NioCorp Developments Ltd. (TSX: NB) (OTCQX: NIOBF) today released the details of a new design for the underground mine at its Elk Creek Superalloy Materials Project in southeast Nebraska, as well as the results of an updated NI-43-101 Feasibility Study. This work completes a critical milestone and further de-risks the Project for project financing.
The 2019 FS update is expected to deliver higher Net Present Value stronger investment returns, accelerated cash flows, a longer mine life, higher production of all of NioCorp’s planned products in the first 10 years of operation, and a further reduction in execution risk and environmental impacts as compared to the previous project Feasibility Study, which was completed in 2017. An update to the Project’s Mineral Resources and Mineral Reserve estimate1 also was completed, which results in the following: Probable Mineral Reserve tonnage is expanded by 14.7%; tonnage in the Indicated Mineral Resources category is higher by 101.5%; and contained Niobium, Scandium and Titanium in the Indicated Mineral Resources category are higher by 63.9%, 67,4%, and 67.6%, respectively,
2019 Elk Creek FS Expected to Deliver Higher NPV, Stronger Returns, Accelerated Cash Flows, Longer Mine Life, Reduced Risk, and Fewer Environmental Impacts
(Comparisons below are to 2017 FS. All currency figures in US $ unless otherwise noted.)
Table 1 At A Glance: Improved Economics |
|||
(US $millions) | 2017 FS | 2019 FS | Change |
Pre-Tax NPV (8% discount rate) | $2,291 | $2,564 | 12.0% |
After Tax IRR | 21.7% | 25.8% | 18.9% |
Gross Revenue, LoM | $17,906 | $20,807 | 16.2% |
Net Pre-production Capital Expenditures (“CAPEX”)2 | $1,008 | $879 | -12.9% |
LoM OPEX (US$/mt) | $179.99 | $196.41 | 9.1% |
After-Tax Payback Period (yrs.) | 3.68 | 2.86 | -22.4% |
Mine Life (yrs.) | 32 | 36 | 12.5% |
To view Figure 1, please visit the following link:
http://www.globenewswire.com/NewsRoom/AttachmentNg/17f677bb-0f07-4b05-bb44-a9fe5f0b4292
To view Figure 2, please visit the following link:
http://www.globenewswire.com/NewsRoom/AttachmentNg/13cf9b6b-177b-46f0-bf88-4457e7410c69
The mine design, 2019 FS update, and an update to the Project’s Mineral Resource and Mineral Reserve were completed by the Nordmin Group of Companies (“Nordmin”), with technical inputs from other experts.
“This new design for the Elk Creek Project’s underground mine is expected to deliver a higher NPV, stronger investment returns, accelerated cash flows, a longer mine life, reduced permitting risk, and even greater improvements in overall environmental performance than the previous plan,” said Mark A. Smith, CEO and Executive Chairman of NioCorp. “This new mining plan and Feasibility Study update is a major step forward in the effort to advance the Elk Creek Project to financing, construction, and commercial operation.”
“Pre-tax NPV of $2.57 billion is 12% higher than in the previous Feasibility Study. After-tax IRR goes from 21.7% to 25.8%, an increase of 18.9%, so investment return is significantly improved. Life-of-mine revenue of $20.8 billion is higher by 16.2%. Of particular note is the fact this mining plan contributes to boosting our expected operating cash flows in the first five years of operations by 23.6% and helps to increase them by 12.9% over the first 10 years. Generating more cash on an accelerated basis should increase the Project’s economics.”
“I’m also pleased to see the stronger environmental performance this mining plan delivers to the Project,” Mr. Smith said. ”By deploying well-established technologies such as artificial ground freezing and desalination, we can now treat the slightly salty water that naturally exists deep underground in the ore body and remove the salt, allowing us to avoid having to discharge this bedrock water into the Missouri River. We also will be recycling virtually all of the water that we will be using in our processing. These are significant environmental advances of which our entire team is proud. Treating this water also eliminates the need to obtain any further NEPA-level environmental permits from the U.S. government. That further de-risks the Elk Creek Project in the eyes of long-term, strategic investors.”
