Niocorp Developments Ltd (NB)

[chico237]

Reviewing Possible 2022 Economics & Niocorp's "Simplified Flowsheet"-
REPLAY: NioCorp Investor Webcast of May 25, 2022

(I am not a chemist; but I've noticed the following & also reference attached responses from Jim)
A) It appears to me several "Separation System Circuits" have been eliminated from the flowsheet P&ID's.
B) The Proprietary CO2 Supercritical separation "Appears to play a role PRIOR to HCL leaching & SX separation of Scandium & the rare earths into oxides" as compared to the 2019 F.S. methods.
C) The Separation of Fe appears to occur earlier in the stages & an Fe end product (interesting!?) is shown (Prior to Separation of Titanium & Niobium products.)
D) Which in turn may lead to improved recovery rates for both Titanium & Niobium & future improved OXIDE production.

Refer to Jim's response to Dougnil 4/12/22
Q/Can you provide any information about about the elements, grades and pounds of REEs that may be included in the revised 2022 FS?

Not quite yet, but we expect to release that data on specific REEs, and their ore grades and tonnages, in the Elk Creek Mineral Resource (both Indicated and Inferred) shortly. REE data for the Mineral Reserve has to await results of the demo plants™ operations, as well as many other updates across the rest of the FS.

See Jim's response to higher purity niobium & titanium & ponder what increased recovery rates %'s & purity %'s for just Niobium & Titanium oxides could mean once proven at scale utilizing the optimized processes now underway...

Repost of Jim's response to questions-3/17/2022-
A) Could you comment on what the production of higher purity niobium & titanium could be utilized for once realized?

If the higher purity niobium and titanium intermediates that L3 was able to produce at bench-scale are replicated and proven at demonstration scale, this would put us in a position to more easily move to other products beyond those outlined in our 2019 Feasibility Study. Niobium oxide for use in Li-Ion batteries is one possible example, although the production of that product would require additional processing steps beyond the higher-purity niobium intermediate that we discussed in last week’s news release. The company is not yet in a position to make a determination on whether or not, and when, to possibly expand our Niobium product offering. Higher grade TiO2 could expose us to additional markets where higher margins could be obtained. But, again, we are not in a position to speak to those possibilities in any detail yet.

B)Niocorp’s preferred separation method is SX. Are these higher purity processes part of an improved SX process or “something else”?

No, the processes we recently discussed occur in the earlier stages of the flowsheet, prior to any SX processing. We look forward to unveiling those details once these processes are verified at the demonstration plant level and once all associated work needed to complete an updated Feasibility Study is completed.

(L3 & team Niocorp are diligently working on that now! Interested parties could most certainly be watching IMHO!)
****Please take into account the possible increases to NPV from completing the FINAL -Hydro-Met- optimization of the "NEW"- HPGR ground ore & Pilot Plant testing (starting in April 2022) - to Production Scale (For Titanium, Niobium, Scandium & Rare Earth Minerals!) ***Consider what higher recovery rates & improved oxides could bring to the table including viable REE's***

NIOBIUM
* Niocorp's recovery rate for Niobium currently is 83% & 165,000T. The optimization could lead to higher recovery rates over 93%plus -IMHO.
*The last remaining 25% of production has yet to be placed under an enforceable contract! (Why?)
*Niobium Oxide upgrading is also a future possibility for battery grade oxides.
TITANIUM
*Titanium recovery rate currently sits at 40% & 418,000T. I can easily Imagine 70% recovery & upgrading to "pigment grade oxide" is a possibility.
*L3/Eric LaRochelle hold current Patents on "Titanium Oxide" production.
See Also L3's Eric Larochelle's patent- Process for recovering titanium dioxide from titanium containing materials (THEY KNOW TITANIUM!")
https://uspto.report/patent/grant/10,480,047
*Two Titanium Ingot/Billet production Plants currently sit IDLE (safe-store) in the U.S. (One is in Nevada & the 2nd is in Utah!)
*Pricing Chinese Titanium Dioxide Pigment 2022
https://www.made-in-china.com/products-search/hot-china-products/Titanium_Dioxide_Pigment_Price.html
(*The Titanium "PIGMENT" grade pricing appears to be far greater than 1$ per ton)
*Russia is a major producer of Titanium & may no longer be an option moving forward.

