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Niocorp adds cautionary notes to Elk Creek PEA
2015-10-16 18:06 ET - News Release
Mr. John Ashburn reports
NIOCORP ANNOUNCES AMENDMENT TO SECOND PRELIMINARY ECONOMIC ASSESSMENT
Niocorp Developments Ltd., as a result of a review by the British Columbia Securities Commission, has amended its second preliminary economic assessment (PEA2 amended) for its Elk Creek, Nebraska, niobium project. PEA2 amended retains the technical and economic results previously disclosed by Niocorp in its Aug. 4, 2015, and Sept. 4, 2015, news releases, and includes additional guidance and cautionary language required by National Instrument 43-101 regarding uncertainty in realizing the results of PEA2. PEA2 amended provides additional descriptions of the scandium demand and pricing assumptions included in PEA2, including that a significant portion of the project revenue and achieving that revenue projected in PEA2 are subject to market growth in scandium, which is a developing market with a risk of oversupply and/or undersupply disrupting pricing.
The mineral resource presented in PEA2 amended has been reported following CIM guidelines. PEA2 amended is preliminary in nature, and it includes a level of engineering precision and assumptions, which are currently considered too speculative to have the economic considerations applied to them that would enable mineral resources to be categorized as mineral reserves. Inferred mineral resources are not included in the mine plan for PEA2 amended. Mineral resources that are not mineral reserves do not have demonstrated economic viability. PEA2 amended includes price and market assumptions concerning an expanded demand in the scandium market. There is no certainty that the PEA2 amended will be realized.
The PEA2 amended technical report is now available for download on SEDAR as well as on Niocorp's website.
Qualified persons
Jeff Osborn, BSc, mining, MMSAQP, of SRK Consulting (U.S.) Inc., a qualified person as defined by National Instrument 43-101, has overall responsibility for SRK portions of the Elk Creek PEA2 amended, and has read and approved the technical information contained in this news release.
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