Defense Metals - Robust Economics from Wicheeda Rare Earth Deposit PFS
Defense Metals has released the results of its Pre-Feasibility Study (PFS) for the Wicheeda Rare Earth Element deposit in British Columbia, Canada. The project demonstrates robust economics with a pre-tax NPV of US$1.8 billion at 8% discount rate and IRR of 24.6%, with after-tax payback of 3.7 years.
The project features a 15-year mine life with a 5,000 tonne per day flotation concentrator, requiring an initial capital cost of US$1.4 billion. The operation will produce an average of 31,900 tonnes of Total Rare Earth Oxide annually in concentrate, yielding approximately 5,200 tonnes of TREO in high-value mixed rare earth carbonate after removing cerium and lanthanum.
Key advantages include the production of high-grade flotation mineral concentrate containing 50% TREO at 81% recovery over the initial 8 years, with cash operating costs averaging $37.42/kg NdPrO. The project's final product will focus on critical elements for permanent magnet applications: neodymium and praseodymium (87.3%), dysprosium (0.6%), and terbium (0.2%).
Defense Metals ha pubblicato i risultati del suo Studio di Pre-Fattibilità (PFS) per il giacimento di Elementi Terreni Rari Wicheeda nella Columbia Britannica, Canada. Il progetto dimostra economia robusta con un NPV pre-tasse di 1,8 miliardi di dollari USA a un tasso di sconto dell'8% e un IRR del 24,6%, con un periodo di recupero dopo le tasse di 3,7 anni.
Il progetto presenta una vita mineraria di 15 anni con un concentratore a flottazione da 5.000 tonnellate al giorno, richiedendo un costo di capitale iniziale di 1,4 miliardi di dollari USA. L'operazione produrrà una media di 31.900 tonnellate di Ossido Totale di Elementi Terreni Rari all'anno in concentrazione, generando circa 5.200 tonnellate di TREO in carbonato misto di terre rare di alto valore dopo aver rimosso cerio e lantano.
I principali vantaggi includono la produzione di concentrato minerale di flottazione di alta qualità contenente il 50% di TREO con un recupero dell'81% nei primi 8 anni, con costi operativi in contante medi di 37,42 dollari/kg NdPrO. Il prodotto finale del progetto si concentrerà su elementi critici per applicazioni di magneti permanenti: neodimio e praseodimio (87,3%), disprosio (0,6%) e terbio (0,2%).
Defense Metals ha publicado los resultados de su Estudio de Pre-Factibilidad (PFS) para el depósito de Elementos de Tierras Raras Wicheeda en Columbia Británica, Canadá. El proyecto demuestra una economía robusta con un NPV antes de impuestos de 1.8 mil millones de dólares estadounidenses a una tasa de descuento del 8% y un IRR del 24.6%, con un período de recuperación después de impuestos de 3.7 años.
El proyecto cuenta con una vida útil de mina de 15 años con un concentrador de flotación de 5,000 toneladas por día, requiriendo un costo de capital inicial de 1.4 mil millones de dólares estadounidenses. La operación producirá un promedio de 31,900 toneladas de Óxido Total de Tierras Raras anualmente en concentrado, generando aproximadamente 5,200 toneladas de TREO en carbonato mixto de tierras raras de alto valor después de remover cerio y lantano.
Las ventajas clave incluyen la producción de concentrado mineral de flotación de alta calidad que contiene el 50% de TREO con un 81% de recuperación durante los primeros 8 años, con costos operativos en efectivo promedios de 37.42 dólares/kg NdPrO. El producto final del proyecto se centrará en elementos críticos para aplicaciones de imanes permanentes: neodimio y praseodimio (87.3%), disprosio (0.6%) y terbio (0.2%).
Defense Metals는 캐나다 브리티시컬럼비아에 위치한 Wicheeda 희토류 광산에 대한 예비 타당성 조사(PFS) 결과를 발표했습니다. 이 프로젝트는 튼튼한 경제성을 보여주며, 8% 할인율 기준으로 세전 NPV가 18억 달러에 달하고, 내부수익률(IRR)은 24.6%에 이르며, 세후 회수 기간은 3.7년입니다.
이 프로젝트는 5,000톤 규모의 플로테이션 농축기와 함께 15년의 광산 수명을 특징으로 하며, 초기 자본 비용은 14억 달러가 필요합니다. 이 운영은 매년 평균 31,900톤의 총 희토류 산화물 농축물을 생산하며, 세륨과 란탄을 제거한 후 약 5,200톤의 TREO를 고부가가치 혼합 희토류 탄산염으로 생산합니다.
주요 장점으로는 초기 8년 동안 81%의 회수율로 50% TREO를 포함한 고급 플로테이션 광물 농축물을 생산하며, 현금 운영 비용은 평균 37.42달러/kg NdPrO입니다. 프로젝트의 최종 제품은 영구 자석 응용을 위한 중요한 요소인 네오디뮴과 프라세오디뮴(87.3%), 디스프로슘(0.6%), 테르븀(0.2%)에 중점을 둘 것입니다.
