Rare Element Resources
Bear Lodge Project
Canadian NI 43-101 Technical Report
October 9
th
, 2014
10135-200-46 – Rev. 0
25-6
Because of the comparatively narrow markets for REs or REOs they cannot be
considered commodities, and their markets may be subject to conditions and
manipulations that would not be present in established commodity mineral markets.
The rare earths have been volatile, thus currently unforeseen price level changes are
possible and could have a significant impact on the financial results of the project.
The Company currently does not have off-take agreements for the sale of the REO
concentrate. Several rare earth separation facilities have been identified as potential
customers.
25.6.2 Technology
On January 21, 2014, the company announced the filing of a utility patent for rare
earth processing technology that produces nearly thorium free, pure rare earth
concentrate.
The process was developed and tested successfully in both bench and pilot scale
programs within the last year. These test programs were conducted at the SGS
Laboratories in Lakefield Ontario Canada.
Technology risks include the optimization of these technologies and their associated
economics including scale up risk. Cost risk exists if prices for equipment reagents,
energy, or other inputs increase faster than the rate of overall inflation, in which case
the project economics could be negatively impacted. Detailed engineering of several
of the infrastructure and support facilities has not been completed. Remaining
engineering tasks include the development of a raw water supply system and water
rights at the mine site, establishment of access road easements along the county
road, and the final power line routing to the mine site. These details will be finalized in
the feasibility study.
25.6.3 Environmental and Permitting
One of the important project risks is with timely completion of the environmental and
permitting process. The procedures for obtaining a mining permit from the Wyoming
Department of Environmental Quality (WDEQ) are well established however, the
timing could be impacted by a host of factors out of the Company’s control.
The Environmental Impact Statement (EIS) process is also well established in the
National Environmental Policy Act (NEPA), which is the formal process to review the
