NI43-101Pre-Feasibility Study Report - page 76

Rare Element Resources
Bear Lodge Project
Canadian NI 43-101 Technical Report
October 9
, 2014
10135-200-46 - Rev. 0
the Mine Area (approximately 1,700 acres) that includes the Mineable Pit, Waste
Rock Facility, Physical Upgrade Plant (PUG), mine support facilities, and roads. The
property is located within parts of Sections 5, 7, 8, 9, 10, 14, 15, 16, 17, 18, 19, 20,
21, 22, 23, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35 in Township 52 North and Range 63
West, Sixth Principal Meridian (Figure 4.1). The approximate center of the principal
study area is at longitude 104 degrees 27 minutes West and latitude 44 degrees 30
minutes North (4,927,000N and 544,000E UTM coordinates). (Refer to Appendix A -
Listing of the Claims).
4.3 Upton Hydromet Site Location
The Upton Hydromet project site is located in north-central Weston County, north-
eastern Wyoming. The property is located 2 road miles (3.2 kilometers) northwest of
the town of Upton, Wyoming and approximately 22 air miles (35 kilometers) or 40
road miles (64.4 kilometers) southwest of the town of Sundance, Wyoming. The
approximate center of the Hydromet location is at longitude 104 degrees 39 minutes
West and latitude 44 degrees 06 minutes North. When constructed, the Upton
Hydromet plant will process mineral pre-concentrate from the Bull Hill PUG plant.
4.4 Bull Hill Mine and PUG Site Property Description and Ownership
Rare Element Resources, Inc. (formerly known as Paso Rico (USA), Inc.), holds a
100% interest in the 499 unpatented mineral claims that constitute the Bear Lodge
Project area. The mineral estate is administered by the U.S. Department of the
Interior, Bureau of Land Management (“BLM”) and all mineral claims have been
located in accordance with the U.S. mining laws, as amended, and have been
properly filed with the BLM. The surface estate is land administered by the U.S.
Forest Service. The holder or owner of a mineral claim has the right to develop the
mineral resources underlying the mineral claim and use so much of the surface estate
as may be required so long as they comply with surface use management
regulations. There are currently no royalties payable to the U.S. government on
minerals produced from federally owned lands.
These claims were, in part, acquired from Phelps Dodge Exploration Company
(Phelps Dodge) by way of a “Mineral Lease and Option for Deed” in 2000. A portion
of the claims and defined area of influence surrounding the claims were subject to a
production royalty of 2% of Net Smelter Returns (NSR) payable to Phelps Dodge
(now Freeport McMoRan Corporation). The production royalty was purchased
subsequently by Rare Element Resources, Ltd. (parent of Rare Element Resources,
Inc.) in March 2009. In July 2009, Rare Element Resources, Ltd assigned the Phelps
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