Defense Metals a publié les résultats de son étude de faisabilité préliminaire (PFS) pour le gisement d'éléments de terres rares Wicheeda en Colombie-Britannique, Canada. Le projet démontre une économie solide avec une VAN avant impôt de 1,8 milliard de dollars américains à un taux d'actualisation de 8% et un TRI de 24,6%, avec un délai de récupération après impôt de 3,7 ans.
Le projet présente une durée de vie minière de 15 ans avec un concentrateur de flottation de 5 000 tonnes par jour, nécessitant un coût d'investissement initial de 1,4 milliard de dollars américains. L'opération produira en moyenne 31 900 tonnes d'oxyde total d'éléments de terres rares par an en concentré, générant environ 5 200 tonnes de TREO en carbonate mixte de terres rares de haute valeur après élimination du cérium et du lanthane.
Les principaux avantages incluent la production d'un concentré minéral de flottation de haute qualité contenant 50% de TREO avec un taux de récupération de 81% au cours des 8 premières années, avec des coûts d'exploitation en espèces moyens de 37,42 $/kg NdPrO. Le produit final du projet se concentrera sur des éléments critiques pour des applications de magnets permanents : néodyme et praséodyme (87,3%), dysprosium (0,6%) et terbium (0,2%).
Defense Metals hat die Ergebnisse seiner Machbarkeitsstudie (PFS) für das Wicheeda-Vorkommen von Seltenen Erden in British Columbia, Kanada, veröffentlicht. Das Projekt zeigt robuste Wirtschaftlichkeit mit einem vorsteuerlichen NPV von 1,8 Milliarden US-Dollar bei einem Diskontsatz von 8% und einer IRR von 24,6%, mit einer Amortisationszeit nach Steuern von 3,7 Jahren.
Das Projekt umfasst eine Bergbaulebensdauer von 15 Jahren mit einem Flotationskonzentrator von 5.000 Tonnen pro Tag, der Kosten in Höhe von 1,4 Milliarden US-Dollar erfordert. Der Betrieb wird jährlich durchschnittlich 31.900 Tonnen Gesamt-Seltenerdoxid in Konzentration produzieren, was etwa 5.200 Tonnen TREO in hochgradigem gemischtem Seltenen Erdenkarbonat ergibt, nachdem Cer und Lanthan entfernt wurden.
Wichtige Vorteile sind die Produktion von hochgradigem Flotationsmineralkonzentrat mit 50% TREO bei einer Rückgewinnung von 81% über die ersten 8 Jahre, mit durchschnittlichen Betriebskosten von 37,42 USD/kg NdPrO. Das Endprodukt des Projekts wird sich auf kritische Elemente für Anwendungen von Permanentmagneten konzentrieren: Neodym und Praseodym (87,3%), Dysprosium (0,6%) und Terbium (0,2%).
- Pre-tax NPV of US$1.8 billion with 24.6% IRR
- High operating margin of 71% (EBITDA/Revenue)
- 15-year mine life with 31,900 tonnes annual TREO production
- High-grade concentrate of 50% TREO with 81% recovery in first 8 years
- Favorable location with existing infrastructure access
- High initial capital cost requirement of US$1.4 billion
- 3.7 year payback period
- High strip ratio of 3.3:1 (waste:ore)
• The completion of the Pre-Feasibility Study establishes Defense Metals' Wicheeda Project as one of the most advanced undeveloped rare earth projects |
• The Wicheeda Project economics of pre-tax NPV at |
• The breakeven price of NdPrO1 for the project is |
• The Wicheeda Project will stand out in the Western rare earth industry as a result of the exceptional purity of its final product, which in turn will enable it |
All amounts herein are in
Guy de Selliers, Executive Chairman, stated: "The positive results of our Pre-Feasibility Study confirm the strategic importance of the Wicheeda Project at a time when
"With NdPr being essential to electric vehicles, renewable energy, and advanced defense technologies, the Wicheeda Project represents a unique opportunity to establish a reliable, Western-aligned supply of these vital materials, reducing reliance on foreign sources and importantly helping to secure economic security.
"Our Wicheeda rare earth project is one of the most advanced in either
"As we move forward, we remain committed to responsible development policies and practices, along with strong partnerships that collectively will unlock the full economic and strategic value of this asset for all stakeholders and rightsholders."
Wicheeda Project PFS Highlights
Robust Economics
- Pre-tax net present value (NPV) of
$1.8 billion $1.0 billion 8% discount rate. - After-tax payback period of 3.7 years from the start of production.
- Pre-tax internal rate of return (IRR) of
24.6% , and after-tax IRR of18.9% . - Initial Capital Cost (CAPEX) of
$1.4 billion - Open-pit production of 15 years (excluding pre-production) feeding a 5,000 tonne per day (tpd) flotation concentrator.
- Cash operating costs average
$37.42 - Average operating margin of
71% (EBITDA / Revenue).
High-Grade REE Mineral Deposit Advantage
- Defense Metals' Wicheeda REE deposit is located in a Tier 1 mining jurisdiction.
- The Wicheeda Project has logistical and infrastructure advantages.
- The project's reserves support a 15-year Life-of-Mine (LOM) with an average annual production of 31,900 tonnes (t) of Total Rare Earth Oxide (TREO)2 in concentrate, yielding approximately 5,200 t of TREO in a high-value mixed rare earth carbonate (MREC) after the removal of cerium (Ce) and lanthanum (La).
