Defense Metals Provides 2019 Exploration Review for Wicheeda Rare Earth Element Project and Outlines Strategy and Goals for 2020
Defense Metals Provides 2019 Exploration Review for Wicheeda Rare Earth
Element Project and Outlines Strategy and Goals for 2020
Vancouver, British Columbia — January 14, 2020 – Defense Metals Corp. (“Defense Metals”) (DEFN:
TSX-V / DFMTF: OTCQB / 35D: FSE ) is pleased to provide a review of 2019 exploration and
advancement of its 1,708 hectare (4,220 acre) Wicheeda Rare Earth Element (REE) Project located near
Prince George, Canada. Defense Metals’ focus in 2020 will be to complete development of the Wicheeda
Deposit hydrometallurgical flowsheet, initiate flotation pilot plant processing of the recently collected
30 tonne bulk- sample, and update the Wicheeda REE Deposit Mineral Resource based on its highly
successful 2019 drill campaign.
Craig Taylor, President and CEO of Defense Metals, commented: “I am extremely pleased with our
progress in 2019, and proud of each past and present member of the Defense Metals team. During the
year, we remained focused on ensuring each step was strategic to provide a clear path to adding real
value to the Wicheeda REE Project, which we believe is one of the highest quality North American REE
assets. Defense Metals stands to benefit from upward REE demand pressures as the world moves toward
widespread adoption of electric vehicles; in addition to being strategically positioned as a domestic
North American REE source the importance of which is highlighted by the recent announcement of
finalization of the Canada-US Joint Action Plan on Critical Minerals Collaboration, designed to advance
our mutual interest in securing critical mineral supply chains . I would like to thank each of our
shareholders for their support during 2018-19 and in addition to the dedication of our amazing team in
British Columbia. We expect 2020 to be a watershed year of significant re -rating for Defense Metals,
and an elevated presence amongst our peers.”
2019 Wicheeda REE Project Highlights
• Collection of 30 Tonne Bulk-Sample In late-2018, before the onset of winter, a 30 tonne bulk
sample was sent to SGS Canada Inc. (SGS) in Lakefield, Ontario for metallurgical and processing
test work.
• Positive Flotation Metallurgy: SGS flotation test work returned 48.7% LREO (light rare earth
oxide) high grade concentrate of cerium, lanthanum, neodymium, and praseodymium oxides , at
85.7% recovery in locked cycle tests, 10.1 times upgrading ration from head grade of 4.81%
LREO, low 8.2% mass yield concentrate1.
• Hydrometallurgical Studies Initiated: initial indications from SGS are that high REE
extractions can be achieved through acid leaching and caustic conversion techniques. Impurity
removal tests are positive.
• Successful Diamond Drilling Campaign: 13 core holes totalling 2,005 metres further delineated
the main body of high-grade dolomite carbonatite and expended REE mineralization northward
with deposit open to expansion (Figure 1). One of the highest grade REE intercepts to date
within drill hole WI19-31 yielded 4.43% LREO over 83 metres; including 5.47% LREO over
a drill core interval of 33 metres2,3.
• Defense Metals has exceeded its Year 1 and Year 2 exploration spend commitments within
12 months of its option of the Wicheeda REE Project demonstrating its commitment to rapid
advancement of this project.
1 See Defense Metals News Release Dated October 23, 2019.
2 The true width of REE mineralization is estimated to be 70-100% of the drilled interval.
3 See Defense Metals News Release Dated December 12, 2019.
Kris Raffle, P.Geo., Director and Manger of Exploration for Defence Metals commented: “During
2019, Defense Metals metallurgical studies have shown the Wicheeda REE Deposit material exhibits
exceptional flotation performance, and diamond drilling has further delineated and expanded the zone
of high grade REE mineralization. Defense Metals will continue to de-risk and prove-out the value of the
deposit during 2020. We see the potential to increase the size, and our confidence in, the Wicheeda REE
Deposit mineral resource based on the strength of the 2019 diamond drill results; in addition to capturing
additional up-side through incorporation of potentially economically significant praseodymium values,
which were not assayed for historically.”
