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Thank you Walter,
I appreciate your efforts! Maybe one day I'll get to sign my name at the pub as well.
Thank you Walter,
I appreciate your efforts! Maybe one day I'll get to sign my name at the pub as well.
Hi Lincoln,
You have a couple points incorrect here. The Niobec project has been in production for over 35 years and is a very profitable mine. What is proposed is a large expansion that I don't believe will happen anytime soon for a variety of reasons - including the owner Iamgold saying that the expansion is on the shelf.
CBMM's mine in Brazil is richer and far bigger than Elk Creek so far. It is the elephant in the room. They have I believe 80% plus market share and hundreds of years of mine life.
Niocorp's presentation on their website does cover some of this.
Cheers
From Niocorp's presentation:
•CBMM –Currently over ~85% of world production
•Privately held Company, 2.5% ore grade, greater than 200 year mine life
•IAMGOLD Niobec Mine –Currently ~8% of world production
•Operating profit margin of $20 per kg –Produced 5.2 million Kg in 2013
•Anglo American CatalaoMine –Currently ~6% of world production
•6 years of production remaining at current soft rock deposit CatalaoI
•Continuing work on development of hard rock deposit CatalaoII
•Capital committed to expand production to second deposit
Just curious -- We've received some great news from NioCorp in recent weeks indicating that the quantities of niobium at Elk Creek make it a "world class" deposit. I'm excited about this investment and will hold for the long haul.
Some commentors have noted that the numbers posted for the proposed Elk Creek mine are far superior to another proposed mine in Canada (Niobec project). With that said, how do the Elk Creek numbers compare with the existing mine in Brazil? In other words, assuming a mine is built in Elk Creek, Nebraska, will it likely be more productive than the existing mine in Brazil?
Shawn's contact info:
Shawn has many friends here and if would like to keep in touch with him I'm sure he would appreciate it. I know he helped me enormously in understanding the opportunity here. I wish him the very best in his upcoming endeavors and will be paying attention in seeing which direction he goes. Of course he is still a big believer in NB's future (as I am - still adding on dips), Shawn used to call me rainy day Peter. ;)
shawnwestcott24@shaw.ca
WSSJ
I guess you will have to settle for the President for the time being. I've known for some time now and it's an unfortunate development but if there is some conflict/disagreements it's the low man that goes. Shawn remains my friend and he is being offered several good opportunities - and Niocorp's success has been a big part of that. I suspect you will see a Denver based replacement at some point down the road. It's quite obvious that Niocorp's Vancouver days are numbered. Denver hosts head offices of many major mining firms and it's where Mark Smith has his trap line of talent. Niocorp has established a Denver office as we know. The development of the project races ahead.
Flow sheet
Short answer is that I don't know for sure. I am not a lawyer. However, a flow sheet is exactly what the two consultants have been working towards and it's a process of fine tuning along the way. How fine to crush, what is the method that uses the least consumables, etc, etc. With the confidence demonstrated by the CEO and the published recovery rates so far I believe that they have positive economic recoveries in hand. Once they feel that they are at, or close to, optimized levels and construct a flow sheet that reflects the process I can not fathom a reason that they would not publish that fact. Then onto a fresh 43-101 and a pilot plant.
Cheers
You might want to look at this document's page 52:
http://www.sec.gov/Archives/edgar/data/1203464/000110465909015560/a09-6634_5ex99d1.htm
Time lines:
So here is what I'm looking for as we continue to unlock value:
-within a month an economic process flow sheet.
-late Sept or early Oct a 43-101 update of the resource - indicated baby cause they have not missed yet. Bigger, richer, and indicated.
Pilot plant processing to follow.
Work on the full feas. over the winter.
Perhaps a small to medium financing along the way.
Project financing (debt /equity) next spring summer.
Unless we are bought out! ;)
This is light speed for any newbies.
I am be fairly certain it was a flattening trade out as was mentioned earlier. A larger order gets given to a market maker and he works it all day in his account and then books the trade to the "client" (usually a brokerage that has the order) after close at an average buy/sell price - a small scalp for the market maker is factored in.
More costs and issues.
Iamgold would also have to take apart the existing milling and processing operations and move the tailing pond. That isn't cheap or easy. Also, the fact that Iamgold is in tough financial shape the thought of taking their most profitable operation off line can't be very attractive. They won't be doing this expansion anytime soon - if ever. IMHO. Remember they just paid $650MM for a gold property. If management doesn't bring that on stream they will look like fools.