- Unique mineralogy of the Wicheeda REE deposit allows for the production of one of the highest-grade flotation REE mineral concentrates in the world at exceptional recovery levels.
High-Grade Mineral Concentrate Advantage
- LOM production of a high-grade flotation mineral concentrate, containing an average
50% TREO (dry basis) at81% recovery over the initial 8 years. - The mineral concentrate will be processed at Defense Metals' own hydrometallurgical and solvent extraction (SX) separation process facilities.
High-Value Saleable Mixed Rare Earth Carbonate Product
- All of the La and most of the Ce will be removed during the SX process, creating a value-added final MREC product.
- The basket value of the MREC is derived from rare earth elements critical to high-growth permanent magnet applications; neodymium and praseodymium (87.3 wt%), dysprosium, (0.6 wt%), and terbium (0.2 wt%) of contained TREO. Other minor REE constituents are not considered in the basket value.
Defense Metals has taken a focused and conservative approach to all costs and inputs to deliver a realistic and compelling PFS that it believes maximizes the scope and scale of its Wicheeda Project over the long term.
The PFS incorporates an initial proven and probable mineral reserve estimate that supports a 15-year, open-pit mining operation (excluding pre-production) that will produce ore feed for a 5,000 tpd flotation plant. The flotation plant will produce a high-grade REE mineral concentrate that will feed hydrometallurgical and SX process facilities to produce a value-added MREC product.
Mark Tory, President and CEO of Defense Metals, commented: "We are thrilled to announce the successful completion of an independent Pre-Feasibility Study for our Wicheeda Rare Earth Deposit, marking a major milestone in its development. The PFS, conducted in collaboration with renowned global experts Hatch and SRK, demonstrates the strong potential of the Wicheeda Project as a reliable and sustainable source of critical rare earth elements that are essential to advance energy technologies, manufacturing, and defence applications.
"The high-grade mineral concentrate produced by the Wicheeda Project will undergo hydrometallurgical and solvent extraction processing, and according to our flowsheet design will enable us to produce a high-value Mixed Rare Earth Carbonate product, due to the substantial removal of lanthanum and cerium.
"With a pre-tax IRR of
"Looking ahead, we will focus on optimizing the project's design to maximize operational efficiency and ultimately shareholder returns. Additionally, we will engage with potential strategic partners to support the project's growth and development.
"Now is the ideal time for a North American rare earth company to advance toward building a new mine and processing facilities. We are moving forward with our regulatory engagement and continue to work closely with the project's Indigenous rightsholders to expedite the approval process and bring this critical project to fruition."
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1 Neodymium-Praseodymium oxide (NdPrO) and Total rare earth oxide (TREO) equivalents are reported in this document by convention. In the final MREC product, the rare earths will be present as carbonates (RE2(CO3)3), and in the feed and flotation concentrate they will be present in a variety of species. For reporting purposes, the rare earth content is converted to the oxide equivalent. |
2 TREO accounts for all 15 rare earth oxides within the deposit; however, for financial modeling purposes only Nd, Pr, Tb and Dy are assigned economic value. |
Wicheeda Project - Key Parameters
The project level financial analysis was performed on a 2025-dollar basis without inflation.
Table 1 – Base Case Economics
Financial Metrics | Units | Base Case |
Pre-tax NPV @ | $M | 1,803 |
After-tax NPV @ | $M | 992 |
Pre-tax IRR | % | 24.6 |
After-tax IRR | % | 18.9 |
Undiscounted After-tax Project Cashflow (LOM) | $M | 2,672 |
After-tax payback period from start of production | Years | 3.7 |
Costs and Profit | ||
Initial capital expenditure | $M | 1,440 |
Average annual operating cost | $M per annum | 165 |
Average annual operating cost | $/kg NdPrO equivalent in MREC | 37.42 |
MREC average price | $/kg NdPrO equivalent content in MREC | 136.30 |
Life of mine gross revenue | $M | 9,030 |
Operating (EBITDA) margin | % | 71 |
Production Metrics | ||
Mine life (excluding pre-production) | Years | 15 |
Maximum mining production rate | Mtpa | 8.7 |
Life of mine strip ratio | Waste: Ore | 3.3:1 |
Life of mine TREO grade | % TREO in mill feed | 2.4 |
Life of mine flotation concentrate | Thousand tonnes per annum (ktpa) dry | 62.5 |
Concentrate grade | % TREO (dry) | 50 |
Life of mine NdPrO contained in MREC | ktpa NdPrO equivalent | 4.4 |
Life of mine NdPrO % of TREO in MREC | % NdPrO equivalent | 87 |
The PFS was conducted by Hatch Ltd. (Hatch) and SRK Consulting (
The effective date of the PFS is February 7, 2025, and the Company expects to file a NI 43-101 technical report relating to the PFS on SEDAR+ within 45 days of this news release.
Wicheeda Project Overview
Favourable Mineralogy Leading to Favourable Metallurgy
The Wicheeda REE deposit is characterized by three main REE-bearing lithologies: dolomite carbonatite (DC), which is the dominant lithology, xenolithic carbonatite, and syenite. Limestone is the major waste rock lithology.
