VANCOUVER, BC, Jan. 20, 2022 /CNW/ - Defense Metals Corp.
("Defense Metals" or the "Company") (TSXV: DEFN)
(OTCQB: DFMTF) (FSE: 35D) is pleased to highlight the
accomplishments of 2021, and outlines the Company's key goals for
2022.
At the start of 2022, the Company filed a preliminary economic
assessment (PEA) and finalized the 100% acquisition of the Wicheeda
Rare Earth Element (REE) Project. Defense Metals has also
strengthened the Company's leadership with new executive and board
appointments (see Defense Metals news release dated January 17, 2022). Additional goals for this
year, include:
2022 Goals
- Upgrade and expand mineral resource, initiate engineering
geotechnical – Results from the 5,349-metre resource expansion
and definition drilling program completed late 2021 are expected Q1
2022. The drilling results will support an updated geological model
for the Wicheeda REE Deposit to inform continued 2022 infill
drilling to improve the confidence of the mineral resources to
higher categories (i.e., measured and indicated), in addition to
pit geotechnical, and hydrogeological drilling and testing.
- Optimize flowsheet – The floatation process to
produce high-grade concentrate will continue to be optimized. Bench
scale tests have demonstrated that the Company has more than one
route for hydrometallurgy and the Company will determine the most
economic and least complex route, and then conduct pilot scale
tests to firm up the flowsheet.
- Start Pre-Feasibility Study – Using the results
from the planned 2022 drilling program and pilot plant, the Company
intends to commence the pre-feasibility study in 2H 2022 that may
extend into next year.
- Environmental, Social and Governance Strategy – The
Company plans to implement an Environmental, Social, and Governance
strategy to follow high environmental standards, to foster stronger
collaborations between the Company and the local and First Nations
communities, and further strengthen the Company's corporate
governance, like the appointment of Dr. William Bird, as independent Director.
- Continue to engage end users – The Company will use
product from the pilot plants to continue to engage end users and
pursue off-take agreements ahead of the pre-feasibility
studies.
- Strengthen balance sheet – Defense Metals will need
to secure the required funding to fast track the development of the
Wicheeda REE Project including the development and operation of the
pilot plant with SGS and the pre-feasibility
study.
Highlights of 2021 Accomplishments
- Increased resource size – Resources increased by
36% on a contained metal basis in comparison to the prior 2020
mineral resource; these results were achieved during the
preparation of the PEA by the independent consultants (SRK Canada
Inc.), by accounting for the medium and heavy REE's and using lower
cut-off, adjusted based on technical and economic data1.
In addition, the Company completed a 29-hole, 5,349 metre resource
expansion and delineation diamond drill program at Wicheeda in 2021
that may lead to further increase in resources, with initial
drilling results expected during Q1 2022.
- Improved flowsheet – Preliminary acid bake testwork
conducted during late 2021 by SGS Canada Inc. yielded improved
metallurgical extraction and impurity removal performance (>95%
neodymium-praseodymium) compared to the PEA base case flowsheet.
Successful acid bake test results provide a solid second processing
option for Wicheeda material and open the potential of future
optimization work to reduce circuit complexity. Acid bake circuit
optimization will continue during 2022, however the high
extractions and early ability to reject impurities are very
promising.
- Completed preliminary economic assessment – PEA
results included an after-tax net present value (NPV@8%) of
$517 million, and 18%
IRR1. A unique advantage of the Wicheeda REE Project is
the production of a saleable high-grade flotation-concentrate. The
PEA models the production of a mineral concentrate with average 43%
total rare earth oxide (TREO). Base case economics were calculated
using rare earth oxide prices of US$
5.76/kg TREO in flotation concentrate and US$ 14.04/kg TREO in mixed REE carbonate
precipitates, using an average long-term NdPr
(neodymium/praseodymium) prices.
- Fulfilled Wicheeda Project acquisition option terms and
requirements – Last year the Company fulfilled all the
terms related to project expenditures and payments to vendors,
required for the 100% acquisition of the Wicheeda REE Project.
- Engaged Collaborators and End users – The Company
signed a non-binding Memorandum of Understanding with Sinosteel
Equipment & Engineering Co., Ltd, consisting of information
sharing, beneficiation testwork and potential concentrator design
research, financing, and cooperation. It also engaged Welsbach
Holdings Pte Ltd to assist in building awareness for the Wicheeda
REE Project, product market research, introductions to supply chain
partners, and assistance in commercial negotiations. The Company
also engaged with end-users in Europe and Asia to provide products via the Company
advisor Golden Dragon Capital Limited.
Luisa Moreno, President and
Director of Defense Metals commented: "We are pleased with the
progress of the project to date which culminated with a positive
PEA, we thank our shareholders and stakeholders for their
continuous support, and we look forward to 2022 as we solidify
Defense Metals as a key rare earth company for the global supply
chain."
______________________
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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).
|
Qualified Persons
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. (BC) Principal and
Consultant of APEX Geoscience Ltd. of Edmonton, AB, a director of Defense Metals and
a "Qualified Person" as defined in NI 43-101. Mr. Raffle
verified the data disclosed which includes a review of the
analytical and test data underlying the information and opinions
contained therein.
Methodology and QA/QC
Hydrometallurgical product assays for neodymium was determined
via lithium-borate fusion of a 0.5-gram sample analyzed via
wavelength dispersion X-ray fluorescence (WD-XRF). The remaining
rare earth elements for the head sample were determined via
0.5-gram sodium-peroxide fusion multi-element ICP-MS.
The SGS analyses included a quality assurance / quality control
(QA/QC) program including the insertion of rare earth element
standard and blank samples. Defense Metals detected no significant
QA/QC issues during review of the data. Defense Metals is not aware
of any drilling, sampling, recovery, or other factors that could
materially affect the accuracy or reliability of the data referred
to herein. SGS is an ISO/IEC 17025 and ISO9001:2015 accredited
laboratory. SGS is independent of Defense Metals Corp
About Defense Metals Corp.
Defense Metals Corp. is a mineral exploration company focused on
the acquisition of mineral deposits containing metals and
elements commonly used in the electric power market, 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 Rare Earth Element
Property 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".
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, drill results, the Company's plans for
its Wicheeda REE Project, including pre-feasibility studies,
engagement with existing and potential partners, drilling,
completion of the pilot plant with SGS, environmental, social and
governance strategy, and potential financings, expanded resource
and scale of expanded resource, expected results and outcomes, 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 results, risks related to the
inherent uncertainty of exploration 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 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 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 drilling 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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SOURCE Defense Metals Corp.