Niobec costs
The grade there is lower. They have been, and continue to be, very profitable with conventional underground mining methods (38 years I believe). But a low grade, large, homogenus deposit can lend itself to block cave mining. Huge upfront costs are incurred but they would get another 50 years out of the mine. Plus there would be a giant hole in the ground when done. I doubt the corn farmers would like that. Iamgold is not doing well. They can't do it. They wasted $650MM on acquiring a low grade large tonnage gold property in Canada - they are under stress. They probably did this "expansion" plan to help them sell Niobec. But it got expensive. Too bad for them. They could have bought Niocorp for cheap like I personally suggested to Steve Letwin. Not anymore. ;)
I'm good with 30 to 50 years of conventional underground and very profitable mining for Niocorp.
Here's an animation of block cave mining.
Presentation needs updating already.
Things are happening so quickly...two board changes to mention one.
Cheers.
BNN / Mark
It was short as usual and expected. But sweet. Mark does a great job. He encouraged potential investors to look at Iamgold's quarterlies to see how good the Niobec mine is. They talked about Niobium and its benefits and outlook a bit. He mentioned the high grade and size aspect a few times. He said there seems to be no mystery in the metallurgy. A mention of tremendous local support and the fact its on private (not Federal) lands. Goal to be producing in 2017. :)
Logs on fire...
From I've seen in the past a BNN interview (done in Toronto)does nothing short term in the market. It does help get your name out there though. Of most interest to me is what else is happening in Toronto with SGS, one of the two metallurgical consultants, and Mackie Research being located there.
BNN 11:50 am ET
Mark Smith
CEO, Niocorp Developments
Nebraska Niobium Play Holds Promise
http://www.bnn.ca/Schedule.aspx
These are usually 5 minute CEO interviews.
Landmark - investors
I have no idea how many retail investors there are. I would like to see NB get on the radar of the institutional investors that realize that Niobec is the best part of Iamgold. They will get it. I think Mackie in Toronto should be able to help with that. Get Mark and his ever improving management team in front of them and they will see that this is going forward.
Investor 86 - no point in drilling deeper.
The goal of the program I believe is to move inferred into indicated and to get structural and hydrologic data for a mine plan. I think the deposit is already big enough for a 30 year mine if not more. As seawolf said it's difficult and expensive to go deep. Its also not needed at this point. We can always drill from underground in 20 years :)
seawolf21
I expect a positive economic flow sheet out within a month. At that point you'll want pilot plant results. Then you will want a to see a mine plan and the capex. Why don't you just wait for the full feas? Oh, at that point you'll want a mine permit. After that you'll want the debt facility in place (unless we get bought out before then).
I'm glad you agree that the size and grade issues seem to be addressed as huge and getting bigger and high grade.
From the 08/05/14 news:
"The team is very focused on developing an economic process flow sheet and results are very encouraging to date."
"This type of experienced planning allows the company to advance the project in the least amount of time possible," said Mark A. Smith, chief executive officer of Niocorp."
Management and the deposit have been delivering at light speed this year. I continue to add with some gusto.
Prop Joe,
That is a good question but I don't just don't want to guess. I'm very confident that we have a great one here with tremendous upside. Just need a few more things to fall in place. With the management team that is being built they will move it along quickly.
I like your guess and I think its a very reasoned one.
As such, I have been adding a lot over the last couple days.
Financial Press
Hi Gary. Sorry if I was impolite. The fact is Mark never said the deposit is worth $26 billion. Attributing that to him is incorrect. A reporter who could multiply tonnes of Niobium by the going rate must have come up with that number.
Clearly this is a reporters comment and not a quote:
"Smith has more than a passing interest in this unusual mineral. NioCorp’s prized asset is its niobium deposit in Elk Creek, Nebraska, a one-hour drive southeast of Lincoln. The property could prove to be the third largest of its kind in the world. In the 80's, Molycorp completed most of the development work when Unocal owned it. At current international prices, that resource could be worth as much as $26 billion and prices are expected to rise in coming years due to increasing demand and potential scarcity."
The fact is that in situ value likely is that amount or even much more. The economic value of the deposit is not. After careful analysis and making a few assumptions (such as economic processing of the ore and moving inferred into indicated) my best guess is the deposit is worth $1.5 NPV (discounted and after cap costs).
