VANCOUVER, BC, Aug. 1, 2023
/CNW/ - Defense Metals Corp. ("Defense Metals" or the
"Company"; (TSXV: DEFN) (OTCQB: DFMTF) (FSE: 35D) is pleased
to confirm that it has engaged Hatch Ltd. ("Hatch") and SRK
Consulting (Canada) Inc.
("SRK") as principal consultants for the completion of a
preliminary feasibility study ("PFS") regarding its Wicheeda
Rare Earth Element (REE) Project located near Prince George, Canada.
SRK is one of four key consultants chosen by Defense Metals to
facilitate the PFS and will take the lead role as overall
coordinator of the National Instrument 43-101 PFS report, as well
as handling the mining and tailings scope of work with support from
APEX Geoscience Ltd., Defense Metals' exploration, geology, and
resource consultants. Hatch will focus on rare earth element
("REE") concentrating and hydrometallurgical processes and
plant facilities, and both capital and operating costs. One-eighty
Consulting Group Inc. ("One-eighty") will be responsible for
the environmental studies, permitting, and social or community
impact scope.
Hatch and SRK, as directed by Defense Metals, have agreed to a
partition of responsibilities that allows each group to focus on
their strengths.
SRK is uniquely positioned to advance the Wicheeda Project given
their prior involvement in both an extensive scenario analysis
evaluation conducted in 2021 and the preliminary economic
assessment ("PEA") completed by them in 2021 and published
in 2022. SRK will build upon the knowledge gained in these studies
and improve upon the analyses completed then, to create an optimal
development plan for the Wicheeda Project. SRK will focus on
resource estimation, geotechnical engineering, mining engineering,
tailings management, and economic analysis. Added scope for SRK in
the PFS includes the project lead, risk assessment, surface water
management, contact water treatment and environmental
geochemistry.
Hatch will be responsible for the process design including the
concentrator and hydrometallurgical plants as well as the
infrastructure for mining, tailings, and other processing
areas.
SRK and Hatch both have extensive experience and knowledge of
working in the REE sector.
About Hatch Ltd.
Hatch is an employee-owned, multidisciplinary professional
services firm that delivers a comprehensive array of technical and
strategic services, including consulting, information technology,
engineering, process development, and project and construction
management to the Mining, Metallurgical, Energy, and Infrastructure
sectors. Hatch has served clients for over six decades with
corporate roots extending over 100 years and has project experience
in more than 150 countries around the world. Find out more
on www.hatch.com.
About SRK Consulting (Canada) Inc.
SRK Consulting is an independent, international group providing
specialised consultancy services.
Among SRK's clients are many of the world's mining companies,
exploration companies, financial institutions, EPCM and
construction firms and government bodies. Formed in Johannesburg in 1974, the SRK Group now
employs more than 1600 staff internationally in over 45 permanent
offices in 20 countries on 6 continents. A broad range of
internationally recognised associate consultants complements the
core staff. SRK provides specialist consulting services in the
areas of geology, resources and exploration, geotechnical services,
mine waste management, environmental, water management and mining
and project evaluation.
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. (B.C.), Principal and
Consultant of APEX Geoscience Ltd. of Edmonton, Alberta, who is a director of
Defense Metals and a "Qualified Person" as defined in NI
43-101.
About the Wicheeda REE
Property
Defense Metals 100% owned, 6,759-hectare (~16,702-acre) Wicheeda
Project is located approximately 80 km northeast of the city of
Prince George, British Columbia;
population 77,000. The Wicheeda REE 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 REE Project Preliminary Economic Assessment
technical report 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.
__________________________________________
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.sedarplus.ca).
|
About Defense Metals
Corp.
Defense Metals Corp. is a mineral exploration and development
company focused on the development of its 100% owned
Wicheeda Rare Earth Element Deposit located near Prince George, British Columbia, Canada.
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: http://www.discoverygroup.ca/
For further information, please 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 completion of the PFS, 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, accuracy of assay
results, performance of available laboratory and other related
services, future operating costs, interpretation of geological and
metallurgical data, 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, metallurgy 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.sedarplus.ca.
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 and other viruses and diseases on the business
of the Company, 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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SOURCE Defense Metals Corp.