Rare Element Resources
Bear Lodge Project
Canadian NI 43-101 Technical Report
October 9
th
, 2014
100135-200-46 – Rev. 0
21-7
The system for separation and removal of oils and greases is designed to comply
with environmental standards;
The building ground floor level is approximately 6 inches (15 centimeters) higher
than the current ground level;
The electricity supplier is able to provide power;
PreCorp supplied any cost related to high voltage distribution and transformation.
21.1.3 Capital Cost Estimate Summary
Table 21.1 presents the capital cost estimate summary. For the cash flow analysis these
costs were distributed in the years that they will be incurred. The bulk of the cost occurs
during the first two years when the facilities are first constructed. Mining of lower grade
ores beginning in year 10 will require the relocation of some crushing and screening
equipment from the Hydromet plant to the PUG site. The mining rate is increased in order
to keep the production of REO relatively constant, which requires the PUG plant to be
expanded in year 9 to provide for enhanced concentration of ore using gravity separation
and magnetic separation.
Table 21.1- Capital Cost Estimate Summary
Description
Initial Cost,
($000s)
Total Cost,
($000s)
Direct Cost
$ 206,349
$ 339,492
Area 1.0 - PUG Plant
$ 8,024
$ 44,819
Area 2.0 - Hydromet Plant
$ 120,974
$ 122,076
Area 3.0 - Sub-consultant:
Access Roads
(Stetson Engineering Inc.)
$ 10,804
$ 10,804
Electrical Power Lines to Mine & PUG
(Precorp)
$ 6,026
Electrical Power Lines to Hydromet (Precorp)
$ 1,053
$ 1,053
Tailings
(Golder Associates)
$ 5,212
$ 24,970
Mining Equipment
(Golder Associates)
$ 15,296
$ 15,296
Mining Infrastructure and Miscellaneous
(Golder Associates)
$ 14,016
$ 18,536
Mine Closure Plan
(Golder Associates)
$ 8,669
Upton Site Closure Plan
(RER)
$ 7,837
Year -1 Mine Operating Costs
(Golder Associates)
$ 5,169
$ 5,169
Contractor Pre-Strip Costs
$ 23,461
$ 23,461
Road Maintenance during non-operating years
$ 230
$ 920
Area 4.0 - Others:
Land/Property Acquisition (Upton)
$ 840
$ 840
Land Acquisition and Building Construction (Sundance)
$ 1,500
$ 1,500
Capital Replacement
$ 40,913