“Net pre-production CAPEX has decreased by 12.9%, while total up-front CAPEX is up by 5.1%,” Mr. Smith said. “This increase is driven in part by the need for additional and larger water treatment equipment, by price inflation in construction materials and processing inputs over the last two years, and by the decision to target higher-grade ore at lower elevations in the mine earlier in the Project’s operational life. Targeting higher-grade ore helps to boost our expected operating cash flows over the first 10 years of operations. This trade-off should be attractive to strategic investors. In particular, strategic investors are likely to be clearly focused on the long-term financial returns of this critical minerals project as well as on the environmental benefits to society that our critical minerals promise to deliver. This mining plan and Feasibility Study update strengthen the value proposition of this investment even further.”
“Inflation in the construction materials sector, as measured by the Bureau of Labor Statistics’ Producer Price Index, has risen by 8.8%4 since our 2017 Feasibility Study was conducted,” Mr. Smith noted. “The fact that costs are rising for raw materials, processing inputs, machinery, and other components of our production facility is one reason why we are pushing hard to secure projecting financing and move to construction as rapidly as possible.”
Scott Honan, President of Elk Creek Resources Corp., the NioCorp subsidiary that will develop and operate the Project, said: “Completing the design engineering of a new underground mine is a large undertaking, and I am pleased with the success of this effort. This mine plan accelerates expected revenue generation in the first 10 years of operation while also delivering increased environmental performance. It paves the way for us to accelerate our ongoing work to complete detailed engineering of the surface processing facilities, where our goal is to find additional efficiencies and process improvements beyond those we have already incorporated into the Project. This mine plan advances us that much closer to a construction start, and our team is very excited to be able to build and operate this high-value critical minerals mine.”
Chris Dougherty, Chairman of the Nordmin Group of Companies, said: “Nordmin is pleased to bring added value to NioCorp’s Elk Creek Project. Through optimizing the mine plan, we have enhanced the Project’s economics while the use of ground freezing and other changes in underground development has further reduced the Project’s environmental impact. Our review indicates the potential of further enhancement of the Project value through expansion and definition of the deposit, beyond the increases that we identified in the report. The Elk Creek deposit is an exceptional deposit with a clear and well-defined plan that is backed by the work of many of the best engineering and geology minds in the business. We are very proud to be a part of this project and part of the NioCorp team.”
2019 FS Summary Details
The 2019 FS financial model is based upon a mine life of 36 years with an annual steady state ore throughput rate of 1,009,000 metric tonnes. At this rate, the Elk Creek Project is estimated to generate $20.8 billion in gross LoM revenue and $370 million in averaged annual EBITDA3 over its operating life. Below are some highlights of the 2019 FS findings.
Table 2 | |||
Elk Creek Project 2019 FS Highlights | |||
(Currency in US$’000s) | |||
Description | 2017 FS | 2019 FS | Change |
Pre-Tax NPV (8% discount) | $2,291 | $2,564 | 12.0% |
Pre-Tax IRR | 24.3% | 27.3% | 12.4% |
After-Tax NPV | $1,666 | $2,098 | 25.9% |
After-Tax IRR | 21.7% | 25.8% | 18.9% |
After-tax payback period from production onset (yrs.) | 3.68 | 2.86 | -22.3% |
Net pre-production CAPEX2 | $1,008 | $879 | -12.8% |
Mine Life (yrs.) | 32.0 | 36.0 | 12.5% |
Life of Mine (“LoM”) Gross Revenue | $17,906 | $20,807 | 16.2% |
Niobium | $5,695 | $7,860 | 38.0% |
Scandium | $11,896 | $12,532 | 5.4% |
