After the release of an encouraging feasibility study, shares of NioCorp Developments Ltd. (NASDAQ: NB) experienced a significant increase during the extended trading session on Monday. The US stock charts recorded a 7.34% rise in NB stock, reaching $2.34.
Benefits Of Electrifying The Elk Creek Mine
NioCorp (NB) may be able to cut its capital (CAPEX) and operating expenses (OPEX) significantly, according to a scoping study carried out by Optimize Group Inc. The analysis also indicates that by electrifying its proposed Elk Creek Critical Minerals Mine, the firm could achieve full commercial production sooner and operate with a lower carbon impact.
This would be accomplished by implementing a Railveyor system, in place of the currently planned vertical mining shafts. However, the development of the Elk Creek Mine and the realization of these benefits are contingent upon securing sufficient project financing for the construction of the planned Elk Creek Project facility.
A Railveyor system is an autonomous, fully electric bulk material handling solution that transports mined ore to processing facilities using a narrow-gauge light rail system driven by low-horsepower drive stations situated along the rail route.
Economic And Environmental Advantages
The study underscores numerous potential advantages of electrifying NioCorp’s Elk Creek Mine from both economic and environmental perspectives. The findings suggest that this technology could enable NioCorp to bring its critical minerals to market more quickly while also reducing CAPEX and OPEX for its underground operations.
Findings Of The Optimize Study
Optimize’s study evaluated the impacts of eliminating the Elk Creek Mine’s currently planned two vertical mining shafts and the associated infrastructure. It proposed a new twin ramp design for the Railveyor system and assessed the suitability of a Railveyor haulage system.
As of month 45 of the Elk Creek Project, NioCorp’s current Feasibility Study predicts complete ore production. Conversely, the Optimize study suggests that with the new twin ramp scenario, full production could be achieved by month 40, offering a five-month reduction due to simplified pre-development construction activities.
