Defense Metals Corp. Announces Initial Mineral Resource Estimate for its Wicheeda Rare Earth Carbonatite Deposit, and Collection of 30 Tonne Surface Bulk Sample
Defense Metals Corp. Announces Initial
Mineral Resource Estimate for its Wicheeda
Rare Earth Carbonatite Deposit, and Collection
of 30 Tonne Surface Bulk Sample
VANCOUVER
,
Jan. 8, 2019
/CNW/ - Defense Metals Corp. ("
Defense Metals
" or the "
Company
")
(TSX-V: DEFN) is pleased to announce completion of the Initial Inferred Mineral Resource Estimate
and collection of a 30 tonne surface bulk sample with respect to the Wicheeda rare earth
carbonatite deposit located approximately 80 km northeast of
Prince George
, north central BC.
The Mineral Resources comprises an
Inferred Mineral Resource of 11,370,000 tonnes averaging
1.96% LREE
(Light Rare Earth Elements) classified according to the CIM "Estimation of Mineral
Resources and Mineral Reserves Best Practice Guidelines" dated
November 23
rd
, 2003 and CIM
"Definition Standards for Mineral Resources and Mineral Reserves" dated
May 10
th
, 2014. Mineral
Resources are summarized in Table 1-1 and the Company's technical report titled "Wicheeda Rare
Earth Element Project,
British Columbia, Canada
" is available on SEDAR at
www.sedar.com
.
The Company is also pleased to announce the completion of a 30 tonne surface bulk sample from
the Wicheeda Deposit. Defense Metals plans to truck the 30 tonne bulk sample to SGS Canada
Inc.'s
Lakefield, Ontario
metallurgical facility during
January 2019
in anticipation of a multi-phase
program of bench-scale metallurgical testwork preparatory to commissioning larger scale flotation
pilot plant testing.
Bench-scale flotation and hydrometallurgical test work was previously completed on Wicheeda drill
cores at the SGS Lakefield lab during 2010/2011. This work successfully developed a flotation flow
sheet that recovered 83% of the (Rare Earth Oxide) and produced a concentrate grading 42% REO.
Subsequent hydrometallurgical testing in 2012 on a 2 kg sample of the concentrate grading 39.7 %
TREO (Total REO) produced an upgraded and purified precipitate that contained 71% TREO
through a process of pre-leaching and roasting.
Maximilian Sali
, CEO and founder of Defense Metals comments "We are pleased to have optioned
this property for Defense Metals Corp. with years of work completed by the previous operator
Spectrum Mining Corporation. The Company will continue to rapidly advance this project starting by
sending a 30 tonne bulk sample to SGS labs where they will immediately begin analyzing and testing
the bulk sample."
The Company believes completion of the planned laboratory and pilot plant metallurgical test
programs on the bulk sample will significantly advance the understanding and development of the
Wicheeda rare earth element deposit through larger scale pilot plant scale validation of process
metallurgy, generation of design quality data for engineering, and the production of REE product
samples for potential offtake partners.
The Company also wishes to announce the appointment of
Andrew Burgess
to the board of
directors and the resignation of Mr.
Peter Dickie
. The board wishes to thank Peter for his
contribution to the Company.
Mr.
Andrew S. Burgess
, C.A., C.P.A.is a Chartered Accountant and a Certified Public Accountant.
He is currently the CFO of Spectrum Mining Corporation. He is an experienced professional with
more than 35 years accounting, finance and financial reporting experience with listed companies. Mr.
Burgess has a broad base of experience with natural resource, service and industrial companies in
the areas of general management, financial and management reporting, taxation, corporate
reorganizations, investments, acquisitions, divestitures, equity and debenture financing, budgeting,
investor relations and administration. He has extensive public company and IPO experience.
