Rare Element Resources
Bear Lodge Project
Canadian NI 43-101 Technical Report
October 9
th
, 2014
100135-200-46 – Rev. 0
21-11
21.3 Operating Cost Estimate
21.3.1 Mining Operating Cost Estimate
The estimated mine production and operating costs are developed on an annual basis
and based upon the mine production schedule. The mine operating costs consist of direct
and indirect operating costs. The direct operating costs encompass all costs associated
with excavating material from the open pit, transporting ore and stockpiled material to the
PUG plant, building a waste rock facility and maintenance services. Indirect costs are
costs associated with administration and other support costs.
21.3.2 Processing Plant Operating Cost Estimates
The processing plant operating costs for the PUG Plant and for the Hydromet Plant are
calculated based on five generic cost categories:
Labor
Energy
Consumables and reagents
Maintenance
Thorium disposal and other operating costs
Operation of the processing facilities involves the purchase of basic feedstock materials
and reagents, which consist primarily of:
Flocculant
Hydrochloric Acid (HCl)
Oxalic Acid (H
2
C
2
O
4
)
Nitric Acid (HNO
3
)
Ammonia (NH
3
)
Sodium Hydroxide (NaOH)
Limestone (CaCO
3
)
Quicklime (CaO)
