Rare Element Resources
Bear Lodge Project
Canadian NI 43-101 Technical Report
October 9
th
, 2014
10135-200-46 - Rev. 0
14-46
14.16 Resource Classification
Resources are classified based on drill-hole spacing, which is measured in the trend-
flattened coordinate space using the variance from kriging of a flag variable. A zero-
nugget, linear variogram is used for the kriging runs which results in a kriging
variance that is directly proportional to the drill-hole spacing. In addition, limits were
placed on the estimation expansion volume to ensure that measured and indicated
blocks were defined by at least 6 drill holes within the specified search volume.
Resources in the Main 1 Zone, which is the source of high-grade ore for the first nine
years of mining, have excellent continuity and are locally drilled with closely spaced
drilling. Where drilling is sufficiently closely spaced, Main 1 resource can be assigned
resource classes up to measured. In all other zones, resources are assigned
resource classes no better than indicated. In the Main 2, Northwest Bull Hill,
Southeast, and West 2 zones, drill-hole spacing is much wider, and resources are
assigned entirely to the inferred category. All resources in the transition and sulfide
oxidation zones are assigned entirely to the inferred category. The parameters for
resource classification are summarized in Table 14.27.
The variable RCLASS is used to identify the resource class in each block. RCLASS=
1 is assigned to blocks in the measured category, and RCLASS=2 is assigned to
blocks in the indicated category. RCLASS=3 is assigned to blocks in the inferred
category, unless the drill-hole spacing is greater than 300 feet, in which case the
block is assigned RCLASS=4. The subdivision of the inferred category is included as
a convenience for drill planning and is not used for reporting purposes.
