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.
We seek Safe Harbor.
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