NioCorp begins phase 3 drilling at Elk Creek, impressed with results so far

11:41 am by Deborah Bacal

The company said the third phase of drilling will be the final phase planned for this year, and will include four new core holes, which will be drilled on southwest to northeast section lines through the resource.

NioCorp Developments (CVE:NB) (OTCQX:NIOBF) is starting the third phase of drilling at its Elk Creek project in Nebraska, after wrapping up the second phase and metallurgical drilling programs.

The company also received final analytical results for holes drilled as part of its phase two program, and said the results support niobium mineralization around the outer edges of the defined resource and its continuation at depth.

Highlights include a 685 metre interval grading 0.74% niobium and a 291.6 metre interval grading 0.72%, including 77.8 metres at 1.06% niobium.

The company said the third phase of drilling will be the final phase planned for this year, and will include four new core holes, which will be drilled on southwest to northeast section lines through the resource.

"We continue to be extremely pleased with the results from the 2014 drilling program," said chief executive officer Mark Smith. "The drilling program along with the other technical work programs continue to advance at an impressive rate."

NioCorp's property is the highest grade undeveloped niobium deposit in North America, discovered by Molycorp back in the late 1960s. The newest resource estimate from the site shows an indicated resource of 28.2 million tonnes grading 0.63% niobium, containing 177 million kilograms of niobium, and an inferred resource of 132.8 million tonnes grading 0.55%, containing 733.7 million kilograms of niobium, at a 0.3% cutoff grade.

Earlier this week, the company closed a $10.6 million special warrant financing, raising funds for continued infill drilling, pilot plant testing and ultimately, the finalization of its full feasibility study.

Niobium is mainly used in the form of ferro-niobium to produce high strength, low alloy steel, for use in automotive, structural and pipeline applications, and demand is seen increasing as the U.S. currently imports 100% of its niobium needs.