VANCOUVER, BC, Jan. 7, 2022 /CNW/ - Defense Metals Corp.
("Defense Metals" or the "Company") (TSXV: DEFN)
(OTCQB: DFMTF) (FSE: 35D) is pleased to announce that the
Preliminary Economic Assessment NI 43-101 Technical Report on the
Wicheeda Rare Earth Element Project in British Columbia (the "Technical
Report") has been filed on SEDAR. The Technical Report, which
is dated January 6, 2022, has an
effective date of November 7, 2021,
and is entitled "Preliminary Economic Assessment for the Wicheeda
Rare Earth Element Project" and was prepared by SRK Consulting
(Canada) Inc.
Highlights from the PEA:
Project
Metric
|
Units
|
Current
|
Pre-tax NPV @
8%
|
$K (CAD)
|
$760,585
|
Post-tax NPV @
8%
|
$K (CAD)
|
$516,500
|
Pre-tax
IRR
|
% (real)
|
22%
|
Post-tax
IRR
|
% (real)
|
18%
|
Undiscounted
After-tax Cashflow (LOM)
|
$K (CAD)
|
$1,668,640
|
Payback Period from
start of production
|
Years
|
5
|
Initial Capital
Expenditure
|
$K (CAD)
|
$440,068
|
Maximum Production
Rate
|
mtpa
|
1.8
|
Mine Life
|
years
|
16
|
Average Production
Rate after Ramp-up
|
mtpa
|
1.73
|
Mill Feed for
Concentrate Sales
|
tonnes
|
5,416,388
|
Mill Feed for HM
Plant Precipitate Sales
|
tonnes
|
20,712,812
|
Life Mine ROM
Grade
|
% REO in mill
feed
|
2.33%
|
Life of Mine Strip
Ratio
|
Waste:Mill
feed
|
1.75
|
Net Revenue From
Concentrate
|
$K (CAD)
|
$862,520
|
Net Revenue From
Precipitate
|
$K (CAD)
|
$5,236,095
|
Operating
Margin
|
%
|
60%
|
Total Unit Operating
Costs
|
$(CAD)/t Total Mill
feed
|
$90.64
|
The results of the Preliminary Economic Assessment were
previously disclosed in summary form in the Company's news release
dated November 24, 2021 as amended
January 6, 2022. The Technical Report
was prepared in accordance with the Canadian Securities
Administrators' National Instrument 43-101 Standards of
Disclosure for Mineral Projects ("NI 43-101") and is
available for review under the Company's profile on SEDAR at
www.sedar.com and on the Company's website at
www.defensemetals.com. Readers are encouraged to read the Technical
Report in its entirety, including all qualifications, assumptions
and exclusions. The Technical Report is intended to be read as a
whole, and sections should not be read or relied upon out of
context.
About the Wicheeda REE Property
The 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.
Geologically, the property is situated in the Foreland Belt and
within the Rocky Mountain Trench, a major continental geologic
feature. The Foreland Belt contains part of a large alkaline
igneous province, stretching from the Canadian Cordillera to the
southwestern United States, which
includes several carbonatite and alkaline intrusive complexes
hosting the Aley (niobium), Rock Canyon (REE), and Wicheeda (REE)
deposits.
Qualified Persons
SRK Qualified Persons (QPs) are all independent as defined by NI
43-101 and have contributed to their corresponding sections of
the Technical Report, and have reviewed and approved the
scientific, technical, and economic information contained in this
news release. The SRK QPs include André Deiss, (geology and mineral
resources), Andy Thomas (pit
geotechnical), Anoush Ebrahimi
(mining), Eric Olin (flotation
concentration), Samantha Barnes
(water management), Mark Liskowich
(environmental-social-permitting), and Neil
Winkelmann (infrastructure, marketing and economics).
Associate consultant, John Goode, is
the QP for hydrometallurgical processing.
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 SRK
SRK is an independent, global network of consulting practices in
over 45 countries on six continents. Its experienced engineers and
scientists work with clients in multi-disciplinary teams to deliver
integrated, sustainable solutions across a range of sectors –
mining, water, environment, infrastructure and energy.
About Defense Metals Corp.
Defense Metals Corp. is a mineral exploration company focused on
the acquisition 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 has an option to acquire 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".
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 the
Technical Report and its potential and expected outcomes, plans for
its Wicheeda Project, and expected timelines, 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 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.