Mineral Resource Estimate (2020)

Mineral Resource Estimate (2020)

The updated Mineral Resource estimate prepared by RPA is summarized below. The Mineral Resources conform to Canadian Institute of Mining, Metallurgy and Petroleum (CIM) Definition Standards for Mineral Resources and Mineral Reserves dated May 10, 2014 (CIM (2014) definitions).

Mineral Resource Estimate as of July 9, 2020

NioBay Metals Inc. – James Bay Niobium Project

Notes:
1. CIM (2014) definitions were followed for Mineral Resources.
2. Mineral Resources are reported using a cut-off grade of 0.3% Nb2O5 based on an underground mining scenario, an operating cost of C$70/t, and a metallurgical recovery of 70%.
3. Mineral Resources are estimated using a long-term niobium price of US$40 per kg and a US$/C$ exchange rate of 1:1.2.
4. A minimum mining width of approximately 7.5 m was used.
5. Bulk density is 2.93 t/m3.
6. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.
7. Resources situated in a 46 m thick crown pillar have been excluded.
8. Numbers may not add due to rounding.

The Project is hosted by the James Bay Carbonatite Complex (the Carbonatite Complex) which occurs within the northern portion of the Kapuskasing Structural Zone (KSZ). The KSZ crosscuts an east-trending fabric within the Archean rocks of the Superior Province and is sub-parallel to the Trans-Superior Tectonic Zone (TSTZ). Numerous alkalic and carbonatite intrusions occur along and within the KSZ.

Pyrochlore and, to a lesser extent, columbite, are the economic minerals of interest and are hosted predominantly by the sovite phase of the carbonatite.

Extensive work during the mid to late 1960s resulted in a historical Mineral Resource estimate and feasibility study. The Property has been dormant since 1972. Re-sampling of the historical diamond drill core by NioBay has confirmed that, despite some variation at the individual sample level, the overall grade over wide intervals is similar to historical values. RPA reviewed the analytical quality control results and did not find any material issues. In RPA’s opinion, the resource database is of sufficient quality to estimate Mineral Resources

Preliminary test work on a composite sample consisting of core from 12 historical drill holes included gravity, flotation, QEMSCAN mineralogy, and heavy liquid separation tests. Although preliminary and subject to verification, the results proved encouraging. Additional test work on fresh material is recommended.

Historical diamond drilling has outlined mineralization with three-dimensional continuity, and size and grades that can potentially be extracted economically. The 2020 drilling campaign successfully confirmed grades and continuity of the mineralization at depth.

Mineral Resources were estimated and classified by RPA following CIM (2014) definitions. At a cut-off grade of 0.3% Nb2O5, Indicated Mineral Resources are estimated to total 29.7 million tonnes grading 0.53% Nb2O5 containing approximately 158 million kilograms of niobium oxide. In addition, Inferred Mineral Resources are estimated to total 33.8 million tonnes grading 0.52 Nb2O5 containing 177 million kilograms of niobium oxide.

RPA is of the opinion that there is excellent exploration potential to increase the Mineral Resource at depth with more diamond drilling.