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Niobay Metals: James Bay Niobium PEA Delivers an After-Tax NPV(8%) of $1.0 Billion and IRR of 27.5%
MONTREAL, Oct. 13, 2020 (GLOBE NEWSWIRE) -- Niobay Metals Inc. (“NioBay” or the “Company”) (TSX-V: NBY) is pleased to announce results of an independent Prelimi
About this update from Niobay Metals Inc.
[{"type":"text","content":" MONTREAL, Oct. 13, 2020 (GLOBE NEWSWIRE) -- Niobay Metals Inc. (“NioBay” or the “Company”) (TSX-V: NBY) is pleased to announce results of an independent Preliminary Economic Assessment (the “PEA’’) for its wholly-owned James Bay Niobium project (the “Project”), located 40 km south of the island of Moose Factory, Northern Ontario. The PEA was prepared with independent engineering firm G Mining Services Inc. (“G Mining”). A conference call will be held on Wednesday, October 14th at 16:00 EST. Dial-in information can be found below. Because of the geometry and location of the deposit, three mining scenarios were evaluated i.e. open pit (scenario #1), underground (scenario #3) and a hybrid of both mining methods (scenario #2). Details of the financial and technical highlights of all three scenarios are available on the NioBay website at http://niobaymetals.com/wp/en/home-2/ Table 1: PEA Highlights (all figures in CAD$ 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 h...