The predominant REE-bearing minerals are bastnäsite, monazite, synchysite and parisite. The coarse grain size of Wicheeda's REE mineralization provides significant metallurgical advantages, allowing for enhanced mineral liberation and improved separation from gangue minerals during comminution and increased flotation efficiency. These factors all support efficient and cost-effective REE recovery and collectively lead to the production of a LOM high-grade REE concentrate (averaging
Mine Planning
Table 2 – PFS Mine Plan Summary
Mine Production Metrics | Unit | Pre-prod | Yrs 1-8 | Yrs 9-15 | LOM |
Target Annual Throughput | Mt/a | - | 1.8 | 1.8 | 1.8 |
Total Material Movement | Mt | 11.2 | 65.2 | 33.3 | 109.7 |
Total Ore | Mt | 0.1 | 14.6 | 10.8 | 25.5 |
Total Waste | Mt | 11.0 | 50.0 | 21.6 | 84.2 |
Strip Ratio | waste: ore | 77.0:1 | 3.5:1 | 2.1:1 | 3.3:1 |
Average Ore Grade | % TREO | 2.32 | 2.80 | 1.92 | 2.43 |
Total Flotation Concentrate Produced | Mt dry | - | 0.632 | 0.306 | 0.94 |
Design Flotation Concentrate Grade | % TREO | 50 | 50 | 50 | 50 |
Average Flotation Plant Recovery | % | - | 80.9 | 69.3 | 76.7 |
The Wicheeda Project will be developed as an open-pit mining operation. In the first eight years of ore production, near-surface, mostly high-grade DC mineralization will be mined as indicated in the Figure 1 showing ore lithology over time. Mining rates will range from 4 to 9 million-tonnes per annum (Mtpa) over the 15-year mine life (excluding pre-production).
Mined ore will be crushed at a facility near the pit and transported via conveyor to sustain a 1.8 Mtpa mill feed to the on-site flotation plant. Waste rock will be placed in a waste rock storage facility (WRSF) adjacent to the pit.
The flotation plant will produce a high-grade rare earth mineral concentrate averaging
The Wicheeda Project envisages dewatering tailings using filter press technology and storing the filtered material in a filtered tailings storage facility (FTSF) located west of Wichcika Creek. It will store both flotation tailings and hydrometallurgical residue, with a liner system and water management pond to manage environmental impact.
The high-grade, filtered mineral concentrate will be transported off-site, approximately 45 kilometers (km) by truck, to
Hydrometallurgy with Lanthanum and Cerium Removal by Solvent Extraction
During hydrometallurgical processing, the flotation mineral concentrate will first undergo acid baking with concentrated sulphuric acid (1.1 t/t concentrate) at about 300˚C, converting the rare earths into water-soluble sulphates, which readily dissolve during a subsequent water leach process. The resulting leachate will then be purified before being sent to the SX unit for the removal of La and Ce to allow production of MREC with enhanced economic value.
The SX operations will employ a single, standard solvent extraction circuit using an acidic extractant in a kerosene-based diluent: to separate La and Ce from the other REEs.
The low-value La and Ce will largely be eliminated and separately precipitated and disposed of in a waste storage facility provided for the hydrometallurgical process (with potential to be recovered should a market develop for these elements). The more valuable REEs will be retained, including the magnet-metal REEs: praseodymium (Pr), neodymium (Nd), terbium (Tb) and dysprosium (Dy).
Table 3 – Hydrometallurgical Plant Metrics
Item | Unit | Yrs 1-8 | Yrs 9-15 | LOM |
Flotation concentrate feed | ktpa | 80.4 | 44.7 | 63.7 |
MREC production (TREO equivalent) | ktpa | 6.3 | 3.8 | 5.2 |
NdPrO (equivalent) | ktpa | 5.4 | 3.2 | 4.4 |
Heavy REO (equivalent)3 | ktpa | 0.8 | 0.5 | 0.7 |
Hydrometallurgical Plant Recovery | % NdPrO | 93.4 | 93.4 | 93.4 |
After the La and Ce are removed, the remaining REEs are precipitated as a MREC.
The advantage of the SX process is that a higher-quality, higher-value MREC product is produced, containing
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3 For the purposes of this document, Heavy REO refers to the oxides of samarium (Sm), europium (Eu), gadolinium (Gd), terbium (Tb), dysprosium (Dy), holmium (Ho), erbium (Er), thulium (Tm), ytterbium (Yb), lutetium (Lu), and yttrium (Y). Only Tb and Dy contributions were considered in the product value calculations. |
Proximity to Existing Infrastructure
The Wicheeda REE deposit is approximately 80 km northeast of the nearby city of
Power
The Wicheeda Project's power supply is expected to come from a new high-voltage transmission line (1L 365) located west of the project site which connects to the B.C. Hydro 500 kV line. Cost estimates used in the PFS are based on industry benchmarks.
Transportation
Upgrading the existing forestry road from
The Canadian National Railway (CNR) will be important in the supply of Wicheeda Project process plant reagents and consumables. The CNR handles over
Project Infrastructure
The mining project area exhibits a topography and geography ideally suited for development. The varied terrain provides opportunities to minimize earthwork requirements and facilitates the development of a water management plan which maintains natural drainage patterns.