Titanium | $316 | $414 | 31.3% |
Averaged Annual EBITDA3 over LoM | $370 | $370 | — |
Averaged EBITDA Margin3 (EBITDA as % of total revenue) | 69% | 67% | -3.4% |
LoM OPEX (US$/mt) | $179.99 | $196.41 | 9.1% |
Effective Tax Rate | 24.1% | 17.5% | -27.3% |
Table 3 | |||
Elk Creek Project Operational Summary | |||
Description | 2017 FS | 2019 FS | Change |
Ore Mined (kt) | 31,661 | 36,313 | 14.7% |
Mining Rate (mt/d) | 2,762 | 2,764 | 0.1% |
Nb2O5 Grade | 0.79% | 0.81% | 2.3% |
Scandium Grade (g/mt) | 71.58 | 65.71 | -8.2% |
TiO2 Grade | 2.81% | 2.86% | 1.9% |
Processing Rate (kt/y) | 1,009 | 1,009 | — |
Average Recovery, Nb2O5 | 82.4% | 82.4% | — |
Average Recovery Sc | 93.1% | 93.1% | — |
Average Recovery TiO2 | 40.3% | 40.3% | — |
Realized Product Prices | |||
Nb ($/kg Nb as Ferroniobium) | $39.60 | $46.55 | 17.5% |
Sc2O3 ($/kg as Sc2O3) | $3,675 | $3,676 | 0.0% |
TiO2 ($/kg as TiO2) | $0.88 | $0.99 | 12.4% |
Payable Metal | |||
Nb (mt) | 143,824 | 168,861 | 17.4% |
Sc2O3 (mt) | 3,237 | 3,410 | 5.3% |
TiO2 (mt) | 359,128 | 418,841 | 16.6% |
Table 4 | ||||||||||||
Life of Mine Operations and Financial Profile | ||||||||||||
Operating Year | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 20 | 30 |
Production | ||||||||||||
Niobium (mt-Nb) | 4,974 | 5,095 | 4,901 | 4,659 | 4,656 | 4,651 | 4,483 | 4,701 | 4,682 | 4,662 | 4,686 | 4,677 |
Scandium (mt-Sc2O3) | 112 | 109 | 103 | 95 | 96 | 91 | 97 | 100 | 104 | 100 | 100 | 88 |
Titanium (mt-TiO2) | 12,629 | 12,554 | 12,117 | 11,782 | 11,603 | 12,116 | 11,753 | 11,568 | 12,259 | 12,009 | 11,920 | 12,041 |
Realized Pricing | ||||||||||||
Niobium ($/kg) | $45.46 | $45.46 | $45.46 | $45.46 | $45.46 | $45.46 | $45.46 | $45.46 | $45.46 | $46.06 | $47.00 | $47.00 |
Scandium ($/kg) | $3,985 | $3,486 | $2,988 | $3,086 | $3,186 | $3,384 | $3,584 | $3,734 | $3,735 | $3,750 | $3,750 | $3,750 |
Titanium ($/kg) | $0.99 | $0.99 | $0.99 | $0.99 | $0.99 | $0.99 | $0.99 | $0.99 | $0.99 | $0.99 | $0.99 | $0.99 |
Gross Revenues ($M) | $685 | $622 | $544 | $518 | $529 | $533 | $562 | $598 | $614 | $601 | $608 | $562 |
Total OPEX ($M) | ($201) | ($196) | ($197) | ($198) | ($199) | ($191) | ($199) | ($196) | ($207) | ($206) | ($204) | ($193) |
EBITDA ($M) | $484 | $427 | $347 | $320 | $330 | $342 | $363 | $402 | $406 | $395 | $404 | $368 |
EBITDA Margin | 71% | 69% | 64% | 62% | 62% | 64% | 65% | 67% | 66% | 66% | 66% | 66% |
Operating Cash Flow ($M) | $484 | $427 | $335 | $289 | $294 | $299 | $310 | $341 | $346 | $338 | $322 | $291 |
EBT ($M) | $224 | $207 | $161 | $151 | $179 | $216 | $255 | $292 | $293 | $281 | $290 | $268 |
Net Income ($M) | $224 | $207 | $149 | $120 | $142 | $173 | $202 | $232 | $233 | $223 | $207 | $191 |
Net Income Margin | 33% | 33% | 27% | 23% | 27% | 32% | 36% | 39% | 38% | 37% | 34% | 34% |
Production Profile and Gross Revenue
When in operation, the Project is expected to be the sole producer of Scandium oxide and a commercial version of Niobium, known as Ferroniobium, in the U.S., and one of only a handful of producers in the world of these critical and strategic materials. The 2019 FS assumes a 10-month commissioning and ramp up period to the facility’s nameplate production capacity from first ore, while the 2017 FS assumed a nine-month period for the same activity. Estimated production and revenues in the 2019 FS are as follows:
To view Figure 3, 4 and 5, please visit the following link:
http://www.globenewswire.com/NewsRoom/AttachmentNg/de94c972-f6b2-49c1-9c17-713d0750aa0b
Table 5 | ||
2019 FS Production Summary | ||
Average Annual Production Over Run of Mine5 | ||
Description | Tonnes/Year | Revenue/Year ($ millions) |
Ferroniobium | 7,220 | $219 |
Scandium Trioxide | 95 | $348 |
Titanium Dioxide | 11,642 | $12 |
Life of Mine Revenue Breakdown6 | ||
Description | Revenue ($millions) |
Proportion of Revenue |
Ferroniobium | $7,860 | 37.8% |
Scandium Trioxide | $12,532 | 60.2% |
Titanium Dioxide | $414 | 2.0% |
TOTAL | $20,807 | 100% |
Note: Totals may not sum due to rounding.
