Rare Element Resources
Bear Lodge Project
Canadian NI 43-101 Technical Report
October 9
th
, 2014
100135-200-46 – Rev. 0
21-3
21.1.1.5 Labor
Labor is listed as man-hours for installation and construction activities. The hourly rate is
based on recent Roche project experience and is estimated based on the type of activity.
Actual labor rates used are listed in the estimate for each line item as may be applicable.
The default construction rate for the Physical Upgrade and Hydromet Plants is $95.50 per
hour. ($85.50 per hour base cost plus $10 per hour of pension cost.)
21.1.1.6 Installation
Installation costs are factored from the equipment cost according to the generic nature of
the equipment. Some equipment requires no installation such as mobile vehicles while
other equipment requires significant installation costs such as chemical process
equipment. Installation cost includes supply of materials for connection to services as well
as labor to perform the work.
21.1.2 Indirect Cost
Indirect costs are estimated as proportions of the direct cost as described below.
21.1.2.1 General Indirect Costs
The general indirect costs are estimated as follows:
The general indirect costs are estimated as follows:
Engineering Fee (DFS and Detailed Engineering);
o
PUG Plant – 4% of consultant direct costs;
o
Hydromet Plant – 4% of consultant direct costs.
o
Access Roads – 5% of sub-consultant direct costs;
o
PreCorp PUG – 0% of sub-consultant direct costs;
o
PreCorp Hydromet – 0% of sub-consultant direct costs;
o
Tailings Storage Facility – 3% of sub-consultant direct costs;
o
Primary Mining Equipment – 3% of sub-consultant direct costs;
o
Mine Infrastructure and Misc. – 5% of sub-consultant direct costs;
o
Mine Closure Plan – LQD Guidance Item 12a - $100,000
o
Upton Site Closure Plan – LQD Guidance Item 12a - $100,000
