NioCorp’s Elk Creek Project Confirmed as the Second Largest Indicated-Or-Better Rare Earth Resource in the U.S.
Second only to MP Materials’ Mountain Pass rare earth deposit.
New Mineral Reserve and Economic Model does not yet include rare earth production but updated feasibility study shows longer expected mine life, higher expected ore grades and tonnages, and improved expected project economics from niobium, scandium, and titanium
What’s not to like.
Admittedly the fact that the CAPEX, OPEX, and REVENUE for the REE is not included may cause those persons who fall in the “analysis paralysis” or “I don’t know, there are still some loose ends not yet nailed down” to drag their feet.
IMHO the increase of CAPEX and OPEX for processing the REEs will exist but I expect them to be low relative to the other values of CAPEX and OPEX. The increase in REVENUE will be substantial, I believe that grunt23's figures are appropriate.
I am please to see that the thinking to produce, if that is the final decision, the REEs as BY-PRODUCTS is the best one. All the cost to build the mine, bring the ore to the surface, and prepare it for processing will be absorbed by the Nb-Sc-Ti product. Only the specific costs to separate the individual REEs will be considered in the costing of the REE by-products. This will place NioCorp’s products at a competitive advantage vis-à-vis other rare earth projects.
This FS 2022 is an update of the FS 2019 and the project got better independent of the inclusion of REEs:
12.0% Improvement in the After-tax NPV
6.9% Improvement in the After-Tax IRR
5.8% Reduction in the After-Tax Payback Period
9.7% Improvement in the Annual Operating Cash Flow
Although the NI 43-101 report is yet to be published, the 3rd party firm that NioCorp is working with, Dahrough Geologic Consultants, is willing to estimate that there is probably and estimated 632.9 kt (kilo tonnes) of contained total Rare Earth Oxides (TREOs).
- 632.9 kt of TREO, including these individual rare earth oxides:
- - 26.9 kt of praseodymium
- - 98.9 kt of neodymium
- - - 2.3 kt of terbium
- - - 9.1 kt of dysprosium
A lot of magnetic type material
Please keep in mind the following:
- The mine is fully permitted, just waiting financing to start digging.
- The mine is underground minimal if any environmental and air problems.
- The mine will produce elements that are in the top 10 elements of the list of “US Critical Metals”
- The “ore blob” that is included in the FS 2022 is a low percentage of the total carbonatite mass that has been detected and that NioCorp has options to purchase.
- The potential ore body is open in two directions and at depth, so no one really knows how much Nb-Sc-Ti-REEs are really down there.
- The ore body is generally homogeneous and therefore it is highly probable that the numbers we now see will apply if the “ore blob” is enlarged.
- The mine, the “ore blob” and processing facilities are on land that NioCorp owns.
- The numbers in the FS 2022 make this mine:
- - The second largest source, by far, of Niobium in the world.
- - The largest source of Scandium in the world, producing about 10 times the current world annual supply.
- No radioactive elements in the ore.
- The REE separation facilities may be the only facility in the United States, making the project a REE source that is totally independent of China.
- The REE facilities use the proven solvent extraction process for REEs at this time
- Some experiments being done by L3 that, if they prove out, may reveal changes to the processing of the ore that would:
- - possibly reduce OPEX
- - may increase CAPEX
- - allow NioCorp to produce some of our Nb-Sc-Ti-REEs to a purity level and in a form that would put some of the products in the “specialty chemicals” category which usually carry higher prices than commodity chemicals.
- - If the L3 work does not prove desirable then nothing is lost the FS 2022 package is still viable as presented.
What Is there Not to like? Why is there a hesitation to finance? We are permitted, let’s get this project started.