Increased Revenue From Niobium
In the 2019 FS mine plan, Niobium production generates more revenue as a percentage of total revenue than in the 2017 FS, as shown in Figure 6 below. This result is driven by the updated mine plan’s targeting of higher niobium grades in the early years of mining operations and because commodity pricing for Niobium has increased since the issuance of the 2017 FS.
To view Figure 6, please visit the following link:
http://www.globenewswire.com/NewsRoom/AttachmentNg/0e3b9343-a347-44cd-b1c4-eef1eafa96f2
Improved Environmental Performance
The new mine plan further reinforces the environmental performance of the Elk Creek Project. Together with previously disclosed environmental and process innovations incorporated in the 2017 FS, the Project now incorporates these following strategies and technologies designed to minimize environmental impacts of operation:
To view Figure 7, please visit the following link:
http://www.globenewswire.com/NewsRoom/AttachmentNg/348e654a-3695-465a-8c97-5b49c89b67f9
Capital Expenditures
As detailed in Table 6 below, the net pre-production CAPEX is $879 million, which includes a contingency of 10.33%6 and a pre-production net revenue credit of $265 million, which is generated during a six-month production ramp-up period (versus a three-month ramp-up in the 2017 FS) and is net of pre-production capital and operational costs. Total upfront CAPEX for the Project is $1.14 billion, a 5.1% increase over the 2017 FS and which reflects the following: additional and larger water treatment equipment; higher costs due to inflation between 2017 and 2019; replacing a ventilation raise system with a ventilation shaft sinking method using proven artificial ground freezing methods to mitigate water inflow risks for this requirement; and higher capital costs incurred by initially mining at greater depths where ore grades are higher.
Table 6 | |||
2019 FS CAPEX Breakdown | |||
(US $millions) | 2017 FS | 2019 FS | Change |
Direct Costs | |||
Preproduction CAPEX | $71 | $83 | 16.2% |
Mining CAPEX | $179 | $257 | 44% |
Processing CAPEX (excluding water treatment) | $343 | $367 | 7.1% |
Water management CAPEX7 | $100 | $6 | -94% |
Water Treatment8 | $24 | $68 | 180% |
Tailings | $20.2 | $21.4 | 6.1% |
Site prep | $30.6 | $40.6 | 2.6% |
Indirect Expenses | |||
Mining | $21.9 | $23.7 | 8.1% |
Mining EPC | $12.3 | $16.0 | 30% |
Processing | $34.1 | $33.4 | -1.8% |
Processing EPC | $64.5 | $62.6 | -2.9% |
Site | $7.2 | $7.4 | 2.7% |
Water management9 | $10.8 | $8.5 | -20.8% |
Owners Costs | $38.4 | $33.6 | -12.4% |
Commissioning | |||
Mining | $0.7 | $1.4 | 102% |
Processing | $13.0 | $13.3 | 2.7% |
Contingency | $109 | $101 | -7.3% |
Sub Total | $1,088 | $1,143 | 5.1% |
Net Pre-Production Revenue | ($79) | ($265) | 234% |
TOTAL | $1,008 | $879 | -12.9% |
To view Figure 8, please visit the following link:
http://www.globenewswire.com/NewsRoom/AttachmentNg/b58099c9-34ab-4e0a-9bf5-828637ea5eef
Operating Expenditures
Operating expenditures over the life of mine in the 2019 FS are higher than the 2017 FS as a result of several factors, including but not limited to the following: (1) NioCorp intends to use a contract mining model as opposed to self-perform mining operations; (2) prices for some consumables used in surface processing facilities are higher than quotes received in 2017; and (3) water management costs for the Project are higher as a result of the more intensive water treatment and related operations outlined in the 2019 FS.
