Rare Element Resources
Bear Lodge Project
Canadian NI 43-101 Technical Report
October 9
th
, 2014
10135-200-46 – Rev. 0
1-8
1.1.2 Inferred Mineral Resource
Both the Bull Hill and Whitetail Ridge deposits have a significant amount of drill-
indicated Inferred resource. While this portion of the resource has greater uncertainty
than the M&I resource and is assigned no economic value in the PFS, it represents
significant upside opportunity for the project. About one-third of the Inferred
Resource is contained within the designed pit and could be recovered during the
mining operations currently contemplated in the PFS. The Inferred resource at the
project is summarized in Table 1.5.
Table 1.5 - Inferred Mineral Resource within the Bear Lodge Project
Inferred Mineral Resource
(using a 1.5% cutoff grade)
*
Deposit
Tons
(M)
Tonnes
(M)
Grade
TREO
%
Contained
TREO lbs
(M)
Contained
TREO Kg
(M)
Bull Hill
23.9
21.7
2.54
1,212
550
Whitetail Ridge
7.9
7.2
2.71
429
194
Inferred
Resource
31.8
28.9
2.58 1,641 744
* Inferred resources were estimated by Alan C. Noble, P.E. of O.R.E, an independent Qualified Person as defined
by NI 43-101. While the term “Inferred Mineral Resource” is recognized and required by NI 43-101, the SEC
does not recognize it. Inferred mineral resources have considerable uncertainty as to their existence, and do not
have demonstrated economic viability. It cannot be assumed that all or any portion will ever be upgraded into
a higher category or recovered, and therefore, they are not included in the PFS evaluation.
1.1.3 Total Rare Earth Oxide Distribution
The Bear Lodge Project is rich in “critical” rare earths, defined by the U.S. Department
of Energy as those most essential to the “clean energy” economy and at the highest
risk of supply disruption. These elements include neodymium, dysprosium, europium,
terbium, and yttrium. The Company also believes that praseodymium is a critical
REE because of its use in association with neodymium in high-intensity, permanent
magnets. These elements are expected to experience higher demand growth, as
green technologies advance in concert with increasing environmental standards
worldwide. The distribution of REEs in the mineral reserve is outlined in Table 1.6
below:
