VANCOUVER, BC, Sept. 12,
2023 /CNW/ - Defense Metals Corp. ("Defense
Metals" or the "Company") (TSXV: DEFN) (OTCQB: DFMTF)
(FSE: 35D) is pleased to announce an updated Mineral Resource
Estimate (the 2023 MRE) for the development of its Wicheeda
Rare Earth Element (REE) deposit located in British Columbia, Canada.
Highlights of the 2023 Wicheeda
REE Deposit Mineral Resource Estimate
- The 2023 MRE comprises a:
- 6.4 million tonne Measured Mineral Resource, averaging 2.86%
Total Rare Earth Oxide (TREO1);
- a 27.8 million tonne Indicated Mineral Resource, averaging 1.84
% TREO;
- and an 11.1 million tonne Inferred Mineral Resource, averaging
1.02% TREO,
- all reported at a cut-off grade of 0.5% TREO within a
conceptual open pit shell;
- Total Measured and Indicated (M+I) Mineral Resources of 34.2
million tonnes, averaging 2.02% TREO, is a significant upgrade
representing a conversion of 101% of the 2021 MRE comprising some
indicated and mostly inferred resources (see Defense Metals' news
release of November 24, 2021) to M+I
on a contained metal basis;
- Measured and Indicated resources are inclusive of 17.8 million
tonnes of dolomite carbonatite, averaging 2.92% TREO;
- The 2023 MRE represents a 17% increase in TREO on a contained
metal basis, or 31% tonnage increase, in comparison to the prior
2021 MRE.
- The 2023 MRE is based on an updated geological model that
incorporates an additional 10,350 metres of drillhole data, from 45
holes drilled by Defense Metals during 2021 and 2022.
__________________________
|
1 TREO
% is the sum of CeO2, La2O3,
Nd2O3, Pr6O11,
Sm2O3, Eu2O3,
Gd2O3, Tb4O7,
Dy2O3 and Ho2O3
%.
|
Craig Taylor, CEO of Defense
Metals, stated, "Defense Metals is excited to release our
updated mineral resource estimate for the Wicheeda Deposit, one of
North Americas most advanced Rare Earth development projects. With
over 10,000 metres of additional drilling completed since our 2021
mineral resource we have now converted 100% of the that resource to
the measured and indicated categories, in addition to growing the
overall resource by 17%. Importantly, we believe the upgrading of
resources now demonstrates that we have established the tonnage and
grades necessary to carry forward into our ongoing preliminary
feasibility study."
The effective date of the 2023 MRE is August 28, 2023, and a technical report relating
to the PEA will be filed on SEDAR within 45 days of this news
release. The 2023 MRE was prepared by APEX Geoscience Ltd.
(APEX).
2023 Mineral Resource
The Wicheeda REE deposit is a southeast-trending, north to
northeast dipping syenite-carbonatite intrusive complex having
dimensions of approximately 450 m
north-south by 250 m east-west which
intrudes a mixed sedimentary host rock package (limestone).
Relatively high REE grade dolomite-carbonatite rocks, which outcrop
at surface, and form the main body of REE mineralization are
surrounded by an envelope of intermediate REE grade hybrid
xenolithic-carbonatite rocks that intrude lower REE grade
syenite.
The 2023 MRE comprises a 6.4 million tonne Measured Mineral
Resource, averaging 2.86% TREO CeO2,
La2O3, Nd2O3,
Pr6O11, Sm2O3, Eu2O3,
Gd2O3, Tb4O7,
Dy2O3 and Ho2O3); 27.8
million tonne Indicated Mineral Indicated Resource, averaging 1.84%
TREO; and 11.1 million tonne Inferred Mineral Resource, averaging
1.02% TREO, reported at a cut-off grade of 0.5% TREO within a
conceptual Pseudoflow algorithm open pit shell; see Table
1 and Figure 1.
The 2023 MRE is based on an updated geological model
incorporating an additional 10,350 metres of drilling within 45
holes drilled by Defense Metals during 2021 and 2022.
Table 1: Wicheeda Mineral Resource (effective
date August 28, 2023)
Category
|
Tonnes
|
TREO
|
TREO
|
CeO2
|
La2O3
|
Pr6O11
|
Nd2O3
|
Sm2O3
|
Gd2O3
|
Eu2O3
|
Dy2O3
|
Tb4O7
|
Ho2O3
|
(Million)
|
( %)
|
(kt)
|
( %)
|
( %)
|
( %)
|
( %)
|
(ppm)
|
(ppm)
|
(ppm)
|
(ppm)
|
(ppm)
|
(ppm)
|
Measured
|
6.4
|
2.86
|
183
|
1.39
|
1.00
|
0.11
|
0.31
|
312
|
139
|
63
|
35
|
12
|
4
|
Indicated
|
27.8
|
1.84
|
516
|
0.89
|
0.62
|
0.07
|
0.21
|
232
|
111
|
50
|
32
|
10
|
4
|
M&I
|
34.2
|
2.02
|
699
|
0.98
|
0.69
|
0.08
|
0.23
|
247
|
116
|
52
|
32
|
10
|
4
|
Inferred
|
11.1
|
1.02
|
113
|
0.50
|
0.31
|
0.04
|
0.13
|
166
|
91
|
38
|
35
|
9
|
5
|
Notes for Resource Table:
- The 2023 MRE is classified according to the CIM "Estimation
of Mineral Resources and Mineral Reserves Best Practice Guidelines"
dated November 29th, 2019
and CIM "Definition Standards for Mineral Resources and Mineral
Reserves" dated May 10th,
2014.
