Defense Metals Corp. Prepares for Initial Diamond Drill Assay Results
Defense Metals Corp. Prepares for Initial Diamond Drill
Assay Results
VANCOUVER, BC
,
Feb. 2, 2022
/CNW/ - Defense Metals Corp. ("
Defense Metals
" or the "
Company
") (TSXV: DEFN)
(OTCQB: DFMTF) (FSE: 35D) is pleased to announce that 1,576 core samples representing 23 drill holes totalling
approximately 3,900 metres of diamond drill core have been shipped and received by ALS Canada Ltd. (ALS) from its Wicheeda
rare earth element (REE) Project.
Samples shipped to date represent more than 70% of the 2021 drilled meterage from the Company's highly successful 29 hole,
5,349 metre diamond drill program designed to expand the Wicheeda REE deposit and further upgrade existing resource
categories (
see Defense Metals news release dated
November 8, 2021
). Core samples from the remining six diamond drill
holes are expected to be shipped to ALS within one week's time.
Of the 1,576 samples submitted to ALS, an ISO-IEC 17025:2017 and ISO 9001:2015 accredited geoanalytical laboratory, a
total of 1,206 samples have been crushed and pulverized in preparation for multi-element ICP-MS fusion analysis. The Company
expects to receive initial assay results from the first four diamond drill holes of the 2021 campaign, subject to QA/QC review, by
mid-February with additional results news flow by end of February and thereafter.
Luisa Moreno
, President and Director of Defense Metals commented:
"We look forward to receiving the initial assays results
from our ambitious 5,349 metre 2021 Wicheeda REE deposit diamond drill campaign. The 2021 drilling is expected to
contribute to the expansion and upgrading of mineral resources we so recently demonstrated in our positive Wicheeda REE
Project PEA."
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.
The Wicheeda REE Project yielded a robust 2021 PEA that demonstrated an after-tax net present value (NPV@8%) of
$517
million
, and 18% IRR
1
. 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.
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 analytical and test data underlying the information and opinions contained therein.
About
Defense Metals Corp.
Defense Metals Corp. is a mineral exploration company focused on the acquisition, exploration and development 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 owns 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 advancing the Wicheeda REE Project, drill results including anticipated
timeline of such results, 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 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
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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For further information:
Todd Hanas, Bluesky Corporate Communications Ltd., Vice President, Investor Relations, Tel: (778)
994 8072, Email: [email protected]
CO: Defense Metals Corp.
CNW 08:00e 02-FEB-22