Rare Element Resources
Bear Lodge Project
Canadian NI 43-101 Technical Report
October 9
th
, 2014
100135-200-46 – Rev. 0
21-12
Motors installed on compressors, pumping, conveying and comminution equipment are
the primary electricity consumers. The Hydromet plant also consumes natural gas as an
energy source to supply heat to the acid regeneration unit (Unit 350), the kiln and three
screw dryers.
Maintenance and consumables costs are primarily related to the following items:
Preventive maintenance and repairs on equipment and instruments (spare parts);
Preventive maintenance on buildings and structures (corrosion control);
Replacement of the liners of the crushers and grinding mill.
Labor costs are estimated based on a comparative staffing analysis with similar plants. An
organization chart has been created to identify the personnel that will be required. This
includes administration, maintenance and site services personnel.
21.3.3 G&A Operating Cost Estimate
The G&A costs include the following items:
G&A labor costs;
G&A operating supplies and expenses;
Exploration (within project boundaries);
Environmental, Health & Safety Mine Site;
Environmental, Health & Safety Upton Plant (includes radiation safety);
Tailings storage facility;
Access road maintenance;
Wells and water lines maintenance.
21.3.4 Other Operating Cost Estimate
Other operating costs have also been added to the mine, PUG, Hydromet and Upton TSF
operating cost estimates. These miscellaneous items include but are not limited to the
pre-concentrate transportation, laboratory supplies, and research and development cost.
