07:59:55 EDT Fri 29 Mar 2024
Enter Symbol
or Name
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CA



Rare Element Resources Ltd
Symbol RES
Shares Issued 47,707,216
Close 2014-10-10 C$ 0.65
Market Cap C$ 31,009,690
Recent Sedar Documents

Rare Element files NI 43-101 Bear Lodge PFS

2014-10-10 17:27 ET - News Release

Mr. Randall Scott reports

RARE ELEMENT RESOURCES FILES NI 43-101 TECHNICAL REPORT ON POSITIVE PREFEASIBILITY RESULTS FOR BEAR LODGE PROJECT

Rare Element Resources Ltd. has filed on SEDAR a National Instrument 43-101 technical report summarizing the results of its recently completed prefeasibility study on the project. The TR provides the detail surrounding the positive PFS results reported in the company's press release dated Aug. 26, 2014, entitled, "Rare Element Resources announces 2014 prefeasibility study on the Bear Lodge project." The full TR can be accessed from the company's SEDAR profile or from the company's website.

As previously reported, key highlights from the company's PFS include (all amounts are in U.S. dollars):

  • Low initial capital cost of $290-million;
  • Mining of high-grade zone in years one to nine boosting initial cash flows and resulting in a 2.9-year payback from the start of production;
  • After-tax net present value of $330-million at a 10-per-cent discount rate, and after-tax internal rate of return of 29 per cent;
  • A 45-year project life based on the expanded measured and indicated mineral resource;
  • A proprietary recovery process that consistently produces a pure, near-thorium-free total rare earth oxide concentrate of more than 97 per cent;
  • Average annual production of 7,510 tons (6,813 tonnes) of TREO concentrate;
  • Significant upside potential in resource growth, both through the inferred resource within the pit and additional exploration activities; in cost savings associated with refinement of the company's proprietary recovery process; in the recovery of valuable byproducts to create additional revenue streams; and in moving up the value chain by undertaking downstream separation.

"Bear Lodge continues to prove to be an exceptional project with low anticipated capital costs, a long project life, strong economics and excellent opportunity for upside," said Randall J. Scott, president and chief executive officer. "We believe the PFS reflects the success of our programs over the last two years but not necessarily all the strengths of the project. We are fortunate to have discovered not just a single deposit but a rare earth district, rich in the critical rare earths, with multiple exploration targets still to be evaluated. Our project design allows us to supply meaningful amounts of rare earths with only $290-million of initial capital, but still gives us flexibility to respond to increased market demand. We have a proprietary recovery process that enhances conventional technology to produce a 97-plus-per-cent-pure-total-rare-earth concentrate, and we continue to evaluate options to optimize this process. Most importantly, we continue to advance permitting on the project supporting our goal of being the next global producer, as we strive to help provide a secure supply of critical rare earths to manufacturers and high-tech companies around the world."

A copy of the TR can be found on the company's website under Bear Lodge project/project-related studies and reports.

Roche Engineering Inc. is the principal author of, and is an independent engineering company that prepared, the TR on behalf of the company. Pete Dahlberg, PE, is the independent qualified person from Roche Engineering, who reviewed and approved this news release.

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