Diamond Drill Program
VANCOUVER, BC, June 7, 2022
/CNW/ - Defense Metals Corp. ("Defense Metals" or the
"Company") (TSXV: DEFN) (OTCQB: DFMTF) (FSE: 35D) is pleased
to announce the commencement of diamond drilling at its Wicheeda
Rare Earth Element (REE) deposit. The Company plans to
complete up to 5,000 metres of diamond drilling designed to further
delineate existing resources, assess near deposit exploration
targets, collect geotechnical and hydrogeological drilling for the
purpose of optimization of open pit slope design, and generate
additional REE mineralized material for continued metallurgical
testwork.
The 2022 Wicheeda REE diamond drill campaign is expected to
include up to 1,500 metres of pit geotechnical and hydrogeological
drilling, 1,500 metres of further resource delineation and near
resource exploration drilling, and up to 2,000 metres of 8.5 cm
diameter PQ core for continued metallurgical testing (Figure
1).
The 2022 drill program has commenced from existing drill pads
prepared during 2021 in the northern area of the Wicheeda REE
Deposit that returned some of the highest grade x width intercepts
of the 2021 drilling (Figure 2). Drill holes WI21-33
and WI21-40 yielded 3.79% TREO over 150 metres; including
4.77% TREO over 60 metres1 that extends 80 metres
beyond the current mineral resource and 40 metres beyond the
constraining pit shell. This higher-grade interval includes 12
metres averaging 8.06% TREO1 from 84 to 96 metres
downhole, which contained the highest single (3 metre) combined
neodymium-praseodymium (Nd-Pr) oxide assay value to date on the
Wicheeda Project of 1.41% Nd-Pr Oxide at 10% TREO2.
North area drilling will be followed by near resource
exploration drilling immediately west of the Wicheeda Deposit
targeting combined REE in soil geochemical and radiometric
anomalies in the vicinity of historical 2009 exploration holes that
revealed visual indication of potential REE mineralization when
recently reviewed by the Defense Metals technical team.
As previously announced the Company has retained SRK Consulting
(Canada) Inc. ("SRK") to
assist with planning and executing geotechnical drilling
investigations (see the Defense Metals News Release dated
May 24, 2022). Senior SRK
engineering personnel are expected to conduct a two-day field site
visit to Wicheeda to conduct bedrock and structural mapping, view
drill core, and establish geotechnical data collection protocols,
testing, and instrumentation installation procedures.
Luisa Moreno, President, and
Director of Defense Metals commented: "Defense Meal is excited
to once again get back to drilling at Wicheeda. Given the success
of last years 5,349 metre diamond drill program, we look forward to
continuing to define the Wicheeda Deposit, in particular the high
grade north area, testing near resource exploration targets, and
commencing our pre-feasibility level geotechnical studies. As
announced last week, metallurgical optimizations continue at pace
at the SGS Lakefield site, and we look forward to releasing results
of that testwork as information becomes available."
_______________________
1
|
The true width of REE
mineralization is estimated to be 70-100% of the drilled
interval.
|
2
|
See Defense Metals news
release dated March 15, 2022.
|
About the Wicheeda REE
Property
The 100% owned 2,008-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 PEA that
demonstrated an after-tax net present value (NPV@8%) of
$517 million, and 18%
IRR3. 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).
|
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 market, 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
Property 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 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, completion of
metallurgical optimizations and the results of that testwork, 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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SOURCE Defense Metals Corp.