Repeating the contained metal number is of no real benefit. $1.5 b is 22 times our current market cap. and that is exciting enough. After allowing for some dilution along the path my hope and expectation is that we will see multiple dollars for the stock. With some luck, closer to the high end of single digits.
Also. for what it's worth. I think the reporter was wrong when he said it could be the third largest deposit - I think it could be the world's second. ;)
Discount rate:
"A discount rate for a mining operation will vary depending upon the
type of risk and other variables, such as metal prices, the mine product
being produced, the mine life, the milling process, production rates,
permitting and regulatory constraints, and other factors."
Coming up with one that is reasonable is an art and science. Since Nb prices seem stable an argument that a lower discount rate is appropriate.
Gary, you don't know much.
Sorry man. Mark never came up with that number. Your lack of knowledge in this area is painful.
That number is the total resource in the ground times the Nb price. It is meaningless. If the resource grows that number grows but it is still not really useful. There are capital costs, mining costs. Administrative costs. Taxes (in this case after the tax holiday. Recovery rates. Time value.
If, as I expect, we do get a NPV of $1.5 B we will all be very happy.
Check, Check, Check, Check.
Will the program move tonnage from inferred to indicated? No misses as yet so: Check.
Can it be processed economically? Almost assuredly check.
Big enough for a 30 year mine? Check.
Management marching quickly along the path of unlocking value? Check.
NPV of 1.5B is my guess when this gets to full feasibility.
Management is delivering.
"The drilling program is demonstrating and confirming the high grade nature of this resource as well as the continuity of the resource," Mark Smith, CEO, said in a news release. "The positive analytical results to date will allow us to meet our corporate objective of demonstrating a high grade resource for use in economic planning reports for Elk Creek."
High recovery rates revealed.
The QEMSCAN results clearly demonstrate that 75 per cent to 80 per cent of the niobium is hosted in the mineral pyrochlore, with the balance of the niobium reporting with iron-titanium oxide minerals of variable composition.
Unlike the deposits at the other three mines where the niobium is primarily hosted in the iron, Elk Creek's deposit hosts the niobium in the pyrochlore. Nice.
They are known name in Canadian capital markets but I don't have any personal contacts there.
Judging from their "select transactions" part of their website it does look like they have decent exposure to institutions.
https://secure.mackieresearch.com/investment_banking/select_transactions.php
I'm not sure what Niocorp is planning here. They are not in need for cash at the moment and one could argue that waiting for a updated 43-101 and a flow sheet with pilot plant results would be wise. It could just be an effort to make sure that the story continues to get out there for the time being as these developments continue - and Mackie could be useful in a few rounds of financing. It won't be 100% debt that is for sure. Debt is usually out of New York. Equity out of Canada is typical.
Getting some institutions in "early" is not bad. They can be helpful all along the way as long as the company delivers.
Spoke with management.
One thing I like a lot is the accessibility to management this company has. I never pry for what could be considered as non-public information but updates on announced efforts are appreciated.
Over the past two days I have had the opportunity to talk with the two senior people separately and:
Drilling is ongoing (as we know) however one of the two rigs has had multiple unusual breakdowns so the drilling progress is a bit slower than recently thought. However the first drill is going faster than previously "budgeted" for so the net result is not bad. Also, the logging and splitting of core is coming at them fast enough that its a challenge to keep up as it is. A third rig is a possibility. The drill down time costs Niocorp nothing (but a bit of time). It's going well and we can expect news shortly. I'm very confident that the goal of the program will be achieved. That is primarily to move tonnage from inferred to indicated and secondarily to add tonnage. The potential to add major tonnage exists for far down the road but is not the goal of this program. It's big enough as it is.
What I always struggle with is the magic of the metallurgical process and take ever opportunity to try to understand more. From the July 9th news release the say they were able to reject 75% of the ore and achieve 75% (off the charts good) recoveries. Now we know that this deposit differs from the other mined niobium deposits because the recovery rates are much higher. However, rejecting 75% percent instead of say 85% or 90% means they may have to treat more ore than the others (perhaps). So I poke around this area as much as I can. I can say they are very pleased with the progress of their two metallurgical consultants and are confident a process flow sheet is going to be done in next month or not much long after that.
