NioBay seeks partners to advance Crevier project

Junior explorer NioBay Metals (TSXV: NBY; US-OTC: NBYCF) is looking for financial backers to speed up development of its Crevier niobium-tantalum project in northern Quebec and pave the way for first production in the early 2030s, CEO Jean-Sébastien David said.

Potential partners could include large mining groups as well as existing or future clients such as defence companies, David said. Agreements, which could be announced over the coming months, would go a long way toward helping NioBay proceed with a prefeasibility study and environmental assessment work, he said.

While niobium and tantalum represent relatively small markets, both carry great promise thanks to their growing use in defence, automobile and artificial intelligence applications. The pair have been designated as critical minerals by Canada and the United States.

“We’re working very hard on partnerships” for Crevier, David told The Northern Miner in an interview.

“We would be interested in partnering with a large mining group or a potential client to move this project forward. Some clients are pretty big, and they want to make sure that they will get their product.”

If all goes well, deals could be announced in the coming months, the CEO said.

“Crossing my fingers, I would love to announce something at the end of the year. To be more realistic, probably in 2027,” David said. “A letter of intent would be a good start.”

Open-pit mine

In a pit-mining scenario, Crevier contains an estimated 23.7 million measured and indicated tonnes at 0.17% niobium and 202 parts per million (ppm) tantalum for contained metal of 35,200 tonnes of niobium and 4,200 tonnes of tantalum, according to a February 2026 resource.

It also holds 12.8 million inferred tonnes at 0.12% niobium and 131 ppm tantalum for 15,300 tonnes of niobium and 1700 tonnes of tantalum.

Montreal-based NioBay envisions a 20-year operation at Crevier with estimated annual revenues of between $85 million (C$118 million) and $110 million and estimated annual expenses of between C$55 million ($40 million) and C$80 million, according to a company presentation available online.

Although preliminary economic assessments have been produced for Crevier over the years, they’re not displayed on the company’s website. Previous owners of the property include Iamgold (TSX: IMG; NYSE: IAG) and former Quebec gold miner Cambior.

Most advanced

Located in Quebec’s Lac Saint-Jean region, about 450 km north of Montreal, Crevier is the most advanced of the two projects that NioBay wants to develop. It would become North America’s only niobium and tantalum oxide mine if it gets built.

James Bay, the company’s other property, is a niobium project located in northern Ontario.

Niobium is used in military and aerospace applications such as drone engines or fighter jet turbines. Adding niobium to the steel used in car making cuts vehicle weight and improves fuel efficiency. As with many other critical minerals, China dominates global supply of the metal.

“We want to become the supplier of choice for North American customers who don’t want to depend on Chinese niobium,” David said. “It’s a niche market but the demand is there.”

As for tantalum, the rare, heat-resistant metal has seen its price more than double this year due to booming artificial intelligence demand and supply disruptions in Africa.

“We made a discovery in 2023 north of the main zone, and I want to see if we find more tantalum” at Crevier, David said. “The more tantalum we will have, the more positive it will be for the project’s economics.”

Resource update

NioBay is carrying out a 10,000-metre exploration and definition drilling program at Crevier this year to expand the resource.

“I would be happy to see a 25% increase in the resource, but it can be more,” David said.

Samples at Crevier have yielded high levels of purity for niobium and tantalum oxides via metallurgical tests, leading Quebec’s Natural Resources Ministry of Natural Resources to give NioBay a C$500,000 grant in August. The money will be used to advance niobium and tantalum processing and to optimize hydrometallurgical processes. 

“Crevier is a low-grade project but I’m not afraid of that,” said David, whose mining career includes stints with Cambior and Quebec phosphate producer Arianne Phospate (TSXV: DAN, US-OTC: DRRSF). “I’m coming from projects that were low-grade, and the only way to manage that is to build a high-volume project. We have enough low-grade material here to produce high-quality niobium.”

Quebec’s Pekuakamiulnuatsh First Nation, on whose territory Crevier sits, is backing the project. NioBay and the group signed a cooperation agreement in 2023, and David is keen to deepen ties.

“First Nations are extremely important, and we want to have them as a business partner,” he said. “I would love to have them take a seat on our board, and one day buy a stake in the company. We’ve already had discussions about this, but they’re not there yet. I think they’re waiting to see more news from us on things like potential clients.”