Defense Metals Drills High-Grades at Wicheeda including 124 metres of 3.58% Total Rare Earth Oxide
Defense Metals Drills High-Grades at Wicheeda including 124 metres of
3.58% Total Rare Earth Oxide
VANCOUVER, BC
,
Oct. 11, 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 an additional two core drill holes, totalling 717 metres (m), collared from the same site
within the northern area of Defense Metals' 100% owned Wicheeda REE Deposit.
Infill drill hole WI22-68 (-55
o
dip / 220
o
azimuth), the deepest hole to date on the Wicheeda Project at 395 metres, was drilled southwest within the northern
area of the deposit and yielded a broad mineralized intercept of high-grade dolomite carbonatite averaging
3.58% total rare earth oxide ("TREO") over 124
metres;
including an
exceptionally high-grade zone of 6.70% TREO over
18 m
1
that included one
3 m
sample yielding 8.58% TREO (Figure 1, and Image
1).
Drill hole WI22-63 (-60
o
dip / 204
o
azimuth) collared from the same drill site, tested the interpreted eastern contact of the carbonatite body at depth and
returned
2.29% TREO over
39 m
; including 5.08% TREO over
9 m
1
(Figure 2).
Luisa Moreno
, President, and Director of Defense Metals stated:
"These two core drill holes, in particular WI22-68, once again demonstrate the potential for
high REE grades over significant widths within the northern Wicheeda Deposit. Assays for WI22-68 were prioritized based on readily visible, coarse-grained
REE mineralization. We look forward to receiving additional assay results of other resource infill drill holes from the northern and central Wicheeda Deposit
that appear similar in terms of visually estimated REE mineralization percentage."
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)
WI22-68
(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
WI22-63
(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
WI22-62
(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
___________________________
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 Holes WI22-68 (CNW Group/Defense Metals Corp.)
Image 1: WI22-68 Visibly Coarse-grained REE Mineralization
Within Interval Grading 6.70% TREO Over 18 Metres (CNW Group/Defense Metals Corp.)
Figure 2. Drill Section Holes WI22-63 (CNW Group/Defense Metals Corp.)
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.
___________________________
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).
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, 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.
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CNW 08:30e 11-OCT-22