They are very pleased the board addition/change. Michael Morris brings a wealth of financial and legal experience in areas that Niocorp will need. As we know he is no stranger to miners. Expect to see further board additions in due course. I think one of our posters said that when negotiating with lenders having the strength of management that invokes confidence will both make it possible and will shave points off the rate they charge. I would add that if a party comes along that may want to buy Niocorp the fact Niocorp can look at them and say that without a fair price for our shareholders we will develop it ourselves and be credible about it - allowing for a fair price to be achieved. I personally think this is very likely - but that is very much my own feeling based on my experience only.
Each time I speak with them, which is about once a month, the main thing I get is that they know exactly what they are doing and unlocking value at each step. Having a fantastic deposit always helps. ;)
NioCorp Announces Board Update - Nice upgrade!
VANCOUVER, BRITISH COLUMBIA--(Marketwired - July 28, 2014) - NioCorp
Developments Ltd. ("NioCorp" or the "Company") (TSX
VENTURE:NB)(OTCQX:NIOBF)(FRANKFURT:BR3) is pleased to announce the appointment
of Mr. Michael Morris to the Company's board of directors.
Mr. Morris is currently Chairman of the Board of Heritage Oaks Bankcorp
(NASDAQ listed) where he has been serving as a Director since 2001. In
addition, Mr. Morris is the senior principal and Chairman of the Board of
Andre, Morris & Buttery, a professional law corporation. From 2000 to late
2006, Mr. Morris served on the board of Molycorp, Inc., which at the time was a
wholly owned subsidiary of Unocal and then Chevron. Mr. Morris was the only
independent director of Molycorp at that time.
"NioCorp is honored and privileged to have Mr. Morris as a new Director. His
financial and legal background, coupled with his past mining company board
tenure, will significantly add to the depth of experience and competencies our
Board will need as we quickly move deeper into the development stage for our
Elk Creek niobium project," said Mark A. Smith, CEO of NioCorp.
"I am delighted to be joining the Board of NioCorp," said Mr. Morris. "The
Company has assembled a talented management team to lead it forward and achieve
a strong position in the niobium market. It's an honor to be a part of this
endeavor."
The Company also announces that Erin Chutter has left the Company's board for
personal reasons. Erin has been involved in the Company for many years,
providing valuable guidance in the acquisition of the Elk Creek niobium
project, and the Company wishes her well in her future ventures.
The Company also wishes to announce the granting of incentive stock options
to its directors, officers, consultants and employees, under its Stock Option
Plan, for the purchase of up to 2,300,000 common shares of the Company for a
period of 3 years at a price of $0.65 per share.
About the Company: NioCorp are developing the only primary niobium deposit
known to be under development in the U.S., and the highest grade undeveloped
niobium deposit in North America, located near Elk Creek, Nebraska. The Company
has published an NI 43-101 resource of 19.3 Million tonnes grading 0.67%
Indicated, containing over 129,182 tonnes of Nb(2) O(5) , and 83.3 Mt grading
0.63% Inferred, containing over 523,844 tonnes of Nb(2) O(5) ). Niobium is
mainly used in the form of Ferro-Niobium to produce HSLA (High Strength, Low
Alloy) steel, to produce lighter, stronger steel for use in automotive,
structural and pipeline industries. The U.S. imports 100% of its niobium needs.
ON BEHALF OF THE BOARD
Peter Dickie, Director, President, Corporate Secretary
Those options were set to expire at the end of June. Use em or lose em. I guess he didn't want to or was not in a position to write a cheque. Directors at Niocorp do not draw any salary - this is their sole compensation. That said, I look forward to further additions to the management and the board in time and as the company progresses in its fast track development. Remember this director, who may very well be a nice guy, is a legacy director - not part of the new regime.
Importance of Niobec current production to Iamgold:
IMG Iamgold earns $3.7-million (U.S.) in Q1
Niobium production for the first quarter 2014 was 1.3 million kilograms, up 8 per cent from the same quarter in 2013.
The operating margin increased by 25 per cent to $20 per kilogram in the first quarter 2014, from $16 per kilogram in the same quarter of 2013. The increase in the operating margin reflects sustainable cost savings resulting from the cost reduction initiatives in 2013, improvement in recoveries related to efforts to optimize mill performance and a stronger U.S. dollar, compared with the Canadian dollar.
