Defense Metals Upgrades and Expands Mineral Resource Estimate for Wicheeda Rare Earth Element Project
Defense Metals Upgrades and Expands Mineral Resource Estimate for
Wicheeda Rare Earth Element Project
VANCOUVER, BC
,
Sept. 12, 2023
/CNW/ - Defense Metals Corp. ("
Defense Metals
" or the "
Company
") (TSXV: DEFN) (OTCQB: DFMTF) (FSE: 35D) is
pleased to announce an updated Mineral Resource Estimate (the 2023 MRE) for the development of its Wicheeda Rare Earth Element (REE) deposit located in
British Columbia, Canada
.
Highlights of the 2023 Wicheeda REE Deposit Mineral Resource Estimate
The 2023 MRE comprises a:
6.4 million tonne Measured Mineral Resource, averaging 2.86% Total Rare Earth Oxide (TREO
1
);
a 27.8 million tonne Indicated Mineral Resource, averaging 1.84 % TREO;
and an 11.1 million tonne Inferred Mineral Resource, averaging 1.02% TREO,
all reported at a cut-off grade of 0.5% TREO within a conceptual open pit shell;
Total Measured and Indicated (M+I) Mineral Resources of 34.2 million tonnes, averaging 2.02% TREO, is a significant upgrade representing a conversion of
101% of the 2021 MRE comprising some indicated and mostly inferred resources (see Defense Metals' news release of
November 24, 2021
) to M+I on a
contained metal basis;
Measured and Indicated resources are inclusive of 17.8 million tonnes of dolomite carbonatite, averaging 2.92% TREO;
The 2023 MRE represents a 17% increase in TREO on a contained metal basis, or 31% tonnage increase, in comparison to the prior 2021 MRE.
The 2023 MRE is based on an updated geological model that incorporates an additional 10,350 metres of drillhole data, from 45 holes drilled by Defense
Metals during 2021 and 2022.
__________________________
1
TREO % is the 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
%.
Craig Taylor
, CEO of Defense Metals, stated,
"Defense Metals is excited to release our updated mineral resource estimate for the Wicheeda Deposit, one of
North Americas most advanced Rare Earth development projects. With over 10,000 metres of additional drilling completed since our 2021 mineral resource we
have now converted 100% of the that resource to the measured and indicated categories, in addition to growing the overall resource by 17%. Importantly, we
believe the upgrading of resources now demonstrates that we have established the tonnage and grades necessary to carry forward into our ongoing preliminary
feasibility study."
The effective date of the 2023 MRE is
August 28, 2023
, and a technical report relating to the PEA will be filed on SEDAR within 45 days of this news release. The
2023 MRE was prepared by APEX Geoscience Ltd. (APEX).
2023 Mineral Resource
The Wicheeda REE deposit is a southeast-trending, north to northeast dipping syenite-carbonatite intrusive complex having dimensions of approximately
450 m
north-south by
250 m
east-west which intrudes a mixed sedimentary host rock package (limestone). Relatively high REE grade dolomite-carbonatite rocks, which
outcrop at surface, and form the main body of REE mineralization are surrounded by an envelope of intermediate REE grade hybrid xenolithic-carbonatite rocks
that intrude lower REE grade syenite.
The 2023 MRE comprises a 6.4 million tonne Measured Mineral Resource, averaging 2.86% TREO CeO
2
, La
2
O
3
, Nd
2
O
3
, Pr
6
O
11
, Sm2O3, Eu
2
O
3
, Gd
2
O
3
,
Tb
4
O
7
, Dy
2
O
3
and Ho
2
O
3
); 27.8 million tonne Indicated Mineral Indicated Resource, averaging 1.84% TREO; and 11.1 million tonne Inferred Mineral Resource,
averaging 1.02% TREO, reported at a cut-off grade of 0.5% TREO within a conceptual Pseudoflow algorithm open pit shell; see
Table 1
and
Figure 1
.
The 2023 MRE is based on an updated geological model incorporating an additional 10,350 metres of drilling within 45 holes drilled by Defense Metals during
2021 and 2022.
