Rare Earth Breaking News -
Defense Metals (TSX-V: $DEFN.V) (OTCQB: $DFMTF) Updates Metallurgical Test Work
and Preliminary Feasibility Study Progress for its Wicheeda Rare Earth Elements
Project; @defensemetals
VANCOUVER,
BC - February 13, 2024 (Investorideas.com Newswire) Defense Metals Corp.
("Defense Metals" or the "Company") (TSX-V:DEFN / OTCQB:DFMTF/ 35D: FSE) is pleased to provide an update on the
metallurgical work programs, undertaken by SGS Canada Inc. (SGS) and the
ongoing Preliminary Feasibility Study (PFS) work by SRK Consulting (Canada)
Inc. (SRK) and Hatch Limited (Hatch), for its wholly-owned Wicheeda Rare Earth
Element Project located in British Columbia, Canada.
Read this in full at https://www.investorideas.com/news/2024/02131DEFN-Wicheeda-Rare-Earth-Elements-Project.asp
Highlights of Metallurgical Test Work
and PFS-related Matters
- The metallurgical test work required for the PFS has been
completed. Multiple bench-scale flotation and flotation pilot plant test
work resulted in the production of a high-grade mineral concentrate
containing 50% Total Rare Earth Oxide (TREO) with an 80% recovery
rate, which will be included in the PFS for the first 8 years of
mine-life.
- Bench-scale and hydrometallurgical pilot plant test work shows that
the planned acid bake process will deliver approximately 90% TREO
extraction from the mineral concentrate to a Mixed Rare Earth Carbonate
product.
- The PFS plant flowsheets are completed, based on the metallurgical
test work, and equipment specifications have been issued to vendors for
cost quotations.
- The field-based geotechnical, geochemical and environmental test
work required for the PFS has been completed and lab-based studies are in
progress.
- Other PFS tasks, including open pit mine design and tailings
storage trade-off studies, are well advanced.
- Economic evaluation and cashflow modelling are in progress.
- PFS report completion in the second quarter of 2024 is on schedule.
- Eleven mixed rare earth precipitate samples from the
hydrometallurgical test work have been sent to potential partners,
processors or end-users.
- Over the past 5 years, Defense Metals drilled 58 core holes
totalling 12,073 metres (m; ~39,610 feet) to define the Wicheeda
Rare Earth Element (REE) deposit and provide samples for
metallurgical test work. This work resulted in measured and indicated (M+I)
resources of 34.2 million tonnes, averaging 2.02% TREO1,
inclusive of 17.8 million tonnes of high-grade dolomite carbonatite
averaging 2.92% TREO, in addition to inferred resources of 11.1 million
tonnes, averaging 1.02% TREO. This represents a 260% increase over the
Defense Metals initial 2019 mineral resource estimate, and a conversion to
M+I of 101% of the prior 2021 mineral resource estimate.
- Total expenditures on the Wicheeda REE Project since 2019,
including costs for mineral resource estimate definition, all
metallurgical test work, earlier studies and the remaining PFS-related
costs are in excess of CAD $17.5 million.
- Defense Metals has entered into a strategic Co-Design Agreement
with the McLeod Lake Indian Band (MLIB), the First Nations
community having the traditional territory on which the Wicheeda Project
sits.
|
____________________________________
1 TREO % is the sum of CeO2, La2O3,
Nd2O3, Pr6O11, Sm2O3,
Eu2O3, Gd2O3, Tb4O7,
Dy2O3 and Ho2O3 percentages.
|
Craig Taylor, CEO of Defense Metals,
stated:
"Continuing positive results
from our technical studies suggest that our wholly-owned Wicheeda REE Project
has the potential to become the next producer of rare earth elements in North
America accounting for a significant amount of the rare earths needed for the
western world's future magnet metal production. We look forward to completing
and filing the PFS for the Wicheeda REE Project in Q2-2024 and, subject to
financing, moving directly into our feasibility study."
Metallurgical Test Work
- Extensive comminution, beneficiation, hydrometallurgical, and
environmental tests have been completed and the resulting data have been
applied in the PFS. These tests have studied development and optimization
of milling and hydrometallurgical processes and the response of twenty-one
variability samples representing different REE grades, lithologies and
locations within the deposit.
- From 2018 to date, about CAD$5 million has been spent on
metallurgical test work and the development of the metallurgical
flowsheets for the Wicheeda REE Project.
- Thirty-one samples of deposit material, flotation and
hydrometallurgical products have been subjected to detailed mineralogical
examination.
- Twenty-one samples have been subjected to Bond milling index and
SMC comminution tests.
- 210 open circuit flotation tests and seven locked cycle flotation
tests, of samples ranging from 1 to 12 kilograms (kg), and a
26-tonne pilot flotation operation have been completed.
- Sixty-three static acid bake tests, sixteen short-duration acid
bake kiln runs with associated water leach tests were completed.
Additionally, SGS completed a total of 15 days of continuous kiln
operation (in one 5-day and one 10-day segment) as part of a fully
integrated hydrometallurgical pilot plant operation that processed 560 kg
of flotation concentrate.
- Approximately 40 bench-scale impurity removal tests were done as
well as about 40 rare earth precipitation tests and results incorporated
in the integrated hydrometallurgical pilot plant operation and the project
process design criteria.
- Many other small-scale tests examined water recycle options and
other aspects of the metallurgical flowsheets.
- The liquid-solid separation characteristics of the flotation plant
products and those of the hydrometallurgical plant have been determined
through appropriate thickening and filtration tests.