Inferred Mineral Resource Estimate
Table 1
1: Inferred Resources for LREE
Cutoff
(LREE%)
Tonnes > Cutoff
(tonnes)
Grade > Cutoff
Ce
(%)
La
(%)
Nd
(%)
Nb
(%)
Sm (%)
LREE (%)
1.0
11,370,000
1.14
0.53
0.23
0.04
0.01
1.96
1.5
8,710,000
1.29
0.59
0.26
0.03
0.01
2.17
2.0
5,450,000
1.45
0.65
0.28
0.02
0.01
2.41
2.5
1,740,000
1.71
0.73
0.32
0.02
0.01
2.79
3.0
310,000
2.00
0.80
0.36
0.02
0.01
3.20
3.5
20,000
2.39
0.92
0.40
0.02
0.01
3.74
Notes for Resource Tables:
This Mineral Resource Estimate was prepared by Gary Giroux, P.Eng. in accordance with CIM Definition Standards and NI 43-101, with an effective date of November
26, 2018
Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. Inferred Mineral Resources have a high degree of uncertainty as to their
existence, and great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of an Inferred Resource will ever be upgraded to a
higher category.
Mineral Resources are reported at a cut-off grade of 1.0% LREE (light rare element, sum of Ce, La, Nd and Sm %'s)
The cut-off grade includes the following considerations:
Metal prices of: Ce = US$6.10/kg; La = US$5.70; Nd = US$65.00; Nb = US$56.00; Sm = US$15.00;
Exchange rate of 0.77 US$:C$;
Concentrate production grades of: Ce = 21.0%; La = 16.5%; Nd = 4.6%; Nb = 0.5%; Sm = 0.2%;
Concentrate payable of 95%;
Hydromet refining charges of C$0.70/kg concentrate;
Offsite Transport costs of C$180/t;
No royalties
The resources are constrained an economic pit shell generated using the following inputs
Ore mining cost of C$3.25/t;
Waste mining costs of C$3.00/t;
Ore Process Costs of C$35/t (includes $10/t for transporting ore from pit to mill);
G&A Costs of C$5/t
Process Recoveries: Ce = 82.5%; La = 84.6%; Nd = 83.8%; Nb = 57.0%; Sm = 83.8%
Overall pit slope angles of 45
o
Factors that may affect the estimates include: metal price assumptions, changes in interpretations of
mineralization geometry and continuity of mineralization zones, changes to kriging assumptions,
metallurgical recovery assumptions, operating cost assumptions, confidence in the modifying factors,
including assumptions that surface rights to allow mining infrastructure to be constructed will be
forthcoming, delays or other issues in reaching agreements with local or regulatory authorities and
stakeholders, and changes in land tenure requirements or in permitting requirements.
Mineral Resource Details
The Wicheeda Mineral Resource was estimated by ordinary kriging (OK) of each variable within a
three dimensional mineralization envelope (grade shell) modelled from a total of 14 drill holes cored
in 2008 and 2009 containing 721 assays for light rare earth elements Cerium (Ce), Lanthanum (La),
Neodymium (Nd), and Samarium (Sm) along with assays for Niobium (Nb). A combined 1% light rare
earth grade was used to build the grade shell outlining the mineralised carbonatite body. Of the 14
drill holes provided, 12 intersected the mineralized carbonatite body.
Search ellipsoid orientation was based on variography which indicated, in all cases, there was
insufficient data to disprove the assumptions of isotropy. A single nested spherical model was fit to
all directions for each variable having a short range of
10 m
, and long range ranging from 80 to
100
m
for grade interpolation into 10 x 10 x
5 m
blocks coded with the % below topography and % inside
the mineralized solid.
All coefficients of variation for each variable were under 1 indicating no outliers were present and as
a result no assay capping was applied. Sample lengths ranged from a low of
0.48 m
to a high of
5.95 m
with the majority of samples taken at
3 m
intervals. With the exception of seven assays all
assay lengths were within 3.0±1.5 m and as a result no compositing was done. The average of the
nine bulk density samples, 2.96, was applied to the resource, assuming the specific gravity is
equivalent to bulk density of t/m
3
(tonnes/cubic-meter).
The Wicheeda Deposit Mineral Resources have an effective date of
November 26
, 2018. The
independent qualified person for the estimate is Mr.
Gary Giroux
, P.Eng., an employee of Giroux
Consultants Ltd., who is independent of Defence Metals Corp.
