Defense Metals Completes Hydrometallurgical Pilot Plant Testing and Initiates Pre-feasibility Study Design Work
Defense Metals Completes Hydrometallurgical Pilot Plant Testing and
Initiates Pre-feasibility Study Design Work
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:
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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CNW 09:00e 06-JUN-23