Technical Report for the Wicheeda
Rare Earth Element Project, British Columbia, Canada, dated October 27, 2023,
with an effective date of August 28, 2023, and prepared by APEX Geoscience Ltd.
is filed under Defense Metals Corp.'s Issuer Profile on SEDAR+
(www.sedarplus.com) and on the Company's website at www.defensemetals.com.
PFS Plant Design
Results from the metallurgical test
work have been used to develop flowsheets for the planned comminution,
beneficiation and hydrometallurgical plants. These flowsheets have been
completed, reviewed and used to generate major equipment specifications for
grinding mills, kilns, etc., which have been issued to equipment suppliers for
quotes.
The metallurgical process design,
engineering and costing is on track to allow completion of the PFS in Q2 of
2024.
Optimization of Open Pit Mining
Geotechnical investigation work for
the mine design and pit optimization was performed by SRK and completed in
December 2023. This work included sixteen geotechnical drill holes totaling
225.5 m, and twenty excavated overburden geotechnical test pits. Within the
Wicheeda REE deposit pit shell, six diamond drill holes totaling 1,182 m were
completed, inclusive of 4 open pit geotechnical drill holes totaling 920 m, and
in-pit exploration holes totaling 262 m.
Pit design work is underway,
incorporating the latest geotechnical information provided from the 2023
geotechnical drilling program.
Community Engagement
Defense Metals entered into a
Co-Design Agreement with the McLeod Lake Indian Band (MLIB) (see news
release dated January 17, 2024), thus solidifying a joint commitment to the
successful advancement of the Wicheeda REE Project. The Co-Design Agreement
emphasizes a joint planning approach, empowering MLIB to play an integral part
in the design and decision-making process in the technical, social, engineering
and environmental aspects of the Wicheeda REE Project. This agreement expands
upon the Mineral Exploration Agreement Memorandum of Understanding previously
entered into with MLIB.
The McLeod Lake Indian Band purchased
an equity stake in Defense Metals, signalling their long-term commitment to the
success of the Wicheeda REE Project.
Infrastructure and Tailings
Management Studies
Tradeoff studies are being performed
on the various options being considered for tailings management and
infrastructure locations are being determined.
The Wicheeda REE Project has
excellent infrastructure and logistics, which are expected to allow for lower
operating and capital costs, including:
- The future mine site and beneficiation plant will be located:
- along a permitted Forest Service Road approximately 38 km east
from the paved John Hart Provincial Highway at the community of Bear
Lake.
- ~37 km from the Canadian National Railway mainline.
- ~36 km from the main natural gas distribution pipeline..
- ~34 km from high-voltage powerlines that supply BC with abundant
green hydroelectric power.
- ~ 110 km from an international airport in Prince George
- British Columbia has a long history of mining and its industry
participants are recognized worldwide as expert in open pit mining and mineral
processing.
- Prince George is a major industrial center supplying both the
mining and wood products industries. Most of the equipment that will be
required for the mining operation will be supplied by companies already
established in the area.
- Multiple options exist for location of the hydrometallurgical plant
site close to reagent supply.
- Easy access to the year-round port of Prince Rupert, the closest
North American port to Asian markets.
Environmental Test Work and Field
Studies
Environmental and geochemical test
work has been performed on both flotation and hydrometallurgical plant products
and mixtures thereof. Data have been used by SRK in the design of facilities.
Surface water sampling and field
investigations commenced in 2022 and will continue through 2024. The results of
these and future environmental investigations will be used to inform siting,
design, and mitigation planning as well as to prepare technical data reports to
support Environmental Assessment and permitting processes.
Qualified Persons
The scientific and technical
information concerning metallurgy and processing contained in this news release
as it relates to the Wicheeda REE Project has been reviewed and approved by
J.R. Goode, P.Eng., a metallurgical consultant to the Company and a
"Qualified Person" as defined in NI 43-101. This news release has
also been reviewed and approved by Kristopher J. Raffle, P.Geo. (B.C.), a
technical consultant to the Company, a Principal and Consultant of APEX
Geoscience Ltd. of Edmonton, Alberta, and a "Qualified Person" as
defined in NI 43-101.
About Defense Metals Corp. and its
Wicheeda Rare Earth Element Project
Defense Metals Corp. is a mineral
exploration and development company focused on the development of its 100%
owned, 8,301-hectare (~20,534-acre) Wicheeda REE Project that is located on the
traditional territory of the McLeod Lake Indian Band in British Columbia,
Canada.
The Wicheeda REE Project,
approximately 80 kilometres (~50 miles) northeast of the city of Prince George,
is readily accessible by a paved highway and all-weather gravel roads and is
close to 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.
Defense Metals Corp. trades on the
TSX Venture Exchange under the symbol "DEFN", in the United States,
trading symbol "DFMTF" on the OTCQB and in Germany on the Frankfurt
Exchange under "35D"
Defense Metals is a proud member of
Discovery Group. For more information please visit:
www.discoverygroup.ca .
For further information, please
visit www.defensemetals.com or 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 or Statements
This news release contains
"forward-looking information or statements" within the meaning of
applicable securities laws, which may include, without limitation, statements
relating to completion of the PFS and the expected timelines, the completion of
additional work and studies and the expected timelines, advancing the Wicheeda
REE Project, completing the PFS and progressing towards a feasibility study,
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+ (www.sedarplus.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 or obtain 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,
engineering and pricing 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, restriction on labour and international travel and supply
chains, loss of key employees, consultants, officers 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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Metals Corp. (TSX-V:DEFN /OTCQB:DFMTF) is a featured mining stock on Investorideas.com
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