So 1.3 million kg's times $20 (less administrative overhead/borrowing costs). If not for Niobec's current contributions to the bottom line Iamgold would have large losses. Perhaps their debt would be downgraded - adding to higher borrowing costs - a nasty downward spiral. I can't see how they can possibly take Niobec offline anytime soon. They really should have bought NB, built Elk Creek and got it up and running and then looked at the mine reconstruction at Niobec down the road. Too late now. ;)
Niobec has other issues.
For quite some time Iamgold has wanted to become a pure gold company and has hoped to sell Niobec. But they were wanting the asset sold for $1B and it needs another $1.5B for it to make sense. Too tall an order at this point.
Plus, they are having very serious issues with their gold production. They had to eliminate their dividend completely to conserve cash. Frankly Iamgold is in difficulty and cannot afford to lose the excellent current cash flow that Niobec is producing. Tearing the mine down, moving it, a starting the new mine would stop production for quite some time. They are between a rock and a hard spot.
FYI, I did have direct communication with Steve Letwin the CEO of Iamgold 2 or 3 years ago about NB. I was thinking they needed to buy NB - but as they were really wanting to sell Niobec and become a pure gold play it wasn't in the cards. They were vaguely interested in how much it would cost to mothball Elk Creek (to get rid of the competition). It didn't make any sense to me and I really should have shorted Iamgold then because its clearly not being run in the right way.
The mine is not yet financed for PVG.
They just announced a financing offering that looks like what I would expect for Niocorp in about a year.
VANCOUVER, BRITISH COLUMBIA, Jul 8, 2014 (Marketwired via COMTEX News Network) --
Pretium Resources Inc. (TSX:PVG)(NYSE:PVG) ("Pretivm" or the "Company"), today
announced that it has filed a preliminary short form base shelf prospectus with
the securities commissions in each of the provinces and territories of Canada, except
Quebec, and a corresponding shelf registration statement on Form F-10 with the U.S.
Securities and Exchange Commission (the "SEC") under the U.S. Securities Act of
1933, as amended, and the U.S./Canada Multijurisdictional Disclosure System. The base shelf prospectus will allow Pretivm to offer up to US$600,000,000
of common shares, debt securities, preferred shares, subscription receipts, units
and warrants from time to time over a 25-month period after Canadian securities
regulatory authorities have issued a receipt for the final short form base shelf
prospectus.
PVG (Pretium)/NIOBF NPV comparison.
PVG has market cap of $1 Billion. It has a NPV after tax of about the same as what I expect will result for NIOBF. PVG has completed a feasibility study.
As Niocorp gets closer to the feasibility study being completed I expect that we can start seeing market caps that compare similarily.
SUMMARY OF BRUCEJACK ECONOMIC RESULTS BY METAL PRICE
Low case Base case High case
Gold price (US$/ounce) $800 $1,100 $1,400
Silver price (US$/ounce) $15.00 $17.00 $21.00
Net cash flow (US$) $2.02-billion $4.16-billion $6.35-billion
(pretax) (pretax) (pretax)
$1.34-billion $2.72-billion $4.13-billion
(posttax) (posttax) (posttax)
Net present value(1) $985-million $2.25-billion $3.54-billion
(5.0% discount) (US$) (pretax) (pretax) (pretax)
$620-million $1.45-billion $2.28-billion
(posttax) (posttax) (posttax)
Dear Landmark, Index add
The index add means nothing. Maybe a bit more profile but so what. The only thing that matters is that the company continues unlocking value by getting the inferred resource portion of the existing data into measured and indicated along with getting the metallurgy nailed down. That will allow the full feasibility study to complete and we can start seeing the $1.5B NPV being realized. Down the road a bit environmental studies and permitting will be important as well - but with this type of mining and local support I see zero issues there.
Since the potential discounted NPV is at least 20 times current market cap my hope is, that while allowing for future dilution, that we can realize 10 times the current price per share as the company's accretive actions continue. Much more if the 75% recoveries become the norm. As it is I'm very happy if they can get an efficient 55% recovery rate.
While your enthusiasm is well founded your posts are often factually incorrect. I would like you to consider being a bit less of a cheerleader because the actually story is plenty great and it would lend more credibility to this board. Just my two bits.
Cheers
LCP
Dear Seawolf.
I do not argue with your points at all. Not one bit.
