NI43-101Pre-Feasibility Study Report - page 531

Rare Element Resources
Bear Lodge Project
Canadian NI 43-101 Technical Report
October 9
, 2014
100135-200-46 – Rev. 0
21.3.5 Estimate Structure
The operating cost estimate is divided into six items. Except for G&A and Miller Creek
road maintenance, the operating costs are variable by year based on the operating plan.
The items are:
PUG operating costs;
Hydromet operating costs;
Mining operations;
Upton TSF operations;
G&A operating costs;
Miller Creek road maintenance .
21.3.6 Raw Materials
The cost for raw materials was adjusted on a yearly basis depending on the ore type and
quantity in a given year.
A) Flocculent
Roche estimated the cost of flocculent based on previous projects at $1.59/lb ($3.50/kg).
The exact flocculent has not been determined. The type of flocculent expected to be
used, will be a medium to high molecular weight, non-ionic polyacrylamide type.
B) Hydrochloric Acid (HCl)
Recent cost information indicates 35wt% HCl prices are currently very volatile (between
$165 & $245). The price used in this report is quoted from Reagent Chemical on March
19, 2014 at $185.00/ton delivered in 100 ton railcars to Upton, WY, and includes
applicable fuel surcharge at time of quote by the BNSF Railroad.
C) Oxalic Acid (H2C2O4)
Potential domestic chemical suppliers of oxalic acid quoted very high prices ($1,000+/ton).
The reason for such high prices is that China is currently the Worlds’ largest producer of
oxalic acid and it must be imported. Another reason for high prices is that oxalic acid is
not available in bulk form. Oxalic acid cannot be exposed to air for long periods of time,
and must be packaged in sealed containers (bagged). The lowest prices were obtained
by contacting directly the major producers in China. The price used in this report was
obtained from Wuhan Yilijindi Chemical Product Co., China, $463/ton ($510/MT) in 1000
Kg super sacs, FOB Tianjin port dated 12/4/13. An additional freight cost of $150/ton was
estimated for transportation to Upton, WY, for a total delivered cost of $613/ton.
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