Rare Element Resources
Bear Lodge Project
Canadian NI 43-101 Technical Report
October 9
th
, 2014
10135-200-46 – Rev. 0
1-12
concentrate and has the ability to regenerate and recycle a majority of the water and
reagents used in the process.
The rare earth recovery rate in the Hydromet process in years 1 – 9 is expected to be
88.3 % and approximately 89.9% over the LOM. The average annual LOM nominal
TREO production rate is anticipated to be approximately 7,510 tons (6,813 tonnes),
with years 1 – 9 averaging 8,523 tons (7,732 tonnes). The tailings produced from the
processing will be neutralized, dewatered and stored in an engineered, double-lined
tailings storage facility located on private land adjacent to the Hydromet plant.
1.7 Capital Expenditures
In part because of the extensive existing infrastructure for transportation, energy,
water and services initial start-up capital is estimated to be a relatively low $290
million. The life-of-mine capital cost for the Project, including sustaining capital, later
phases of tailings construction, PUG and Hydromet expansion in Year 10 and closure
costs, is estimated at $453 million. This includes start-up capital and a capital cost
contingency that averages 18.8% on initial capital and 14.6% on sustaining capital.
Initial expenditures of approximately $12 million are anticipated for infrastructure,
including improving access roads, upgrading power and constructing the water supply
facilities. Capital expenditures are summarized in Table 1.7 below.
(USD Millions)
Initial Capital
Sustaining
Capital
LOM
Capital
Mining
$57.9
$45.4
$103.4
PUG plant
8.0
36.8
44.8
Hydromet & tailings storage
126.2
20.9
147.0
Engineering and commissioning
30.1
12.2
42.3
Infrastructure
11.9
6.0
17.9
Owners costs & other
9.2
4.3
13.5
Closure costs
--
16.5
16.5
Total Direct and Indirect Costs
243.3
142.1
385.4
Contingency
47.1
20.8
67.9
Total
$290.4
$162.9
$453.3
Table 1.7- Capital Expenditures
