VANCOUVER,
BC, March 2, 2022 /CNW/ -
Defense Metals Corp. ("Defense Metals" or the
"Company") (TSXV: DEFN) (OTCQB: DFMTF) (FSE: 35D) is pleased
to announce results for an initial four diamond drill holes
totalling 795 metres from the Company's 29 hole, 5,349 metre
diamond drill program completed during fall 2021. Drill holes
WI21-33 through WI21-36, collared from the same pad, were designed
to expand the Wicheeda Rare Earth Element (REE) deposit and further
upgrade existing resource categories.
All four holes intersected high-grade REE
mineralization over significant widths above the 0.5% TREO (total
rare earth oxide) mineral resource lower cut-off from near surface
to a maximum vertical depth of 200 metres. The Company expects to
receive additional assay results from the 2021 Wicheeda REE Deposit
resource expansion and delineation campaign in the coming days and
weeks.
Luisa Moreno,
President and Director of Defense Metals commented: "We are
encouraged by the results of these initial four drill holes that
have not only returned exceptionally high grade REE intervals but
have also expanded mineralization beyond the mineral resource pit
shell. We look forward to being able to release results as they are
received from the remaining 25 diamond drill holes in the coming
days and weeks. The 2021 drilling is expected to contribute to the
expansion and upgrading of mineral resources we so recently
demonstrated in our positive Wicheeda REE Project
PEA."
Drill hole WI21-33 (-80o dip /
350o azimuth), the first hole of the 2021 drill
program, intersected mineralized dolomite carbonatite to a depth of
201 metres downhole returning assays of 3.17% TREO over 196
metres (Table 1, and Figure 1); including higher grade
intervals of 3.63% TREO over 50 metres near surface, and
significantly 4.29% TREO over 55 metres at depth expanding
high-grade REE mineralization 32 metres beyond the current
mineral resource pit shell. Drill hole WI21-33 was collared
near the northern drilled extent of the Wicheeda REE Deposit and
was designed to expand and further delineate inferred resources at
depth where the final hole WI19-32 of the Company's highly
successful 2019 drill campaign yielded assays of 3.76% TREO over 75
metres1.
Table 1. Wicheeda REE Deposit 2021 Diamond
Drill Intercepts
Hole
ID
|
From
(m)
|
To
(m)
|
Interval
(m)
|
TREO2 (%)
|
Ce2O3 (%)
|
La2O3 (%)
|
Nd2O3 (%)
|
Pr2O3 (%)
|
Sm2O3 (ppm)
|
Gd2O3
(ppm)
|
Eu2O3
(ppm)
|
Dy2O3
(ppm)
|
Tb4O7
(ppm)
|
Ho2O3
(ppm)
|
WI21-33
(350/-80)
|
5.00
|
201.00
|
196
|
3.17
|
1.52
|
1.07
|
0.37
|
0.13
|
382
|
42
|
14
|
81
|
181
|
4
|
including
|
5.00
|
55.25
|
50.25
|
3.63
|
1.74
|
1.26
|
0.41
|
0.14
|
396
|
52
|
16
|
84
|
181
|
6
|
including
|
146.00
|
201.00
|
55.00
|
4.29
|
2.07
|
1.48
|
0.47
|
0.17
|
489
|
52
|
18
|
112
|
232
|
5
|
WI21-34
(040/-55)
|
3.00
|
117.00
|
114.00
|
2.97
|
1.46
|
1.02
|
0.33
|
0.11
|
323
|
23
|
9
|
58
|
134
|
2
|
including
|
3.00
|
70.00
|
67.00
|
3.84
|
1.89
|
1.34
|
0.41
|
0.15
|
379
|
29
|
11
|
69
|
160
|
3
|
WI21-35
(080/-55)
|
1.20
|
121.00
|
119.80
|
3.87
|
1.87
|
1.34
|
0.43
|
0.15
|
434
|
52
|
17
|
88
|
200
|
6
|
WI21-36
(108/-80)
|
1.10
|
174.00
|
171.90
|
2.35
|
1.14
|
0.79
|
0.28
|
0.09
|
294
|
35
|
11
|
59
|
134
|
4
|
including
|
1.10
|
35.65
|
34.55
|
3.45
|
1.66
|
1.21
|
0.38
|
0.13
|
374
|
37
|
13
|
72
|
170
|
4
|
including
|
136.00
|
174.00
|
38.00
|
3.02
|
1.46
|
1.05
|
0.33
|
0.12
|
337
|
40
|
13
|
68
|
157
|
4
|
Drill hole WI21-34 (-55o dip /
040o azimuth), drilled northeast to
intermediate depths below WI19-32 intersected mineralized dolomite
carbonatite to a depth of 117 metres downhole grading 2.97% TREO
over 114 metres; including a higher grade near surface interval
averaging 3.84% TREO over 67 metres (Figure 2).