Going Forward at the Wicheeda REE Project in 2020
• Completion of detailed Hydrometallurgical Test Work.
• Initiation of Flotation Pilot Plant Processing of 30 tonne bulk- sample to establish viability of
bench test results during large-scale continuous operation.
• Update Wicheeda REE Project Mineral Resource Estimate.
• Diamond Drilling to further define newly discovery North Zone of Wicheeda REE Deposit.
• Baseline Environmental Study scoping and commencement.
• Initiate Economic Scoping Studies
Figure 1: Wicheeda REE Deposit 2019 Diamond Drill Plan
VRIC Conference in Vancouver, January 19-20, 2020
Come visit Defense Metals at booth #307 at the (VRIC) Vancouver Resource Investment Confer-
ence, Sunday, Monday, January 19th and 20th, 2020 (10am-5pm) at the Vancouver Convention Centre
West., 1055 Canada Place, Vancouver, BC, V6C 0C3 Canada.
PDAC 2020
Also, please come visit Defense Metals at booth #3101B at PDAC 2020 Core Shack on Tuesday,
Wednesday, March 3rd and 4th, 2020.
Qualified Person
The scientific and technical information contained in this news release as it relates to the Wicheeda Rare
Earth Element 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 National Instrument 43-101 – Standards of Disclosure for Mineral Projects. Mr. Raf-
fle verified the data disclosed which includes a review of the analytical and test data underlying the infor-
mation and opinions contained therein.
About Defense Metals Corp.
Defense Metals is an advanced mineral exploration company focused on the acquisition of mineral deposits
containing metals and elements commonly used in the electric power market, military, national security and
the production of green energy technologies, such as, high strength, light weight, rare earth magnets. Defense
Metals’ primary focus is to exercise its option to acquire 100% of the 1,708 hectare Wicheeda Rare Earth
Element Project. Defense Metals Corp. trades in Canada under “DEFN” on the TSX Venture Exchange, the
United States, under “DFMTF” on the OTCQB and the German, Frankfurt Exchange under the symbol of
“35D”.
For further information, please visit https://defensemetals.com/ or contact:
Todd Hanas, Bluesky Corporate Communications Ltd.
Vice President, Investor Relations
Tel: (778) 994 8072
Email: [email protected]
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 or statements” within the meaning of
applicable securities law, including without limitation, Defense Metals’ expectations for an expanded resource, plans for its prop-
erties/projects, including but not limited to: completion of detailed hydrometallurgical test work; initiation of flotation pilot plant
processing of 30 tonne bulk-sample to establish viability of bench test results during large-scale continuous operation; update
Wicheeda REE Project mineral resource estimate; diamond drilling to further define newly discovery north zone of Wicheeda
REE Deposit; baseline environmental study scoping and commencement; and initiate economic scoping studies, as well as other
statements relating to the technical, financial and business prospects of Defense Metals and other matters.
Forward-looking statements address future events and conditions and are necessarily based upon a number of estimates and as-
sumptions. 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”, “should”, “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 Defense Metals 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 Defense Metals will operate in the
future, including the price of metals and elements, 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 con-
duct Defense Metals’ 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 Defense Metals, they are inherently subject to signif-
icant 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 rare earth elements, and other commodity price fluctuations; (ii) risks and uncertainties relating to the interpre-
tation 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 Defense Metals
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 Defense Metals 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 Defense Metals’ expectations; (ix)
exploration and development risks, including risks related to accidents, equipment breakdowns, labour disputes or other unantici-
pated difficulties with or interruptions in exploration and development; (x) 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 Defense
Metals’ 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 Defense Metals’ 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 Defense Metals’ 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 Defense Metals 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.