#REE #Stock News- Defense Metals (TSX-V: $DEFN.V) (OTCQB: $DFMTF) Updates Wicheeda Canada Light Rare Earth Element Deposit
Geological Model; @defensemetals
Advances
Toward Updated Mineral Resource Estimate and PFS
Vancouver,
British Columbia – March 6, 2023: Investorideas.com Newswire, -Mining/Metals/ Green Energy Stock news- Defense
Metals Corp. (“Defense Metals”
or the “Company”) (TSX-V:DEFN / OTCQB:DFMTF/
35D: FSE)
is pleased to report its technical team
has completed updates to the Wicheeda Rare Earth Element (REE) Deposit 3D
geological model. The geological model and resource estimation domain update, which
incorporates over 10,000 metres of additional drilling within 47 diamond drill
holes completed during 2021 and 2022 following completion of the Wicheeda
Deposit preliminary economic assessment (PEA), is preparatory to updating the
Wicheeda Deposit mineral resource estimate (MRE) and is an essential input to
the planned pre-feasibility study (PFS).
Read this news, featuring DEFN in full
at https://www.investorideas.com/news/2023/mining/03061DEFN-Wicheeda-Canada.asp
Key Highlights of Updated Geological Model
Ø Updated geological model and resource estimation domains incorporate
over 10,000 metres of new drilling within 47 holes completed post-PEA (Figure
1).
Ø New drilling designed to contribute to increase mineral
resource confidence from inferred to indicated and measured categories and
provide detailed pit-slope geotechnical drilling data for PFS purposes.
Ø Advanced understanding and confidence in primary lithological
and magmatic emplacement controls on mineralization within the Wicheeda REE
carbonatite deposit.
Ø Potential opportunities for mineral resources expansion, and
late mine-life grade support within north area of Wicheeda Deposit.
Ø Coordination of geological model, estimation domains and
geometallurgy present positive implications for further REE recovery
optimization.
Kristopher
Raffle, P.Geo., Director of Defense Metals and a Qualified Person stated: “The
updated Wicheeda REE Deposit geologic model incorporating of over 10,000 metres
of new post-PEA drilling represents a significant Project milestone and
culmination of two years’ worth of focussed exploration. This drilling has
yielded some of the longest and highest-grade drill intercepts to date on the
Project and led to the discovery of a new zone of high-grade mineralization at
depth that has the potential to positively impact an updated mineral resource
estimate. We look forward to next steps including final geological model validation
before proceeding to an updated mineral resource estimate, which we hope to
carry forward into the planned PFS.”
Figure
1: Wicheeda Deposit Updated Geological Model Showing PEA Mineral Resource Pit
Shell (isometric view looking east)
Geological
Model Details
Diamond
drilling during 2021 and 2022 comprising 47 diamond drill holes totalling
10,876 metres has now been incorporated into an updated geological model for
the Wicheeda Deposit. Most of the post-PEA drilling was designed to increase
mineral resource confidence from inferred to indicated and measured categories,
define the northern terminus of the Wicheeda carbonate complex, and to provide
detailed geotechnical and hydrogeological drilling data for advanced pit slope
and mine design for PFS purposes.
The
expansive 2021 and 2022 Wicheeda drill campaign resulted in some of the longest
and highest-grade drill intercepts returned from the Project; including
resource infill drill hole WI21-58 that returned 3.09% total rare
earth oxide (TREO) over 251 metres, and WI22-68 yielding 6.70%
TREO over 18 metres. Discovery of deep high-grade REE dolomite-carbonatite
within the north area of the Wicheeda Deposit during the 2021 drill campaign yielding
3.17% TREO over 196 metres; including 4.29% TREO over 55 metres to a depth
of 201 metres extending 30 metres below the resource pit shell (see
Defense Metals news release dated March 2, 2022). This intercept, further
delineated during 2022, is considered to offer significant potential for
resource expansion and late mine-life resource grade support.
Post
PEA drilling has resulted in a significant improvement in confidence and
understanding of the primary lithological and magmatic emplacement controls on
mineralization within the Wicheeda REE carbonatite deposit. This manifests as
enhanced understanding of the role played by the volumetrically larger early
syenite complex rocks, followed by the interpreted emplacement of late REE
mineralized dolomite-carbonatite and attendant carbonatitic breccia zones that
may represent early syn-carbonatite ground preparation exploiting pre-existing
zones of structural weakness and/or a syn-carbonatite intrusion breccia halo.
The
recognition that significant REE grades occur within dolomite-carbonate rocks,
as coherent magmas within the core of the deposit, and as an extensive complex
network of proximal syenite-carbonatite breccia zones has important
geo-metallurgical implications that have been the focus of ongoing testwork facilitated
by the extent of post-PEA diamond drill campaigns (see Defense Metals news
release dated February 14, 2023).
The 2020
Wicheeda Deposit MRE was based on a total of 27 diamond drill holes totalling 4,249
metres of drilling during 2019 by Defense Metals and 2008 and 2009 by previous
operators. Drilling during 2019 by the Company of 13 holes totalling 2,005
metres resulted in a 94% increase on a contained metal basis versus the Company’s
initial 2019 MRE (see Defense Metals news release dated May 13, 2020).
The updated PEA MRE based on the same drilling resulted in a further 36% increase on a contained metal basis in comparison to the 2020 MRE due to the estimation of additional economically significant medium and heavy REE’s and a lower cut-off grade established based on consideration of TREO and concentrate payable, metallurgical recovery, and operating cost assumptions[1].
