Rare Element Resources
Bear Lodge Project
Canadian NI 43-101 Technical Report
October 9
th
, 2014
10135-200-46 – Rev. 0
1-14
1.9 Operating Costs
In years 1 – 9, the average total annual operating cost is estimated at $91 million,
assuming a nominal processing rate of 220,000 tons (199,600 tonnes) per year of
high-grade feed to the PUG plant, producing an average 8,523 tons (7,732 tonnes)
per year of bulk TREO concentrate. In years 10 – 38, the average total annual
operating cost is estimated at $111 million assuming a nominal production rate of
366,000 tons (332,000 tonnes) per year of feed to the PUG plant and production of
7,700 tons (6,985 tonnes) per year of bulk TREO concentrate per year. Previously
stockpiled ores will be processed in years 39 – 45, with an average total annual
operating cost estimated at $83 million, assuming an average feed rate of 423,000
tons (383,700 tonnes) and average production of 5,423 tons (4,920 tonnes) per year.
While included in the economic evaluation, estimated applicable property and
severance taxes are not included in the operating costs in Table 1.8
Table 1.8 - Operating Costs
Years 1 - 9
LOM
Cost/Ton
Ore
Processed
Average
Cost/Kg
TREO
Cost/Ton
Ore
Processed
Average
Cost/Kg
TREO
LOM
Total
(M)
Mining
$69.83
$1.99
$42.98
$2.18
$668
PUG
20.39
0.58
21.56
1.09
335
Hydromet & tailings storage
292.03
8.30
212.68
10.78
3,306
G&A & road maintenance
31.08
0.88
19.71
1.00
306
Total
$413.32
$11.75
$296.93
$15.05
$4,615
1.10 Environmental and Permitting
The Company continues to support the United States Forest Service (USFS) efforts
to prepare an Environmental Impact Statement (EIS) on the Project in accordance
with the National Environmental Policy Act (NEPA) process. This process is key to
securing the permits and approvals necessary to move into production. In early
2012, the Company submitted the Plan of Operations for the Project to the USFS,
and it was accepted as complete in May 2013. Since then, the USFS has selected a
Project Manager and prime contractor for preparation of the EIS, published notice in
the Federal Register, and completed necessary scoping work. The USFS is currently
working on the evaluation of the public comments, identification of alternatives, and
preparation of the draft EIS. The US Army Corps of Engineers and the appropriate
state and local government agencies are involved in the EIS process as cooperating
