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Rare Element Resources Transitions Geological Team as Bear Lodge Project Conitnues to Advance Toward Development

by User Not Found | Feb 03, 2014

Dr. James Clark, VP Exploration, to return to consulting role  


February 3, 2014 – Lakewood, Colorado – Rare Element Resources Ltd. (NYSE MKT: REE and TSX: RES)
, a mineral resources company advancing development of the Bear Lodge Critical Rare Earth Project, announced today that Dr. James G. Clark, Vice President of Exploration, is returning to an advisory and consulting role with the Company after six years in his current executive position. This move reflects the Company’s continued progress from advanced-stage exploration toward mine development. 

John T. Ray has been appointed Chief Geologist and will be responsible for both exploration and development geological work. Mr. Ray has more than 30 years of experience, including the last four years on the Bear Lodge Project with Rare Element and the previous six years as a consultant with Newmont Mining on the adjacent Sundance gold project. Richard K. Larsen, Rare Element’s Engineering Manager, has over 16 years of mine-operations experience and will continue to oversee the Project’s mine development engineering while assuming the additional responsibility for the administrative management of the Company’s Wyoming-based operations. Dr. Clark will remain an active consultant on the Project, allowing the Company continued access to his extensive knowledge of the geology and mineralogy of the region.

“Under Jim’s direction over the last 10 years, first as a consultant and more recently as an officer of the Company, we were able to take a small rare earth deposit and re-define it as a world-class critical rare earth district,” stated Randall J. Scott, President and Chief Executive Officer.  “Jim’s understanding of the geology and mineralogy of the Project is unparalleled, and his contribution to the success of the Company is immeasurable.  With our focus on bringing the Bear Lodge Project into development and ultimately production, this new arrangement allows us ready access to Jim’s knowledge base while we shift our attention to mine development, with an emphasis on pit design and ore control.”

Dr. Clark will deliver consulting services to Rare Element through his company, Applied Petrographics, which has provided petrographic and microanalytical services to the mining industry since 1998. Dr. Clark will continue his direct involvement in the ongoing exploration work at the Bear Lodge Project, as well as with aspects of mineralogical work related to mineral processing.  His work will include continued assessment of several previously identified rare earth exploration targets, including the advanced exploration targets of Taylor and Carbon, both of which exhibit significant heavy rare earth enrichment.

Rare Element Resources Ltd. is a publicly traded mineral resource company focused on exploration and development of rare-earth element deposits, specifically those with significant distribution of critical rare earths.  The Company is advancing development of the Bear Lodge Project, located in northeast Wyoming.  Bear Lodge is a significant mineralized district containing many of the less common, more valuable critical rare earths that are essential for electronics, fiber optics, laser systems for health and defense, as well as many evolving green technologies, like hybrid cars, solar panels and wind turbines.  Permitting and feasibility work on the Project is currently underway.

For additional information, please visit the Company’s website at www.rareelementresources.com or contact Robbin Lee at 720-278-2462 or rlee@rareelementresources.com.

Forward-Looking Statements
This news release contains forward-looking statements within the meaning of securities legislation in the United States and Canada. Except for statements of historical fact, certain information contained herein constitutes forward-looking statements. Forward-looking statements are usually identified by our use of certain terminology, including "will", "believes", "may", "expects", "should", "seeks", "anticipates", "plans", "has potential to", or "intends" or by discussions of strategy or intentions. Such forward looking statements include statements regarding our expected progress to the mine development stage. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause our actual results or achievements to be materially different from any future results or achievements expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially include, but are not limited to, the progress of our Bear Lodge Project, fluctuations in demand for, and price of, rare earth products; success of process technology under testing; timing of and unexpected events at the Bear Lodge property; delay or failure to receive government approvals and permits; changes in U.S. and Canadian securities markets; and general economic conditions. There can be no assurance that future developments affecting the Company will be those anticipated by management. Please refer to the discussion of these and other factors set out in our filings made from time to time with the SEC and Canadian regulators, including but without limitation, our reports on Form 10-K and Form 10Q. We expect that the above estimates as to development plans, technology and other processes, time frames and financial needs will change as new information is received and that actual results will vary from these estimates, possibly by material amounts. While we may elect to update these estimates at any time, we do not undertake to update any estimate at any particular time or in response to any particular event. Investors and others should not assume that any forecasts in this press release represent management's estimate as of any date other than the date of this press release.
    

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Bear Lodge Panoramic
Sample Drilling
Core Samples

The Bear Lodge Project area is a significant mineralized district that contains one of the largest disseminated rare earth deposits in North America. This deposit contains many of the less common, more valuable critical rare earths that are essential for electronics, fiber optics, laser systems for health and defense, and many evolving green technologies, such as hybrid cars, solar panels and wind turbines. Rare Element Resources owns 100% of the project and, after completing a positive preliminary feasibility study in 2014, is current working with state and federal regulators to secure the permits and licenses necessary to move the Project toward development. 

Project Highlights

  • Solid Returns with Excellent Upside – the October 2014 PFS shows an after-tax 29% IRR, a NPV of $330 million using a 10% discount and an initial payback period of less than 3 years. It also identified several opportunities for upside including further operating cost reductions with refinement of the Company’s proprietary processing technology, the ability to recover Inferred mineral resource within the pit outline, the current investigation of further separation as a means to participate more fully in the value chain, and the ability to boost revenues by recovering certain by-products.
  • Superior Location – Wyoming is recognized by Canada’s Fraser Institute as one of the world’s top five mining jurisdictions. The site is ideally located near existing infrastructure, has access to low cost power and is generally supported by the local communities, who are well versed in natural resource development.
  • Robust Ore Body – the strength of our mineral resource is demonstrated by a 45 year Project life with a high-grade core that  results in a 2.9 year payback period.
  • Proprietary Technology – continued improvements to the Company’s patent-pending recovery technology have delivered a 99.999% pure, thorium-free TREO concentrate.  Recent work has identified an enhancement to existing separation technology that has produced a number of high purity, separated rare earth products in bench-scale testing.  The process is not only efficient and cost effective but environmentally friendly.  Pilot plant testing was started in July 2015. 
  • Permitting Advancing – the US Forest Service is preparing the Environmental Impact Statement on the site, the draft of which is expect in the second half of 2015.  The Company submitted its applications for key permits and license to the appropriate state and federal agencies in the second quarter of 2015. 
  • Optimization Work – optimization work identified in the PFS is currently being undertaken and will support detailed engineering and the Feasibility Study.