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Defense Metals Drills 122 metres of 2.56% Total Rare Earth Oxide; Including 55 metres of 3.02% at Wicheeda; and Announces up to $6 Million Financing

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Defense Metals Drills 122 metres of 2.56% Total Rare Earth Oxide; Including 55 metres of 3.02% at Wicheeda; and Announces up to $6 Million Financing

 

 

 

 

 

Defense Metals Corp. (TSX-V: DEFN) (OTCQB: DFMTF) (FSE: 35D) is pleased to announce additional Rare Earth Element assay results from one additional core hole, totalling 374 metres 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 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 to advance its wholly-owned Wicheeda Rare Earth Elements Project. 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) 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 at a price of $0.22 per Unit for gross proceeds of up to C$2.5 million.

 

Each Unit will consist of one common share of the Company and one-half of a non-transferrable Common Share purchase 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 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 and is subject to the TSX Venture 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. 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.

 

 


Figure 1. Drill Section Hole WI22-72 (CNW Group/Defense Metals Corp.)

 

Posted November 22, 2022

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