Defense Metals Drills 122 metres of 2.56% Total Rare Earth Oxide; Including 55 metres of 3.02% at Wicheeda; and Announces up to $6 Million Financing
Defense Metals Drills 122 metres of 2.56%
Total Rare Earth Oxide; Including 55 metres of
3.02% at Wicheeda; and Announces up to $6
Million Financing
/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN
THE
UNITED STATES
./
VANCOUVER, BC
,
Nov. 22, 2022
/CNW/ - Defense Metals Corp. ("
Defense Metals
" or the
"
Company
") (TSXV: DEFN) (OTCQB: DFMTF) (FSE: 35D) is pleased to announce additional Rare
Earth Element ("
REE
") assay results from one additional core hole, totalling 374 metres (m),
collared within the central area of Defense Metals' 100% owned Wicheeda REE Deposit. This drill
hole represents the deepest hole to date drilled at Wicheeda, terminating
360 m
vertically below
surface and
150 m
below the mineral resource pit shell.
Infill drill hole
WI22-72 (-70
o
dip / 167
o
azimuth)
was drilled south within the central area of the
deposit intersected high-grade mineralized dolomite carbonate
from surface grading 3.02% total
rare earth oxide ("TREO") over 55 metres (m)
within a
broader zone averaging 2.56% TREO
over a 122
; in addition to a well mineralized mixed lithology
lower zone grading 0.9% TREO over
97 m
(Figure 1).
With over
5,500 m
of drilling in 18 holes
now complete as part of the 2022 Wicheeda resource
delineation and pit geotechnical program, the Company has released assays for a total of
2,867 m
in
8 holes.
Assays for the remaining 10 holes totalling
2,643 m
are expected in the coming
weeks and months.
Craig Taylor
, CEO, and Director of Defense Metals stated:
"The 2022 Wicheeda Deposit resource
infill drilling continues to yield high-grade REE intercepts from surface exceeding 3% TREO. The
drill results are doubly significant in that they represent the deepest test of the Wicheeda Deposit to
date, which yielded a broad mixed lithology interval averaging nearly two-times the mineral
resource cut-off grade ending
50 m
below the current pit shell. The fact that we continue to see
potentially economic REE grades at these depths is extremely encouraging."
Table 1. Wicheeda REE Deposit 2022 Diamond Drill Intercepts
Hole ID
From
(m)
To
(m)
Interval
(m)
TREO
(
[1]
)(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)
WI22-72
(167/-70)
3
125
122
2.56
1.25
0.85
0.29
0.11
308
139
63
40
12
5
including
3
58
55
3.02
1.47
1.02
0.34
0.12
345
135
69
34
12
4
and
125
222
97
0.90
0.44
0.27
0.12
0.04
152
80
35
30
8
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
WI22-67
(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
WI22-68
(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
WI22-69
(230/-50)
93
314
221
2.14
1.02
0.74
0.24
0.09
260
126
56
36
11
4
including
93
204
111
3.52
1.68
1.25
0.37
0.14
390
181
81
45
16
5
WI22-70
(234/-55)
117
230
113
2.50
1.20
0.84
0.29
0.10
352
180
74
58
17
7
____________________________
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
.
Figure 1. Drill Section Hole WI22-72 (CNW Group/Defense Metals Corp.)
Private Placement Financing
The Company is pleased to announce a non-brokered private placement offering for total gross
proceeds of up to
C$6 million
(the "
Offering
") to advance its wholly-owned Wicheeda Rare Earth
Elements Project ("
Wicheeda
"). The Offering will consist of the sale of: (i) up to 12,500,000
common shares of the Company that qualify as "flow through shares", as defined in the
Income Tax
Act
(
Canada
) (the "
FT Shares
") at a price of
$0.28
per FT Share for gross proceeds of up to
C$3.5
million
; and (ii) up to 11,363,637 units (the "
Units
") at a price of
$0.22
per Unit (the "
Unit Offering
Price
") for gross proceeds of up to
C$2.5 million
.
Each Unit will consist of one common share of the Company (a "
Common Share
") and one-half of a
non-transferrable Common Share purchase warrant (each, a "
Warrant
"). Each whole Warrant will
entitle the holder thereof to purchase one Common Share at a price of
$0.32
exercisable over two
years following the Closing Date.
The gross proceeds from the issuance of FT Shares will be used by Defense Metals to incur eligible
Canadian exploration expenses ("
CEE
") that will qualify as "flow-through expenditures", as such
terms are defined in the
Income Tax Act
(
Canada
) related to the Company's Wicheeda Rare Earth
Element Project. The net proceeds from the sale of Units will be used for advancing the Wicheeda
project, and general corporate and working capital purposes.
The completion of the Offering is anticipated to occur on or about
November 30, 2022
(the "
Closing
Date
") and is subject to the TSX Venture Exchange ("
Exchange
") approval. All securities issued in
connection with the Offering will be subject to a statutory hold period of four months and a day from
the closing date of the Offering. Finder's fees may be payable in connection with the Offering, all in
accordance with the policies of the Exchange and applicable securities laws.
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
2
.
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.
__________________________________
2
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
.
21, and prepared by SRK Consulting (Canada) Inc. is filed under Defense Metals Corp.'s Issuer Profile on SEDAR (www.sedar.com).
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.
This news release does not constitute an offer to sell or a solicitation of an offer to buy nor shall
there be any sale of any of the securities in any jurisdiction in which such offer, solicitation or sale
would be unlawful, including any of the securities in
the United States of America
. The securities
have not been and will not be registered under the United States Securities Act of 1933, as
amended (the "
1933 Act
") or any state securities laws and may not be offered or sold within
the
United States
or to, or for account or benefit of, U.S. Persons (as defined in Regulation S under the
1933 Act) unless registered under the 1933 Act and applicable state securities laws, or an
exemption from such registration requirements is available.
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 Exchange
approval of the Offering, the anticipated size of the Offering, the intended use of proceeds of the
Offering, advancing the Wicheeda REE Project, drill results including anticipated timeline of such
results/assays, 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.
SOURCE
Defense Metals Corp.
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CNW 09:00e 22-NOV-22