VANCOUVER, BC, Aug. 16,
2023 /CNW/ - Defense Metals Corp. ("Defense
Metals" or the "Company") (TSXV: DEFN) (OTCQB: DFMTF)
(FSE: 35D) is pleased to provide a progress update with respect to
its 2023 site infrastructure geotechnical investigations. The
work, with support of the Defense Metals' technical team and APEX
Geoscience Ltd., is being completed by SRK Consulting (Canada) Inc. ("SRK") one of the
principal consultants for the preliminary feasibility study
("PFS") regarding the Company's Wicheeda Rare Earth Element
(REE) Project located near Prince George,
Canada.
Craig Taylor, CEO of Defense
Metals, commented:
"It is great to see our technical consulting
teams making significant headway with the Wicheeda site
investigations. Defence Metals has assembled a world class team of
experts who have both the experience and technical skills to bring
this project through pre-feasibility."
The SRK geotechnical investigation includes the following
scopes:
- Geotechnical engineering (waste rock, tailings, contact
water pond, and site infrastructure geotechnical
investigation),
- Tailings alternative assessment prior to advancing into
PFS-level design of a preferred alternative,
- Geochemical characterization (to support mine
planning/waste management and to develop preliminary water
chemistry predictions for the main mine facilities).
The work completed to date included field site inspections from
SRK personnel: Principial Consultant – Mining Rock Mechanics,
Ed Saunders, P.Eng. (waste storage
facility geotechnical); Principal Consultant – Geochemistry,
Kirsty Ketchum, Ph.D., P.Geo. (metal
leaching and acid/alkaline rock drainage geochemical
characterization); and Senior Consultant- Mining Rock Mechanics,
Aton Bloem (open pit geotechnical).
Site infrastructure geotechnical investigations planned include
a series of excavated test pits, and sonic overburden drill holes
designed to support the preliminary characterization of the shallow
soil subsurface and bedrock foundations of potential future waste
rock storage (WSF), mineralization stockpile, contact water pond
(CWP), crusher, processing plant (INF), and tailings storage
facility (TSF) locations.
To date a total of 13 excavated tests pits and 4 sonic
overburden geotechnical holes for a total of 93 metres have been
completed to characterize surficial material conditions within the
proposed WSF, CWP, and TSF areas (Images 1 and 2). Site
geotechnical investigations encountered shallow overburden
conditions (nil or <1 metre overburden depth), excavated test
pit depths ranging from 1 to 5 metres; and sonic overburden drill
holes in areas of thicker surficial material ranging from 7 metre
to >36.6 metre depth to bedrock.
SRK on site engineering consultants supervised the
investigations and carried out soil geotechnical logging, direct
testing, sampling, photography of recovered materials, standpipe
installation, and coordination of laboratory testing. SRK will
process the data collected from the sonic drilling and test pit
investigations, and laboratory testing results will be incorporated
into the QA/QC dataset.
In addition to infrastructure geotechnical investigations, SRK
has commenced a tailings alternatives assessment prior to advancing
into PFS-level design of a preferred alternative. This will include
tailings characterization and development of design criteria, a
siting evaluation, and an alternatives trade-off.
As part of the geochemical characterization scopes SRK has
completed a review and compilation of site geological and
geochemical data and drill core logs that have been acquired since
the 2021 preliminary economic assessment (PEA). These data will be
used to develop a sampling plan of the existing drill core for
geochemical characterization of the proposed mine facilities, and
future set-up of on-site kinetic leach tests (barrel tests). Data
will be interpreted to support mine planning/waste management and
to develop preliminary water chemistry predictions for the main
mine facilities (source terms). Source terms are an input to the
site water and load balance model.
Excavated test pit and sonic overburden drilling is currently
paused and is expected to resume as part of the WSF, CWP, INF, and
TSF (and TSF alternative) geotechnical investigations during
September in conjunction with the planned drilling of an additional
four (4) pit geotechnical core holes totalling 820 metres.
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. (B.C.), Principal and
Consultant of APEX Geoscience Ltd. of Edmonton, Alberta, who is a director of
Defense Metals and a "Qualified Person" as defined in NI
43-101.
About the Wicheeda REE
Property
Defense Metals 100% owned, 6,759-hectare (~16,702-acre) Wicheeda
Project is located approximately 80 km northeast of the city of
Prince George, British Columbia;
population 77,000. The Wicheeda REE Project is readily accessible
by all-weather gravel roads and is near infrastructure, including
hydro power transmission lines and gas pipelines. The nearby
Canadian National Railway and major highways allow easy access to
the port facilities at Prince
Rupert, the closest major North American port to
Asia.
The 2021 Wicheeda REE Project Preliminary Economic Assessment
technical report outlined a robust after-tax net present value
(NPV@8%) of $517 million and an 18%
IRR1. This PEA contemplated an open pit mining operation
with a 1.75:1 (waste:mill feed) strip ratio providing a
1.8 Mtpa ("million tonnes per year") mill throughput producing
an average of 25,423 tonnes REO annually over a 16 year mine life.
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.
_____________________________
|
1
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.sedarplus.ca).
|
About Defense Metals
Corp.
Defense Metals Corp. is a mineral exploration and development
company focused on the development of its 100% owned
Wicheeda Rare Earth Element Deposit located near Prince George, British Columbia, Canada.
Defense Metals Corp. trades on the TSX Venture Exchange under the
symbol "DEFN", in the United
States, trading symbol "DFMTF" on the OTCQB and in
Germany on the Frankfurt Exchange
under "35D".
Defense Metals is a proud member of Discovery Group. For more
information please visit: http://www.discoverygroup.ca/
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, completion of additional geotechnical
work including pit geotechnical core holes and the expected
timelines, the expected completion of the PFS, 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, accuracy of assay results, performance of
available laboratory and other related services, future operating
costs, interpretation of geological, engineering and metallurgical
data, 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,
engineering and metallurgical results, risks related to the
inherent uncertainty of exploration, metallurgy and development and
cost estimates, the potential for unexpected costs and expenses and
those other risks filed under the Company's profile on SEDAR at
www.sedarplus.ca. 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, metallurgical 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 and other viruses and diseases on the business
of the Company, 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 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.