VANCOUVER, BC, May 31, 2022
/CNW/ - Defense Metals Corp. ("Defense Metals" or the
"Company") (TSX V : DEFN) (OTCQB: DFMTF) (FSE: 35D) is
pleased to announce the initial results of alternative Acid
Bake process testwork underway at SGS Lakefield on Wicheeda
Rare Earth Element (REE) Project mineralized feed. The initial
testwork shows that adoption of the Acid Bake process results in
improved REE extraction, and potentially improvements in capital
and operating costs.
The previous hydrometallurgical flowsheet that was included in
the PEA (preliminary economic assessment[1])
was based on a more costly and complex gangue-leach – caustic-crack
process. Upon joining the team, Defense Metals' lead metallurgical
consultant, John Goode, P.Eng.,
recommended investigation of the acid-bake process for the Wicheeda
ore, and the preliminary results show that the acid-bake process is
more efficient, yielding >95% recovery of neodymium and
praseodymium from flotation concentrate into a leach solution
(Figure 1).
This hydrometallurgy program that started in December, which
includes pilot-plant operations, will be concluded in the last
quarter of 2022. It will provide data to allow a detailed design
and capital- and operating-cost calculations. Updates on the test
work will be provided periodically as results become available.
Luisa Moreno, President of
Defense Metals commented: "We are delighted that the acid-bake
process has yielded higher recoveries of rare earths and offers the
potential to significantly reduce operating and capital costs, thus
improving project economics and further establishing Wicheeda as a
potential near-term source of rare earths."
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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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Ongoing tests:
- Testing of the acid-bake process started in late 2021, with
over 20 tests on several concentrate samples completed to
investigate the impact of bake conditions including acid addition,
concentrate grade, and bake temperature.
- Tests continue to show that the sulphuric acid-bake approach is
highly effective. Across all tests, including those under
sub-optimal conditions, the neodymium/praseodymium extraction is
94% with better test results showing 97 to 99% extraction.
- Short-duration acid-bake pilot operations using the SGS
Lakefield 165 mm diameter kiln are ongoing.
- Pregnant leach solution from the static acid-bake tests is now
being tested for impurity removal and the precipitation of a
refined rare-earth product suitable for sale.
Details of the
Acid-Bake-Water-Leach (AB-WL) Process
In the AB-WL process, Wicheeda's mineral concentrate will be
treated with concentrated sulphuric acid at high temperatures
(200˚C-600˚C) converting the rare earths in the minerals to
water-soluble sulphates, which readily dissolve during the
subsequent water leach. The leachate is then purified, and the
rare-earth elements recovered by a simple precipitation process.
This process requires less equipment, and involves fewer steps and
circuits, as schematically presented in Figure 2.
Importantly, this flowsheet is the same as that used by Lynas at
its Kuantan REE production facility and by Baogang at the Bayan Obo
REE recovery plants (using a bastnasite and monazite ore).
Most of the world's REE are produced by the Acid-Bake
process.
About the Wicheeda REE
Property
The 100% owned 2,008-hectare Wicheeda Rare-Earth Project,
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 Rare-Earth Project yielded a robust 2021 PEA that
demonstrated an after-tax net present value (NPV@8%) of
$517 million, and 18%
IRR1. A unique advantage of the Wicheeda Rare-Earth
Project is its ability to produce 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 an 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 one and
payback of $440 million initial
capital within five years. The Acid-Bake process is
expected to improve upon the 2021 PEA economics.
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 has provided the technical information
relating to metallurgy in this news release.
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 market, defense industry, national-security
sector and in the production of green-energy technologies, such as,
rare-earth magnets used in wind turbines and in permanent-magnet
motors for electric vehicles. Defense Metals owns 100% of the
Wicheeda Rare-Earth Project 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: todd@blueskycorp.ca
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 Rare-Earth Project, completing the geotechnical and
hydrogeological drill program and the expected results and
outcomes, the Company's plans for its Wicheeda Rare-Earth Project
including other studies and development work, expected results and
outcomes, the technical, financial and business prospects of the
Company, its rare-earth 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 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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SOURCE Defense Metals Corp.