Rare Element Resources
Bear Lodge Project
Canadian NI 43-101 Technical Report
October 9
th
, 2014
10035-200-46 - Rev. 0
22-10
22.5 Significant Risks
The following significant risks exist are not quantified in the cash flow model:
•
Marketability of product;
•
Variability in actual production of the various elements cause by variability in
feed assays;
•
Technical risk resulting from new technology developed for portions of the
rare earth processing.
22.6 Conclusions
The economic analysis conducted for the Bear Lodge feasibility study is presented in
Table 22.2 and yields an after-tax internal rate of return (IRR) of 29% and an after-tax
net present value (NPV) of USD $330.7 million at a discount rate of 10%.
The project has a quick payback of initial capital of 2.9 years from the start of
production.
