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VANCOUVER, BC, Nov. 22,
2022 /CNW/ - Defense Metals Corp. ("Defense
Metals" or the "Company") (TSXV: DEFN) (OTCQB: DFMTF)
(FSE: 35D) is pleased to announce additional Rare Earth Element
("REE") assay results from one additional core hole,
totalling 374 metres (m), collared within the central area of
Defense Metals' 100% owned Wicheeda REE Deposit. This drill hole
represents the deepest hole to date drilled at Wicheeda,
terminating 360 m vertically below
surface and 150 m below the mineral
resource pit shell.
Infill drill hole WI22-72 (-70o dip /
167o azimuth) was drilled south within the
central area of the deposit intersected high-grade mineralized
dolomite carbonate from surface grading 3.02% total rare earth
oxide ("TREO") over 55 metres (m) within a broader zone
averaging 2.56% TREO over a 122; in addition to a well
mineralized mixed lithology lower zone grading 0.9% TREO over
97 m (Figure 1).
With over 5,500 m of drilling
in 18 holes now complete as part of the 2022 Wicheeda resource
delineation and pit geotechnical program, the Company has released
assays for a total of 2,867 m in 8
holes. Assays for the remaining 10 holes totalling 2,643 m are expected in the coming weeks and
months.
Craig Taylor, CEO, and Director
of Defense Metals stated: "The 2022 Wicheeda Deposit resource
infill drilling continues to yield high-grade REE intercepts from
surface exceeding 3% TREO. The drill results are doubly significant
in that they represent the deepest test of the Wicheeda Deposit to
date, which yielded a broad mixed lithology interval averaging
nearly two-times the mineral resource cut-off grade ending
50 m below the current pit shell. The
fact that we continue to see potentially economic REE grades at
these depths is extremely encouraging."
Table 1. Wicheeda REE Deposit 2022 Diamond Drill
Intercepts
Hole
ID
|
From
(m)
|
To
(m)
|
Interval
(m)
|
TREO([1])(2)
(%)
|
Ce2O3 (%)
|
La2O3 (%)
|
Nd2O3 (%)
|
Pr2O3 (%)
|
Sm2O3
(ppm)
|
Gd2O3
(ppm)
|
Eu2O3
(ppm)
|
Dy2O3
(ppm)
|
Tb4O7
(ppm)
|
Ho2O3
(ppm)
|
WI22-72
(167/-70)
|
3
|
125
|
122
|
2.56
|
1.25
|
0.85
|
0.29
|
0.11
|
308
|
139
|
63
|
40
|
12
|
5
|
including
|
3
|
58
|
55
|
3.02
|
1.47
|
1.02
|
0.34
|
0.12
|
345
|
135
|
69
|
34
|
12
|
4
|
and
|
125
|
222
|
97
|
0.90
|
0.44
|
0.27
|
0.12
|
0.04
|
152
|
80
|
35
|
30
|
8
|
4
|
WI22-62
(204/-50)
|
93
|
260
|
167
|
1.39
|
0.68
|
0.43
|
0.18
|
0.06
|
222
|
101
|
43
|
29
|
9
|
4
|
including
|
121
|
169
|
48
|
2.29
|
1.13
|
0.72
|
0.29
|
0.10
|
316
|
123
|
54
|
22
|
9
|
2
|
WI22-63
(204/-60)
|
148
|
187
|
39
|
2.29
|
1.12
|
0.79
|
0.25
|
0.09
|
246
|
120
|
47
|
26
|
9
|
3
|
including
|
175
|
184
|
9
|
5.08
|
2.45
|
1.84
|
0.52
|
0.19
|
472
|
215
|
91
|
49
|
17
|
5
|
WI22-64
(204/-65)
|
77
|
269.3
|
192.3
|
1.78
|
0.86
|
0.58
|
0.22
|
0.08
|
230
|
116
|
51
|
34
|
10
|
4
|
including
|
77
|
150
|
73
|
3.13
|
1.51
|
1.06
|
0.37
|
0.13
|
353
|
156
|
71
|
30
|
12
|
3
|
WI22-67
(197/-60)
|
30.7
|
137
|
106.3
|
2.53
|
1.22
|
0.87
|
0.28
|
0.10
|
307
|
149
|
66
|
36
|
13
|
4
|
including
|
41
|
100
|
59
|
3.42
|
1.65
|
1.19
|
0.37
|
0.14
|
381
|
184
|
80
|
40
|
16
|
4
|
WI22-68
(220/-55)
|
109.4
|
233
|
123.6
|
3.58
|
1.69
|
1.29
|
0.38
|
0.14
|
376
|
160
|
71
|
35
|
12
|
3
|
including
|
212
|
230
|
18
|
6.70
|
3.11
|
2.50
|
0.71
|
0.27
|
619
|
260
|
111
|
47
|
18
|
5
|
WI22-69
(230/-50)
|
93
|
314
|
221
|
2.14
|
1.02
|
0.74
|
0.24
|
0.09
|
260
|
126
|
56
|
36
|
11
|
4
|
including
|
93
|
204
|
111
|
3.52
|
1.68
|
1.25
|
0.37
|
0.14
|
390
|
181
|
81
|
45
|
16
|
5
|
WI22-70
(234/-55)
|
117
|
230
|
113
|
2.50
|
1.20
|
0.84
|
0.29
|
0.10
|
352
|
180
|
74
|
58
|
17
|
7
|
____________________________
|
1The true
width of REE mineralization is estimated to be 70-100% of the
drilled interval.