Table 7 | ||||
OPEX Summary | ||||
2017 FS | 2019 FS | |||
LoM Costs ($millions) |
Cost / Tonne | LoM Costs ($millions) |
Cost / Tonne | |
LoM Operating Costs | ||||
Mining Costs | $1,244 | $39.30 | $1,563 | $43.04 |
Processing Costs | $3,285 | $103.77 | $3,875 | $106.70 |
Water Management & Infra | $251 | $7.92 | $609 | $16.78 |
Tailings Management | $46 | $1.44 | $72 | $1.99 |
Other Infrastructure | $212 | $6.68 | $199 | $5.47 |
G&A | $268 | $8.47 | $301 | $8.29 |
Other Expenses | $136 | $4.31 | $229 | $6.30 |
Subtotal OPEX | $5,442 | $171.89 | $6,847 | $188.56 |
Royalties/Annual Bond Premium | $257 | $8.10 | $285 | $7.84 |
Total All-In OPEX | $5,699 | $179.99 | $7,132 | $196.41 |
To view Figure 9, please visit the following link:
http://www.globenewswire.com/NewsRoom/AttachmentNg/19244819-4d9d-4ca9-832b-cec252aa747c
Financial Performance
The financial performance and valuation of the Project were conducted using a discounted cash flow methodology over its 36-year mine life and an 8% discount rate. The 2019 FS projects a pre-tax NPV of $2.57 billion and an after-tax IRR of 25.8%. Gross revenue is $20.8 billion.
To view Figure 10, please visit the following link:
http://www.globenewswire.com/NewsRoom/AttachmentNg/e58c3f7f-b6a4-4d85-82dd-2b94b527a04a
Figure 11 below shows the total cumulative net cash flow (after tax) over the 36 modeled life of mine. Total cumulative net cash flow, after tax, is $9.8 billion. Figure 12 below shows the initial capital spend over the first 44 months of the Project.
To view Figure 11, please visit the following link:
http://www.globenewswire.com/NewsRoom/AttachmentNg/ebe34801-ccff-46dd-b79f-1a522e9c174a
To view Figure 12, please visit the following link:
http://www.globenewswire.com/NewsRoom/AttachmentNg/fe3d0a20-a0fe-4c36-b7fe-a094c3c17c87
Sensitivity Analysis
A sensitivity analysis was conducted as part of the 2019 FS to determine the effect of key variables at a plus-or-minus 30% on the Project’s base case of pre-tax NPV of $2.57 billion and IRR of 27.3% and a base case of after-tax NPV of $2.10 billion and IRR of 25.8%. The results of this analysis are shown below in Tables 8 and 9.
Table 8 | |||||||||||||
Pre-Tax NPV & IRR Sensitivity Analysis ($B) | |||||||||||||
Pre-Tax-NPV | -30% | -25% | -20% | -15% | -10% | -5% | Base | 5% | 10% | 15% | 20% | 25% | 30% |
Nb Price | $1,947 | $2,050 | $2,153 | $2,256 | $2,359 | $2,462 | $2,564 | $2,667 | $2,770 | $2,873 | $2,976 | $3,079 | $3,182 |
Sc2O3 Price | $1,560 | $1,728 | $1,895 | $2,062 | $2,230 | $2,397 | $2,564 | $2,732 | $2,899 | $3,066 | $3,234 | $3,401 | $3,568 |
TiO2 Price | $2,531 | $2,537 | $2,542 | $2,548 | $2,553 | $2,559 | $2,564 | $2,570 | $2,575 | $2,581 | $2,586 | $2,592 | $2,597 |
Operating Costs | $3,086 | $2,999 | $2,912 | $2,825 | $2,738 | $2,651 | $2,564 | $2,478 | $2,391 | $2,304 | $2,217 | $2,130 | $2,043 |
Capital Costs | $2,913 | $2,855 | $2,797 | $2,739 | $2,681 | $2,622 | $2,564 | $2,506 | $2,448 | $2,390 | $2,332 | $2,274 | $2,216 |