- The 2023 MRE was prepared by Warren
Black, M.Sc., P.Geo. and Tyler Acorn, M.Sc., of APEX
Geoscience Ltd under the supervision of the QP, Michael Dufresne, M.Sc., P.Geo. in accordance
with CIM Definition Standards.
- Mineral Resources that are not Mineral Reserves do not have
demonstrated economic viability. There has been insufficient
exploration to allow for the classification of the indicated and
inferred resources tabulated as a measured mineral resource;
however, it is reasonably expected that the majority of the
indicated and inferred mineral resources could be upgraded to
measured or indicated mineral resources with continued exploration.
There is no guarantee that any part of the mineral resources
discussed herein will be converted to a mineral reserve in the
future.
- All figures are rounded to reflect the relative accuracy of
the estimates. Totals may not sum due to rounding.
- Median rock densities are supported by 8,075
measurements applied: 2.95 g/cm3 (mineralized
dolomite-carbonatite), 2.90 g/cm3 (unmineralized
dolomite-carbonatite), 2.85 g/cm3 (mineralized
xenolithic-carbonatite), 2.76 g/cm3 (unmineralized
xenolithic-carbonatite), 2.73 g/cm3 (syenite), and 2.76 g/cm3
(limestone).
- The reasonable prospect for eventual economic extraction is
met by reporting the Mineral Resources at a cut-off grade of 0.50%
TREO (total rare earth oxide, sum of 10 oxides: CeO2,
La2O3, Nd2O3,
Pr6O11,
Sm2O3, Eu2O3,
Gd2O3, Tb4O7,
Dy2O3 and
Ho2O3), contained within an optimized
open pit shell.
- The cut-off grade is calculated, and the open pit shell is
optimized based on the assumption that the hydrometallurgical
processing can produce mixed REE carbonate precipitates. The
parameters utilized, as in the 2021 MRE, include the following
considerations:
- TREO price: $18.66/kg
- Exchange rate of 1.30
C$:US$
- Precipitate production grades of 81.09% of TREO
- Processing costs include $21.47/t of mill feed for flotation plus a
variable cost for hydrometallurgical plant that varies based on the
feed grade. The average cost of hydrometallurgical plant is assumed
to be $1,204/t of
concentrate.
- Mining cost of C$2.00/t for
mill feed and waste
- G&A Costs of C$3.33/t for
mill feed.
- The overall process recoveries: For TREO>=2.3%, recovery
is 69.6%; between 2.3% and 1.5% TREO, recovery is 65.3%; and less
than 1.5% TREO, recovery is 52.2%. These assume variable flotation
recoveries and a constant 87% hydrometallurgical recovery.
- Overall pit slope angles vary by zone between 40 and 48
degrees.
The 2023 MRE for the Wicheeda REE Deposit includes inferred
mineral resources that are considered too speculative geologically
to have the economic considerations applied to them that would
enable them to be categorized as mineral reserves. Mineral
resources that are not mineral reserves do not have demonstrated
economic viability.
Mineral Resource Estimate
Methodology
- The drillhole database comprised of drilling that
intersected the estimation domains consists of 14 exploration
diamond drillholes (totalling 2,107 meters) completed in 2008 and
2009 by Spectrum Mining and 58 exploration core drillholes during
2019, 2021 and 2022 by Defense Metals (totalling 12,073 metres),
providing a total of 4,903 drill core samples analyzed for REE by
multi-element fusion ICP-MS.
- The 3D geological modeling integrates assay and geological data
collected from diamond core drilling; surface geologic mapping;
soil geochemical; and airborne magnetic and radiometric geophysical
surveys.
- Ordinary kriging is employed to estimate metal
concentrations using a three-step pass search strategy guided by
domain-specific variography. The estimates utilize capped
composites with a 3-meter length.
- Measured Resources are categorized within a search ellipse of
35 m by 30 m by 15 m with a minimum of 3 drillholes. Indicated
Resources are categorized within a search ellipse of 90 m by 60 m by
30 m with a minimum of 3 drillholes.
Inferred Resources are categorized within a search ellipse of
120 m by 120
m by 30 m with a minimum of 2
drillholes.
