Defense Metals Continues to Drill High-Grades at Wicheeda with 106 metres of 2.53% Total Rare Earth Oxide; Including 59 metres of 3.42%; Participate in the 18th International Rare Earths Conference
Defense Metals Continues to Drill High-Grades at Wicheeda with 106
metres of 2.53% Total Rare Earth Oxide; Including 59 metres of 3.42%;
Participate in the 18th International Rare Earths Conference
VANCOUVER, BC
,
Oct. 13, 2022
/CNW/ - Defense Metals Corp. ("
Defense Metals
" or the "
Company
"; (TSXV: DEFN) (OTCQB: DFMTF) (FSE: 35D)
announces high-grade Rare Earth Element ("
REE
") assay results from one additional core drill hole, totalling 320 metres (m), collared within the northern area of
Defense Metals' 100% owned Wicheeda REE Deposit.
Figure 1. Drill Section Hole WI22-67 (CNW Group/Defense Metals Corp.)
Infill drill hole
WI22-67 (-60
o
dip / 197
o
azimuth)
was drilled southward within the northern area of the deposit and yielded a broad mixed lithology mineralized
intercept comprising dolomite carbonatite and syenite averaging
2.53% total rare earth oxide ("TREO") over 106 metres (m);
including a
high-grade zone of
3.42% TREO over
59 m
1
(Figure 1).
The assays reported for
WI22-67
are partial from surface to a downhole depth of 155 metres. Assay results for the
remaining
165 m
to end of hole at
320 m
are expected in the coming days.
Craig Taylor
, CEO, and Director of Defense Metals stated:
"With the release of this additional drill hole, we continue to establish excellent continuity of
mineralization in sectional infill drilling. As we advance the Wicheeda Project we know these kinds of results will contribute significantly to our goal of upgraded
resource categories necessary to support a future Preliminary Feasibility Study (PFS)."
Table 1. Wicheeda REE Deposit 2022 Diamond Drill Intercepts
Hole ID
From (m)
To
(m)
Interval (m)
TREO
2
(%)
Ce
2
O
3
(%)
La
2
O
3
(%)
Nd
2
O
3
(%)
Pr
2
O
3
(%)
Sm
2
O
3
(ppm)
Gd
2
O
3
(ppm)
Eu
2
O
3
(ppm)
Dy
2
O
3
(ppm)
Tb
4
O
7
(ppm)
Ho
2
O
3
(ppm)
WI22-67 (197/-60)
30.7
137
106.3
2.53
1.22
0.87
0.28
0.10
307
149
66
36
13
4
including
41
100
59
3.42
1.65
1.19
0.37
0.14
381
184
80
40
16
4
WI22-62 (204/-50)
93
260
167
1.39
0.68
0.43
0.18
0.06
222
101
43
29
9
4
including
121
169
48
2.29
1.13
0.72
0.29
0.10
316
123
54
22
9
2
WI22-63 (204/-60)
148
187
39
2.29
1.12
0.79
0.25
0.09
246
120
47
26
9
3
including
175
184
9
5.08
2.45
1.84
0.52
0.19
472
215
91
49
17
5
WI22-64 (204/-65)
77
269.3
192.3
1.78
0.86
0.58
0.22
0.08
230
116
51
34
10
4
including
77
150
73
3.13
1.51
1.06
0.37
0.13
353
156
71
30
12
3
WI22-68 (220/-55)
109.4
233
123.6
3.58
1.69
1.29
0.38
0.14
376
160
71
35
12
3
including
212
230
18
6.70
3.11
2.50
0.71
0.27
619
260
111
47
18
5
18
th
International Rare Earths Conference,
Las Vegas, Nevada
Defense Metals and many of its directors, management and advisors will be attending the 18
th
International Rare Earths Conference on
October 17, 2022
to
October 19, 2022
in
Las Vegas, Nevada
.
Luisa Moreno
, President and Director of the Company will be presenting on the "
Wicheeda Deposit: The Next North
American REE production
".
About the Wicheeda REE Property
The 100% owned 4,244-hectare Wicheeda REE Property, located approximately 80 km northeast of the city of
Prince George, British Columbia
, is readily
accessible by all-weather gravel roads and is near infrastructure, including power transmission lines, the CN railway, and major highways.
The Wicheeda REE Project yielded a robust 2021 preliminary economic assessment technical report (PEA) that demonstrated an after-tax net present value
(NPV@8%) of
$517 million
, and 18% IRR
3
. A unique advantage of the Wicheeda REE Project is the production of a saleable high-grade flotation-concentrate. The
PEA contemplates a 1.8 Mtpa (million tonnes per year) mill throughput open pit mining operation with 1.75:1 (waste:mill feed) strip ratio over a 19 year mine
(project) life producing and average of 25,423 tonnes REO annually. 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.
Methodology and QA/QC
The analytical work reported on herein was performed by ALS Canada Ltd. (ALS) at
Langley
(sample preparation) and
Vancouver
(ICP-MS fusion), B.C. ALS is
an ISO-IEC 17025:2017 and ISO 9001:2015 accredited geoanalytical laboratory and is independent of the Defense Metals and the QP. Drill core samples were
subject to crushing at a minimum of 70% passing 2 mm, followed by pulverizing of a 250-gram split to 85% passing 75 microns. A 0.1-gram sample pulp was then
subject to multi-element ICP-MS analysis via lithium-borate fusion to determine individual REE content (ME-MS81h). Defense Metals follows industry standard
procedures for the work carried out on the Wicheeda Project, with a quality assurance/quality control (QA/QC) program. Blank, duplicate, and standard samples
were inserted into the sample sequence sent to the laboratory for analysis. Defense Metals detected no significant QA/QC issues during review of the data.
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. (BC) Principal and Consultant of APEX Geoscience Ltd. of
Edmonton, AB
, a director of Defense Metals and a "Qualified Person" as defined in
NI 43-101. Mr. Raffle verified the data disclosed which includes a review of the sampling, analytical and test data underlying the information and opinions
contained therein.
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 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".
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, drill results including anticipated timeline of such results/assays, upgrading the resource categories,
completing the PFS, the Company's plans for its Wicheeda REE Project, expanded resource and scale of expanded resource, expected results and outcomes,
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 results, risks
related to the inherent uncertainty of exploration 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 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 drilling 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
The true width of REE mineralization is estimated to be 70-100% of the drilled interval.
2
TREO % sum of CeO
2
, La
2
O
3
, Nd
2
O
3
, Pr
6
O
11
, Sm
2
O
3
, Eu
2
O
3
, Gd
2
O
3
, Tb
4
O
7
, Dy
2
O
3
and Ho
2
O
3
.
3
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 08:30e 13-OCT-22