Water Supply
All excess water at the mine site will be directed to the contact water pond at the processing plant for process water recirculation or treatment and discharge.
Table 4 – Wicheeda Project Capital Expenditure Estimates
Category | Capital Costs ($M) | ||||
Initial | Sustaining | Closure | Post Closure | Total | |
Mining | 99.2 | 57.9 | - | - | 157.2 |
Flotation Plant and Infrastructure | 450.9 | - | - | - | 450.9 |
Hydrometallurgical and SX Plants | 614.5 | - | - | - | 614.5 |
Mine Tailings | 19.8 | 45.7 | - | - | 66.5 |
Hydrometallurgical Waste | 10.7 | 14.0 | - | - | 24.7 |
Contact Water Pond | 11.8 | - | - | 11.8 | |
Mine Site Water Management | 1.6 | - | - | - | 1.6 |
Mine Site Water Treatment | 10.0 | - | - | - | 10.0 |
Hydrometallurgical Water Treatment | 6.6 | - | - | - | 6.6 |
Closure | - | - | 57.4 | 325.1 | 382.5 |
Contingency | 214.8 | 15.3 | 7.2 | 40.6 | 277.9 |
Total | 1,439.8 | 133.0 | 64.5 | 365.8 | 2,003.0 |
Cost estimates do not consider cost escalation resulting from the imposition of new tariffs, counter-tariffs, import and/or export duties or other similar charges applicable to raw, semi-finished or finished materials and/or other products.
Table 5 – Wicheeda Project Operating Costs Estimates
Category | LOM ($M) | LOM avg ($M/y) | LOM ($/kg NdPrO |
Mining | 537 | 35.8 | 8.09 |
Flotation Plant | 724 | 48.3 | 10.91 |
Hydrometallurgical Facility | 995 | 66.3 | 15.02 |
Concentrator & Hydrometallurgical Facility General & Administration | 88 | 5.8 | 1.32 |
Mine Site Tailings | 94 | 6.3 | 1.42 |
Hydrometallurgical Waste | 20 | 1.4 | 0.31 |
Contact Water Pond | 2 | 0.2 | 0.04 |
Mine Site Water Treatment | 11 | 0.7 | 0.16 |
Hydrometallurgical Water Treatment | 8 | 0.5 | 0.12 |
Total | 2,479 | 165.3 | 37.42 |
Rare Earth Markets and Price Forecast
The Rare Earth Market
According to Adamas Intelligence Inc. (Adamas), global Neodymium-Iron-Boron (NdFeB) magnet consumption grew by
Adamas reports that the magnet industry, which relies on Nd, Pr, and, for high-end applications, Dy and Tb, is the largest consumer of rare earths by volume, accounting for
Looking ahead, Adamas projects that global demand for NdFeB magnets will increase at a compound annual growth rate of
Rare Earth Prices
Rare earth prices have been highly volatile in recent years, driven by growing demand for energy and mobility technologies, the COVID pandemic, as well as geopolitical factors.
Adamas has developed a Base Case pricing scenario that accounts for supply-demand modeling and expects that the future of rare earths demand (at least in the case of, Nd, Pr, Dy and Tb) will be more robust, more resilient and less sensitive to price than demand of the past and present, which is still largely driven by consumer and legacy automotive applications.
Adamas believes that from 2032 through 2040 Defense Metals could expect to receive a price for its MREC equal to
Adamas expects the price of NdPr oxide to increase from an average of
Given the high amounts of NdPr in the final MREC after removing Ce and La, the average MREC price per kg for the Wicheeda Project is
Financial Analysis
The expected project cashflows were modelled using a simple discounted cash-flow model. A discount rate of
Table 6 – Cash Flow Summary
Item | Undiscounted LOM ($M) | Undiscounted Unit Average | Discounted LOM ($M) |
Gross Revenue | 9,030 | 136.33 | 4,536 |
Operating Costs | (2,479) | (37.42) | (1,208) |
Product Transportation | (26) | (0.39) | (13) |
Royalties | (90) | (1.36) | (45) |
EBITDA | 6,435 | 97.15 | 3,269 |
Changes in Net Working Capital | - | - | (80) |
Initial Capital Cost | (1,440) | (21.74) | (1,275) |
Sustaining Capital Cost | (133) | (2.01) | (70) |
Closure and Reclamation Bond Cost | (430) | (6.50) | (41) |
Royalty buy-out | (1) | (0.01) | (1) |
Pre-Tax Cash Flow | 4,431 | 66.90 | 1,803 |
BC Mineral Tax | (604) | (9.12) | (269) |
Corporate Tax | (1,155) | (17.44) | (542) |
After-Tax Cash Flow | 2,672 | 40.33 | 992 |
The PFS estimates total LOM taxes paid of
Sensitivity Analysis
NPV @ different discount rates
Table 7: NPV sensitivity to discount rate
Discount rate (%) | 5 % | 10 % | 15 % | |
Pre-tax NPV ($M) | 2,582 | 1,803 | 1,403 | 694 |
After-tax NPV ($M) | 1,514 | 992 | 722 | 242 |
NPV and IRR sensitivity to the itemized factors are illustrated in the graphs which follow:
- MREC price (substantially NdPr)
- CAPEX
- OPEX
Defense Metals evaluated pricing reports from Adamas and Argus Media (Argus). The Company believes it was more appropriate to use Adamas for comparability with peers who have used the same pricing methodology. This includes MP Materials Corp. which reference the Adamas pricing in their February 22, 2024, EDGAR filing in relation to technical report for their Mountain Pass mine. Argus had two scenarios, the incentive price scenario was
Environmental, Social, and Regulatory Engagement
Defense Metals is committed to maintaining high environmental, social, and governance (ESG) standards while responsibly progressing the development of the Wicheeda Project. The regulatory jurisdiction has embedded standards relating to the environmental assessment and permitting processes that align with ESG principles, including the consideration of climate change in project planning and impact assessment, biodiversity assessments, social impact evaluation and stakeholder engagement and rightsholder consultation. Many critical baseline studies have been initiated to ensure a background understanding of environmental, social and cultural values. Additional environmental, social and cultural studies will be completed to provide project design refinements and advance environmental assessment and permitting processes.
