NI43-101Pre-Feasibility Study Report - page 112

Rare Element Resources
Bear Lodge Project
Canadian NI 43-101 Technical Report
October 9
, 2014
10135-200-46 - Rev. 0
areas—now termed the Whitetail Ridge resource area. The mineralized portions of
the holes are reported to have many small mineralized veins and veinlets in a
“stockwork” deposit, and the average grade was 1.5% REE for nearly all of the holes.
In 1990, the USBM re-evaluated the earlier work and drilling results. The USBM
probably had access to considerably more exploration data from the area, possibly
including the Duval and Molycorp drill data, old and new surface trench sampling
data, and the USGS surface sampling assay results. The USBM reported for the area
drilled that “A general estimate of the REE resource possible in the stockwork deposit
in the Bear Lodge area was calculated to be approximately 84 million short tons (76.2
million tonnes) containing 1.5% REO within 200 feet (61 meters) of the surface. The
estimate was made by assuming a 0.6 square mile (1.6 square kilometers) area, a
100 feet (30.5 meter) average depth of stockwork REO mineralization, an average
grade of 1.5%, and a tonnage factor of 1 short ton/12 cubic feet (1 tonne / 0.34 cubic
meter) of rock in place.” This historical estimate should only be used as an indication
of exploration potential.
Gold Resources
Rare Element, through its predecessor entity, Paso Rico (USA), and Newmont North
American Exploration signed an agreement to establish the Sundance gold
exploration venture on June 1, 2006. This agreement was terminated in May 2010,
with Rare Element becoming the sole participant in the gold exploration project. Rare
Element continued exploration of gold on the property in 2010 following the
termination of the Rare Element/Newmont joint venture. The gold target areas were a
result of the collaborative exploration efforts by Newmont and Rare Element under
the prior joint venture. Those joint efforts were based upon information in a historical
database containing results from earlier exploration activities.
Zones of anomalous gold mineralization in rock chip and soil samples are widespread
in the Bear Lodge intrusive complex and superjacent sedimentary rocks. The
mineralization occurs in a variety of environments that include intrusive and
hydrothermal breccias, fracture-fault zones, Paleozoic clastic and carbonate
sedimentary rocks, fenitized Precambrian granite, and carbonatite. The near-surface
zones of gold mineralization are generally low-grade and disseminated. Several of
these zones were partially delineated by previous operators and further expanded
with more recent drilling by Newmont and Rare Element, leading to delineation of an
NI 43-101 compliant inferred gold resource prepared by O.R.E. for Rare Element in
April 2011 and which was included in a previous technical report, dated April 2012
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