News -Updated Feasibility Study - Elm Creek Project - repostMy first post of the news release was missing some info , and sorry about that..
NIOCORP'S ELK CREEK PROJECT CONFIRMED AS THE SECOND LARGEST INDICATED-OR-BETTER RARE EARTH RESOURCE IN THE U.S.
An updated feasibility study of Niocorp Developments Ltd.'s Elk Creek project shows that the project is the second-largest indicated-or-better rare earth resource in the United States, second only to MP Materials' Mountain Pass rare earth deposit.
The company has completed an updated feasibility study in collaboration with Understood Mineral Resources Ltd., Optimize Group Inc. and Dahrouge Geological Consulting Ltd. Rare earth elements (REEs) were evaluated as a potential byproduct to the mining of niobium, titanium and scandium; thus the estimated values of the REEs are reported using the previously determined diluted net smelter return (NSR) as derived from the Nb2O5 (niobium pentoxide), TiO2 (titanium dioxide) and scandium mineral resources. According to the 2022 feasibility study, the Elk Creek project contains an estimated 632,900 tonnes of contained total rare earth oxides (TREO) in the indicated mineral resource category. According to U.S. Geological Survey data, this places the Elk Creek mineral resource behind MP Materials' Mountain Pass deposit in the United States but ahead of all other current rare earth projects in terms of contained TREO from a National Instrument 43-101 rare earth resource of indicated or higher classification.
According to the 2022 feasibility study, in addition to relatively high grades of niobium, scandium and titanium, the Elk Creek mineral resource contains various amounts of all. There is potential for Niocorp's REEs to be mined, crushed and placed into solution as part of the process Niocorp plans to use to produce its primary niobium, scandium and titanium products once project financing is secured. Depending upon the outcome of metallurgical testing on REE recovery rates from Elk Creek ore, now being conducted at a demonstration plant in Quebec, and whether necessary project financing is secured, Niocorp could produce separated rare earths as a byproduct, placing it at a competitive advantage vis-a-vis other rare earth projects.
A new technical report on the Elk Creek project summarizing the results of the 2022 feasibility study will be prepared by Dahrouge Geological Consulting and Optimize Group in accordance with NI 43-101. The technical report will include details regarding the updated mineral resource and mineral reserve estimates presented herein, which are derived from the 2022 feasibility study, and will be filed on SEDAR within 45 days of this news release.
Next steps in Niocorp's plans to add rare earths to the project
Given the Niocorp team's decades of collective experience in commercial-scale separation and purification of REEs and with global demand and pricing of REEs continuing to rise, the company launched geological, metallurgical, engineering and other analyses in 2021 to assess the feasibility of adding REE production to its plans. Niocorp plans to issue a further updated NI 43-101 technical report, which incorporates the results of this work following the completion of the demonstration plant and the follow-on engineering and costing to determine the net impact of integrating rare earth operations into the company's current production plans.
Of the REEs shown by the 2022 feasibility study to be contained in the Elk Creek mineral resource, Niocorp is presently focusing on the magnetic REE products neodymium-praseodymium oxide, dysprosium oxide, and terbium oxide at a purity level that meets current commercial requirements. There currently is no commercial-scale production in North America of these separated rare earth products from ore mined in the United States.
Elk Creek mineral resource update results
According to the 2022 feasibility study, the Elk Creek indicated mineral resource includes the following tonnages of contained metals, using a greater than $180 (U.S.) per tonne NSR cut-off that was calculated using solely the contained niobium, scandium and titanium in the mineral resource:
- 632,900 tonnes of TREO, including these individual rare earth oxides:
- 26,900 tonnes of praseodymium;
- 98,900 tonnes of neodymium;
- 2,300 tonnes of terbium;
- 9,100 tonnes of dysprosium;
- 970,300 tonnes of niobium oxide;
- 11,337 tonnes of scandium oxide;
- 4,221,000 tonnes of titanium oxide.
