NioCorp Files NI 43-101 Feasibility Study for the Elk Creek Superalloy Materials Project
August 11 2017 - 5:59AM
NioCorp Developments Ltd. (“
NioCorp” or the
“
Company”) (TSX:NB) (OTCQX:NIOBF) (FSE:BR3)
is pleased to announce that it has filed a CIM-compliant Technical
Report (the "
Report") prepared in accordance with
National Instrument 43-101 ("
NI 43-101") regarding
a Feasibility Study completed for the Company’s Elk Creek
Superalloy Materials Project (the “
Project”).
The Report supports the Company’s June 30, 2017 news release
that provided results of the Feasibility Study, and can be seen on
SEDAR here and on the Company’s website at www.niocorp.com.
Key findings of the report include these:
- Financial Returns: Pre-tax net present
value ("NPV") of $2.3 billion, at an 8% discount
rate, with an internal rate of return ("IRR") of
24.3%, and after-tax NPV of $1.7 billion, at an 8% discount rate,
with an IRR of 21.7%, and an effective tax rate of 24.1%.
- Revenue: Gross Run Of Mine
(“ROM”) revenue of $17.6 billion, with operating
margin of $12.2 billion.
- CAPEX: Up-front direct capital costs of
$705 million, in addition to indirect costs of $189 million,
pre-production capital costs of $85 million, contingency of $109
million, and pre-production net revenue credit of $79 million.
- EBITDA: Averaged Earnings Before
Interest, Taxes, Depreciation, and Interest
(“EBITDA”) is $389.6 million per year over
ROM. The averaged EBITDA margin (EBITDA as a percent of total
revenue) for the project over ROM is 69.5%.i
- Pre-Tax Payback Period From Production
Onset: 3.4 years (3.7 years after-tax).
- Production: On an annual averaged basis,
estimated production and revenues are as
follows:– Ferroniobium (“FeNb”):
annualized production rate of 7,055 tonnes at an averaged realized
price of $39.60 per kilogram (“kg”) for contained
niobium (65%), yielding annual gross revenue of $183.4
million.– Scandium Trioxide (“Sc2O3”):
annualized production rate of 103 tonnes at an averaged realized
price of $3,675/kg of Sc2O3, yielding annual gross revenue of
$378.3 million.– Titanium Dioxide (“TiO2”):
annualized production rate of 11,445 tonnes per year at an averaged
realized price of $0.88/kg TiO2, yielding annual gross revenue of
$10.1 million.
- Production Costs (net of TiO2 byproduct
credit): – $12.14/kg of niobium on a niobium-equivalent
basis.– $1,126/kg of Sc2O3 on a Sc2O3-equivalent basis.
- Mine Life: 32 years, producing over the
ROM approximately 143,824 tonnes of payable niobium, 3,237 tonnes
of Sc2O3, and 359,128 tonnes of TiO2.
- Mineral Resources and Reserves: Probable
Reserves of 31.7 million tonnes of ore at 0.79% niobium (Nb2O5),
71.6 grams per tonne (g/t) scandium (Sc), and 2.81% TiO2.
Total Indicated Mineral Resources are 90.9 million tonnes at 0.66%
Nb2O5, 70 g/t Sc, and 2.59% TiO2, with Inferred Resources of 133.6
million tonnes at 0.48% Nb2O5, 59 g/t Sc, and 2.23% TiO2.ii
Mineral Resources are reported inclusive of Mineral Reserves.
Mineral Resources and Mineral Reserves have an effective date of
May 15, 2017.
“The Elk Creek Project is highly unique on many levels, and one
of the most powerful aspects of the project is that it enjoys a
level of project de-risking that is one of the best I have seen,”
said NioCorp Executive Chair and CEO, Mark A. Smith. “The
Project has 75% of its Ferroniobium product under contract.
It has a key federal permit already in hand. It enjoys strong
local community support, and support from both political
parties. It now has a very detailed Feasibility Study that
was completed after just over three years of work. This
project is ready to move forward.”
“The filing of our NI 43-101 Technical Report allows us to
accelerate our ongoing discussions with potential institutional
investors in the U.S., Asia, Europe, and elsewhere, including with
the German Government’s loan guarantee program,” Mr. Smith
added.
On Behalf of the Board of Directors,
"Mark Smith”
Mark Smith Executive Chairman, CEO, and
Director
Qualified Persons
The following qualified persons have read and approved the
technical information and verified the data contained in this news
release.
