Eco-Niobium Resources Inc.

Eco-Niobium Resources Inc.

March 23, 2016 09:00 ET

Eco-Niobium Initiates Information Meetings on a New and Innovative Concept for the Development and Management of Hydraulic, Energy, Agriculture, and Mineral Resources in Oka

MONTREAL, QUEBEC--(Marketwired - March 23, 2016) - Eco-Niobium Resources Inc. ("Eco-Niobium" or the "Corporation") is pleased to announce that on March 7 the City Council of Oka, Quebec, adopted a resolution inviting Eco-Niobium to proceed with information meetings on a new and innovative concept for a niobium mining project. The meetings commenced on March 17. Eco-Niobium's new concept contemplates:

  • Protection of the integrity of agricultural land;
  • Treatment of mine water to a potable quality level;
  • Supply of potable water to surrounding residences and farms;
  • Disposal of tailings below surface preventing dust generation;
  • Rehabilitation of the old St Lawrence Columbium mine site through the establishment of greenhouse supported agriculture using the geothermal potential of water from the mine;
  • Export of the concentrate containing niobium and uranium;
  • Procedures for the monitoring and control of radon generated by the rock; and
  • Significant economic benefits for the region.

In connection with the statement made by Niocan Inc. ("Niocan") in its press release of March 17, Eco-Niobium's understanding of the current situation of Niocan's assets which include the following:

  • Niocan's mining rights include 117 claims (the "Claims") and a mining lease (the "Mining Lease") which, by its terms expires on July 20, 2020;
  • Niocan published in January 2000 a feasibility study (the "Feasibility Study").The Feasibility Study was prepared by the Met-Chem/SNC Lavalin consortium;
  • In 2011 the Feasibility Study was downgraded to a preliminary economic assessment. Following the notice from the Autorité des Marchés Financiers, a second independent technical report (the "Report") on the geological model and estimation of niobium resources of the S-60 zone, Oka, Quebec, was prepared in November 2011 by Serge Lavoie, ing., and Jean-Claude Caron, ing., as defined by NI 43-101;
  • The authors of the Report recommended a work program to regain the feasibility status as well as an intense dialogue (section 19, paragraph 9) with the local populations in order to understand and satisfy their concerns. To Eco-Niobium's knowledge and after discussions with the Municipality of Oka, the work program was not performed and no apparent dialogue has taken place;
  • In order to extend the Mining Lease, a mining operation must have been in production for two (2) years prior to its expiry on July, 20 2020, which means production would have to be commenced by July 20, 2018; and
  • The communities of Oka and Kanesatake are well informed about the current status of the Mining Lease and Claims as well as the technical issues related to Niocan's project. The communities and a number of NGOs in the past have also announced periodically their intention to stop Niocan's project. They have drawn their own conclusions over many years.

Eco-Niobium's team members have a deep understanding of mining and of the niobium market. The Corporation has designed a totally new and exclusive development concept, which it is presenting to the population of Oka and Kanesatake. In the event that there is an opportunity to secure a new mining lease in the future, Eco-niobium believes that it has the necessary experience and support to move a new and innovative development project forward once the Corporation is in a position to do so. Eco-Niobium is proposing an alternative to Niocan with respect to a potential niobium project, and may proceed with information meetings. Eco-Niobium has no rights to or interest in, Niocan's Mining Lease and Claims, nor does it have any other applicable mining rights in the area.

About Eco-Niobium

Eco-Niobium is a special purpose private corporation and its mission is the social acceptability and sustainability of hydraulic, energy, agriculture, and mineral resources development in Oka.

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