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4.0 DESCRIPTION OF OPERATION
4.1
GENERAL PROJECT DISCUSSION
Rare Element Resources, Inc. (RER) is proposing to mine and recover rare earth elements
(REE) in northeastern Wyoming (Bear Lodge Project). REE are key components of green
energy technologies and other high-technology applications. Some of the major applications
include: hybrid automobiles, plug-in electric automobiles, advance wind turbines, nickel-metal-
hydride batteries, computer hard drives, magnetic refrigeration technologies, compact
fluorescent light bulbs, metal alloys, additives in ceramics and glass, fluid and petroleum
cracking catalysts, and a number of critical military uses. China currently produces
approximately 96 percent of the approximate 140,000 tons of rare earths consumed annually
worldwide, and China has been reducing its exports of rare earths each year. The rare earths
market is growing rapidly at 7 to 10 percent per year, and is projected to accelerate if green
technologies are implemented on a broad scale.
The Bear Lodge Project consists of four components as follows:
An open-pit mine operation at Bull Hill and associated support facilities located
approximately 12 road miles (19.31 km) north of Sundance, Wyoming;
A PUG Plant for mineral pre-concentration located on-site adjacent to the mine;
A hydrometallurgical (Hydromet) plant for further concentration and recovery of the
REE into a rare earth carbonate concentrate product in Upton, Wyoming; and
The continuation of exploration drilling and activities during mining operations
(described in Appendix N).
It is anticipated that the Mineable Pit will be developed as shown on Map 4.2-2 (map pocket).
The Mineable Pit includes the known Measured and Indicated (M&I) resource as disclosed in
the updated NI 43-101-compliant mineral resource estimate of the Bull Hill Area and as modified
by 2013 drilling results and the adjacent Whitetail Resource Area that extends towards the
northwest.
The Whitetail Pit is an Indicated resource that will extend the mine life to 43 years. The Bull Hill
and Whitetail resource areas, as shown on Map 4.2-2, outlines the extent of the anticipated
disturbance area which has a footprint of approximately 232 acres.
The PUG Plant is designed to maximize concentration of the rare earth minerals and produce a
pre-concentrate using a crushing, screening, and gravity separation process depending on the
ore type. The PUG process employs a series of crushing, screening, and gravity methods to
concentrate the rare earth-bearing fines and reduce the physical mass. There are areas of the
Mineable Pit that contain variable amounts of weathered oxide ores or oxide-carbonate OxCa
ores, and that contain variable grades of stockwork mineralization adjacent to the higher grade
ores. Each of these ore types has a different upgrade percentage and mass reduction in the
PUG circuit. The mining plan will encounter a distinct high grade zone early in the project which
will allow for preferential mining for a period of 9 years. Low and mid-grade ores will also be
mined and stockpiled for future PUG processing. The PUG circuit has been designed to process
up to 500 tons per day of high grade oxide ore to produce up to 425 tons per day of bulk mixed
rare earth pre-concentrate during the first 9 years of production. The PUG processing strategy is
to maximize the rare earth grade and recovery, and minimize the mass or tonnage of the pre-
concentrate that is transported to the Hydromet Plant. At mining Year 10, more of the ore grade
begins to drop as the minable pit will extend into more of the stockwork ores at Bull Hill and
mining will begin at the Whitetail Pit. The production rate to the PUG will increase up to 1,000
