NI43-101Pre-Feasibility Study Report - page 561

Rare Element Resources
Bear Lodge Project
Canadian NI 43-101 Technical Report
October 9
, 2014
10135-200-46 – Rev. 0
reserve is hosted entirely within the oxide and oxide-carbonate alteration zones, as
described in Chapter 7.0 of this technical report.
Rare Element explored the Bull Hill area REE mineralization with 303 core holes and
over 226,000 feet drilled from 2004 through 2013. All holes encountered varying
quantities of rare earth mineralization in oxidized and unoxidized carbonatite dikes.
Approximately sixteen drill holes were drilled in the area prior to commencement of
the Company’s activities in 2004. The 2013 drilling program consisted of 14 HQ-
diameter drill holes at the Whitetail Ridge deposit designed to upgrade a significant
portion of the resource from the Inferred to Indicated category, and 21 PQ diameter
holes in the high-grade core of the Bull Hill deposit in order to upgrade part of that
resource to the Measured category and develop a more detailed model of the REE
grade distribution in that part of the deposit. The deposits are open for exploration in
multiple directions, and further drilling is expected to substantially increase the
resources. The resource area at Whitetail Ridge, and the target areas at Carbon and
Taylor exhibit significantly higher enrichment in HREE than the Bull Hill area.
25.3 Mining
The exploitation plan for the Bear Lodge Project utilizes conventional truck and
excavator open pit mining methods, focusing on the near-surface, oxidized portions of
the deposit. A declining cutoff strategy is employed to maximize the present value of
the mining schedule. This strategy incorporates the stockpiling of lower grade
material (proven and probable reserves below the year’s cutoff grade, but above the
1.5% TREO cutoff) for processing later in the mine’s life. Mine design parameters,
such as pit slopes, haul road width and grade, and minimum mining width were
determined from geotechnical studies of the projected mining wall locations and the
equipment selected to promote efficient mining. Mine planning is based only on the
measured and indicated resources presented in the preliminary feasibility study,
although significant resource (approximately 12 MMtons) is contained within the pit
Total proven and probable mineral reserves are estimated at 15.6 MMtons (14.15
MMtonnes) grading 2.78% TREO. Subgrade and waste rock are estimated at nearly
133 million tons, for an average stripping ratio of 8.5. The life of the open pit is
projected at 38 years, supplying 500-600 tpd of feed to the proposed Hydromet plant
in Upton, WY. Total daily mining rates, including ore and waste rock, are projected to
range between 14,000 and 18,800 tons using 9-yd
excavators and 60-ton haul
trucks. Processing of a low-grade stockpile at the Bear Lodge site will extend the life
of the Hydromet plant to 45 years.
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