Rare Element Resources
Bear Lodge Project
Canadian NI 43-101 Technical Report
October 9
th
, 2014
10135-200-46 - Rev. 0
15-7
15.4 Sensitivity of Reserves to Mining, Metallurgical, and other Factors
Higher than expected mining dilution could reduce ore grades, localized siliceous
zones may result in some ore losses during processing, flatter pit slopes and
wider haul roads could increase the stripping ratio, and higher mining costs would
adversely affect project economics. None of these factors, however, are
expected to materially affect the tonnage of mineral reserves or the quantity of
REO product.
Rare earth prices and metallurgical recoveries have more significant impacts. A
25-30% decrease in net overall prices, recoveries, or a combination thereof
would reduce total proven and probable mineral reserves by about 10%. A 40-
45% price/recovery decrease would reduce mineral reserves by over 30% and a
55-60% price/recovery decrease would reduce mineral reserves by nearly 80%
from the total quantities listed in Table 15.3.
Difficulty in developing markets for the REO products may significantly impact
prices, with the affects as noted above. Failure to obtain the necessary approval
and/or permits from environmental and other regulatory agencies could eliminate
all of the estimated mineral reserves.
