Defense Metals Reports Favourable Comminution Data for the Wicheeda Deposit
Defense Metals Reports Favourable Comminution Data for the
Wicheeda Deposit
VANCOUVER, BC
,
Feb. 28, 2023
/CNW/ - Defense Metals Corp. ("
Defense Metals
" or the "
Company
") (TSXV: DEFN) (OTCQB: DFMTF)
(FSE:35D) is pleased to report favourable comminution results on multiple samples extracted from the Wicheeda deposit. The data allows
the design of the crushing and grinding plant that will be an integral part of the planned Wicheeda development. These data are essential
inputs to the upcoming pre-feasibility study (PFS).
Comminution, i.e., crushing and grinding, will be the first step in the processing of material mined from the Wicheeda deposit. In the
process, coarse, as-mined, rocks are reduced in size to sand-like particles, typically less than 1 mm in size, and suitable for upgrading by
flotation or other means. Comminution usually accounts for a significant percentage of the energy demand, production cost and carbon
footprint of a mineral processing plant.
John Goode
, Metallurgy Advisor, stated: "Comminution tests on seventeen variability samples and a Master Composite show that the ore is
soft, amenable to conventional grinding operations and has a low abrasion index. The recent results confirm, and expand on data obtained
from a 30 t bulk sample taken in 2019. The data show that a conventional semi-autogenous grinding (SAG) mill-ball mill circuit will work well
and that grinding energy and supply costs will be relatively low."
Key Highlights:
The Wicheeda variability samples and Master Composite were studied using the industry-standard SMC test to determine amenability
to, and sizing design parameters for, SAG processing. The A x b value averaged 97 and the SAG Circuit Specific Energy (SCSE)
averaged 7 kWh/t indicating a very soft ore.
The Bond rod mill work index test was applied to the Master Composite and returned a value of 10 kWh/t – which again indicates a
very soft feed material.
The Bond ball mill work index test was applied to all samples and resulted in an average of 10 kWh/t using a 65-mesh closing screen.
This again indicates a very soft feed material.
A standard Bond abrasion test was performed on the Master Composite and returned a value of 0.059 g meaning a very low
consumption of grinding balls and mill liners is anticipated.
The Bond ball mill work index and abrasion index data for these new samples are very similar to the values obtained on the 2019 bulk
sample taken from the Wicheeda deposit giving additional confidence in the new data. Comminution data for the 2019 bulk sample were
used during preparation of the 2021 Independent Preliminary Economic Assessment
1
.
Methodology
Seventeen variability samples and a Master Composite were made from drill core taken from the Wicheeda deposit. The variability samples
covered different lithologies, depths, areas and grades of the deposit. The Master Composite had a mass of 260 kg and included all
lithologies in the approximate ratios of their mass in the deposit.
SGS
Lakefield
performed all of the comminution tests. The SMC testing protocol is an industry-standard method of evaluating the
amenability of material to grinding in a semi-autogenous grinding (SAG) mill. The Bond rod and ball mill indices and abrasion index are also
industry-standard tests performed on crushed ore and are essential to the accurate sizing of a grinding circuit.
The comminution data will be used, along with other information, during the upcoming pre-feasibility study (PFS) to design the comminution
circuit for the Wicheeda project.
PDAC Convention,
Toronto
,
March 5 - 8, 2023
The Company is also pleased to announce that it will be attending this year's Prospector's and Developer's Annual Convention (PDAC) in
Toronto, Ontario, Canada
from
Sunday, March 5
to
Wednesday, March 8, 2023
.
The Company's management team, members of the Board of Directors and technical advisors will be available during the convention (
www.pdac.ca/convention
) and invite you to drop by Booth #2500 in the Investors Exchange in the Metro Toronto Convention Centre from
March 5 - 7, 2023
,
10 a.m. to 5 p.m.
and
March 8, 2023
,
9 a.m. to 12 p.m.
to discuss the Company's latest activities and plans for 2023
and onward.
In addition, we invite you to attend the following presentation at PDAC, which includes Kris Raffle, P.Geo, a director of the Company,
presenting on behalf of Defense Metals at
2:14 p.m.
: Electric materials / Rare earth elements (REE), Room
801B
- MTCC Level 800.
Qualified Person
The scientific and technical information contained in this news release, as it relates to the Wicheeda Rare-Earth Project, has been reviewed
and approved by
John Goode
, P. Eng., who is a Qualified Person as defined by National Instrument 43-101 and who has provided the
technical information relating to metallurgy in this news release.
About the Wicheeda REE Property
Defense Metals 100% owned, 4,262-hectare (~10,532-acre) Wicheeda REE property is located approximately 80 km northeast of the city
of
Prince George, British Columbia
; population 77,000. The Wicheeda REE Project is readily accessible by all-weather gravel roads and is
near infrastructure, including hydro power transmission lines and gas pipelines. The nearby Canadian National Railway and major highways
allow easy access to the port facilities at
Prince Rupert
, the closest major North American port to
Asia
.
The 2021 Wicheeda REE Project Preliminary Economic Assessment technical report ("PEA") outlined a robust after-tax net present value
(NPV@8%) of
$517 million
and an 18% IRR
1
. This PEA contemplated an open pit mining operation with a 1.75:1 (waste:mill feed) strip ratio
providing a 1.8 Mtpa ("million tonnes per year") mill throughput producing an average of 25,423 tonnes REO annually over a 16 year mine
life. 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.
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, completion of the PFS, attending PDAC, the Company's
plans for its Wicheeda REE Project, expected results and outcomes from the comminution data, 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 and metallurgical
results, risks related to the inherent uncertainty of exploration and development 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, metallurgical 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 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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CO: Defense Metals Corp.
CNW 08:00e 28-FEB-23