MONTREAL,
QUEBEC--(Marketwire - March 17, 2010) - Niocan Inc. (TSX:NIO) has received a
detailed report from KPMG which reviews and updates the Socio-Economic Impacts
Study of November 2000, taking into account development since then, and new
information and work done by the Company during this period. The
considerations include new information related to update the project
construction costs, operating costs, additional requests by the Ministry of
Sustainable Development, Environment and Parks (MSDEP), BAPE 167, BAPE 208
contents, Golder's hydrogeological study in 2005 and new inputs from Quebec and
Canada statistical data banks.
The KPMG's report
covers three aspects: The description of the project, the Company's
Socio-economic commitments and the economic impacts of the project. The Oka
project is for a small underground mine extracting 2500 tonnes of ore per day
and producing 4350 tonnes of ferroniobium per year, located in the Ste-Sophie
range of Oka. The mine life is estimated at 17 years and the 6.4 hectares of
agricultural land for the mine site will be restored to its natural state at
the end of the exploitation of the ore bodies. The tailings (55%) are used to
paste backfill the underground openings and the remaining limestone sand will
be used to restore the old St-Lawrence Columbium abandoned mine site, thus
adding 85 ha of land rehabilitation.
The Company's
commitments are significant to the community, including the management of the
underground water table, the complete controls of any pollutants, radiation,
gas, noise, dust, water discharge quality and the formation of an independent
vigilance committee to monitor all such activities. The Company will also
bring the aqueduct along the range of Ste-Sophie and build a water reservoir of
15 millions gallons to supply for irrigation water to the neighbors' farms in
case of summer draughts.
Niocan has visited
and discussed at length with the individual property owners, which are farmers
living in the Ste-Sophie range of Oka, between Route 344 and Montée St-Joseph
(21 properties). They are located near the planned mine site up to 1,500
meters away. The Company discussed with these residents about compensations
for future possible nuisance during the two (2) years of construction, and
discussed the terms of conditional acquisition and/or customized arrangements
to continue and to improve the agricultural vocation of their lands. Such
cooperation was well received by these residents. The cohabitation and
co-existence of traditional farming and modern ecological mining is being more
appreciated by the Niocan project stakeholders and the residents of the region
of Oka.
The direct economic
impacts is the creation of 160 direct jobs where 20% are reserved for the
Mohawks of Kanasetake. The average annual salary would be over $80,000 (2009
dollars) a year including anticipated fringe benefits. The project construction
costs are estimated in excess of $180 million over a period of two years. The
municipal taxes generated by the project are evaluated at least $3 million
and the Quebec Government's total taxes are estimated to reach close to $80
million throughout the life of the mine.
This study was done
in order to better re-inform, on the project socio-economic impacts, the
residents of Oka (town council, Ste-Sophie range farmers), relevant government
ministries, the "Union des Producteurs
Agricoles" and other
stakeholders including the shareholders of Niocan.
The company plans to
update the bankable economic feasibility of its Oka niobium mine project as per
NI 43-101 immediately upon the issuance of the certificate of authorization by
the MSDEP. Niocan has filed a Technical Report on its mineral resources for
its Oka niobium property as per the requirements of National Instrument 43-101
and has also mandated Met-Chem to update, for internal use only (not yet as per
NI 43-101), the costs of construction/production and the internal rate of
return (CAPEX/ OPEX/ IRR) of this project.
About Niocan
Niocan's mission is
to become a ferroniobium producer as soon as possible, following the issuance
of a Certificate of Authorization from the Ministry of Sustainable Development,
Environment and Parks for its Oka niobium property. Mining assets include
mining rights in two (2) properties: 48 claims covering 1604 acres as well as
surface rights on 231 acres at Oka and the Hudson Bay Great Whale Iron property
covering 17,098 acres.
On behalf of the
Board of Directors
FORWARD LOOKING STATEMENT
Certain statements contained in this press
release are forward-looking and are subject to numerous risks and
uncertainties, know and unknown. For information identifying known risks and
uncertainties, relating to the issuance by the Ministry of Environment of the
Certificate of Authorization to build the mine in Oka, financial resources,
market prices, exchange rates, politico-social conflicts, competition, the
purchase of the old St-Lawrence Columbium mine site from the Municipality of
Oka should the Certificate of Authorization be issued, and other important
factors that could cause actual results to differ materially from those
anticipated in the forward-looking statements, please refer to the Risk and
Uncertainties Section of the Corporation's most recent Management's Discussion
and Analysis, which may be found at www.sedar.com. Consequently, actual
results may differ materially from the anticipated results expressed in these
forward-looking statements.