Last Friday, NioCorp (TSE:NB) (NIOBF) filed the NI:43-101 Preliminary Economic Assessment (PEA) study for the Elk Creek Niobium project announced April 13, 2015.
"With the full report now published, everyone can see the level of detailed analysis that has accompanied our work plan to date and we look forward to the completion of the feasibility study for the project," said NioCorp, CEO and Executive Chairman, Mark Smith.
NioCorp has projected the pre-tax NPV and IRR results to US$ 875 million with an IRR of 16.6%, while after-tax NPV is now US$ 606 million with an IRR of 14.6%.
The average pre-tax average cash flow is expected to be US$178 million.
According to the PEA, NioCorp produce 7,500 tonnes of ferroniobium per year at a cost of US$6.50/kg according to the Preliminary Economic Assessment for the Elk Creek Niobium project published today with total upfront costs of US$919 million.
The results of the PEA, based according to a 3,700 tonne per day production rate over a 36 year operating life with an average grade of 0.82% niobium pentoxide (Nb2O5), will be used to prepare a bankable feasibility study.
The promise of a high grade niobium supply in North America has already managed to secure NioCorp confidentiality agreements with top investment banks Morgan Stanley and Credit Suisse.
The Elk Creek deposit has delivered some of the highest niobium grades and recovery rates in the world. NioCorp is set to produce at an average grade of 0.7% or above, placing it solidly as the third richest niobium ore deposit in the world, behind CBMM and Anglo American, both of which operate in Brazil.
Over the past 12 months, the stock has almost quadrupled in value.
NioCorp is developing the only primary niobium deposit known to be under development in the U.S., and the highest grade undeveloped niobium deposit in North America, located near Elk Creek, Nebraska.
The company has led an aggressive development path over the past year, finishing a three-phase drilling program in 2014 that more than tripled contained niobium resources at the site, while also moving to secure project financing.
Niobium is combined with iron to produce an alloy known as 'ferroniobium', which is used to produce HSLA (High Strength, Low Alloy) steel. It has become an essential metal to help produce lighter, stronger steel for use in automotive, structural and pipeline industries.
The material is one of fourteen metals or groups of metals that the Council of Europe has identified as critical. The United States National Research Council considers it even more important, listing it as one of the five "most critical" metals.