For additional information please refer to the Company's recently filed National Instrument 43-101
Technical Report with respect to the Wicheeda Rare Earth Element Project (Effective Date
December 17, 2018
) filed on SEDAR at
www.sedar.com
.
Metallurgical Testing Details
During
September 2018
, Spectrum Mining Corporation received approval from the BC Ministry of
Mines for a work permit to collect a 30 tonne bulk sample of rare earth mineralization from
Wicheeda. Subsequently, BC based mining contracting company Minconsult Exploration Services
was contracted to conduct the surface bulk sample blast trenching program and during
October
2018
they successfully completed the collection of the 30 tonne rock sample.
Following receipt of the bulk sample at
Lakefield, Ontario
, SGS will commence initial feed
characterization work (Phase 1a) on a 200 kg subsample including: chemical and mineralogical
characterization, grindability, and laboratory flotation testing. The Company expects that
approximately 20 kg of flotation concentrate will be produced through as a result of Phase 1a locked
cycle flotation testing.
Feed Characterization will be followed by a program of bench-scale hydrometallurgical testing
(Phase
1b
) on the flotation concentrate designed to build on the results of prior work, developing a
hydrometallurgical flowsheet through bench scale production of a mixed REE precipitate. Initial
process route options under consideration include: Pre-leaching (to dissolve non REE carbonates),
Acid Leaching (to maximize REE leaching), Caustic Conversion and washing (to facilitate "cracking"
of REE minerals into acid soluble REE hydroxides), Impurity Precipitation testing (to remove gangue
elements prior to recovering REE from solution), and Rare Earth Recovery testing (to precipitate an
initial crude REE product).
Following the completion of Feed Characterization and bench-scale hydrometallurgical testing the
Company plans to initiate large scale processing of the 30 tonne bulk sample to validate the
established process in a pilot plant environment and generate design quality data for engineering.
It is expected that following completion of flotation (Phase 2) and hydrometallurgical (Phase 3) pilot
plant work the Company plans to complete REE Separation testing (Phase 4) on the pilot plant
produced mixed REE hydrometallurgical precipitate. Separation testwork is designed to produce
separate LaCe, NdPr, and "heavies" Sm to Lu+Y streams which allow determination of metallurgical
recoveries, confirm reagent consumption, prove flowsheet operability and provide REE product
samples for potential offtake partners.
The Wicheeda Property
The Property located approximately 80 km northwest of the city of
Prince George, British Columbia
,
is readily accessible by all-weather gravel roads and is close to major infrastructure including power
transmission lines, railway and major highways. Geologically, the Property is situated in the Foreland
Belt and within the Rocky Mountain Trench, a major continental geologic feature. The Foreland belt
contains part of a large alkaline igneous province stretching from the Canadian Cordillera to the
southwestern
United States
and hosts several carbonatite and alkaline complexes among which the
Aley (niobium), Rock Canyon (REE), and Wicheeda (REE) alkaline complexes contain the highest
concentrations of Rare Earth Elements minerals.
The Property is underlain by Kechika Group metasedimentary rocks that are intruded by a
southeast-trending carbonatite. The Wicheeda carbonatite is a deformed plug or sill approximately
250 metres in diameter that hosts potentially economic REE mineralization. The intrusion comprises
a ferroan dolomite carbonatite core, which passes gradationally outward into calcite carbonatite.
The potentially economic REE mineralization is hosted by the dolomite carbonatite.
A NI 43-101 technical report for the Property has been filed on SEDAR at
www.sedar.com
.
The scientific and technical information contained in this news release as it relates to the Wicheeda
Property has been reviewed and approved by Kristopher J. Raffle, P.Geo. (BC) Principal and
Consultant of APEX Geoscience Ltd. of
Edmonton, AB
, a "Qualified Person" as defined in National
Instrument 43-101 –
Standards of Disclosure
for Mineral Projects
.
About Defense Metals Corp.
Defense Metals Corp. is a mineral exploration company focused on the acquisition, exploration and
development of minerals, metals and elements commonly used in the protection of our nation and
other nations abroad. Defense Metals Corp. trades under "DEFN" on the TSX Venture Exchange.