However as a very long time resource investor I find that your methodology is extremely flawed when looking for great opportunities. The best opportunities require one to use their experience to make some judgment calls. I have been invested in Niocorp since the Quantum Rare Earth days and my position is now as large as ever. I did use my experience to say to myself:
Is this large deposit likely able to move inferred into measure and indicated catagory with additional drilling? My experience said yes.
Since the deposit had blank areas in the previous resource calculations and was open in several directions could it get bigger (not that it needed to)? My experience said yes.
Could metallurgical recoveries that were done 30 plus years ago (that were about 50%) benefit from modern techniques. I definitely thought so.
Was the project in a low risk jurisdiction with great infrastructure and apparent local support? Definitely yes in this case.
It just made a ton of sense to me and so I started investing into this company. Very simple story actually. It wasn't perfect but I had to start. What was wrong? The junior resource market was in a nuclear winter (no longer the case). And the biggest missing piece was the management were not respected mine builders. In discussions with Mr. Dickie at the time he said he was completely aware that adding that missing piece was important and was willing to step down as CEO when the right person was found. Mr. Dickie has many strengths - including recognizing what was needed.
I have the resources from amongst my contacts to do a back of napkin assessment that I have confidence in as I have mentioned before. With the help of PhD mining analysts etc. No, my numbers are not as proven as you suggest is important to you. I'm suggesting a $400M capex with just medium recovery rates similar to Niobec's give the company a $1.5B NPV with considerable upside to that if things continue to surprise to the better as they have been. The question does exist as to how much equity needs to be raised and at what dilution to go along with debt financing. My belief at this point is that major financings will be done at multiples of the current prices and done in conjunction with a debt deal. At that point I will likely sell to you and search for my next gem.
Who has some quality feedback on the News release just out??
Grade is better than Niobec grades.
Much of the hole was previously barren in the original tonnage estimates so this adds a lot of tons and will move tonnage from inferred to indicated (which, of course is the goal of the program).
Recoveries are off the charts. Fantastic.
Management is delivering on their promises of moving forward quickly.
Could you please post a link or something?
Incredible recoveries.
Niocorp Developments Ltd (TSX-V:NB) Shares Issued 122,884,716 Last Close 7/8/2014 $0.66 Wednesday July 09 2014 - News Release Mr. Mark Smith reports NIOCORP RECEIVES HIGH GRADE ASSAYS RESULTS-ALSO PROVIDES METALLURGICAL UPDATE NioCorp Developments Ltd. has released further results from the first phase of the continuing drilling
operations at the Elk Creek carbonatite project, located in southeast Nebraska. Drilling update: A total of 752 samples from hole NEC14-006 were delivered to Activation Laboratories
Ltd. (ActLabs), Ancaster, Ontario. Of the 752 samples submitted, 522 samples are core sections while
the remainder are control samples. The Company has now received all of the sample assays for drill hole
NEC14-006. Highlights of these results include:
309 - 440 m (131 meter interval) grading 0.61% Nb2O5
590 - 771 m (181 meter interval) grading 0.52% Nb2O5
Including: 698 - 732 m (34 meter interval) grading 0.91% Nb2O5
In addition, there were multiple samples in excess of 1% N2O5 with individual results over 2% Nb2O5.
Assay results from NEC14-006 include some of the highest grade sample results ever obtained on the project, including past results obtained from over 20,000 meters of drilling completed on the deposit by the Company a previous operator.
Previously issued results from the top one-third of NEC14-006 (see press release dated June 26, 2014) intersected niobium mineralization in untested areas of the Elk Creek carbonatite. These results support niobium mineralization in previously undefined areas, and will be included in an updated NI43-101 report to be produced upon completion of the full multi-phase drill program.
A total of three holes are now complete at the Elk Creek Carbonatite project. Each of the first three drill holes was drilled beyond the targeted depth, with each hole ending in the geologically and field XRF supported mineralized material.
Metallurgical update: Metallurgical studies on behalf of the Company is proceeding, with over 100 bench scale tests now completed at SGS Canada Inc., at Lakefield, Ontario, and Hazen Research Inc., at Golden, Colorado. Significant progress has been made towards developing an economic process flowsheet for Niobium recovery from the Elk Creek deposit. This work is ongoing and the company plans to initiate pilot plant testing immediately following the completion of bench scale testing. Results to date include recoveries of 75% of the Niobium while rejecting 75% of the mass of the ore without the use of de-sliming operations currently practiced at other niobium processing facilities (which results in significant Niobium losses to the slime fraction).
