NioCorp Finalizes Plans to Develop Nebraska Niobium Project
Vancouver, BC / March 31, 2014 / After hitting fresh highs last week, NioCorp Developments (NB.V)(OTCQX:NIOBF) said it is now finalizing plans to fast track the necessary work on its Elk Creek niobium project, which will include an overall plan to develop the site.
The niobium developer hit a new 52-week high of 28 cents on Friday following news the company closed a $3.77 million private placement, giving it enough funds to implement its plans. It has raised a total of over $5.5 million in the past four months.
The company said Monday that the development plan will include on-site and off-site work, as well as the review of personnel needs required to fulfill its goals. SRK Consulting has already been contracted to perform a complete review of all drilling data on the project, with the aim of producing a scope of work for upcoming operations.
The review will include recommendations for a drilling program, NioCorp said, which will be designed with the goal of producing an updated NI 43-101 compliant resource that will have enough material in the measured and indicated categories to satisfy future corporate financing needs.
Specific recommendations are expected shortly, the company said, after which it will begin a tender process to start drilling as soon as equipment can be mobilized.
The Elk Creek project, near Elk Creek, Nebraska, is the highest grade undeveloped niobium deposit in North America, according toNioCorp, and was discovered by Molycorp back in the late 1960s.
The company has already published an NI 43-101 compliant resource for the property of 19.3 million tonnes grading 0.67% in the indicated category, containing over 129,182 tonnes of niobium. The property also holds an other 523,844 contained tonnes in the inferred category.
Niobium is mainly used in the form of ferro-niobium to produce high strength, low alloy steel, for use in automotive, structural and pipeline applications, and demand is seen increasing as the U.S. currently imports 100% of its niobium needs.
Insiders of NioCorp acquired 3.43 millon shares in the latest placement, including chief executive Mark A. Smith, who is the former chief executive of Molycorp, increasing his stake in the company to 9.5%. The participation is a show of confidence in NioCorp, which said it also signed contracts with two independent companies to conduct metallurgical studies on sample material from the site.
The goal of these programs will be to establish detailed procedures for a mineral processing flow sheet, modernizing the mineralogical recovery procedures established by Molycorp in the 1980s, NioCorp said. Additional work on the project is also anticipated to begin over the coming months, with more details to be announced as determined.
Shares of NioCorp were lately trading at 27 cents in Toronto on Monday, up 80% year-to-date.
