VANCOUVER, BC, April 25,
2023 /CNW/ - Defense Metals Corp. ("Defense
Metals" or the "Company") (TSXV: DEFN) (OTCQB: DFMTF)
(FSE: 35D) is pleased to announce that further to the news release
dated April 12, 2023, all assays for
the hydrometallurgical pilot plant have been received and
interpretation of the data is largely complete. Data from
Phase I have been used to optimize the design conditions for Phase
II of the pilot plant.
John Goode, P.Eng., Defense
Metals' Consulting Metallurgist, commented as follows:
"Phase I of the hydrometallurgical pilot
plant operation went very well and gave us the opportunity to
explore areas of the flowsheet where we could further improve the
efficiency of the Wicheeda hydrometallurgical process. Changes have
been incorporated in the Phase II pilot plant campaign which
started yesterday and will run for about ten days. The importance
of pilot plants like the one we are operating cannot be
over-emphasized. It provides the opportunity to see if processes
are stable and can be effectively controlled; to determine the
effects of in-plant recirculation of solutions and solids; measure
recoveries and reagent demands; and generates significant
quantities of material that can be used for engineering design and
environment-related tests. The data from the pilot plant will be
used in the pre-feasibility study."
Minor changes were made during Phase I of the pilot plant
testing to investigate the impact on circuit operability,
extraction, impurity removal and product quality. The
specific changes that were made during Phase I of the pilot plant,
and their impacts, are summarized below:
- The acid bake kiln was operated at 350ºC for much of the run
but 250ºC was tested in the latter part with no obvious impact on
REE extraction which averaged 93% throughout.
- Fresh water was used in the water leach circuit for the initial
part of the pilot plant run but regenerated water was used for the
last portion with no discernable adverse effect.
- Industrial grade magnesia was initially used for neutralization
and impurity removal in the water leach circuit and proved to be
more effective than the regenerated magnesia.
- Phase I of the pilot plant run used magnesia as the rare earth
precipitant based on bench testwork, but at the pilot plant it was
difficult to attain low magnesium content in the rare earth
product. Oxalic acid will be used as the precipitant in the
next phase of pilot testing.
Defense Metals has selected the engineering company Hatch to
undertake parts of the PFS; Hatch will attend the pilot plant.
Qualified Person
The scientific and technical information contained in this news
release, as it relates to the metallurgical aspects of the Wicheeda
Rare-Earth Project, has been reviewed and approved by John Goode, P. Eng., metallurgical consultant to
the Company and who is a Qualified Person as defined by National
Instrument 43-101 and who has provided the technical information
relating to metallurgy in this news release.
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 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 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 focused on the development of its
100% owned Wicheeda Project that contains Rare Earth Elements that
are commonly used in the 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 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".
Defense Metals is a proud member of Discovery Group. For more
information please visit: http://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
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, the expected benefits and outcomes of the
hydrometallurgical pilot plant, the expected completion of the
hydrometallurgical pilot plant and the expected timelines, 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).
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SOURCE Defense Metals Corp.