|
2 TREO % sum
of CeO2, La2O3,
Nd2O3, Pr6O11,
Sm2O3, Eu2O3,
Gd2O3, Tb4O7,
Dy2O3 and
Ho2O3.
|
Private Placement
Financing
The Company is pleased to announce a non-brokered private
placement offering for total gross proceeds of up to C$6 million (the "Offering") to advance
its wholly-owned Wicheeda Rare Earth Elements Project
("Wicheeda"). The Offering will consist of the sale of: (i)
up to 12,500,000 common shares of the Company that qualify as "flow
through shares", as defined in the Income Tax Act
(Canada) (the "FT Shares")
at a price of $0.28 per FT Share for
gross proceeds of up to C$3.5
million; and (ii) up to 11,363,637 units (the
"Units") at a price of $0.22
per Unit (the "Unit Offering Price") for gross proceeds of
up to C$2.5 million.
Each Unit will consist of one common share of the Company (a
"Common Share") and one-half of a non-transferrable Common
Share purchase warrant (each, a "Warrant"). Each whole
Warrant will entitle the holder thereof to purchase one Common
Share at a price of $0.32 exercisable
over two years following the Closing Date.
The gross proceeds from the issuance of FT Shares will be used
by Defense Metals to incur eligible Canadian exploration expenses
("CEE") that will qualify as "flow-through expenditures", as
such terms are defined in the Income Tax Act (Canada) related to the Company's Wicheeda Rare
Earth Element Project. The net proceeds from the sale of Units will
be used for advancing the Wicheeda project, and general corporate
and working capital purposes.
The completion of the Offering is anticipated to occur on or
about November 30, 2022 (the
"Closing Date") and is subject to the TSX Venture Exchange
("Exchange") approval. All securities issued in connection
with the Offering will be subject to a statutory hold period of
four months and a day from the closing date of the Offering.
Finder's fees may be payable in connection with the Offering, all
in accordance with the policies of the Exchange and applicable
securities laws.
About the Wicheeda REE
Property
The 100% owned 4,244-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 preliminary
economic assessment technical report (PEA) that demonstrated an
after-tax net present value (NPV@8%) of $517
million, and 18% IRR2. 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.
__________________________________
|
2The true
width of REE mineralization is estimated to be 70-100% of the
drilled interval.
|
2 TREO % sum
of CeO2, La2O3,
Nd2O3, Pr6O11,
Sm2O3, Eu2O3,
Gd2O3, Tb4O7,
Dy2O3 and
Ho2O3.
21, and prepared by SRK Consulting (Canada) Inc. is filed under
Defense Metals Corp.'s Issuer Profile on SEDAR
(www.sedar.com).
|
Methodology and QA/QC
The analytical work reported on herein was performed by ALS
Canada Ltd. (ALS) at Langley
(sample preparation) and Vancouver
(ICP-MS fusion), B.C. ALS is an ISO-IEC 17025:2017 and ISO
9001:2015 accredited geoanalytical laboratory and is independent of
the Defense Metals and the QP. Drill core samples were subject to
crushing at a minimum of 70% passing 2 mm, followed by pulverizing
of a 250-gram split to 85% passing 75 microns. A 0.1-gram sample
pulp was then subject to multi-element ICP-MS analysis via
lithium-borate fusion to determine individual REE content
(ME-MS81h). Defense Metals follows industry standard procedures for
the work carried out on the Wicheeda Project, with a quality
assurance/quality control (QA/QC) program. Blank, duplicate, and
standard samples were inserted into the sample sequence sent to the
laboratory for analysis. Defense Metals detected no significant
QA/QC issues during review of the data.
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 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: 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.
This news release does not constitute an offer to sell or a
solicitation of an offer to buy nor shall there be any sale of any
of the securities in any jurisdiction in which such offer,
solicitation or sale would be unlawful, including any of the
securities in the United States of
America. The securities have not been and will not be
registered under the United States Securities Act of 1933, as
amended (the "1933 Act") or any state securities laws and
may not be offered or sold within the
United States or to, or for account or benefit of, U.S.
Persons (as defined in Regulation S under the 1933 Act) unless
registered under the 1933 Act and applicable state securities laws,
or an exemption from such registration requirements is
available.
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 Exchange
approval of the Offering, the anticipated size of the Offering, the
intended use of proceeds of the Offering, 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, 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.
SOURCE Defense Metals Corp.