Ann: Rare Earth Elements - Mt Stirling Project Update, page-20

“One of the Worlds Rarest Rare Earth Projects” ASX Small and Mid Cap Conference presentation.

PSu says “The current strike of our REE’s is a mineralised corridor of 5.4 km by 1.3 km.”… “We are of the strong belief that our strike is much, much larger than our current drilling program has discovered.”

CSZ thinks “our surface XRF data implies a much longer strike/footprint”…”We are certain, as we expand our exploration SE along that mineralised Arktos Structure, we will find many more Yttria and Wishbone style deposits.”…”We can’t understate the importance of the Cobalt and Scandium…it’s quite a scale of deposit.” “The Scandium does continue from the start, from the surface, all the way down to the bottom of holes. So some of our deepest holes at Yttria have gone down to 55 metres and we do have Scandium numbers all the way down to bottom of hole.”

At the New World Metals Conference PSu says “So, how big is it? Well, currently, due to the amount of drilling we’ve done to date, we know we have a strike of 5.4 km x 1.3 km. Very large. We’ve got indications of over 7 km of strike length, and what we have is continuous. “

“The Scandium is quite impressive. It’s one of the largest discoveries we come across.”

“A blanket of Cobalt and Scandium. Now that cobalt and Scandium, above and below, is continuous and homogeneous, and so far continues for 5.4 km by 1.5 km that we have.”

ML, the new Director, also seems to have been brought on for his Scandium experience/ knowledge.

KC, in the original REE presentation stated: “We see in the Yttria footprint, concentrations up to 100ppm, that’s very, very significant. In fact in some parts of the world, 100 ppm Scandium systems are being mined. So, there is quite significant additional benefit to the basket group of elements that potentially could be extracted from Yttria because of presence of Scandium…so, Scandium is certainly one of the “go-to” elements for adding value to a prospect.”

In the 28th September: ASX RELEASE RARE EARTH ELEMENTS, MT STIRLING PROJECT UPDATE: REE’s and critical minerals confirmed at Wishbone and expanded at Yttria, ASRA stated:

“Scandium mineralisation constant through the regolith profile from surface, enveloping REE-rich zones with Scandium oxide average of 70 ppm with a peak 161 ppm Sc2O3.”

“In addition, ongoing systematic surface pXRF surveys continue to delineate the presence of Yttrium anomalism clusters (a pathfinder for the heavy REEs) over a confirmed 5.4km strike length varying between 500m and up to 1.3km strike width.”

Wishbone

REEs and critical minerals have been confirmed to occur in a 1.3km by 500m wide mineralised corridor with drill assays reporting multiple >200ppm total rare earth yttrium oxides (TREYO) values.

Looks like 1300 m x 400 m x 15 m (Conservative average depth 15m: up to 55 m deep in some areas, with Scandium from surface)

1300 x 400 x 15 m = 7,800,000 cubic meters x 1,000 = 7.8 B kg

7,800,000,000 x 50/1,000,000 = 390,000 kg Sc2O3

390,000 x $1,000 USD = $390,000,000 USD

Yttria

Looks like 1000 m x 900 m x 15 m

1,000 x 900 x 15 = 13,500,000 cubic meters x 1,000 = 13.5 B kg

13,500,000,000 x 50/1,000,000 = 675,000 kg Sc2O3

675,000 x $1,000 USD = $675,000,000 USD

Conservatively using a Scandium Oxide price of $1,000 kg, 15 m depth on average, and 50 ppm instead of stated average of 70 ppm, 1,000 kg per cubic meter of regolith. A million odd kilograms of Scandium. Total Sc2O3 $1,065,000,000 USD additional benefit to the basket Group of elements. Be interested to see how much it costs to get it out of the ground and processed, but it could be a handy byproduct.

Could someone tell me how my math, assumptions, or figures are wrong about these calculations. Am I being conservative enough?

As PSu says in the recent Proactive Investors interview: “We’re not only, actually, a rare earths project and gold project, we also have critical minerals. And I think the thing that is getting passed over is this is a massive Scandium and Cobalt deposit. Absolutely massive, we , we’re blown away with the size of this and if it extracts easily it’s going to be very impacting on the world market.”

Why haven't we heard anything about the Cobalt grades?

As a result of those comments, I think this is an interesting article about Scandium Economics in Seeking Alpha (remove the space):

https://seeking alpha.com/article/4473468-sunrise-kills-off-niocorp-scandium-economics/