38 22.91 3.13 0.41
Indicated 54.95 1.54 0.33 21.63 3.01 0.40
Measured 4.00 2.23 0.59 26.51 4.31 0.54
Indicated 14.57 2.18 0.56 25.57 4.21 0.53
Measured 1.99 2.52 0.70 27.67 4.90 0.61
Indicated 5.72 2.52 0.67 26.58 4.79 0.60
$320 NMR Cut-Off
$800 NMR Cut-Off
$1000 NMR Cut-Off
http://www.avalonraremetals.com/_resources/AVL_CSR_2011.pdfhttp://www.avalonraremetals.com/_resources/AVL_CSR_2011.pdfhttp://www.avalonraremetals.com/_resources/AVL_CSR_2011.pdfhttp://www.avalonraremetals.com/_resources/AVL_CSR_2011.pdfhttp://www.avalonraremetals.com/_resources/AVL_CSR_2011.pdfhttp://www.avalonraremetals.com/_resources/AVL_CSR_2011.pdf