Defense Metals and the McLeod Lake Indian Band (MLIB) have signed a Co-Design Agreement, formalizing their partnership to integrate MLIB's perspectives into all project phases, from technical and engineering considerations to social and environmental planning. Defense Metals is committed to ongoing collaboration with rightsholders and stakeholders, prioritizing their interests and working towards consensus.
The Wicheeda Project is vital to
Mineral Reserves and Resources Estimates
Mineral Reserves
The mineral reserve estimate for the Wicheeda Rare Earth Element Deposit has been prepared for Defense Metals as part of the 2025 Pre-Feasibility Study (PFS). This mineral reserve estimate has been prepared in accordance with the Canadian Institute of Mining, Metallurgy and Petroleum (CIM) Definition Standards on Mineral Resources and Mineral Reserves adopted by CIM Council in May 2014.
The mineral reserves respective of the open pit are based on Measured and Indicated mineral resources that have been identified as being economically extractable and which incorporate mining losses and mining waste dilution. The mineral reserves include 25.5 million tonnes (Mt) of mineable ore from one open pit at an average grade of
A summary of the surface mineable mineral reserves by rock type and reserve classification is shown in Table 8.
Table 8 – Summary of the Mineral Reserves (as of February 7, 2025)
Mineral Reserve | Rock Type | Tonnes | TREO | Pr6O11 | Nd2O3 | Tb4O7 | Dy2O3 |
kt | % | ppm | ppm | ppm | ppm | ||
Proven | Dolomite Carbonatite | 5,377 | 2.97 | 1,152 | 3,135 | 12 | 35 |
Limestone | 11 | 2.01 | 858 | 2,359 | 12 | 40 | |
Syenite | 42 | 1.45 | 582 | 1,681 | 11 | 39 | |
Xenolithic Carbonatite | 258 | 1.74 | 700 | 2,060 | 11 | 37 | |
Total | 5,688 | 2.90 | 1,127 | 3,074 | 12 | 35 | |
Probable | Dolomite Carbonatite | 12,178 | 2.86 | 1,122 | 3,071 | 12 | 34 |
Limestone | 139 | 1.39 | 563 | 1,600 | 10 | 38 | |
Syenite | 639 | 1.25 | 503 | 1,483 | 8 | 26 | |
Xenolithic Carbonatite | 6,820 | 1.42 | 585 | 1,717 | 9 | 30 | |
Total | 19,775 | 2.30 | 913 | 2,543 | 10 | 32 | |
Total | Dolomite Carbonatite | 17,554 | 2.89 | 1,131 | 3,091 | 12 | 34 |
Limestone | 150 | 1.44 | 585 | 1,655 | 10 | 38 | |
Syenite | 681 | 1.26 | 508 | 1,495 | 8 | 27 | |
Xenolithic Carbonatite | 7,078 | 1.44 | 589 | 1,730 | 9 | 30 | |
Total | 25,462 | 2.43 | 961 | 2,661 | 11 | 33 |
Mineral Reserves Notes:
• The effective date of the Wicheeda Rare Earth Element Deposit Mineral Reserve is February 7, 2025. |
• Dollar values herein stated are United States Dollars (US$) |
• Mineral Reserves are reported assuming the prices provided from Adamas listed below: |
• NdPr Oxide 132.70 $/kg REO |
• Tb4O7 1362.83 $/kg REO |
• Dy2O3 442.48 $/kg REO |
• Mineral Reserves are defined within the final pit design guided by pit shells derived from the optimization software, GEOVIA Whittle™ |
• Cut-off grade is based on the value factors generated in each block. The revenue and related costs vary based on the composition of different elements |
• The base mining costs are assumed to be |
• Processing costs consist of flotation plant cost at the mine site and a hydrometallurgical/solvent extraction (hydrometallurgical) plant that is off the mine |
• General and administration costs of the mine site is |
• Tailings management and storage cost is |
• Off-site cost (transportation) is |
• Processing recovery is calculated using the following formula: |
• Flotation recovery for TREO = -11.183*TREO^2 + 67.831*TREO - |
• Flotation recovery for TREO then is multiplied by 0.995, 0.996, 0.734, 0.636 for Pr, Nd, Tb, Dy respectively to calculate the respective flotation recovery |
• Hydrometallurgical recovery for Pr, Nd, Tb, Dy are 0.932, 0.935, 0.802, 0.734 respectively. |
• A |
• Mining dilution varies based on the mining zone. The average mining dilution is calculated to be |
• A |
• Figures are rounded to the appropriate level of precision for the reporting of mineral reserves. Due to rounding, some columns or rows may not sum as shown. |
• The overall strip ratio (Waste:Ore - the amount of waste mined for each tonne of ore) is 3.34. |
• The mineral reserve is stated as diluted dry metric tonnes. |
• The mine plan underpinning the mineral reserves has been prepared by SRK Consulting ( |
• The TREO grade encompasses 15 rare earth elements present in the deposit |
• The estimate of Mineral Reserves may be materially affected by environmental, permitting, legal, title, taxation, sociopolitical, marketing, or other relevant issues. |
The Qualified Person, Dr. Anoush Ebrahimi, does not know of any legal, political, environmental, or other risks that could materially affect the potential development of the mineral reserves. Dr. Ebrahimi personally inspected the Wicheeda Project on October 26, 2021.
