NioCorp Developments Ltd. (“
NioCorp” or the
"
Company”) (TSX:NB) (OTCQX:NIOBF) (FSE:BR3)
announces that it has achieved two major process breakthroughs as
part of its final design work for the Feasibility Study of the Elk
Creek Superalloy Project (the
“Project”).
Both advances – one in the Niobium metallurgical
process and one related to regenerating useful materials from
process streams previously slated for disposal – may lead to
lower-than-expected capital expenditures (CAPEX) and operating
expenses (OPEX) for the sub-systems involved, although costs may
increase in other areas of the Project and overall CAPEX and OPEX
estimates will not be finalized until the Project’s final
feasibility study is completed.
These advances, if utilized in the final plant’s
design, are expected to reduce the overall environmental footprint
of the Project.
The first of these breakthroughs involves NioCorp’s
discovery that it can attain high Niobium recovery rates while
using less water – up to an order of magnitude less – than earlier
envisioned. This process optimization could allow for a
significant reduction in the size of a number of major pieces of
equipment in the Project’s Niobium recovery and purification
processes and water management infrastructure.
The ongoing testwork supporting these flowsheet
improvements was conducted at SGS in Lakefield, Ontario.
Implementing this metallurgical advance will require only
conventional technologies and was confirmed through pilot
testing.
The second process breakthrough involves NioCorp’s
discovery that it can convert significant fractions of its
neutralization solids and acid regeneration solids into supplies of
neutralizing agents and process reagents that are used to help
produce the Project’s commercial products. Previously, these
neutralization and acid regeneration solids – material comprised
mostly of calcium compounds, similar to those found in household
wallboard – were planned either for disposal in an onsite tailings
storage area or to be used as part of the underground mine’s
backfilling operations (in which rock and materials left over from
the extraction of targeted minerals is returned underground to
permanently fill in voids created by mining operations).
Now, NioCorp believes it can convert a substantial
portion of these materials into neutralizing agents and process
reagents needed in production operations and which it had planned
to purchase in bulk from outside sources. This new
regeneration process involves conventional technologies and will
not require any additional pilot testing.
In all, preliminary estimates by NioCorp’s design
team show that this new material regeneration process can be
expected to deliver the following benefits to the Project:
- Potential elimination of the construction and operation of
approximately seven kilometers of a railroad spur line and
associated rail transport infrastructure;
- A reduction in the size of NioCorp’s planned acid regeneration
plant, which is designed to recycle chemical reagents used in the
production of commercial products;
- An estimated 60-85% reduction in certain reagent purchases from
third parties;
- An estimated 50% reduction in the volumes of neutralization
solids and leaching residue as compared to that expected to be
produced by the processes outlined in the Company’s October 2015
Preliminary Economic Assessment (“Oct. 2015 PEA”), and
- Lower costs associated with the Project’s planned tailings
storage facility.
If all of these benefits are achieved, as expected,
they could reduce both OPEX and CAPEX for specific portions of the
Project. However, other aspects of the Project may involve
higher costs than were assumed in the Oct. 2015 PEA. Final
CAPEX and OPEX estimates for the Project depend upon a number of
other factors and will not be determined until all remaining work
is complete on the Elk Creek Feasibility Study.
The Company has initiated the additional
engineering work to ensure that these benefits are captured in the
Feasibility Study for the Elk Creek project.
“These breakthroughs promise to deliver real and
positive impacts to our Project, and they could significantly
shrink our overall environmental footprint,” said Mark A. Smith,
CEO and Executive Chairman of NioCorp. “These kinds of
innovative advances are exactly why we committed additional time
and resources over the past year to fine-tuning our metallurgical
and process design and testing prior to completion of the Elk Creek
Feasibility Study.”
“Scott Honan, Kelton Smith, Rick Sixberry and the
entire process and metallurgical teams continue to do an
outstanding job in finding ways to potentially reduce costs and
environmental impacts wherever possible,” Smith added. “I am
more excited than ever to see the final results of our Feasibility
Study, and to releasing that to the public as soon as
possible.”
On Behalf of the Board of Directors,
"Mark Smith”
Mark Smith Executive Chairman, CEO, and
Director
Qualified Persons: Eric
Larochelle, B.Eng of SMH Process Innovation, a Qualified Person as
defined by National Instrument 43-101, is responsible for the Elk
Creek hydrometallurgical program and has read and approved the
technical information contained in this news release.
For More Information:
Contact Jim Sims, VP of External Affairs, NioCorp Developments
Ltd., 720-639-4650, jim.sims@niocorp.com
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 but not limited to NioCorp’s
ability to implement the metallurgical and process advancements
described in this release, benefits that may result from successful
implementation of the metallurgical and process advancements
described in this release, statements regarding potential future
production at the Elk Creek Project, anticipated products to be
produced at the Elk Creek Project, the future critical and
strategic nature of niobium and scandium, expected growing demand
for metals to be produced at the Elk Creek Project, potential
future customers for such metals, stable future pricing for
ferroniobium, NioCorp potentially being the only producer of
ferroniobium and scandium in the United States, estimated resources
at the Elk Creek Project, future state and local support of the Elk
Creek Project, potential returns for investors, anticipated costs
of production at the Elk Creek Project being competitive,
anticipated competitive advantages, expected date for beginning
future commercial production, the timing, completion and results of
a feasibility study for the Elk Creek Project, and results and
estimates in the Preliminary Economic Assessment, including but not
limited to, potential life of mine, pre-tax Net Present Value
(NPV), after-tax NPV, Internal Rate of Return and estimated cash
flows from production. 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
changes in demand for and price of commodities (such as fuel and
electricity) and currencies; 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; the risks involved
in the exploration, development, and mining business, and the risks
set forth under the heading “Risk Factors” in the Company’s S-1
registration statement and other 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.
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