Qualified Person
The
scientific and technical information contained in this news release as it
relates to the Wicheeda REE Project has been reviewed and approved by
Kristopher J. Raffle, P.Geo. (B.C.), Principal and Consultant of APEX
Geoscience Ltd. of Edmonton, Alberta, who is a director of Defense Metals and a
“Qualified Person” (“QP”) as defined in NI 43-101. Mr. Raffle has verified the
data, which included a review of the sampling, analytical and test methods
underlying the data, information and opinions disclosed herein.
About the Wicheeda REE Property
Defense Metals 100% owned, 4,262-hectare
(~10,532-acre) Wicheeda Light REE property is located approximately 80 km
northeast of the city of Prince George, British Columbia; population 77,000.
The Wicheeda REE Project is readily accessible by all-weather gravel roads and
is near infrastructure, including hydro power transmission lines and gas
pipelines. The nearby Canadian National Railway and major highways allow easy
access to the port facilities at Prince Rupert, the closest major North
American port to Asia.
The 2021 Wicheeda REE Project Preliminary Economic
Assessment technical report ("PEA") outlined a robust after-tax net
present value (NPV@8%) of $517 million and an 18% IRR1. This PEA
contemplated an open pit mining operation with a 1.75:1 (waste:mill feed) strip
ratio providing a 1.8 Mtpa ("million tonnes per year") mill
throughput producing an average of 25,423 tonnes REO annually over a 16 year
mine life. A Phase 1 initial pit strip ratio of 0.63:1 (waste:mill feed) would
yield rapid access to higher grade surface mineralization in year 1 and payback
of $440 million initial capital within 5 years.
About Defense Metals Corp.
Defense Metals Corp. is a mineral
exploration and development company focused on the acquisition, exploration and
development of
mineral deposits containing metals and elements commonly used in the electric power
markets, defense industry, national security sector and in the production of
green energy technologies, such as, rare earths magnets used
in wind turbines and in permanent magnet motors for electric vehicles. Defense
Metals owns 100% of the Wicheeda Light Rare Earth Element Deposit located near
Prince George, British Columbia, Canada. Defense Metals Corp. trades in Canada under the symbol “DEFN” on the TSX
Venture Exchange, in the United States, under “DFMTF” on the OTCQB and in
Germany on the Frankfurt Exchange under “35D”.
For
further information, please contact:
Todd Hanas, Bluesky
Corporate Communications Ltd.
Vice President, Investor
Relations
Tel: (778) 994 8072
Email: todd@blueskycorp.ca
Neither the TSX Venture Exchange nor its Regulation
Services Provider (as that term is defined in the policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of this news
release.
Cautionary
Statement Regarding “Forward-Looking” Information
This
news release contains “forward‐looking information
or statements” within the meaning of applicable securities laws,
which may include, without limitation, statements relating to advancing the
Wicheeda REE Project, completion of the planned PFS, the Company’s plans for
its Wicheeda REE Project, expected results and outcomes from the updated MRE,
the technical, financial and business prospects of the Company, its project and
other matters. All statements in this news release, other than statements of
historical facts, that address events or developments that the Company expects
to occur, are forward-looking statements. Although the Company believes the
expectations expressed in such forward-looking statements are based on
reasonable assumptions, such statements are not guarantees of future
performance and actual results may differ materially from those in the
forward-looking statements. Such statements and information are based on
numerous assumptions regarding present and future business strategies and the
environment in which the Company will operate in the future, including the
price of rare earth elements, the anticipated costs and expenditures, the
ability to achieve its goals, that general business and economic conditions
will not change in a material adverse manner, that financing will be available
if and when needed and on reasonable terms. Such forward-looking information
reflects the Company’s views with respect to future events and is subject to
risks, uncertainties and assumptions, including the risks and uncertainties
relating to the interpretation of exploration and metallurgical results, risks
related to the inherent uncertainty of exploration and development and cost
estimates, the potential for unexpected costs and expenses and those other risks
filed under the Company’s profile on SEDAR at www.sedar.com. While such estimates and assumptions are considered
reasonable by the management of the Company, they are inherently subject to
significant business, economic, competitive and regulatory uncertainties and
risks. Factors
that could cause actual results to differ materially from those in forward
looking statements include, but are not limited to, continued availability of
capital and financing and general economic, market or business conditions,
adverse weather and climate conditions, failure to maintain or obtain all
necessary government permits, approvals and authorizations, failure to maintain
community acceptance (including First Nations), risks relating to
unanticipated operational difficulties (including failure of equipment or processes
to operate in accordance with specifications or expectations, cost escalation,
unavailability of personnel, materials and equipment, government action or
delays in the receipt of government approvals, industrial disturbances or other
job action, and unanticipated events related to health, safety and
environmental matters), risks
relating to inaccurate geological, metallurgical and engineering assumptions,
decrease in the price of rare earth elements, the impact of Covid-19 or other
viruses and diseases on the Company’s ability to operate, an inability to
predict and counteract the effects of COVID-19 on the business of the Company,
including but not limited to, the effects of COVID-19 on the price of
commodities, capital market conditions, restriction on labour and international
travel and supply chains, loss of key employees, consultants, or directors,
increase in costs, delayed results, litigation, and failure of counterparties
to perform their contractual obligations. The Company does not undertake to
update forward‐looking statements or forward‐looking
information, except as required by law.
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[1] Independent
Preliminary Economic Assessment for the Wicheeda Rare Earth Element Project,
British Columbia, Canada, dated January 6, 2022, with an effective date of
November 7, 2021, and prepared by SRK Consulting (Canada) Inc. is filed under
Defense Metals Corp.’s Issuer Profile on SEDAR (www.sedar.com).
