Exploration and development company Niobay Metals has sketched three potential scenarios – an openpit, an underground and a hybrid scenario – for the James Bay niobium project, in northern Ontario, each delivering robust returns and strong economic opportunities.
For a 30-year mine producing an average of 5 470 t/y of niobium, the openpit option requires a capital investment of C$510.5-million, which will be paid back over 3.2 years. It has an aftertax net present value (NPV) of C$1-billion and an internal rate of return (IRR) of 27.5%.
The underground and the hybrid openpit-underground scenarios will both operate for 23 years, with the former producing 6 213 t/y and the latter 6 283 t/y. The underground scenario will have a capital cost of C$579-million, a payback of 4.3 years, with a NPV of C$733-million and an IRR of 21.6%.
The hybrid openpit and underground has the lowest capital cost of the three scenarios at C$482-million, with a 3.1 year payback period. This scenario’s NPV is C$856-million and the IRR is 27%.
The average grade mined is 0.44% Nb2O5 for the openpit, 0.51% for the hybrid and 0.51% for the underground. The all-in cost for the openpit is $17.58/kg niobium, $20.52/kg and $21.43/kg.
“We are very pleased to finally be able to demonstrate the value of the James Bay project as highlighted with the preliminary economic assessment [PEA],” said president and CEO Claude Dufrense.
He added that the next phase would include a definition drilling programme, baseline and technical studies and strengthening its engagement and business relationship with the Moose Cree First Nation.
The project is located 40 km south of the island of Moose Factory. The PEA was prepared with independent engineering firm G Mining Services.
Niobium is an additive in the steelmaking process.