The Company owns (i) prospective uranium claims in the
Athabasca
Basin,
Saskatchewan
totalling
approximately 9,362.65 hectares; (ii) has an option to acquire 100% of the Wicheeda Rare Earth
Element Project located in
Prince George, British Columbia
; and (iii) has an option to acquire 100%
of the Lac Burge gold property located approximately 215 km northeast of
Val d'Or, Quebec
.
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.
Forward Looking Information
This news release includes certain statements that constitute "forward-looking information" within the
meaning of applicable securities law, including without limitation, the Company's plans for its
properties/projects, bulk sample testing and results, metallurgical testing, other statements relating
to the technical, financial and business prospects of the Company, and other matters.
Forward-looking statements address future events and conditions and are necessarily based upon a
number of estimates and assumptions. These statements relate to analyses and other information
that are based on forecasts of future results, estimates of amounts not yet determinable and
assumptions of management. Any statements that express or involve discussions with respect to
predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or
performance (often, but not always, using words or phrases such as "expects" or "does not expect",
"is expected", "anticipates" or "does not anticipate", "plans", "estimates" or "intends", or stating that
certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be
achieved), and variations of such words, and similar expressions are not statements of historical fact
and may be forward-looking statements. Forward-looking statement are necessarily based upon a
number of factors that, if untrue, could cause the actual results, performances or achievements of
the Company to be materially different from future results, performances or achievements express
or implied by such 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 metals, anticipated costs and the ability to
achieve 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, and that third
party contractors, equipment and supplies and governmental and other approvals required to
conduct the Company's planned exploration activities will be available on reasonable terms and in a
timely manner. 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.
Forward-looking statements are subject to a variety of risks and uncertainties, which could cause
actual events, level of activity, performance or results to differ materially from those reflected in the
forward-looking statements, including, without limitation: (i) risks related to gold, copper, uranium,
rare earth elements, and other commodity price fluctuations; (ii) risks and uncertainties relating to
the interpretation of exploration results; (iii) risks related to the inherent uncertainty of exploration
and cost estimates and the potential for unexpected costs and expenses; (iv) that resource
exploration and development is a speculative business; (v) that the Company may lose or abandon
its property interests or may fail to receive necessary licences and permits; (vi) that environmental
laws and regulations may become more onerous; (vii) that the Company may not be able to raise
additional funds when necessary; (viii) the possibility that future exploration, development or mining
results will not be consistent with the Company's expectations; (ix) exploration and development
risks, including risks related to accidents, equipment breakdowns, labour disputes or other
unanticipated difficulties with or interruptions in exploration and development; * competition; (xi) the
potential for delays in exploration or development activities or the completion of geologic reports or
studies; (xii) the uncertainty of profitability based upon the Company's history of losses; (xiii) risks
related to environmental regulation and liability; (xiv) risks associated with failure to maintain
community acceptance, agreements and permissions (generally referred to as "social licence"),
including local First Nations; (xv) risks relating to obtaining and maintaining all necessary government
permits, approvals and authorizations relating to the continued exploration and development of the
Company's projects; (xvi) risks related to the outcome of legal actions; (xvii) political and regulatory
risks associated with mining and exploration; (xix) risks related to current global financial conditions;
and (xx) other risks and uncertainties related to the Company's prospects, properties and business
strategy. These risks, as well as others, could cause actual results and events to vary significantly.
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, the loss of key directors, employees, advisors or consultants,
adverse weather conditions, increase in costs, equipment failures, litigation, failure of counterparties
to perform their contractual obligations and fees charged by service providers. Investors are
cautioned that forward-looking statements are not guarantees of future performance or events and,
accordingly are cautioned not to put undue reliance on forward-looking statements due to the
inherent uncertainty of such statements. The forward-looking statements included in this news
release are made as of the date hereof and the Company disclaims any intention or obligation to
update or revise any forward-looking statements, whether as a result of new information, future
events or otherwise, except as expressly required by applicable securities legislation.
SOURCE
Defense Metals Corp.
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Investor Relations, Tel: (778) 994 8072, Email: [email protected]
CO: Defense Metals Corp.
CNW 05:00e 08-JAN-19