Mineral Resources
The Mineral Resource estimate for the Wicheeda Rare Earth Element Deposit has been prepared for Defense Metals as part of the 2025 Pre-Feasibility Study (PFS). This Mineral Resource estimate has been prepared in accordance with the CIM Definition Standards adopted May 2014.
The Mineral Resources stated below are constrained within an optimized pit shell to satisfy Reasonable Prospects of Eventual Economic Extraction (RPEEE) requirements. The Mineral Resources include 29.2 Mt of Measured + Indicated resource at an average grade of
A summary of the surface mineable Mineral Resources by rock type and Resource classification is shown in Table 9.
Table 9 – Summary of the Mineral Resources (as of February 7, 2025)
Mineral Resource | Rock Type | Tonnes | TREO | Pr6O11 | Nd2O3 | Tb4O7 | Dy2O3 |
kt | % | ppm | ppm | ppm | ppm | ||
Measured | Dolomite Carbonatite | 5,350 | 2.99 | 1161 | 3158 | 12 | 35 |
Limestone | 10 | 1.99 | 851 | 2347 | 13 | 42 | |
Syenite | 50 | 1.41 | 561 | 1635 | 11 | 40 | |
Xenolithic Carbonatite | 300 | 1.64 | 662 | 1952 | 11 | 36 | |
Total | 5,720 | 2.90 | 1128 | 3079 | 12 | 35 | |
Indicated | Dolomite Carbonatite | 12,020 | 2.90 | 1139 | 3117 | 12 | 34 |
Limestone | 160 | 1.41 | 573 | 1639 | 11 | 43 | |
Syenite | 1,280 | 1.08 | 445 | 1340 | 8 | 29 | |
Xenolithic Carbonatite | 9,980 | 1.32 | 549 | 1623 | 9 | 30 | |
Total | 23,430 | 2.12 | 846 | 2374 | 10 | 32 | |
Measured + Indicated | Dolomite Carbonatite | 17,370 | 2.93 | 1146 | 3129 | 12 | 34 |
Limestone | 170 | 1.46 | 593 | 1688 | 11 | 43 | |
Syenite | 1,330 | 1.09 | 450 | 1352 | 8 | 29 | |
Xenolithic Carbonatite | 10,270 | 1.33 | 552 | 1633 | 9 | 30 | |
Total | 29,150 | 2.27 | 901 | 2512 | 11 | 33 | |
Inferred | Dolomite Carbonatite | 570 | 2.67 | 1072 | 2883 | 12 | 37 |
Limestone | 210 | 1.51 | 603 | 1650 | 9 | 33 | |
Syenite | 1,480 | 0.92 | 408 | 1251 | 9 | 33 | |
Xenolithic Carbonatite | 3,240 | 1.43 | 589 | 1717 | 9 | 32 | |
Total | 5,500 | 1.42 | 590 | 1709 | 9 | 33 |
Mineral Resources Notes:
• CIM (2014) definitions were followed for Mineral Resources. |
• The Qualified Person for the MRE is Doug Reid, P.Eng., EGBC (23347), an SRK employee. |
• The effective date of the Mineral Resource is February 7, 2025 |
• Dollar values herein stated are United States Dollars (US$) |
• Mineral Resources are reported assuming the prices listed below (a |
• NdPr Oxide 132.70 $/kg REO |
• Tb4O7 1567.26 $/kg REO |
• Dy2O3 508.85 $/kg REO |
• Mineral Resources are defined within a pit shell derived from the optimization software, GEOVIA Whittle™ |
• Cut-off grade is based on the value factors generated in each block. The revenue and related costs vary based on the composition of different |
• The base mining costs are assumed to be |
• Processing costs consist of flotation plant cost at the mine site and a hydrometallurgical/solvent extraction (hydrometallurgical) plant that is off the |
• General and administration costs of the mine site is |
• Tailings management and storage cost is |
• Off-site cost (transportation) is |
• Processing recovery is calculated using the following formula: |
• Flotation recovery for TREO = -11.183*TREO^2 + 67.831*TREO - |
• Flotation recovery for TREO then is multiplied by 0.995, 0.996, 0.734, 0.636 for Pr, Nd, Tb, Dy respectively to calculate the respective flotation |
• Hydrometallurgical recovery for Pr, Nd, Tb, Dy are 0.932, 0.935, 0.802, 0.734 respectively |
• A |
• Bulk density is assigned by lithology. |
• No mining dilution has been applied. |
• Mineral Resources are reported inclusive of those Mineral Resources converted to Mineral Reserves. |
• Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. |
• Figures are rounded to the appropriate level of precision for the reporting of mineral Resources. Due to rounding, some columns or rows may not sum |
• The TREO grade encompasses 15 rare earth elements present in the deposit |
• The estimate of Mineral Resources may be materially affected by environmental, permitting, legal, title, taxation, sociopolitical, marketing, or other |
The Qualified Person, Douglas Reid, does not know of any legal, political, environmental, or other risks that could materially affect the potential development of the mineral Resources. Mr. Reid personally inspected the Wicheeda Project on October 31 and November 1, 2024.
