Company Website:
http://www.rareelementresources.com
LAKEWOOD, Colo. -- (Business Wire)
Rare Element Resources Ltd. (the âCompanyâ) (NYSE MKT: REE and TSX:
RES), a mineral resource company advancing development of the Bear
Lodge Critical Rare Earth Project (the âProjectâ) located in northeast
Wyoming, announced today that it has filed on SEDAR a National
Instrument 43-101 Technical Report (TR) summarizing the results of its
recently completed pre-feasibility study (PFS) on the Project. The TR
provides the detail surrounding the positive PFS results reported in the
Companyâs press release dated August 26, 2014, entitled, Rare Element
Resources Announces 2014 Pre-Feasibility Study on the Bear Lodge Project.
The full TR can be accessed from the Companyâs SEDAR profile at www.sedar.com
or from the Companyâs website at www.rareelementresources.com.
As previously reported, key highlights from the Companyâs PFS include:
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Low initial capital cost of $290 million.
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Mining of high-grade zone in Years 1 â 9 boosts initial cash flows and
results in a 2.9-year payback from the start of production.
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After-tax net present value (NPV) of $330 million at a 10% discount
rate, and after-tax internal rate of return (IRR) of 29%.
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45-year Project life based on the expanded Measured and Indicated
(M&I) mineral resource.
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A proprietary recovery process that consistently produces a 97+% pure,
near thorium-free, total rare earth oxide (TREO) concentrate.
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Average annual production of 7,510 tons (6,813 tonnes) of TREO
concentrate.
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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
Companyâs proprietary recovery process; in the recovery of valuable
by-products to create additional revenue streams; and in moving up the
value chain by undertaking downstream separation.
âBear 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,â said Randall J. Scott, President and
Chief Executive Officer. âWe 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+% 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.â
A copy of the TR can be found on the Companyâs website at www.rareelementresources.com
under Bear Lodge Project/Project-related Studies & Reports. For a copy
of the August 26, 2014 news release mentioned above, please go to the
Companyâs website under Investor Information/News Releases.
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, P.E., is the independent Qualified Person from
Roche Engineering, Inc. who reviewed and approved this news release.
Rare Element Resources Ltd. is a publicly traded mineral resource
company focused on exploration and development of rare-earth element
deposits, specifically those with significant distribution of critical
rare earths. The Company is advancing development of the Bear Lodge
Project, located in northeast Wyoming. Bear Lodge is a significant
mineralized district containing many of the less common, more valuable
critical rare earths that are essential for electronics, fiber optics,
laser systems for health and defense, as well as many evolving green
technologies, like hybrid cars, solar panels and wind turbines.
Permitting and feasibility work on the Project continue to advance. The
Company is a member of the U.S. Department of Energyâs Critical
Materials Institute, a combined government and private sector
organization committed to eliminating supply chain issues for rare
earths and other critical minerals and materials. Please see CMIâs
website at https://cmi.ameslab.gov/
for additional details on its mission and members.
For additional information, please visit the Companyâs website at www.rareelementresources.com
or contact Robbin Lee at 720-278-2462 or rlee@rareelementresources.com.
Forward Looking Statements
This news release contains forward-looking statements within the meaning
of securities legislation in the United States and Canada. Except for
statements of historical fact, certain information contained herein
constitutes forward-looking statements. Forward-looking statements are
usually identified by our use of certain terminology, including "will,"
"believes," "may," "expects," "should," "seeks," "anticipates," "plans,"
"has potential to," or "intends" (including negative or grammatical
variations thereof) or by discussions of strategy or intentions. Such
forward-looking statements include statements regarding: the estimated
Project economics and parameters, including capital costs, NPV, IRR,
after tax returns, mine and Project life, mining plan including grades
of ore expected to be processed during various periods of mining,
payback period, anticipated production rates and costs, recovery rates
and the impact of the Companyâs proprietary technology on production,
matters regarding the rare earths industry; mineral resource and reserve
estimates; the potential for upside of the Project; permitting process
and progress; the expected commissioning of the Project and Project
development plans for the future. Such forward-looking statements
involve known and unknown risks, uncertainties and other factors which
may cause our actual results or achievements to be materially different
from any future results or achievements expressed or implied by such
forward-looking statements.
Factors that could cause actual results to differ materially include,
but are not limited to, the progress of the Project; fluctuations in
demand for, and price of, rare earth products; success of process
technology under testing or development; results from geological
evaluations and programs; timing of and unexpected events at the Bear
Lodge property; delay or failure to receive government approvals and
permits; our ability to obtain financing for the Project on acceptable
terms or at all; changes in U.S. and Canadian securities markets; and
general economic conditions. There can be no assurance that future
developments affecting the Company will be those anticipated by
management. Please refer to the discussion of these and other factors in
our Annual Report on Form 10-K for the year ended December 31, 2013. We
expect that the above estimates as to development plans, technology and
other processes, time frames and financial needs will change as new
information is received and that actual results will vary from these
estimates, possibly by material amounts. While we may elect to update
these estimates at any time, we do not undertake to update any estimate
at any particular time or in response to any particular event. Investors
and others should not assume that any forecasts in this news release
represent management's estimate as of any date other than the date of
this news release.
Cautionary Note to U.S. Investors
Cautionary Note to US Investors Concerning Estimates of Measured and
Indicated Mineral Resources. This news release uses the terms "Measured
mineral resources" and "Indicated mineral resources." The Company
advises US investors that while these terms are recognized and required
by Canadian National Instrument 43-101, the US Securities and Exchange
Commission ("SEC") does not recognize them. Also, disclosure of
contained tonnage is permitted under Canadian regulations; however the
SEC generally requires mineral resource information to be reported as
in-place tonnage and grade. US investors are cautioned not to assume
that any part or all of the mineral deposits in these categories will
ever be converted into mineral reserves.
Additionally, this news release uses the term "Inferred mineral
resources." The Company advises US investors that while this term is
recognized and required by National Instrument 43-101, the SEC does not
recognize it. "Inferred mineral resources" have a great amount of
uncertainty as to their existence, and great uncertainty as to their
economic and legal feasibility. It cannot be assumed that all or any
part of Inferred mineral resources will ever be upgraded to a higher
category. In accordance with Canadian rules, estimates of Inferred
mineral resources cannot form the basis of feasibility or other economic
studies. US investors are cautioned not to assume that any part or all
of the Inferred mineral resource exists, or is economically or legally
mineable. - US investors are urged to consider closely the disclosure in
our Form 10-K which may be obtained from us, or from the SEC's website
at http://www.sec.gov.
Contacts:
Rare Element Resources Ltd.
Robbin Lee, 720-278-2462
rlee@rareelementresources.com
Source: Rare Element Resources Ltd.
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