"We are extremely pleased with the work completed to date, on both the drilling and metallurgical aspects of this technical phase of development," stated Mark A. Smith, Chief Executive Officer of NioCorp. "With current drill results exceeding expectations and significant, positive results from metallurgical research, we will continue to expedite the work required to advance this project along corporate objectives."
Quality Control: Sampling for NEC14-006 was continuously collected from the base of the limestone-carbonatite contact to the end of the drillhole (230 m to 772.67 m). A total of 752 samples from drill hole NEC14-006 were delivered to Activation Laboratories Ltd. (ActLabs), Ancaster, Ontario. Of the 752 samples submitted, 522 samples are core sections while the remainder are control samples. The Carbonatite continued at depth and remains open in that direction. HQ diameter core was sawn into half-core samples, and control samples were inserted into each batch. NEC14-006 was oriented at an azimuth of 030 (NE) degrees, with a -70 degree dip.
Qualified Persons:
Brad Ulry, B.Sc., P.Geo., Dahrouge Geological Consulting Ltd., a Qualified Person as defined by National Instrument 43-101, is responsible for the Elk Creek drilling operations and has read and approved the technical information contained in this news release.
"A) Recovery percentages of the drill results i.e. met work and flow sheet demonstrating this. a 45% recovery vs 55% has a big influence on the economics of a project.
B) engineering estimate of a CAPEX for the mine and OPEX of mining operation, a big influence to earnings.
C) does Niocorp have enough funds to see it through to a decision to mine and what schedule have they released showing when this will occur?
D) i think you confuse the difference between pre-feasibility, then definitive (bankable) feasibility (Q32015) studies. Throw in there a preliminary assessment report which occurs usually before the above two.
E) Cradle are ahead on announcing all of the above."
All reasonable points. In my extremely extensive discussions with Niocorp's mgmt and personal experience in the industry about the ticking off those items I have zero doubt that you will see fast and favourable answers to them. One thing you very likely will not see if a PEA or a PF from Niocorp. I believe they have, or soon will have, enough data and confidence to go to straight to FF. There is very little mystery here in my mind.
With this mgmt and the quality of this project there won't be any lack of funds available. Also, I doubt you will be Mr. Smtih's interest in the company to dilute downward anytime soon.
shhhhh - let him scare out some stock. Google its locale and try to find a power grid, railroad or even a decent road. Then look at the drill rig on a corn field with a flag from Elk Creek in the back ground. Right beside a road, a few miles from rail, power onsite.
Niobec average grade is 0.42%. Niocorp is 0.65%
From their websites:
NIOBEC (100%) Tonnes
Probable Reserves 422,900 0.42% 1,768
Measured Resources 291,631 0.44% 1,271
Indicated Resources 344,158 0.38%[color=red][/color] 1,292
Measured and Indicated Resources 635,789 0.41% 2,563
Inferred Resources 83,763 0.31% 263
Niocorp's is 50% better:
Indicated 19,319,000 .67% 129,182,000
Inferred 83,288,000 .63% 523,844,000
Plus we are open is several directions to get a lot bigger.
As you know, in mining grade is everything. 50% better virtually all goes to profit.
Hi,
From what I understand the release of those results were just the first 1/3rd of the first hole and they hit as expected. There is little doubt that the body of the deposit is very economic in my mind and it could certainly become the second biggest and second most rich (high grade) deposit in the world. Also, from what I understand the initial metallurgical work may have produced phenomenal recoveries. Of course, from what I hear it was on a small sample and can't be counted on at this point. However if we get recovery rates above 55% look out. 65% would be WOW. Higher as initial tests seem to indicate could be possible then we're mooning.
With a brand new plant optimized for this ore and 55% + recovery rate the operating costs per kg would be much, much less than Niobec's.
I have been counting on a sell off with the share release - I do hold a significant amount of the recent PP but I want to add and have been making arrangements to do so in a big way....I hope we get some sellers but now I'm starting to think that more cheap shares to buy just won't happen... :( common Walter - tell your friends to take some the table! :)
I used 5% discount rate
10 year tax holiday
$400,000,000 capital cost
35% tax rate
I gave those inputs to an analyst and that was what came out.
Call it $1.5B NPV. The debt equity ratio and the level at which equity is raised is a question as to a PV on share price.
I think we get bought out first.
Cheers