Pre-Tax IRR | -30% | -25% | -20% | -15% | -10% | -5% | Base | 5% | 10% | 15% | 20% | 25% | 30% |
Nb Price | 23.2% | 23.9% | 24.6% | 25.3% | 26.0% | 26.7% | 27.3% | 28.0% | 28.7% | 29.3% | 30.0% | 30.7% | 31.3% |
Sc2O3 Price | 20.3% | 21.5% | 22.7% | 23.9% | 25.1% | 26.2% | 27.3% | 28.5% | 29.6% | 30.7% | 31.8% | 32.8% | 33.9% |
TiO2 Price | 27.1% | 27.2% | 27.2% | 27.2% | 27.3% | 27.3% | 27.3% | 27.4% | 27.4% | 27.5% | 27.5% | 27.5% | 27.6% |
Operating Costs | 30.6% | 30.1% | 29.6% | 29.0% | 28.5% | 27.9% | 27.3% | 26.8% | 26.2% | 25.6% | 25.1% | 24.5% | 23.9% |
Capital Costs | 37.7% | 35.5% | 33.5% | 31.7% | 30.1% | 28.7% | 27.3% | 26.1% | 25.0% | 24.0% | 23.0% | 22.2% | 21.3% |
Table 9 | |||||||||||||
After-Tax NPV & IRR Sensitivity Analysis ($B) | |||||||||||||
After Tax NPV | -30% | -25% | -20% | -15% | -10% | -5% | Base | 5% | 10% | 15% | 20% | 25% | 30% |
Nb Price | $1,594 | $1,678 | $1,763 | $1,847 | $1,932 | $2,016 | $2,098 | $2,180 | $2,262 | $2,343 | $2,425 | $2,506 | $2,588 |
Sc2O3 Price | $1,292 | $1,427 | $1,562 | $1,697 | $1,832 | $1,966 | $2,098 | $2,228 | $2,357 | $2,486 | $2,615 | $2,744 | $2,872 |
TiO2 Price | $2,072 | $2,076 | $2,081 | $2,085 | $2,089 | $2,094 | $2,098 | $2,103 | $2,107 | $2,111 | $2,116 | $2,120 | $2,124 |
Operating Costs | $2,480 | $2,417 | $2,353 | $2,290 | $2,226 | $2,162 | $2,098 | $2,034 | $1,967 | $1,900 | $1,833 | $1,767 | $1,699 |
Capital Costs | $2,446 | $2,388 | $2,330 | $2,272 | $2,214 | $2,156 | $2,098 | $2,040 | $1,982 | $1,924 | $1,866 | $1,808 | $1,750 |
After Tax IRR | -30% | -25% | -20% | -15% | -10% | -5% | Base | 5% | 10% | 15% | 20% | 25% | 30% |
Nb Price | 21.9% | 22.6% | 23.3% | 23.9% | 24.6% | 25.2% | 25.8% | 26.4% | 27.0% | 27.6% | 28.2% | 28.8% | 29.4% |
Sc2O3 Price | 19.3% | 20.5% | 21.6% | 22.7% | 23.7% | 24.8% | 25.8% | 26.8% | 27.8% | 28.8% | 29.8% | 30.7% | 31.7% |
TiO2 Price | 25.6% | 25.6% | 25.7% | 25.7% | 25.7% | 25.8% | 25.8% | 25.8% | 25.9% | 25.9% | 25.9% | 26.0% | 26.0% |
Operating Costs | 28.7% | 28.2% | 27.7% | 27.3% | 26.8% | 26.3% | 25.8% | 25.3% | 24.8% | 24.3% | 23.8% | 23.3% | 22.8% |
Capital Costs | 36.3% | 34.1% | 32.1% | 30.3% | 28.6% | 27.2% | 25.8% | 24.6% | 23.5% | 22.4% | 21.5% | 20.6% | 19.8% |
Mineral Resource Estimate Update
A component of the 2019 FS update included an update to the Project’s Mineral Resource and Mineral Reserve, with the results shown below.
Table 10 | ||||||||
February 19, 2019 Mineral Resource Summary | ||||||||
Classification | Cut-off NSR (DIL)(US$/mt) |
Tonnage (x1000 mt) |
Nb2O5 Grade (%) |
Contained Nb2O5 (mt) |
TiO2 Grade (%) |
Contained TiO2 (mt) |
Sc Grade (ppm) |
Contained Sc (mt) |
Indicated | 180 | 183,185 | 0.54 | 981,092 | 2.15 | 3,940,419 | 57.65 | 10,562 |
Inferred | 180 | 103,992 | 0.48 | 498,864 | 1.81 | 1,886,181 | 47.38 | 4,928 |
Source: Nordmin, 2019. All figures are rounded to reflect the relative accuracy of the estimates. Totals may not sum due to rounding.
