Rare Element Resources
Bear Lodge Project
Canadian NI 43-101 Technical Report
October 9
th
, 2014
100135-200-46 – Rev. 0
21-19
Table 21.8 - TSF Labor Cost
Item Description
Unit Rate
Yearly Cost
Haul Truck Driver
$ 65.00
$ 135,000
Haul Truck Driver
$ 65.00
$ 135,000
Dozer Grader Operator
$ 85.00
$ 177,000
Motor Grader Operator
$ 85.00
$ 177,000
Loader Operator
$ 85.00
$ 177,000
(Golder, 2014)
21.3.9 Operating Cost Estimate Summary
Operating costs vary from a low of $9.83/ kg of REO in the first year of operation to a
high of $21.05/ kg in year twenty-six. Table 21.9 summarizes the operating cost estimate
for these two years. Numerous factors cause the operating cost to vary over time with
ore grade being the most influential factor. Ore type, stripping ratio and other factors also
cause the operating cost to fluctuate.
Table 21.9 - Bear Lodge Project: Operating Cost Estimate Summary
(Roche, 2014)
Figures 21.1 and 21.2 illustrate the percentage of operating cost that is attributed to the
various units in years one and twenty-six respectively. As can be seen, for the most part
the operating costs increase proportionally across most of the units with the Hydromet
cost making up the majority of operating cost.
Unit
Year 1, ($000s) Year 26, ($000s) Year 1, $/kg Year 26, $/kg
PUG
4,470
11,380
0.46
1.70
Hydromet
68,126
102,576
7.02
15.29
Mining Operations
15,133
19,598
1.56
2.92
Upton TSF Operations
804
801
0.08
0.12
G&A Operating Costs
6,603
6,603
0.68
0.98
Miller Creek Road Maint.
230
230
0.02
0.03
Total
95,368
141,189
9.83
21.05
REO Produced, tons
10,696
7,394