Category
Tonnes
TREO
TREO
CeO
2
La
2
O
3
Pr
6
O
11
Nd
2
O
3
Sm
2
O
3
Gd
2
O
3
Eu
2
O
3
Dy
2
O
3
Tb
4
O
7
Ho
2
O
3
(Million)
( %)
(kt)
( %)
( %)
( %)
( %)
(ppm)
(ppm)
(ppm)
(ppm)
(ppm)
(ppm)
Measured
6.4
2.86
183
1.39
1.00
0.11
0.31
312
139
63
35
12
4
Indicated
27.8
1.84
516
0.89
0.62
0.07
0.21
232
111
50
32
10
4
M&I
34.2
2.02
699
0.98
0.69
0.08
0.23
247
116
52
32
10
4
Inferred
11.1
1.02
113
0.50
0.31
0.04
0.13
166
91
38
35
9
5
Table 1: Wicheeda Mineral Resource (effective date August 28, 2023)
Notes for Resource Table:
The 2023 MRE is classified according to the CIM "Estimation of Mineral Resources and Mineral Reserves Best Practice Guidelines" dated
November 29
th
,
2019 and CIM "Definition Standards for Mineral Resources and Mineral Reserves" dated
May 10
th
, 2014.
The 2023 MRE was prepared by
Warren Black
,
M.Sc., P.Geo. and Tyler Acorn, M.Sc., of APEX Geoscience Ltd
under the supervision of the QP,
Michael
Dufresne
, M.Sc., P.Geo. in accordance with CIM Definition Standards.
Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability
. There has been insufficient exploration to allow for the
classification of the indicated and inferred resources tabulated as a measured mineral resource; however, it is reasonably expected that the majority of the
indicated and inferred mineral resources could be upgraded to measured or indicated mineral resources with continued exploration. There is no guarantee
that any part of the mineral resources discussed herein will be converted to a mineral reserve in the future.
All figures are rounded to reflect the relative accuracy of the estimates. Totals may not sum due to rounding.
Median rock densities are supported by 8,075 measurements
applied: 2.95 g/cm3 (mineralized dolomite-carbonatite), 2.90 g/cm3 (unmineralized
dolomite-carbonatite), 2.85 g/cm3 (mineralized xenolithic-carbonatite), 2.76 g/cm3 (unmineralized xenolithic-carbonatite), 2.73 g/cm3 (syenite), and 2.76
g/cm3 (limestone).
The reasonable prospect for eventual economic extraction is met by reporting the Mineral Resources at a cut-off grade of 0.50% TREO (total rare earth
oxide, sum of 10 oxides: 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
)
, contained within an optimized open pit shell.
The cut-off grade is calculated, and the open pit shell is optimized based on the assumption that the hydrometallurgical processing can produce mixed
REE carbonate precipitates. The parameters utilized, as in the 2021 MRE, include the following considerations:
TREO price:
$18.66
/kg
Exchange rate of
1.30 C$
:US$
Precipitate production grades of 81.09% of TREO
Processing costs include
$21.47
/t of mill feed for flotation plus a variable cost for hydrometallurgical plant that varies based on the feed grade. The
average cost of hydrometallurgical plant is assumed to be
$1,204
/t of concentrate.
Mining cost of
C$2.00
/t for mill feed and waste
G&A Costs of
C$3.33
/t for mill feed.
The overall process recoveries: For TREO>=2.3%, recovery is 69.6%; between 2.3% and 1.5% TREO, recovery is 65.3%; and less than 1.5% TREO,
recovery is 52.2%. These assume variable flotation recoveries and a constant 87% hydrometallurgical recovery.
Overall pit slope angles vary by zone between 40 and 48 degrees.
Figure 1: Cross Section of the Wicheeda RE Deposits 2023 MRE (CNW Group/Defense Metals Corp.)
The 2023 MRE for the Wicheeda REE Deposit includes inferred mineral resources that are considered too speculative geologically to have the economic
considerations applied to them that would enable them to be categorized as mineral reserves. Mineral resources that are not mineral reserves do not have
demonstrated economic viability.
Mineral Resource Estimate Methodology
1
.