Diluted NSR (US$) = Revenue per block Nb2O5 (diluted) + Revenue per block TiO2 (diluted) + Revenue per block Sc (diluted)
Diluted tonnes per block
February 19, 2019 Mineral Resource Details | ||
Parameter | Value | Unit |
Mining Cost | 50.0 | US$/mt mined |
Processing | 125 | US$/mt mined |
General and Administrative | 5.0 | US$/mt mined |
Total Cost | 180 | US$/mt mined |
Nb2O5 to Niobium conversion | 69.6 | % |
Niobium Process Recovery | 82.36 | % |
Niobium Price | 39.60 | US$/kg |
TiO2 Process Recovery | 40.31 | % |
TiO2 Price | 0.88 | US$/kg |
Sc Process Recovery | 93.14 | % |
Sc to Sc203 conversion | 153.4 | % |
Sc Price | 3,675 | US$/kg |
Calculated CoG NSR diluted 6 % | 180 | US$/mt |
Mineral Reserve Estimate Update
An update to the Project’s Mineral Reserve was conducted, and the results are shown below.
Table 11 | ||||||||||
February 19, 2019 Mineral Reserve Summary | ||||||||||
Classification | Tonnage (x1000 mt) |
Nb2O5 Grade (%) |
Contained Nb2O5 (mt) |
Payable Nb (mt) |
TiO2 Grade (%) |
Contained TiO2 (mt) |
Payable TiO2 (mt) |
Sc Grade (ppm) |
Contained Sc (mt) |
Payable Sc2O3 (mt) |
Proven | ||||||||||
Probable | 36,313 | 0.81 | 293,321 | 168,861 | 2.86 | 1,039,050 | 418,841 | 65.7 | 2,387 | 3,410 |
Total Proven and Probable | 36,313 | 0.81 | 293,321 | 168,861 | 2.86 | 1,039,050 | 418,841 | 65.7 | 2,387 | 3,410 |
Source: Nordmin, 2019. All figures are rounded to reflect the relative accuracy of the estimates. Totals may not sum due to rounding.
February 19, 2019 Mineral Reserve Details | ||
Parameter | Value | Unit |
Mining Cost | 43.55 | US$/mt mined |
Processing | 108.16 | US$/mt mined |
Water Management and Infrastructure | 13.71 | US$/mt mined |
Tailings Management | 1.35 | US$/mt mined |
Other Infrastructure | 6.96 | US$/mt mined |
General and Administrative | 8.65 | US$/mt mined |
Royalties/Annual Bond Premium | 7.53 | US$/mt mined |
Total Cost | 189.91 | US$/mt mined |
Nb2O5 to Niobium conversion | 69.6 | % |
Niobium Process Recovery | 82.36 | % |
Niobium Price | 39.60 | US$/kg |
TiO2 Process Recovery | 40.31 | % |
TiO2 Price | 0.88 | US$/kg |
Sc Process Recovery | 93.14 | % |
Sc to Sc203 conversion | 153.4 | % |
Sc Price | 3,675 | US$/kg |
Next Steps
Technical Disclosure
The technical information in this news release and the forthcoming FS update has been reviewed and approved by Mr. Chris Dougherty, P.Eng, Consulting Specialist and Chairman (Nordmin Group of Companies), Mr. Gregory Menard, P.Eng., CET, PMP, Senior Mechanical Engineer (Nordmin Engineering Ltd.) and Mr. Glen Kuntz, P.Geo., Consulting Specialist – Geology/Mining (Nordmin Engineering Ltd.), and Mr. Joshua Sames, B.S., PE, Senior Consultant (SRK Consulting), Mr. David Winters, PE, SE, MBA, Senior Consultant (TetraTech), each of whom is a “qualified person” under National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI-43-101”).
The Mineral Resource and Reserve Estimates were completed by Mr. Glen Kuntz, P. Geo, Consulting Specialist – Geology/Mining (Nordmin Engineering Ltd.) and Mr. Jean- Francois St-Onge, P.Eng, Associate Consulting Specialist – Mining and Vice President (Optimize Group Inc.). Both are independent Qualified Persons in accordance with the requirements of National Instrument (NI) 43-101 and they have approved the disclosure herein.
