NioCorp Developments Ltd announced that a recently completed feasibility study has shown its Elk Creek project as having the second-largest indicated-or-better rare earth resource in the US, behind only the Mountain Pass rare earth deposit owned by MP Materials.
According to the 2022 study, the Elk Creek mineral resource contains both relatively high grades and various amounts of niobium, scandium and titanium.
As a result, the project’s after-tax net present value increased 12% to $2.35 billion from $2.1 billion following a 2019 feasibility study. The projected mine life rose to 38 years from 36 years.
READ: NioCorp Developments says Nebraska Department of Environment and Energy has advised that extensions of Elk Creek Project's construction air permit no longer required
"The results of this updated feasibility study are very good news, and they validate our belief that the Elk Creek ore body represents one of America's largest indicated rare earth resources," CEO Mark Smith said in a statement.
There is potential for NioCorp's rare earth elements (REEs) to be mined, crushed and placed into solution as part of the primary niobium, scandium, and titanium production process, the company said, once financing is secured.
Depending on the financing, as well as ongoing metallurgical testing on REE recovery rates from Elk Creek ore, NioCorp could produce separated rare earths as a byproduct, which the company says would place it at a competitive advantage in terms of other rare earth projects.
Of the REEs contained in the Elk Creek mineral resource, NioCorp is currently focusing on the magnetic REE products neodymium-praseodymium oxide, dysprosium oxide and terbium oxide at a purity level that meets current commercial requirements, the company said. There currently is no commercial-scale production in North America of these separated rare earth products from ore mined in the US, NioCorp noted.
"With the addition of the magnetic rare earths, the Elk Creek project will stand out from virtually every other greenfield project in the US in terms of its potential ability to produce multiple critical minerals that are essential to electrified transportation, renewable energy production, green mega-infrastructure projects, and many other applications that are in increasing demand around the world,” Smith said. “If we elect to add rare earths to our product offering, the Elk Creek project will represent a unique critical minerals project once financing is obtained."
Specifically, the feasibility study showed 632.9 kilotonnes (kt) of total rare earth oxides (TREO), including 26.9 kt of praseodymium, 98.9 kt of neodymium, 2.3 kt of terbium, 9.1 kt of dysprosium, 970.3 kt of niobium oxide, 11,337 tonnes of scandium oxide and 4,221 kt of titanium oxide. The study used ≥US$180/tonne net smelter return cut-off that was calculated using only the contained niobium, scandium, and titanium in the Mineral Resource, the company said. Full results can be found here.
Contact Andrew Kessel at andrew.kessel@proactiveinvestors.com
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