The drillhole database comprised of drilling that intersected the estimation domains consists of 14 exploration diamond drillholes (totalling 2,107 meters)
completed in 2008 and 2009 by Spectrum Mining and 58 exploration core drillholes during 2019, 2021 and 2022 by Defense Metals (totalling 12,073 metres),
providing a total of 4,903 drill core samples analyzed for REE by multi-element fusion ICP-MS.
2
.
The 3D geological modeling integrates assay and geological data collected from diamond core drilling; surface geologic mapping; soil geochemical; and
airborne magnetic and radiometric geophysical surveys.
3
.
Ordinary kriging is employed to estimate metal concentrations using a three-step pass search strategy guided by domain-specific variography. The estimates
utilize capped composites with a 3-meter length.
4
.
Measured Resources are categorized within a search ellipse of 35 m by
30 m
by
15 m
with a minimum of 3 drillholes. Indicated Resources are categorized
within a search ellipse of
90 m
by
60 m
by
30 m
with a minimum of 3 drillholes. Inferred Resources are categorized within a search ellipse of
120 m
by
120 m
by
30 m
with a minimum of 2 drillholes.
Category
Cut-off
Tonnes
1
TREO
2
TREO
CeO
2
La
2
O
3
Pr
6
O
11
Nd
2
O
3
Sm
2
O
3
Gd
2
O
3
Eu
2
O
3
Dy
2
O
3
Tb
4
O
7
Ho
2
O
3
TREO (%)
2
(Million)
( %)
(kt)
( %)
( %)
( %)
( %)
(ppm)
(ppm)
(ppm)
(ppm)
(ppm)
(ppm)
Measured
0.25
6.7
2.74
184
1.33
0.96
0.11
0.29
301
136
61
36
12
4
0.5
6.4
2.86
183
1.39
1.00
0.11
0.31
312
139
63
35
12
4
0.75
6.3
2.90
182
1.41
1.01
0.11
0.31
315
140
64
35
12
4
1
6.2
2.93
182
1.42
1.02
0.11
0.31
318
141
64
35
12
4
1.5
5.9
3.01
178
1.46
1.05
0.12
0.32
324
143
65
35
12
4
2
5.2
3.18
165
1.54
1.12
0.12
0.34
338
148
68
37
12
4
2.5
4.1
3.43
140
1.66
1.21
0.13
0.36
358
157
72
38
13
4
Indicated
0.25
36.1
1.49
546
0.72
0.50
0.06
0.17
197
98
43
31
9
4
0.5
27.8
1.84
516
0.89
0.62
0.07
0.21
232
111
50
32
10
4
0.75
23.0
2.10
487
1.02
0.71
0.08
0.24
257
120
54
32
10
4
1
19.5
2.33
456
1.13
0.79
0.09
0.26
277
128
58
33
11
4
1.5
13.9
2.78
387
1.35
0.96
0.11
0.30
312
141
64
34
12
4
2
10.3
3.15
324
1.53
1.10
0.12
0.34
339
151
69
36
12
4
2.5
7.6
3.46
264
1.68
1.21
0.14
0.37
363
161
74
38
13
4
Inferred
0.25
21.8
0.70
153
0.34
0.21
0.03
0.09
126
75
30
34
8
5
0.5
11.1
1.02
113
0.50
0.31
0.04
0.13
166
91
38
35
9
5
0.75
5.9
1.39
81
0.68
0.44
0.06
0.17
206
103
45
33
9
4
1
3.6
1.72
62
0.85
0.55
0.07
0.21
240
116
51
35
10
4
1.5
1.7
2.26
39
1.12
0.74
0.09
0.26
289
136
60
37
11
4
2
1.0
2.62
27
1.29
0.87
0.11
0.29
317
148
65
41
12
5
2.5
0.5
3.03
14
1.49
1.02
0.12
0.33
335
156
69
44
13
5
Table 2: Mineral Resource cut-off sensitivity
Notes
1
.
1
Tonnes constrained within an open pit shell.
2
.
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
.
3
.
Grades are reported as in-situ grades.
Table
2
above illustrates the sensitivity of the 2023 MRE to different cut-off grades for a potential open-pit operation scenario with reasonable outlook for
economic extraction. The reader is cautioned that the figures provided in these tables should not be interpreted as a statement of mineral resources. Quantities
and estimated grades for different cut-off grades are presented for the sole purpose of demonstrating the sensitivity of the resource model to cut-off grade.
