VANCOUVER, BC, June 6, 2023
/CNW/ - Defense Metals Corp. ("Defense Metals" or the
"Company") (TSXV: DEFN) (OTCQB: DFMTF) (FSE: 35D) is pleased
to announce the completion of Phase II hydrometallurgical pilot
plant test work for its wholly-owned Wicheeda Rare Earth Element
("REE") Project and commencement of Pre-Feasibility Study
(PFS) work.
John Goode, Defense Metals'
metallurgical consultant, noted:
"With the completion of the recent
beneficiation testwork and hydrometallurgical testwork and pilot
plant operations, we are now ready to provide our engineering
consultants, with the metallurgical test data necessary for them to
commence the design work that forms a critical part of the Wicheeda
project Pre-feasibility Study."
Defense Metals intends to complete the PFS during H1-2024.
As reported on April 25, 2023,
Defense Metals completed a Phase I (5 day) hydrometallurgical pilot
plant operation in April 2023 and
used data generated during that test work to design an expanded
Phase II (10 day) pilot plant operation. Phase II operations were
performed by SGS Canada Inc. at Lakefield, Ontario and were completed on
May 3, 2023, after processing 370 kg
of flotation concentrate produced in an earlier flotation pilot
plant operation (see Defense Metals' news release dated
September 23, 2020).
The results of the Phase II pilot plant operation confirm the
Phase I results achieving extraction of Pr (praseodymium) and Nd
(neodymium) from the acid bake calcine of more than 90%.
Significantly, the mixed rare earth product generated by the Phase
II operation was markedly higher in purity than that of the Phase I
operation because of a change to oxalate precipitation.
Based on the results of the Phase I and Phase II pilot plants
Defense Metals believes it now has all metallurgical test data
necessary to support the Pre-feasibility Study.
Qualified Person
The scientific and technical information relating to metallurgy
that is contained in this news release was provided, reviewed
and approved by John Goode, P. Eng.,
metallurgical consultant to Defense Metals and who is a Qualified
Person ("QP") as defined by National Instrument 43-101.
About the Wicheeda Rare Earth Element Property
Defense Metals 100% owned, 4,262-hectare (~10,532-acre) Wicheeda
REE Project is located approximately 80 km northeast of the city of
Prince George, British Columbia;
population 77,000. The Wicheeda property 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% IRR[1]. 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 of Rare Earth Oxides
("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 REE Project with a goal of producing Rare Earth
Elements that are commonly used in the production of defense and
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: 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
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 completion
of the PFS and the expected timelines, advancing the Wicheeda REE
Project, 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.
__________
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.