Qualified Person |
|
Area of Responsibility |
Jeff Osborn, BSc Mining, MMSAQP SRK Consulting |
|
Elk Creek SRK Project Manager and mining infrastructure operating
and capital cost |
Grant Malensek, MEng, PEng/PGeo SRK Consulting |
|
Elk Creek capital and operating cost summary and economic
analysis |
Ben Parsons, MSc, MAusIMM (CP) SRK Consulting |
|
Elk Creek resource estimate |
Joanna Poeck, B.Eng., SME-RM, MMSA-QP SRK Consulting |
|
Elk Creek mine plan and reserves |
John Tinucci, PhD, PE SRK Consulting |
|
Elk Creek geotechnical program |
Mark Willow, M.Sc., C.E.M., SME-RM SRK Consulting |
|
Environmental studies, permitting and social or community impact
portions of the Elk Creek project |
Paul Williams, PG, CPH, SME-RM SRK Consulting |
|
Elk Creek hydrogeology program |
Clara Balasko, P.E, SRK Consulting |
|
Elk Creek tailings design |
Martin Pittuck, CEng, FGS, MIMMM SRK Consulting |
|
Elk Creek resource estimate |
David Stone, PE MineFill Services, Inc. |
|
Elk Creek project mine backfill system |
Eric Larochelle, B.Eng SMH Process Innovation |
|
Elk Creek hydrometallurgical design |
Arun Vathavooran, PhD CEng MIMMM SME Tetra Tech |
|
Elk Creek mineral processing design |
Sylvain Harton, P. Eng. Tetra Tech |
|
Elk Creek pyrometallurgical design |
David Winters, SE, PE, MBA Tetra Tech |
|
Elk Creek infrastructure design |
Joe Baxter, P.E Olsson Associates |
|
Elk Creek offsite infrastructure design |
Brian S.
Prosser, PE, SRK Consulting |
|
Elk Creek
Mine Ventilation Design |
On Behalf of the Board of Directors,
"Mark Smith”
Mark Smith Executive Chairman, CEO, and
Director
Source: NioCorp Developments Ltd. @NioCorp $NB $NIOBF
#Niobium #Scandium #ElkCreek
About NioCorp
NioCorp is developing a superalloy materials
project in Southeast Nebraska that will produce Niobium, Scandium,
and Titanium. 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 also is 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.
Cautionary Note Regarding Forward-Looking
Statements
Neither TSX nor its Regulation Services Provider
(as that term is defined in the policies of the TSX) accepts
responsibility for the adequacy or accuracy of this document.
Certain statements contained in this document may constitute
forward-looking statements, including statements regarding the
results of the feasibility study, including, but not limited to,
metal price and exchange rate assumptions, cash flow forecasts,
projected capital and operating costs, metal or mineral recoveries,
mine life and production rates; the Company’s potential plans and
operating performance; the estimation of the tonnage, grades and
content of deposits, and the extent of the resource and reserves
estimates; potential production from and viability of the Project;
estimates of future production and operating costs; estimates of
permitting submissions and timing; the timing and receipt of
necessary permits and project approvals for future operations;
access to project funding, and exploration results. Such
forward-looking statements are based upon NioCorp’s reasonable
expectations and business plan at the date hereof, which are
subject to change depending on economic, political and competitive
circumstances and contingencies. Readers are cautioned that such
forward-looking statements involve known and unknown risks,
uncertainties and other factors that may cause a change in such
assumptions and the actual outcomes and estimates to be materially
different from those estimated or anticipated future results,
achievements or position expressed or implied by those
forward-looking statements. Risks, uncertainties and other factors
that could cause NioCorp’s plans or prospects to change include
risks related to the Company's ability to operate as a going
concern; risks related to the Company's requirement of significant
additional capital; changes in demand for and price of commodities
(such as fuel and electricity) and currencies; changes in economic
valuations of the Project, such as Net Present Value calculations,
changes or disruptions in the securities markets; legislative,
political or economic developments; the need to obtain permits and
comply with laws and regulations and other regulatory requirements;
the possibility that actual results of work may differ from
projections/expectations or may not realize the perceived potential
of NioCorp’s projects; risks of accidents, equipment breakdowns and
labor disputes or other unanticipated difficulties or
interruptions; the possibility of cost overruns or unanticipated
expenses in development programs; operating or technical
difficulties in connection with exploration, mining or development
activities; the speculative nature of mineral exploration and
development, including the risks of diminishing quantities of
grades of reserves and resources; and the risks involved in the
exploration, development and mining business and the risks set
forth in the Company’s filings with the SEC at www.sec.gov. NioCorp
disclaims any intention or obligation to update or revise any
forward-looking statements whether as a result of new information,
future events or otherwise.
________________________i This document includes
certain forward-looking non-GAAP financial measures, including
EBITDA and Free Cash Flow. Reconciliations of these
forward-looking non-GAAP financial measures to the most directly
comparable GAAP financial measures are not provided because the
Company is unable to provide such reconciliations without
unreasonable effort, due to the uncertainty and inherent difficulty
of predicting the occurrence and the financial impact of such items
impacting comparability and the periods in which such items may be
recognized. For the same reasons, the Company is unable to
address the probable significance of the unavailable information,
which could be material to future results.
ii Mineral Resources are not Mineral Reserves and
do not have demonstrated economic viability. All figures are
rounded to reflect the relative accuracy of the estimate and have
been used to derive sub-totals, totals and weighted averages. Such
calculations inherently involve a degree of rounding and
consequently introduce a margin of error. Where these occur, SRK
does not consider them to be material. All composites have been
capped where appropriate. The reporting standard
adopted for the reporting of the Mineral Reserve Estimate uses the
terminology, definitions and guidelines given in the Canadian
Institute of Mining, Metallurgy and Petroleum Standards on Mineral
Resources and Mineral Reserves (May 10, 2014) as required by NI
43-101.
For More Information:
Contact Jim Sims, VP of External Affairs, NioCorp Developments Ltd., 720-639-4650, jim.sims@niocorp.com
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