Quantum Rare Earth Developments Corp. (TSX.V – QRE, FSE – BR3, OTCQX – QREDF) (“Quantum”, the “Company”) CEO Peter Dickie noted in an interview with the CEONews.Tv financial news network that Quantum’s Elk Creek, Nebraska niobium project could cut U.S. dependence on imports of the vital strategic material, based on an updated resource estimate at the site.
Dickie noted Quantum’s Elk Creek niobium and rare earth elements project contains one of North Americas’ largest undeveloped niobium deposit in terms of grade and tonnage, and the only primary niobium deposit under development in the U.S. The updated resource shows a resource containing over 129,000 tonnes of niobium (Nb2O5) in the Indicated category, and over 524,000 tonnes of niobium (Nb2O5) in the Inferred category, with the deposit open in three directions.
International demand for niobium is approximately 100,000 tonnes per year, produced exclusively from mines in Brazil and one in Canada. The U.S. imports 100% of its’ annual consumption of approximately 10,000 tonnes, which has led the U.S. government to move toward establishing a strategic materials stockpile to protect against potential supply disruptions.
Dickie emphasized the green technology uses for niobium, including the production of high-strength, low-alloy steel, and a variety of other applications. In addition, niobium alloys are required by the aerospace industry for high-performance jet engines. He noted that the addition of small amounts of niobium produces harder, lighter steel, resulting in reduced shipping costs (through weight savings) for major infrastructure projects such as bridges and buildings. Niobium hardened steel also cuts the weight of steel used in automobiles, resulting in fuel economy savings. Niobium is also vital for certain applications where it cannot be readily replaced, such as in high-pressure natural gas and oil pipelines. In the medical field, niobium is required in the magnets used in MRI machines.
Quantum is continuing development of the niobium deposit in Nebraska through ongoing metallurgical testing. The Company anticipates the possibility of a larger partner coming on board to help develop the project and perform the material studies necessary for a final production decision that could advance the project at a relatively rapid pace.
On April 2, 2012, Quantum announced an updated National Instrument 43-101 compliant resource estimate for the Elk Creek Niobium – REE Project, located in southeastern Nebraska. The updated Mineral Resource Estimate, prepared by Tetra Tech Wardrop (Tetra Tech) of Toronto, Ontario will soon be available on SEDAR and the Company’s website.
“Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accept responsibility for the adequacy or accuracy of this release.”
Cautionary note: This news release contains forward-looking statements. These statements include, but are not limited to, statements with respect to the completion of an updated resource estimate, the commencement of a preliminary economic assessment study and management’s expectation that the results of these studies will confirm the potential of the Elk Creek Project. Specifically, any statements regarding the potential increase of the Company’s inferred resource at the Elk Creek Project and the goals and objectives of the Company are by their nature forward-looking information. Resource estimates, unless specifically noted, are considered speculative.
The Company has filed a National Instrument 43-101 report on the Elk Creek Project. Any and all other resource or reserve estimates are historical in nature, and should not be relied upon. By their nature, forward-looking statements involve known and unknown risks and uncertainties because they relate to events and depend on factors that will or may occur in the future. Actual results may vary depending upon exploration activities, industry production, commodity demand and pricing, currency exchange rates, and, but not limited to, general economic factors. Other factors may cause the Company’s actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the statements
Specific risk factors include risks associated with the ability obtain any necessary approvals, waivers, consents and other requirements necessary or desirable to permit or facilitate the development of the Company’s properties, risks associated with project development; the need for additional financing; operational risks associated with exploration activities and results, mining and mineral processing; environmental liability claims and insurance; reliance on key personnel; tax consequences; and other risks and uncertainties.
The business of exploring for minerals involves a high degree of risk.
Cautionary Note to US investors: The U.S. Securities and Exchange Commission specifically prohibits the use of certain terms, such as “reserves” unless such figures are based upon actual production or formation tests and can be shown to be economically and legally producible under existing economic and operating conditions.