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Stockpiled materials are planned to be PUG-processed up through Year 45, when they are estimated to be
depleted. Reclamation of mining-related facilities will occur during mine operations, where applicable, and upon
completion of mining and stockpiling of materials. Other facilities, including the PUG plant, will be reclaimed as
soon as the stockpiled materials are depleted.
The mineral concentrate produced at the PUG plant is planned to be transported to a proposed
hydrometallurgical plant near Upton, Wyoming via covered trucks. The hydrometallurgical plant will process the
mineral concentrate by acid leaching followed by additional chemical processing to remove impurities and
precipitation to produce the final TREO product. The tailings produced from the process will be filtered, neutralized
and stored in a double-lined tailings storage facility (TSF) adjacent to the hydrometallurgical plant.
The Company conducts metallurgical test work primarily at SGS Lakefield of Lakefield, Ontario, Canada,
which is independent from the Company.
Other Exploration Target Areas at the Bear Lodge REE Project
Discovery of high-grade REE mineralization at the East Taylor and Carbon target areas expanded the area
of known REE mineralization outside of the Bull Hill and Whitetail Ridge deposits, and further delineate a “district”
underlain by significant and potentially economic REE mineralization. The data indicate that the Bear Lodge REE
Project area covers a crudely elliptical area that extends approximately 1,750 meters northwest-southeast by 1,300
meters northeast-southwest. The Carbon exploration target area is located northwest of the Bull Hill deposit, and the
East Taylor target is located west of the Bull Hill deposit. Drill assay data from the East Taylor and Carbon
exploration targets identify these areas as zones of HREE-enrichment relative to the Bull Hill deposit. All are
enriched in CREEs. These two exploration target areas, along with the Whitetail Ridge deposit, are peripheral to the
Bull Hill deposit. They are characterized both by high TREO grades, and by some of the highest initial HREE
grades of any known North American deposit. They are particularly enriched in Eu, Tb, Dy and Y.
The discovery of these target areas indicates good potential for additional deposits of high-grade REE in
the western half of the Bear Lodge REE Project, and those deposits appear particularly enriched in HREE.
Sundance Gold Project
The Sundance Gold Project is the second project located on our Bear Lodge Property. For a description of
the property’s location, ownership, accessibility, infrastructure and climate, see the section heading “Item 2.
Properties – Bear Lodge Property (Wyoming, USA)” above. There was no exploration work in 2014 or 2015 for
this project, and no exploration work is planned in 2016. The Company is in the process of evaluating its options
related to the gold claims, including the potential of the transfer, sale or disposition of such claims.
Mineral Resources Estimates
The Sundance Gold Project contains an NI 43-101 compliant Inferred Mineral Resource with an effective
date of March 15, 2011, prepared by Ore Reserves Engineering of Lakewood, Colorado. Total Inferred Mineral
Resources assuming a $1,200/oz. gold price were 69,300,000 tonnes with a grade of 0.42/g/t Au. The Technical
Report summarizes the project and is available on SEDAR at
www.sedar.com .ITEM
3 LEGAL PROCEEDINGS
We are not aware of any material pending or threatened litigation or of any proceedings known to be
contemplated by governmental authorities which are, or would be, likely to have a material adverse effect upon the
Company or our operations, taken as a whole. There are no material proceedings pursuant to which any of our
directors, officers or affiliates or any owner of record or beneficial owner of more than 5% of our securities or any
associate of any such director, officer or security holder is a party adverse to the Company or has a material interest
adverse to it.
ITEM
4. MINE SAFETY DISCLOSURES
We consider health, safety and environmental stewardship to be a core value for Rare Element.