In order to update the project's mineral resource to include REE data, the company and its consultants were required to complete additional assays of historical drill core to fill data gaps in the existing resource database and remodel the mineral resource. The mine plan and mineral reserve were also updated, independent of the REE data collection and REE byproduct mineral resource.
Improvements to the mineral resource to allow the incorporation of rare earth grades and tonnages required additional time and effort to update the mineral reserve to ensure that the mineral reserve and associated mine plan reflected the mineral resource. The new mineral reserve does not include rare earth production. Detailed tables showing estimates of ore grades and tonnages of the pay metals in the ore body, in addition to rare earth elements, based on the 2022 feasibility study, are shown at the end of this news release.
A unique critical mineral project
"The results of this updated feasibility study are very good news, and they validate our belief that the Elk Creek ore body represents one of America's largest indicated rare earth resources," said Mark A. Smith, chief executive officer and executive chairman of Niocorp. "With the addition of the magnetic rare earths, the Elk Creek project will stand out from virtually every other greenfield project in the U.S. in terms of its potential ability to produce multiple critical minerals that are essential to electrified transportation, renewable energy production, green megainfrastructure projects and many other applications that are in increasing demand around the world. If we elect to add rare earths to our product offering, the Elk Creek project will represent a unique critical minerals project once financing is obtained."
Mr. Smith added: "Given recent geopolitical events and the world's ongoing global energy transition, we feel a strong imperative to produce more of the critical minerals that America and the Western world need to meet these challenges. The updated feasibility study shows that the Elk Creek deposit contains an abundance of critical minerals, including rare earths, and we are working very hard to ensure America can benefit from the full range of the critical minerals our deposit could economically deliver."
Scott Honan, chief operating officer of Niocorp, said: "These results are in line with our previous assessments of rare earth grades and tonnages. The updated feasibility study shows the rare earths are distributed fairly uniformly within the mineral resource, which makes them well suited for byproduct production.
"This updated feasibility study ensures the quality of our mineral resource data is the same for both our planned products and for prospective rare earth products," Mr. Honan added. "These results will help to accelerate our work to finalize the metallurgical, engineering and economic feasibility of expanding the commercial critical mineral products we plan to make in Nebraska to include rare earths once financing is secured."
Updated feasibility study shows longer mine life and improved project economics
The mineral reserve estimates included in the 2022 feasibility study, which were completed by Optimize Group and summarized in an attached table, provide updated measurements of ore grades, tonnages and rates of production for niobium, scandium and titanium. Additional information on the mineral reserve estimates included in the 2022 feasibility study are at the end of this news release.
As a result of the project's new mine plan and mineral reserve update, the 2022 feasibility study also updates the project's expected economic results. While the project's expected economics are improved in nearly all aspects (see attached table), these results do not yet include projections of possible rare earth production or any of the expected benefits of process optimization efforts currently being tested by Niocorp. This information can only be incorporated into project economics once Niocorp completes its continuing metallurgical testing and engineering analyses necessary to issue a further updated NI 43-101 technical report.
The project's economic results from the 2022 feasibility study do not account for impacts on the costs of materials and operating expenses from inflation, pandemic-caused supply chain issues and geopolitical unrest, given the fluid nature of these factors today, and so was conducted on the same basis as the company's 2019 feasibility study, using 2019 costs and product pricing. These factors, including a change in the price of niobium and scandium, which are thinly traded without an established publicly available price discovery mechanism, could have significant effects on the company's results of operations and its ability to execute on its business plan. The company will continue to examine these factors.
The sensitivity analysis conducted as part of this NI 43-101 feasibility study determines the effect of key variables at a plus or minus 30 per cent on the project's base case of pretax net present value (NPV) of $2.82-billion and internal rate of return (IRR) of 29.2 per cent and a base case of after-tax NPV of $2.35-billion and IRR of 27.6 per cent.