Resource delineation drill holes WI21-35
(-55o dip / 080o azimuth) and
WI21-36 (-55o dip / 080o
azimuth), drilled on section under 2019 drill hole WI19-31 that
returned 4.57% TREO over 83 metres, established continuity of
significantly REE mineralized dolomite carbonatite at depth with
WI21-35 yielding 3.87% TREO over 120 metres; and
WI21-36 intersecting a mixed-country rock bearing interval
grading 2.35% TREO over 172 metres; including higher grade
near surface and at depth intervals of 3.45% TREO over 35
metres and 3.02% TREO 38 metres, respectively (Figure
3).
About the Wicheeda REE Property
The 100% owned 2,008-hectare Wicheeda REE
Property, located approximately 80 km northeast of the city of
Prince George, British Columbia,
is readily accessible by all-weather gravel roads and is near
infrastructure, including power transmission lines, the CN railway,
and major highways.
The Wicheeda REE Project yielded a robust 2021
PEA that demonstrated an after-tax net present value (NPV@8%) of
$517 million, and 18%
IRR3. A unique advantage of the Wicheeda REE Project is
the production of a saleable high-grade flotation-concentrate. The
PEA contemplates a 1.8 Mtpa (million tonnes per year) mill
throughput open pit mining operation with 1.75:1 (waste:mill feed)
strip ratio over a 19 year mine (project) life producing and
average of 25,423 tonnes REO annually. 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.
Methodology and QA/QC
The analytical work reported on herein was
performed by ALS Canada Ltd. (ALS) at Langley (sample preparation) and Vancouver (ICP-MS fusion), B.C. ALS is an
ISO-IEC 17025:2017 and ISO 9001:2015 accredited geoanalytical
laboratory and is independent of the Defense Metals and the QP.
Drill core samples were subject to crushing at a minimum of 70%
passing 2 mm, followed by pulverizing of a 250-gram split to 85%
passing 75 microns. A 0.1-gram sample pulp was then subject to
multi-element ICP-MS analysis via lithium-borate fusion to
determine individual REE content (ME-MS81h). Defense Metals follows
industry standard procedures for the work carried out on the
Wicheeda Project, with a quality assurance/quality control (QA/QC)
program. Blank, duplicate, and standard samples were inserted into
the sample sequence sent to the laboratory for analysis. Defense
Metals detected no significant QA/QC issues during review of the
data.
Within drill holes WI21-34 and WI21-36 occur two
zones of poor core recovery averaging 13-15% over an interval of
9.15 metres between 89.95 and 99.1 metres, and 35.65 an d44.80
metres, respectively. Drill core from these intervals was combined
into a single 9.15 metre composite for assay. The returned assay
results of 1.27% TREO (WI21-34) and 1.84% TREO (WI21-36) are
consistent with assays results above and below in the drill holes
and as a result are considered reasonable and reliable. Defense
Metals is not aware of any other drilling, sampling, recovery, or
other factors that could materially affect the accuracy or
reliability of the data referred to herein.
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. (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 sampling, analytical and test data underlying the
information and opinions contained therein.
|
1 The true
width of REE mineralization is estimated to be 70-100% of the
drilled interval.
|
|
2 TREO % sum
of CeO2, La2O3, Nd2O3, Pr6O11, Sm2O3, Eu2O3, Gd2O3, Tb4O7, Dy2O3
and Ho2O3.
|
|
3
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).
|
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 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
including anticipated timeline of such results/assays, the
Company's plans for its Wicheeda REE Project, 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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