SCANDIUM: The Chicken & the Egg may be all put to rest soon... The REE's & Hydro-Met improvements should easily match/offset any pricing concerns. (*Note: Niocorp has continued to stand behind their numbers here. 46 months is plenty of time for a major market to form with a need for a diverse supply?)

Rare Earth Minerals
*Recent Niocorp news releases lead me to believe they can ("Separate Them All-At the Lab Bench Scale! Form your own opinions & conclusions)
https://www.niocorp.com/niocorp-reports-significant-advance-in-plan-to-process-critical-minerals-in-nebraska/

L3 has conducted bench-scale testing at its facility in the province of Quebec, Canada to optimize the Project’s current processing flowsheet and demonstrate that NioCorp can recover and produce high purity rare earth elements, such as neodymium-praseodymium, dysprosium, and terbium, in addition to the niobium, scandium, and titanium products already planned for production by the Company, once Project financing is secure

Elk Creek determined as nation’s second Largest Rare Earth Resource
https://northamericanmining.com/index.php/2022/05/24/elk-creek-determined-as-nations-second-largest-rare-earth-resource/

Scott Honan COO- Stated in the video below - REE production “North of 750 tons per year!”-
~OVER 750 TONS OF RARE EARTH MAGNET-GRADE OXIDES READY FOR MARKET/YR.!!~
NioCorp Developments has a 'very large rare earth deposit' in Nebraska
https://www.proactiveinvestors.com/companies/news/982962/niocorp-developments-has-a-very-large-rare-earth-deposit-in-nebraska-982962.html

Grunt's REE Calculations Post #78176 :
A pretty sweet addition to our bottom line:
Tb - - - - - - - - - - - - - - - - -$24,771,000
Dy - - - - - - - - - - - - - - - - -$22,419,000
NdPr - - - - - - - - - - - - - - - $92,357,000.00
Profit from the 3 oxides: - -$142,547,000.00

My guess when compared to MP materials & 3 other U.S. projects (& This could be low!)
600 tons per year Nd/Pr = 600,000kg x $173 = $103,800,000 (not far off Grunt's estimate!)
24 tons per year of Tb = 24,000kg x $2,383 = $57,320,000
120 tons per year of Dy = 120,000kg x $495 = $59,400,000
Total REE annual value prior to OPEX = $220,392,000 Million
~ & I THINK Niocorp's numbers for Dy & Tb might be a touch more! 30mt & 170mt respectively???~

That’s in the range of @ $200M plus +\~ in additional earnings (Before Opex). **NOTE: This doesn’t include increased recovery rates for the Nb & Ti & OXIDES!!!$$$.
Niocorp may very well be looking at yearly revenues "North of $500M/yr -$600M....!"

NIOCORP could never tout it's Rare Earth Potential to the world-"until now"...
(It will be interesting to see where Niocorp's Elk Creek Mine will Rank very soon!)
https://www.mdpi.com/minerals/minerals-07-00203/article_deploy/html/images/minerals-07-00203-g007.png

Four outstanding issues remain:
A) Material News on the "status" of the Loan Extension from Mark Smith. (Due the end of June. Could this be extended again or other?)
B) Material News & announcement that the pilot plant testing has begun & then followed by successful completion & disclosure of ~ Optimizing & proving the process methods intended for use~
C) Announcement of a Fully completed & amended 2022 F.S. (Subject to conclusion of successful completion of testing above with updated economics)
D) Can the team Finally close on a (Deal with an Anchor Investor $25M), or on a Large Substantial "Tranche" to kick off the project?
~**NOTE: Team Niocorp has been in talks with the U.S. govt. (Sounds like this is still in play!), Automakers, Investors, Banks & more on in Europe & the U.S. per Jim's responses to AO** A COMBINATION of PLANS -A, B, C, D, E & "Competitive Tension"???~

It is IMPRORTANT TO Form your own opinions & conclusions & run your own napkin numbers.
As we all wait for material news as it becomes available & the successful conclusion of outstanding issues. (These next few months should "Tell the Tale" on weather or not this "highly de-risked Elk Creek Mine is "Possible!")

"Staying Tuned... in my front row seat with many." (Go team Niocorp & L3!)

Chico