Defense Metals Drills High-Grades at Wicheeda including 124 metres of 3.58% Total Rare Earth Oxide

Rhea-AI Summary

Defense Metals Corp. announced promising high-grade Rare Earth Element (REE) assay results from two recent drill holes at the Wicheeda REE Deposit. Drill hole WI22-68 reached 395 meters, yielding an average of 3.58% total rare earth oxide (TREO) over 124 meters, with a peak of 6.70% TREO over 18 meters. The second hole, WI22-63, returned 2.29% TREO over 39 meters. These findings reinforce the project’s potential, which has a previous economic assessment showing an after-tax NPV of $517 million and a projected annual production of 25,423 tonnes REO.

Positive

• Drill hole WI22-68 achieved 3.58% TREO over 124 meters with a high-grade zone of 6.70% TREO over 18 meters.
• Drill hole WI22-63 returned 2.29% TREO over 39 meters, indicating strong mineralization.
• The Wicheeda REE Project has a previous economic assessment showing an after-tax NPV of $517 million.
• Expected annual production of 25,423 tonnes REO enhances project viability.

Negative

• None.

VANCOUVER, BC, Oct. 11, 2022 /PRNewswire/ - Defense Metals Corp. ("Defense Metals" or the "Company") (TSXV: DEFN) (OTCQB: DFMTF) (FSE: 35D) announces high-grade Rare Earth Element ("REE") assay results from an additional two core drill holes, totalling 717 metres (m), collared from the same site within the northern area of Defense Metals' 100% owned Wicheeda REE Deposit.

Infill drill hole WI22-68 (-55^o dip / 220^o azimuth), the deepest hole to date on the Wicheeda Project at 395 metres, was drilled southwest within the northern area of the deposit and yielded a broad mineralized intercept of high-grade dolomite carbonatite averaging 3.58% total rare earth oxide ("TREO") over 124 metres; including an exceptionally high-grade zone of 6.70% TREO over 18 m¹ that included one 3 m sample yielding 8.58% TREO (Figure 1, and Image 1).

Drill hole WI22-63 (-60^o dip / 204^o azimuth) collared from the same drill site, tested the interpreted eastern contact of the carbonatite body at depth and returned 2.29% TREO over 39 m; including 5.08% TREO over 9 m¹ (Figure 2).

Luisa Moreno, President, and Director of Defense Metals stated: "These two core drill holes, in particular WI22-68, once again demonstrate the potential for high REE grades over significant widths within the northern Wicheeda Deposit. Assays for WI22-68 were prioritized based on readily visible, coarse-grained REE mineralization. We look forward to receiving additional assay results of other resource infill drill holes from the northern and central Wicheeda Deposit that appear similar in terms of visually estimated REE mineralization percentage."

Table 1. Wicheeda REE Deposit 2022 Diamond Drill Intercepts

Hole ID	From (m)	To (m)	Interval (m)	TREO2  (%)	Ce2O3 (%)	La2O3 (%)	Nd2O3 (%)	Pr2O3 (%)	Sm2O3 (ppm)	Gd2O3 (ppm)	Eu2O3 (ppm)	Dy2O3 (ppm)	Tb4O7 (ppm)	Ho2O3 (ppm)
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
WI22-63 (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
WI22-62 (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

 

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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.

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% 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).

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.

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 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.

FAQ

What are the recent assay results from Defense Metals Corp's Wicheeda REE Deposit?

Recent assay results from Defense Metals Corp's Wicheeda REE Deposit revealed 3.58% TREO over 124 meters from drill hole WI22-68 and 2.29% TREO over 39 meters from drill hole WI22-63.

What is the significance of the drill results for stock DFMTF?

The drill results indicate high-grade rare earth mineralization which could positively impact the market value and investment appeal of stock DFMTF.

When were the assay results for the Wicheeda REE Deposit announced?

The assay results for the Wicheeda REE Deposit were announced on October 11, 2022.

What is the potential economic value of the Wicheeda REE Project?

The Wicheeda REE Project has a previous preliminary economic assessment indicating an after-tax NPV of $517 million.

How much rare earth oxides is the Wicheeda REE Project expected to produce annually?

The Wicheeda REE Project is projected to produce 25,423 tonnes of rare earth oxides annually.