Quantum Rare Earth Developments Corp. (TSX.V – QRE, FSE – BR3, OTCQX – QREDF) CEO Peter Dickie has provided an update on Quantum’s Elk Creek, Nebraska niobium project in an interview with GLX Capitol Hill Report. The interview is available at:
Quantum acquired the Elk Creek site, a former Molycorp project, in 2010. Quantum recently published a new resource estimate showing an Indicated Mineral Resource of over 19 million tonnes grading 0.67% niobium (Nb2O5), containing over 129,000 tonnes of niobium (Nb2O5), and an Inferred Mineral Resources of over 83 million tonnes grading 0.63% niobium (Nb2O5), containing over 523,000 tonnes of niobium (Nb2O5), (using a 0.40% Nb2O5 cut-off grade).
There are only three primary niobium mines operating in the world today, none of which are in the U.S., requiring the nation to import 100 percent of its needed supply. The U.S. Geological Survey has termed Elk Creek “potentially one of the largest sources of rare earth elements and niobium”, and it is the only known primary niobium deposit under development in the U.S.
The U.S. government has determined that rare earth elements and certain rare metals, such as niobium, are a strategic security requirement. A key committee of the U.S. House has recently passed legislation to accelerate the permitting process for these rare earth and critical metals deposits in the U.S.
Dickie pointed out that niobium is essential for high-strength, low-alloy steels in products which are expected to remain in high demand, including high-pressure oil and natural gas pipelines, jet engines, and in applications where lighter, stronger steel is needed. In addition to niobium needed for new pipeline infrastructure, concerns that have arisen over the health of older pipelines indicate that replacement may create further demand. In automotive use, niobium strengthened steel can produce weight reductions of up to 5% in the vehicle, yielding greater fuel savings.
Niobium is now used in approximately 10% of world steel and it is expected that niobium use will grow to roughly 20% of world steel in coming years, Dickie said. This includes increased intensity usage in countries such as China, who also import 100% of their niobium, where stricter building codes are now being implemented which will result in increased demand for high strength steel.
For further information, contact the Company at (604) 568-7365 or visit www.QuantumRareEarth.com
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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.