Lithology
Category
Tonnes
TREO
TREO
CeO
2
La2O3
Pr
6
O
11
Nd
2
O
3
Sm
2
O
3
Gd
2
O
3
Eu
2
O
3
Dy
2
O
3
Tb
4
O
7
Ho
2
O
3
(Million)
( %)
(kt)
( %)
( %)
( %)
( %)
(ppm)
(ppm)
(ppm)
(ppm)
(ppm)
(ppm)
Dolomite Carbonatite
Measured
5.9
2.98
177
1.44
1.04
0.12
0.32
320
142
65
35
12
4
Indicated
11.8
2.88
342
1.40
1.01
0.11
0.31
315
141
64
34
12
4
M&I
17.8
2.92
519
1.41
1.02
0.11
0.31
316
141
64
34
12
4
Inferred
0.6
2.66
15
1.30
0.91
0.11
0.29
281
134
60
37
11
4
Xenolithic-Dolomite Carbonatite
Measured
0.3
1.43
5
0.69
0.46
0.06
0.17
209
107
47
35
10
5
Indicated
11.6
1.22
142
0.59
0.38
0.05
0.15
188
95
42
30
9
4
M&I
12.0
1.22
147
0.60
0.39
0.05
0.15
189
95
42
30
9
4
Inferred
4.0
1.28
51
0.63
0.40
0.05
0.16
198
98
43
32
9
4
Syenite
Measured
0.1
0.81
1
0.39
0.26
0.03
0.10
138
84
34
32
9
5
Indicated
4.1
0.74
31
0.36
0.22
0.03
0.10
132
73
31
28
7
4
M&I
4.2
0.74
31
0.36
0.22
0.03
0.10
132
73
31
28
7
4
Inferred
5.8
0.73
42
0.36
0.21
0.03
0.10
136
78
33
33
8
5
Limestone
Measured
0.0
1.05
0
0.49
0.34
0.05
0.13
178
120
43
63
14
10
Indicated
0.2
0.81
1
0.38
0.25
0.03
0.11
156
117
41
62
14
10
M&I
0.2
0.83
2
0.39
0.26
0.03
0.11
157
117
41
63
14
10
Inferred
0.7
0.73
5
0.34
0.22
0.03
0.09
143
111
39
70
14
11
Table 3: Wicheeda Mineral Resource by Lithology (cut-off grade of 0.5% TREO)
Table
3
above illustrates the 2023 MRE by lithology which illustrates the relatively high REE grade nature of the dominant dolomite carbonatite unit, intermediate
grade xenolithic dolomite carbonate rocks and lower grade syenite and limestone lithologies peripheral to the main body of the Wicheeda REE Deposit.
Qualified Persons
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 the Wicheeda REE Property
Defense Metals 100% owned, 6,759-hectare (~16,702-acre) Wicheeda Project is located approximately 80 km northeast of the city of
Prince George, British
Columbia
, Canada; population 77,000. The Wicheeda Project is readily accessible by all-weather gravel roads and is near infrastructure, including hydropower
transmission lines and gas pipelines. The nearby Canadian National Railway and major highways allow easy access to the deep-water port facilities at
Prince
Rupert
, the closest major North American port to
Asia
.
About
Defense Metals Corp.
Defense Metals Corp. is a mineral exploration and development company focused on the development of its 100% owned 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".
Defense Metals is a proud member of Discovery Group. For more information please visit:
http://www.discoverygroup.ca/
National Instrument 43-101 Technical Report
A technical report for the Wicheeda Project will be prepared in accordance with National Instrument 43-101 and will be filed on SEDAR at
www.sedarplus.ca
and
on the
Defense Metals' website
within 45 days of this news release. Readers are encouraged to read the technical report in its entirety, including all qualifications,
assumptions and exclusions that relate to the details summarized in this news release. The technical report is intended to be read as a whole, and sections should
not be read or relied upon out of context.
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 completion of the PFS and the expected timelines, the completion of the environmental tests on flotation and hydrometallurgical and the
expected timelines, advancing the Wicheeda REE Project, 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.sedarplus.ca
. 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.
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CNW 07:00e 12-SEP-23