NI43-101Pre-Feasibility Study Report - page 532

Rare Element Resources
Bear Lodge Project
Canadian NI 43-101 Technical Report
October 9
, 2014
100135-200-46 – Rev. 0
D) Ammonia (NH3)
Roche has determined that producing 20% ammonium hydroxide (NH4OH) solution on-
site from liquid anhydrous ammonia is significantly more cost effective than the option of
purchasing 30% ammonium hydroxide solution off-site. The improved economics is
achieved by a reduction of over 85% in the total tonnage that is shipped to the plant site
for ammonium hydroxide.
On January 23, 2014, the Agricultural Marketing Service (an agency of the U.S.
Department of Agriculture), reported average prices in Illinois of $651/ton for anhydrous
ammonia. This constituted a 27% decrease in price from the previous year. Anhydrous
ammonia prices are largely driven by natural gas process which can be quite volatile. For
this study a price of $750/ton of ammonia delivered to Upton, WY is assumed.
E) Sodium Hydroxide (NaOH)
Sodium hydroxide consumption requirements are small, typically about 100 tons/year. A
price of $397/ton for 50% sodium hydroxide solution is used for this study. This delivered
bulk price was obtained from Thatcher Company on 1/29/13.
F) Limestone (CaCO3)
There is a limestone quarry (Timberline Services) in the vicinity of the Bear Lodge Project
near Upton, WY that has quoted $15/ton delivered of crushed limestone. Roche & Rare
Element have roughly estimated a cost of $30/ton delivered for pulverized limestone that
is to be produced from limestone mined from the local quarry.
G) Quicklime (CaO)
Quicklime consumption requirements are minimal and are to be supplied in 80 lb bags
and super sacs. A price of $270/ton delivered is used for this study.
21.3.7 Energy
A) Electricity
PreCorp, the local electrical cooperative, provided a cost of electricity of $0.068 per kWh
base rate.
B) Natural Gas
The cost of natural gas has been taken from the U.S. Energy Information Administration
and is $3.96 per MMBTU.
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