James Bay Niobium PEA Delivers an After-Tax NPV(8%) of $1.0 Billion and IRR of 27.5%
Press Release
Montreal – Niobay Metals Inc. (“NioBay” or the “Company”) (TSX-V: NBY) is pleased to announce results of an independent Preliminary Economic Assessment (the “PEA’’) for its wholly- owned James Bay Niobium project (the “Project”), located 40 km south of the island of Moose Factory, Northern Ontario. The PEA was prepared with independent engineering firm G Mining Services Inc. (“G Mining”).
A conference call will be held on Wednesday, October 14th at 16:00 EST. Dial-in information can be found below.
Because of the geometry and location of the deposit, three mining scenarios were evaluated i.e. open pit (scenario #1), underground (scenario #3) and a hybrid of both mining methods (scenario #2). Details of the financial and technical highlights of all three scenarios are available on the NioBay website at http://niobaymetals.com/wp/en/home-2/
Table 1: PEA Highlights (all figures in CAD$ unless otherwise noted)
| Open Pit | Open Pit + UG | Underground | |
| Pre-Tax Internal Rate of Return (IRR) | 33.6% | 33.4% | 26.0% |
| Pre-Tax Net Present Value (NPV) 8% | $1,475 M | $1,268 M | $1,104 M |
| Pre-Tax Payback (years) | 2.6 years | 2.5 years | 3.8 years |
| After-Tax Internal Rate of Return (IRR) | 27.5% | 27.0% | 21.6% |
| After-Tax Net Present Value (NPV) 8% | $1,008 M | $856 M | $733 M |
| After-Tax Payback (years) | 3.2 years | 3.1 years | 4.3 years |
| Pre-Production CAPEX (incl 25% Contingency) | $510.5 M | $482.0 M | $579 M |
| Average Annual LOM Niobium Production | 5,470 t Nb | 6,213 t Nb | 6,283 t Nb |
| Mine Life | 30 years | 23 years | 23 years |
| Total Mineral Resources Mined | 70.8 Mt | 53.7 Mt | 53.6 Mt |
| Average Grade Mined | 0.44 % Nb2O5 | 0.51 % Nb2O5 | 0.51 % Nb2O5 |
| Gross Revenue After Royalties (LOM) | $9,264 M | $8,360 | $8,454 |
| After-tax Operating Cash Flow (LOM) | $3,581 M | $2,696 M | $2,536 M |
|
C1 Costs over LOM* |
US$16.10 / kg
Nb |
US$18.45 / kg
Nb |
US$19.11 / kg
Nb |
| $48.48/t | $63.85/t | $66.94 | |
|
All-in Costs (sustaining CAPEX + Closure + OPEX) |
US$17.58/kg
Nb |
US$20.52 / kg
Nb |
US$21.43 / kg
Nb |
| $52.93 / t | $70.98 / t | $75.08 / t | |
| LOM Niobium Price | US$45/kg Nb | US$45/kg Nb | US$45/kg Nb |
| Exchange Rate (CAD/USD) | 1.30 | 1.30 | 1.30 |
*C1 Cost is mine site, transport, marketing and royalty
Claude Dufresne, President & CEO, commented: We are very pleased to finally be able to demonstrate the value of the James Bay Project as highlighted with the PEA. All three scenarios deliver robust returns but also provide strong and long-term economic opportunities to shareholders and to local stakeholders.”
Claude Dufresne continued: “We are excited to move to the next phase that will include a definition drilling program, baseline and technical studies, and strengthen our engagement and business relationship with Moose Cree First Nation and other stakeholders.”
| Conference Call Details | |
| Participant Toll Free Dial-in Number: | +1(833) 900-1546 |
| Participant International Dial-in Number: | +1(236) 712-2464 |
An operator will direct participants to the call.
The conference call replay will be available from 1:00 p.m. (Eastern time) on October 14, 2020 until 11:59 p.m. (Eastern time) on October 21, 2020 with the following dial in numbers: 1-(800) 585-8367 (North American toll free) or 1-(416) 621-4642, access code 9182784. The replay will also be available on our website at www.niobaymetals.com.
Table 2: Capital Costs
| Capital Costs by Area (in CAD$M) | Open Pit | OP + UG | Underground |
| Infrastructure | 133,575 | 133,575 | 112,615 |
| Power & Electrical | 31,485 | 31,485 | 31,485 |
| Water & Tailings | 31,413 | 13,575 | 20,482 |
| Mining U/G | – | – | 117,729 |
| Mining Pre-production | 31,312 | 31,338 | – |
| Mining Equipment OP | 29,405 | 29,405 | – |
| Process Plant | 69,985 | 69,985 | 99,985 |
| Other Equipment | 5,613 | 5,614 | 5,612 |
| Total Direct | 332,788 | 314,977 | 387,908 |
| Construction Indirect | 35,018 | 32,699 | 34,772 |
| General Services | 40,406 | 37,730 | 40,122 |
| Pre-Prod, Startup, Commission | 150 | 150 | 150 |
| Contingency | 102,090 | 96,389 | 115,738 |
| Total Indirect | 177,664 | 166,968 | 190,782 |
| Total CAPEX | 510,452 | 481,945 | 578,691 |
| Sustaining Costs | 283,163 | 359,123 | 416,080 |
| Closure Costs | 32,418 | 23,992 | 20,692 |
Table 3: Operating Costs
| Operating Costs by Area ($/t) | Open Pit | OP + UG | Underground |
| Mining Costs* | 12.13 | 26.42 | 29.44 |
| Processing Costs | 14.60 | 14.62 | 14.62 |
| Converter Costs | 11.48 | 12.76 | 12.89 |
| G&A | 10.00 | 10.00 | 10.00 |
| Total | 48.48 | 63.85 | 66.94 |
| US$/ kg Nb | 16.10 | 18.45 | 19.11 |
*Unit mining cost of $4.43/t based on 1.8 strip ratio and including stockpile rehandle.
ILR4