Pre-Feasibility Study Review Webinar
Defense Metals will be hosting a webinar to discuss the results of the Wicheeda Project PFS during which members of the Defense Metals' leadership team will be on the call. Participants will be able to submit questions or e-mail them in advance to info@defensemetals.com.
Date: February 19, 2025
Time: 1:00 p.m. ET/10:00 a.m. PT
Link: https://us02web.zoom.us/webinar/register/WN_BLHdzFqsSyufX1r2jYrFhQ
Qualified Persons – PFS Contributors
The Wicheeda Project PFS was conducted by independent representatives of Hatch and SRK (the PFS Contributors), each of whom is a Qualified Person (QP) as defined by the Canadian Securities Administrators' National Instrument 43-101 - Standards of Disclosure for Mineral Projects.
The PFS contributors prepared or supervised the preparation of information that forms the basis of the PFS disclosure in this news release.
Each of the QPs is independent of Defense Metals and has reviewed and confirmed that this news release fairly and accurately reflects, in the form and context in which it appears, the information contained in the respective sections of the Wicheeda Project PFS report for which they are responsible. The affiliation and areas of responsibility for each QP involved in preparing the PFS are provided as follows:
Hatch QPs:
- Metallurgical review, process design and operating cost estimates:
- Jeff Adams for Hydrometallurgical
- Joe Paventi for mine site flotation plant
- Process plant and associated infrastructure cost estimates – Gerry Schwab
- Financial analysis and market study – Stefan Hlouschko
SRK QPs:
- Mineral resources estimate – Doug Reid
- Mineral reserves, mine design and scheduling – Anoush Ebrahimi
- Mine costing – Bob McCarthy
- Tailings storage facilities – Ignacio Garcia
J.R. Goode, P.Eng., a consultant to the Company and a QP as defined in NI 43-101, reviewed and approved the metallurgical and process design information in this news release.
About Defense Metals Corp. and its Wicheeda REE Deposit
Defense Metals Corp. is focused on the development of its
The Wicheeda Project, approximately 80 kilometres (~50 miles) northeast of the city of
For further information, please visit www.defensemetals.com or contact:
Alex Heath
Senior Vice President, Corporate Development & Interim CFO
Tel: +1 604-354-2491
Email: alex@defensemetals.com
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 statements" or "forward-looking information" (collectively, "Forward-Looking Statements") that involve a number of risks and uncertainties. Forward-Looking Statements are statements that are not historical facts and are generally, but not always, identified by the use of forward looking terminology such as "plans", "targets", "expects", "is expected", "budget", "scheduled", "estimates", "forecasts", "outlook", "intends", "anticipates", "believes", or variations of such words and phrases or that state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved, or the negative of any of these terms or similar expressions. The Forward-Looking Statements in this news release relate to, among other things; the estimation of Mineral Resources and Mineral Reserves and the realization of such mineral estimates; the statements under "Wicheeda Project PFS Highlights" and the other results of the PFS discussed in this news release, including, without limitation, project economics, financial and operational parameters such as expected throughput, production, processing methods, cash costs, operating costs, other costs, capital expenditures, cash flow, NPV, IRR, payback period, life of mine and REE price forecasts. Forward-Looking Statements are based on certain key assumptions and the opinions and estimates of management and the QPs, as of the date such statements are made, and they involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any other future results, performance or achievements expressed or implied by the Forward Looking Statements. In addition to factors already discussed in this news release, such factors include, among others, risks relating to the Company's business, including possible variations in mineralized grade and recovery rates; uncertainties inherent to the conclusions of economic evaluations and economic studies; changes in project parameters, including schedule and budget, as plans continue to be refined; uncertainties with respect to actual results of current exploration activities; uncertainties inherent to the estimation of Mineral Resources and Reserves, which may not be fully realized; inability to consummate a commercial relationship with local First Nations; the impact of the conflict in
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SOURCE Defense Metals Corp.
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