Defense Metals Corp. files PEA NI 43-101 Technical Report for the Wicheeda Rare Earth Element Project
Defense Metals Corp. files PEA NI 43-101 Technical Report for the
Wicheeda Rare Earth Element Project
VANCOUVER, BC
,
Jan. 7, 2022
/CNW/ - Defense Metals Corp. ("
Defense Metals
" or the "
Company
") (TSXV: DEFN) (OTCQB: DFMTF) (FSE: 35D) is pleased
to announce that the Preliminary Economic Assessment NI 43-101 Technical Report on the Wicheeda Rare Earth Element Project in
British Columbia
(the
"
Technical Report
") has been filed on SEDAR. The Technical Report, which is dated
January 6, 2022
, has an effective date of
November 7, 2021
, and is entitled
"Preliminary Economic Assessment for the Wicheeda Rare Earth Element Project" and was prepared by SRK Consulting (
Canada
) Inc.
Highlights from the PEA:
Project Metric
Units
Current
Pre-tax NPV @ 8%
$K (CAD)
$760,585
Post-tax NPV @ 8%
$K (CAD)
$516,500
Pre-tax IRR
% (real)
22%
Post-tax IRR
% (real)
18%
Undiscounted After-tax Cashflow (LOM)
$K (CAD)
$1,668,640
Payback Period from start of production
Years
5
Initial Capital Expenditure
$K (CAD)
$440,068
Maximum Production Rate
mtpa
1.8
Mine Life
years
16
Average Production Rate after Ramp-up
mtpa
1.73
Mill Feed for Concentrate Sales
tonnes
5,416,388
Mill Feed for HM Plant Precipitate Sales
tonnes
20,712,812
Life Mine ROM Grade
% REO in mill feed
2.33%
Life of Mine Strip Ratio
Waste:Mill feed
1.75
Net Revenue From Concentrate
$K (CAD)
$862,520
Net Revenue From Precipitate
$K (CAD)
$5,236,095
Operating Margin
%
60%
Total Unit Operating Costs
$(CAD)/t Total Mill feed
$90.64
The results of the Preliminary Economic Assessment were previously disclosed in summary form in the Company's news release dated
November 24, 2021
as
amended
January 6, 2022
. The Technical Report was prepared in accordance with the Canadian Securities Administrators' National Instrument 43-101
Standards
of Disclosure for Mineral Projects
("
NI 43-101
") and is available for review under the Company's profile on SEDAR at
www.sedar.com
and on the Company's
website at
www.defensemetals.com
. Readers are encouraged to read the Technical Report in its entirety, including all qualifications, assumptions and exclusions.
The Technical Report is intended to be read as a whole, and sections should not be read or relied upon out of context.
About the Wicheeda REE Property
The 2,008-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. 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
, which includes several carbonatite and alkaline intrusive complexes hosting the Aley
(niobium), Rock Canyon (REE), and Wicheeda (REE) deposits.
Qualified Persons
SRK Qualified Persons (QPs) are all independent as defined by NI 43-101 and have contributed to their corresponding sections of the Technical Report, and have
reviewed and approved the scientific, technical, and economic information contained in this news release. The SRK QPs include André Deiss, (geology and
mineral resources),
Andy Thomas
(pit geotechnical),
Anoush Ebrahimi
(mining),
Eric Olin
(flotation concentration),
Samantha Barnes
(water management),
Mark
Liskowich
(environmental-social-permitting), and
Neil Winkelmann
(infrastructure, marketing and economics). Associate consultant,
John Goode
, is the QP for
hydrometallurgical processing.
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 analytical and test data underlying the information and opinions contained therein.
About SRK
SRK is an independent, global network of consulting practices in over 45 countries on six continents. Its experienced engineers and scientists work with clients in
multi-disciplinary teams to deliver integrated, sustainable solutions across a range of sectors – mining, water, environment, infrastructure and energy.
About
Defense Metals Corp.
Defense Metals Corp. is a mineral exploration company focused on the acquisition of mineral deposits containing metals and elements commonly used in the
electric power market, 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 has an option to acquire 100% of the Wicheeda Rare Earth Element Property
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".
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 the Technical Report and its potential and expected outcomes, plans for its Wicheeda Project, and expected timelines, 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 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.
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For further information:
Todd Hanas, Bluesky Corporate Communications Ltd., Vice President, Investor Relations, Tel: (778) 994 8072, Email:
CO: Defense Metals Corp.
CNW 09:00e 07-JAN-22