Defense Metals Corp. Drills 3.79% Total Rare Earth Oxide Over 150 Metres; Including 4.77% Over 60 Metres at Wicheeda - Hole WI21-49 Yields Highest Grade Single Assay To Date Of 1.41% Neodymium-Praseodymium Oxide At 10% Total Rare Earth Oxide
03/15/2022 - 08:00 AM
VANCOUVER, BC , March 15, 2022 /PRNewswire/ - Defense Metals Corp. ("Defense Metals " or the "Company ") (TSXV: DEFN) (OTCQB: DFMTF) (FSE: 35D) is pleased to announce results for an additional two diamond drill holes totalling 189 metres from the Company's 29 hole, 5,349 metre diamond drill program completed during fall 2021. Drill holes WI21-45 through WI21-48 were collared from the same site and within the northern area of the Wicheeda Rare Earth Element (REE) deposit.
Drill hole WI21-49 returned 3.79% TREO (total rare earth oxide) over 150 metres; including 4.77% TREO over 60 metres1 . The drill hole was designed to further delineate at depth drill holes WI21-33 and WI21-40 that in conjunction with WI21-49 represent the three highest grade x width intercepts of the 2021 drilling to date. Together these three drill holes define a newly discovered zone of high-grade REE mineralization that occurs below both the current mineral resource and resource pit shells.
The Company continues to receive additional assay results from the 2021 Wicheeda REE Deposit resource expansion and delineation campaign that will be released in the coming weeks.
Luisa Moreno , President, and Director of Defense Metals stated: "We are excited with the consistently high-grade results to date. Wicheeda is emerging as a world class deposit, and we are fortunate to be part of the development of this project." She added: "Drilling within the northern Wicheeda Deposit has resulted in the discovery of an emerging zone of high grade REE mineralization at depth. This area of the deposit was first tested by WI19-32, the last drill hole of our 2019 drill campaign. Drilling during 2021 has now shown high grade REE mineralization extends a further 100 metres vertically below the bottom of WI19-32, and beyond the current mineral resource extents."
Delineation drill holes WI21-49 (-70o dip / 190o azimuth) expanded and further delineated broad intervals of REE mineralized dolomite-carbonatite intersected in drill holes WI21-33 and WI21-40, yielding 3.79% TREO over 150 metres; including 4.77% TREO over 60 metres 1 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% TREO 1 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% TREO (Table 1 and Figure 1 ).
Drill holes WI21-50 (-50o dip / 215o azimuth) and WI21-48 (-60o dip / 280o azimuth) established the northwest margin of the Wicheeda Deposit in the near surface intercepting a broad mixed syenite and xenolithic carbonatite interval above resource cut-off grade averaging 1.60% TREO over 127metres; including a higher-grade interval of 3.34% TREO over 35 metres 1 . 2.50% TREO over 176 metres; including 6.14% TREO over 20 metres 1 from surface (Figure 2 ).