Elk Creek project's updated economics from the 2022 feasibility study
As shown in an attached table, the 2022 feasibility study shows that expected pretax NPV and after-tax NPV both increased, the mine's expected life has been extended from 36 years to 38 years, and expected life-of-mine gross revenue for all three currently planned products (niobium, scandium and titanium) have increased. The economic analysis was conducted on the same basis as the company's 2019 feasibility study, using 2019 costs and product pricing.
Mr. Honan said: "Niocorp is extremely grateful to the staff and leadership of the University of Nebraska's Conservation and Survey Division, without which we would not have been able to complete this important step forward towards realizing the rare earth potential of the Elk Creek project."
The University of Nebraska's UNL's Conservation and Survey Division ("CSD"), is a unique, multi-disciplinary research, service and data-resource organization that originated in 1893. As Nebraska's geological survey, its mission is to investigate and record information about the state's geologic history, its rock and mineral resources, the quantity and quality of its water resources, land cover, and other aspects of its geography, as well as the nature, distribution, and uses of its soils. CSD was actively involved in the discovery of the Elk Creek carbonatite more than five decades ago. CSD continues to curate samples and data from the deposit, among its many other collections, for the benefit of stakeholders and in the public interest. CSD has been an invaluable source of data and expertise for minerals development and other Earth-science issues in Nebraska since its founding. Qualified Persons
The following 12 independent experts, each a Qualified Person as defined by National Instrument 43-101, have reviewed, and approved the technical information and verified the data contained in this news release, which are derived from the 2022 Feasibility Study:
- Eric Larochelle, B.Eng., Co-Owner, L3 Process Development
- Matthew Batty, P.Geo, Owner, Understood Mineral Resources Ltd.
- Richard Jundis, P. EngDirector of Mining, Optimize Group
- Ian McKenzie, CPEng, Vice President, Optimize Group
- David Winters, SE, PE, MBA, Senior Principal Engineer, Tetra Tech
- Joshua Sames, P.E., Principal Consultant, SRK Consulting (U.S.), Inc.
- Mark Willow, M.Sc., NV-CEM, SME-RM, Principal Environmental Consultant, SRK Consulting (U.S.), Inc.
- John Tinucci, PhD, PE, ISRM, Principal Geotechnical Mining Engineer, SRK Consulting (U.S.), Inc.
- John Gorham, P. Geol., Senior Geologist, Dahrouge Geological Consulting Ltd.
- Georgi Doundarov, M.Sc., P. Eng., PMP, CCP, CEO, Magemi Mining Inc.
- Sylvain Harton, P.Eng., President, Metallurgy Concept Solutions
- Adrian Brown, P.E., President, Adrian Brown Consultants, Inc.
The scope for the following individuals, each a Qualified Person by National Instrument 43-101 definition, includes technical review only for the following sections: Mine Infrastructure and Services. The Mineral resource and reserve estimates and resultant economic model for the Feasibility Report are not included within the below listed personnel's scope.
- Everett Bird, P.E., Engineering Manager, Cementation
- Alex Broili, P.E.,Area Manager, Cementation
- Matt Hales, P.E., Electrical Engineering Lead, Cementation
- Martin Lepage, P.Eng, Ing. Lead Technical Engineer - Hoisting, Cementation
About Niocorp Developments Ltd.
Niocorp is developing a superalloy materials project in Southeast Nebraska that will produce niobium, scandium, and itanium. The Company also is evaluating the potential to produce several rare earths from the Project. Niobium is used to produce superalloys as well as High Strength, Low Alloy ("HSLA") steel, which is a lighter, stronger steel used in automotive, structural, and pipeline applications. Scandium is a superalloy material that can be combined with Aluminum to make alloys with increased strength and improved corrosion resistance. Scandium is also a critical component of advanced solid oxide fuel cells. Titanium is used in various superalloys and is a key component of pigments used in paper, paint and plastics and is also used for aerospace applications, armor, and medical implants. Magnetic rare earths, such as neodymium, praseodymium, terbium, and dysprosium are critical to the making of Neodymium-Iron-Boron ("NdFeB") magnets, which are used across a wide variety of defense and civilian applications.
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