Rare Element Resources
Bear Lodge Project
Canadian NI 43-101 Technical Report
October 9
th
, 2014
10135-200-46 - Rev. 0
14-1
14 Mineral Resource Estimates
14.1 Introduction
This mineral resource estimate was prepared by Ore Reserves Engineering (ORE) to
update the previous resource estimates for the Bull Hill rare earth deposits. These
estimates were described in the report titled, “Technical Report on the Mineral
Reserves and Resources and Development of the Bull Hill Mine”, dated May 2, 2013,
and amended on June 26, 2013. A further update to the resource estimate was
reported in a press release dated December 19, 2013 and added data from drilling
conducted through September 2013 at the Whitetail deposit. The resource estimate
was again updated in the Rare Element 10K in March 2014 to include PQ core drilling
conducted in late 2013 on the Bull Hill deposit.
The current estimate, dated May 2014, updates the resource estimate to include
geological information and assay data for all drilling completed during the 2013 field
season, including drilling at the Whitetail and Bull Hill deposits. In addition, the
estimate was modified to include dilution consistent with a 20x20x20-foot selective
mining unit. Estimation was done using 307 core holes and 20,491 assay intervals
that totaled 186,221.5 feet (56,774.85 meters) of drilling. Resource modeling and
estimation were done using CAE Mining Studio 3 (formerly Datamine) software by
Alan Noble, PE of O.R.E., who is the independent QP for the resource estimate. Mr.
Noble is a resource estimation consultant, who has 44 years of experience in the
minerals industry, and who has worked on resource estimation and mine planning for
more than 153 mineral deposits throughout the world.
14.2 General
A three-dimensional block model using 10x10x10-foot (3x3x3-meter) blocks was
created for use in resource estimation. While the 10-foot (3-meter) blocks were used
to provide better geometric resolution of the high-grade veins, IDP estimation
parameters were adjusted to provide a selective mining unit of 20x20x20 feet
(6.1x6.1x6.1 meters). The 10-foot blocks were not sub-celled on geological
boundaries to provide better compatibility with the MineSight software used for mine
planning. The block model location parameters remain the same as for previous
models, and the survey coordinate system remains as UTM Zone 13, NAD 83. Size
and location parameters for the block model are summarized in
Table 14.1
.
