NioCorp calls Elk Creek mine a potential U.S. asset

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NEW YORK - NioCorp, the developer of the Elk Creek critical minerals project in southeast Nebraska, provided an update at the HC Wainwright investment conference in New York saying the mine has potential to fill some of the U.S. government’s highest priority minerals.

The Colorado-based company is raising funds for the $1.2 billion underground mine and surface processing facility with niobium as its primary pay metal.

Mark  Smith: “This is a very, very good ore body and one that we are continuing conduct drilling operations on. We’re just getting happier and happier with every drill result that we get.”

The US Geological Survey lists niobium, dysprosium and terbium among top 10 priorities.

NioCorp CEO Mark Smith said niobium presents the second highest threat to US gross domestic production of all 54 critical minerals, if imports are halted.

NioCorp reports it received a $10 million department of defense grant to turn scandium oxide into metal form.

Smith: “The Department of Defense has been very focused on scandium because basically 100 percent of that comes in from China. We  have zero supply chain capabilities here in the United States.”

NioCorp is also working with a contractor on a scandium-aluminum alloy to be used in fighter jets.

Smith: “With all six of our designated minerals being deemed critical and strategic, you can see that this Elk Creek project is also a very strategic mining asset for the United States.”

The company lists highlights including $102 million raised. Of that, $30 million has been spent, and $70 million remains for pre-construction initiatives.

Smith: “We do have all of our permits in hand and we’re ready to start construction once the project financing is completed.”

NioCorp says it expects the mine to have a 38-year life with revenue of $21.9 billion.