Defense Metals Completes Successful Phase I Pilot Plant Work
Defense Metals Completes Successful Phase I Pilot Plant
Work
VANCOUVER, BC
,
April 12, 2023
/CNW/ - Defense Metals Corp. ("
Defense Metals
" or the "
Company
") (TSXV: DEFN)
(OTCQB: DFMTF) (FSE: 35D) is pleased to announce that the Phase I of its hydrometallurgical pilot plant at SGS
Lakefield has been successfully completed.
John Goode
, Consulting Metallurgist to Defense Metals and who attended the pilot plant, commented:
"This first fully integrated pilot plant demonstration of the proposed Wicheeda hydrometallurgical process
delivered exactly what was required of it. We have confirmed the general workability of the process, optimized
certain design parameters, and identified areas that will be improved ahead of the Phase II pilot plant. The SGS
Lakefield team did an excellent job of construction and operation of the circuit, and their efforts are much
appreciated."
The main objective of Phase I of the pilot plant was to test the flowsheet for operability and identify any changes that might
be required before a longer test campaign. During the five days of continuous operation, the parameters for the various unit
operations were varied slightly to allow optimization of the circuit ahead of the Phase II pilot plant run scheduled for
late-
April 2023
.
Assays are still being received and evaluation of the results has not yet been finalized. However, to date it can be reported
that the extraction of Pr (praseodymium) and Nd (neodymium) from the acid bake calcine was in excess of 90%, the
impurity removal circuits were very efficient, and reagent regeneration and water recirculation were effective. Minor
changes will be made to the circuit ahead of Phase II and an alternative product precipitant will be used.
Methodology
The fully integrated Pilot Plant included sulphuric acid baking, water leaching, three stages of impurity removal, rare earth
precipitation, magnesia regeneration and recycling, and process water recycle. The plant ran continuously and without
interruption for 24 h/day over a total run time of 110 hours. Operations were handled by a total of ten SGS technicians and
metallurgists on each of two shifts managed by senior day-shift staff.
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., 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 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 ("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 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 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 markets, 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 Light
Rare Earth Element Deposit 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".
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:
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.
____________________________
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 12-APR-23