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NioCorp pleased with rapid advancement of Elk Creek, posts updated resource

Last updated: 01:19 08 Nov 2014 AEDT, First published: 02:19 08 Nov 2014 AEDT

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NioCorp Developments (CVE:NB) (OTCQX:NIOBF) says it is extremely pleased with its updated resource report for its Elk Creek niobium deposit in Nebraska as the company continues to progress development at the site.

The newest resource estimate shows an indicated resource of 28.2 million tonnes grading 0.63% niobium, containing 177 million kilograms of niobium, and an inferred resource of 132.8 million tonnes grading 0.55%, containing 733.7 million kilograms of niobium, at a 0.3% cutoff grade.

The update is on the back of a three phase infill drilling program that started in May, with the aim of upgrading the classification of the resource and providing material and other necessary information to create a mine plan.

The company has already completed the first two phases of drilling operations, with the third phase four-hole program now underway. The latest resource update includes only the phase 1 drilling results from the drilling campaign, NioCorp said.

"We are extremely pleased with the rapid advancement of drilling operations and progress we have made at the Elk Creek site, and we are a very pleased to be able to deliver this resource update to shareholders, forming another milestone for the company," said president and chief executive officer, Mark A. Smith.

"Together with significant progress being achieved on the metallurgy program, including pilot plant work and a further resource update on the completion of current drilling operations, the significant advancement of technical knowledge on this project will dovetail into the extensive engineering design work that SRK are diligently completing, in order to fully meet our overall objectives for this world-class project." 

The company said it will continue with its current drilling program with the aim of further bolstering its indicated to inferred mineral resource ratio. Further drilling to boost the overall size of the deposit will be carried out in the future, it added, as Elk Creek still remains open to the northwest, southeast and at depth.

The updated resource estimate, completed by SRK Consulting, is based on a 3D model of grade trends and drilling results.

NioCorp's property is the highest grade undeveloped niobium deposit in North America, discovered by Molycorp back in the late 1960s.

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.  

The junior niobium developer announced last month that it is raising a total of some $16.5 million from a special warrants financing to fund the continued development of its Elk Creek project. The proceeds will be used for ongoing drilling, and metallurgical studies, including pilot plant work and detailed engineering ahead of a planned feasibility study.

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