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22 www.resourceworld.com a p r i l / m a y 2 0 1 5 b r o k e r ' s p i c k s S h a y n e N y q u v e s t NioCorp Developments Ltd. [NB-TSX; NIOBF-OTCQX; BR3-FSEW] has set its sights on developing its wholly-owned Elk Creek niobium deposit in southeast- ern Nebraska, US. Niobium is a metal that is used to create high-strength/low-alloy (HSLA) steel to produce lighter, stronger, corrosion-resistant steel. According to the World Steel Association, just $9 worth of niobium added to a mid-sized automobile will reduce its weight by 100kg and increase fuel efficiency by 5% which in turn lowers CO 2 emissions. Only three mines produce 99% of the world's niobium and, based on pro- jected compound annual growth rates of 3.74%-to-7.32%, (Roskill estimates), these producers welcome increased supply. Niobium prices have increased through several plateaus over the past 40 years reflecting steady growth and stability in the marketplace. In 2013 niobium averaged about US $42 per kg. There is no terminal market for niobium and prices are gener- ally arranged between buyer and seller. NioCorp 's Elk Creek deposit is the only primary niobium deposit under devel- opment in the United States. The US is currently dependent on imports for 100% of its niobium and as a result the USGS has classified niobium as a strategic and critical metal. The fundamentals for nio- bium provide an opportunity for NioCorp which, under the guidance of Mark Smith, director and CEO of NioCorp , has been quickly advancing the Elk Creek Project. Smith was a former CEO and President of Molycorp and was instrumental in taking Molycorp from a private single asset com- pany to a publicly-traded, multi-national, rare earth, mining company with world- wide operations. Some of the most notable milestones NioCorp has achieved over the past year include: • Increasing its indicated niobium resource by 187% to over 81 million tonnes and increasing the indicated grade from 0.63% Nb 2 O 5 (niobium pentoxide) to 0.71% Nb 2 O 5 . This translates to 578 million kg of contained niobium in the resource, an increase of 226%. • Inclusion of two significant byproducts, scandium and titanium in the resource. The new indicated resource contains 2.1 million kg of TiO 2 averaging 2.68% TiO 2 and 5.8 million kg of Sc averaging 72 g/t Sc. In addition, another 2.3 million kg of TiO 2 averaging 2.31% TiO 2 and 6.3 million kg of Sc averaging 63 g/t Sc, are classified in the inferred resource category. • Securing a key off-take agreement for 50% of its planned ferro-niobium produc- tion with ThyssenKrupp Metallurgical Products. Based in Essen Germany, ThyssenKrupp is one of the world's lead- ing commodity trading companies and will be NioCorp 's exclusive sales agent in Europe. In order to put some perspective on the potential value of the Elk Creek Mine, let's look at another producer. Last year IAMGOLD sold its Niobec Mine in Québec to Asian-based funds for about $500 mil- lion. That mine currently produces about 5% to 8% of the world's ferro-niobium supply (5.2 million kg in 2013 at a grade of 0.56% Nb 2 O 5 ) and only has about eight years of mine life left. The Niobec opera- tion has been running for 39 years. In 2013, the Niobec Mine accounted for 46% of IAMGOLD's total earnings (includ- ing sustaining costs for all operations but before taxes depreciation and other items). NioCorp envisions financing, permit- ting and building a 2.3 million tonne per year underground mine at Elk Creek that would produce 7,500 kg of ferro-niobium per year. If successful, the company would become a significant supplier of niobium producing more than the Niobec operation at a higher grade. Add to that the byprod- uct sweeteners of scandium and titanium and you have a world class operation with the potential for very healthy profits. Last year NioCorp was named the top performing mining company on the TSX Venture Exchange. I believe the com- pany will continue to shine in the coming year. NioCorp anticipates releasing a Preliminary Economic Assessment shortly and a Feasibility Study by the end of the second quarter 2015. n The information in this article does not con- stitute a research report. This article is solely the work of its author, Shayne Nyquvest, a registered Investment Advisor at Jordan Capital Markets Inc., a member of both the Investment Industry Regulatory Organization of Canada ("IIROC") and the Canadian Investor Protection Fund ("CIPF"). The views (including recommendations) expressed in it are those of the author alone, and are not necessarily those of Jordan Capital Markets. The information contained herein is drawn from sources believed to be reliable, but the accuracy and completeness of the information is not guaranteed, nor in providing it does the author or Jordan Capital Markets assume any liability. At this time the author does own shares in NioCorp Developments. NioCorp finds proverbial gold mine in niobium According to the World Steel Association, just $9 worth of niobium added to a mid-sized automobile will reduce its weight by 100kg and increase fuel efficiency by 5% which in turn lowers CO 2 emissions.