Table 1. Wicheeda REE Deposit 2021 Diamond Drill Intercepts
Hole ID
From (m)
To (m)
Interval (m)
TREO2 (%)
Ce2 O3 (%)
La2 O3 (%)
Nd2 O3 (%)
Pr2 O3 (%)
Sm2 O3 (ppm)
Gd2 O3 (ppm)
Eu2 O3 (ppm)
Dy2 O3 (ppm)
Tb4 O7 (ppm)
Ho2 O3 (ppm)
WI21-49 (190/-70)
33
183
150
3.79
1.80
1.36
0.41
0.14
430
197
86
45
16
5
including
82
142
60
4.77
2.28
1.71
0.51
0.18
520
228
103
54
18
5
WI21-50 (215/-50)
23
149.7
126.7
1.60
0.76
0.55
0.18
0.06
205
110
47
34
10
4
including
50.35
85.65
35.3
3.34
1.59
1.23
0.33
0.12
341
166
72
40
13
4
WI21-33 (350/-80)
5.00
201.00
196
3.17
1.52
1.07
0.37
0.13
382
181
81
42
14
4
including
5.00
55.25
50.25
3.63
1.74
1.26
0.41
0.14
396
181
84
52
16
6
including
146.00
201.00
55.00
4.29
2.07
1.48
0.47
0.17
489
232
112
52
18
5
WI21-34 (040/-55)
3.00
117.00
114.00
2.97
1.46
1.02
0.33
0.11
323
134
58
23
9
2
including
3.00
70.00
67.00
3.84
1.89
1.34
0.41
0.15
379
160
69
29
11
3
WI21-35 (080/-55)
1.20
121.00
119.80
3.87
1.87
1.34
0.43
0.15
434
200
88
52
17
6
WI21-36 (108/-80)
1.10
174.00
172.90
2.34
1.14
0.78
0.27
0.09
293
134
59
35
11
4
including
1.10
35.65
34.55
3.45
1.66
1.21
0.38
0.13
374
170
72
37
13
4
including
136.00
174.00
38.00
3.02
1.46
1.05
0.33
0.12
337
157
68
40
13
4
WI21-37 (108/-45)
2.00
139.85
137.85
3.19
1.56
1.10
0.35
0.12
351
144
66
30
11
3
including
2.00
57.00
55.00
4.00
1.96
1.38
0.42
0.15
427
164
76
35
12
3
WI21-38 (220/-70)
1.35
82.00
80.65
3.08
1.50
1.07
0.33
0.12
346
154
70
40
13
4
including
1.35
24.75
23.4
6.01
2.91
2.14
0.62
0.23
607
246
114
60
20
6
WI21-39 (285/-60)
4
114
110
2.62
1.28
0.87
0.30
0.10
320
158
73
42
13
5
and
114
224.8
110.8
0.72
0.35
0.21
0.10
0.03
129
75
31
30
8
4
WI21-40 (345/-65)
2.75
165
162.25
3.23
1.57
1.11
0.36
0.13
370
158
70
39
13
4
including
2.75
47.5
44.75
4.21
2.05
1.46
0.46
0.16
452
197
92
61
18
7
including
96
167
71
3.67
1.79
1.26
0.41
0.14
411
173
75
35
13
3
WI21-43 (045/-85)
10.75
124.1
113.35
0.55
0.26
0.17
0.07
0.02
121
84
33
35
9
5
WI21-44 (240/-60)
17.5
125.6
108.1
1.72
0.83
0.57
0.20
0.07
266
141
69
47
14
6
including
35
89
54
2.59
1.24
0.87
0.29
0.10
384
205
102
70
20
9
WI21-45 (240/-75)
47.8
106.9
59.1
1.46
0.67
0.51
0.17
0.06
230
134
83
43
13
6
including
47.8
74
26.2
2.48
1.13
0.88
0.29
0.10
384
225
151
67
21
8
WI21-46 (190/-50)
18.9
135.3
116.4
1.66
0.80
0.56
0.20
0.06
229
108
47
28
9
3
including
48
90
42
2.27
1.09
0.79
0.25
0.09
271
112
48
22
8
2
including
117.55
135.3
17.75
2.32
1.12
0.74
0.30
0.09
350
170
75
42
14
5
WI21-47 (280/-60)
17
98.36
81.36
0.58
0.28
0.18
0.08
0.02
108
67
30
29
7
4
WI21-48 (145/-45)
12
188
176
2.50
1.22
0.84
0.29
0.10
306
130
57
27
10
3
including
12
32
20
6.15
2.98
2.11
0.69
0.24
669
311
142
80
25
9
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.
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 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".
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, 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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1
The true width of REE mineralization is estimated to be 70-100% of the drilled interval.
2
TREO % sum of CeO2 , La2 O3 , Nd2 O3 , Pr6 O11 , Sm2 O3 , Eu2 O3 , Gd2 O3 , Tb4 O7 , Dy2 O3 and Ho2 O3 .
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 ).
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