All other technical information in this news release has been approved by the following Qualified Professionals: Mr. Adrian Brown, PE, Consultant (Adrian Brown Consultants); Mr. Joshua Sames, B.S., PE, Senior Consultant (SRK Consulting); Mr. John Tinucci, PhD, PE, Principal Geotechnical Engineer (SRK Consulting); Mr. Mark Willow, M.Sc, C.E.M., SME-RM, Principal Environmental Scientist (SRK Consulting); Mr. Chris Dougherty, P.Eng, Consulting Specialist and Chairman (Nordmin Group of Companies); Mr. Gregory Menard, P.Eng., CET, PMP, Senior Mechanical Engineer (Nordmin Engineering Ltd.); Mr. Eric Larochelle, B.Eng., President (Specialty Metals & Hydrometallurgy); Mr. David Winters, PE, SE, MBA, Senior Consultant (TetraTech); Mr. Sylvain Harton, P.Eng., President (Metallurgy Concept Solutions); and Mr. Orest Romaniuk, P.Eng, Senior Engineer (Zachry Group).
The relevant qualified persons have reviewed and verified the data disclosed, including sampling, analytical and test data underlying the information contained in the disclosure.
Endnotes
Non-GAAP Financial Measures: This news release includes certain forward-looking non-GAAP financial measures, including EBITDA and Free Cash Flow. These non-GAAP financial measures are included in this news release because these statistics are key performance measures that management uses to monitor performance, to assess how the Company is performing, to plan and to assess the overall effectiveness and efficiency of operations. These performance measures do not have a standard meaning within GAAP and, therefore, amounts presented may not be comparable to similar data presented by other mining companies. These performance measures should not be considered in isolation as a substitute for measures of performance in accordance with GAAP. 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.
SEC Standards Regarding Mineral Resources and Reserves. Estimates of mineralization and other technical information included or referenced in this news release have been prepared in accordance with NI 43-101. The definitions of proven and probable mineral reserves used in NI 43-101 differ from the definitions in SEC Industry Guide 7. Under SEC Industry Guide 7 standards, a “final” or “bankable” feasibility study is required to report reserves, the three-year historical average price is used in any reserve or cash flow analysis to designate reserves and the primary environmental analysis or report must be filed with the appropriate governmental authority. As a result, the reserves reported by the Company in accordance with NI 43-101 may not qualify as “reserves” under SEC standards. In addition, the terms “mineral resource”, “measured mineral resource”, “indicated mineral resource” and “inferred mineral resource” are defined in and required to be disclosed by NI 43-101; however, these terms are not defined terms under SEC Industry Guide 7 and normally are not permitted to be used in reports and registration statements filed with the SEC. Mineral resources that are not mineral reserves do not have demonstrated economic viability. Investors are cautioned not to assume that any part or all of the mineral deposits in these categories will ever be converted into reserves. “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 an inferred mineral resource will ever be upgraded to a higher category. Under Canadian securities laws, estimates of inferred mineral resources may not form the basis of feasibility or pre-feasibility studies, except in rare cases. Additionally, the disclosure of “contained pounds” in a resource is permitted disclosure under Canadian securities laws; however, the SEC normally only permits issuers to report mineralization that does not constitute “reserves” by SEC standards as in place tonnage and grade without reference to unit measurements. Accordingly, information contained or referenced in this news release containing descriptions of the Company’s mineral deposits may not be comparable to similar information made public by U.S. companies subject to the reporting and disclosure requirements of United States federal securities laws and the rules and regulations thereunder.
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 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.
Kootenay Silver Inc. (TSX-V: KTN) is pleased to announce that the... READ MORE
U.S. Gold Corp. (NASDAQ: USAU), is pleased to announce that it h... READ MORE
Getchell Gold Corp. (CSE: GTCH) (OTCQB: GGLDF) (FWB: GGA1) is ple... READ MORE
Imperial Metals Corporation (TSX:III) reports quarterly copper an... READ MORE
ALX Resources Corp. (TSX-V: AL) (FSE: 6LLN) (OTC: ALXEF) is pleas... READ MORE