Table 2: Mineral Resource cut-off sensitivity
Category
|
Cut-off
|
Tonnes1
|
TREO2
|
TREO
|
CeO2
|
La2O3
|
Pr6O11
|
Nd2O3
|
Sm2O3
|
Gd2O3
|
Eu2O3
|
Dy2O3
|
Tb4O7
|
Ho2O3
|
TREO
(%)2
|
(Million)
|
( %)
|
(kt)
|
( %)
|
( %)
|
( %)
|
( %)
|
(ppm)
|
(ppm)
|
(ppm)
|
(ppm)
|
(ppm)
|
(ppm)
|
Measured
|
0.25
|
6.7
|
2.74
|
184
|
1.33
|
0.96
|
0.11
|
0.29
|
301
|
136
|
61
|
36
|
12
|
4
|
0.5
|
6.4
|
2.86
|
183
|
1.39
|
1.00
|
0.11
|
0.31
|
312
|
139
|
63
|
35
|
12
|
4
|
0.75
|
6.3
|
2.90
|
182
|
1.41
|
1.01
|
0.11
|
0.31
|
315
|
140
|
64
|
35
|
12
|
4
|
1
|
6.2
|
2.93
|
182
|
1.42
|
1.02
|
0.11
|
0.31
|
318
|
141
|
64
|
35
|
12
|
4
|
1.5
|
5.9
|
3.01
|
178
|
1.46
|
1.05
|
0.12
|
0.32
|
324
|
143
|
65
|
35
|
12
|
4
|
2
|
5.2
|
3.18
|
165
|
1.54
|
1.12
|
0.12
|
0.34
|
338
|
148
|
68
|
37
|
12
|
4
|
2.5
|
4.1
|
3.43
|
140
|
1.66
|
1.21
|
0.13
|
0.36
|
358
|
157
|
72
|
38
|
13
|
4
|
Indicated
|
0.25
|
36.1
|
1.49
|
546
|
0.72
|
0.50
|
0.06
|
0.17
|
197
|
98
|
43
|
31
|
9
|
4
|
|
0.5
|
27.8
|
1.84
|
516
|
0.89
|
0.62
|
0.07
|
0.21
|
232
|
111
|
50
|
32
|
10
|
4
|
|
0.75
|
23.0
|
2.10
|
487
|
1.02
|
0.71
|
0.08
|
0.24
|
257
|
120
|
54
|
32
|
10
|
4
|
|
1
|
19.5
|
2.33
|
456
|
1.13
|
0.79
|
0.09
|
0.26
|
277
|
128
|
58
|
33
|
11
|
4
|
|
1.5
|
13.9
|
2.78
|
387
|
1.35
|
0.96
|
0.11
|
0.30
|
312
|
141
|
64
|
34
|
12
|
4
|
|
2
|
10.3
|
3.15
|
324
|
1.53
|
1.10
|
0.12
|
0.34
|
339
|
151
|
69
|
36
|
12
|
4
|
|
2.5
|
7.6
|
3.46
|
264
|
1.68
|
1.21
|
0.14
|
0.37
|
363
|
161
|
74
|
38
|
13
|
4
|
Inferred
|
0.25
|
21.8
|
0.70
|
153
|
0.34
|
0.21
|
0.03
|
0.09
|
126
|
75
|
30
|
34
|
8
|
5
|
|
0.5
|
11.1
|
1.02
|
113
|
0.50
|
0.31
|
0.04
|
0.13
|
166
|
91
|
38
|
35
|
9
|
5
|
|
0.75
|
5.9
|
1.39
|
81
|
0.68
|
0.44
|
0.06
|
0.17
|
206
|
103
|
45
|
33
|
9
|
4
|
|
1
|
3.6
|
1.72
|
62
|
0.85
|
0.55
|
0.07
|
0.21
|
240
|
116
|
51
|
35
|
10
|
4
|
|
1.5
|
1.7
|
2.26
|
39
|
1.12
|
0.74
|
0.09
|
0.26
|
289
|
136
|
60
|
37
|
11
|
4
|
|
2
|
1.0
|
2.62
|
27
|
1.29
|
0.87
|
0.11
|
0.29
|
317
|
148
|
65
|
41
|
12
|
5
|
|
2.5
|
0.5
|
3.03
|
14
|
1.49
|
1.02
|
0.12
|
0.33
|
335
|
156
|
69
|
44
|
13
|
5
|
Notes
|
- 1 Tonnes constrained within
an open pit shell.
- 2 TREO % sum of
CeO2, La2O3,
Nd2O3, Pr6O11,
Sm2O3, Eu2O3,
Gd2O3, Tb4O7,
Dy2O3 and Ho2O3.
- Grades are reported as in-situ grades.
|
Table 2 above illustrates the sensitivity of
the 2023 MRE to different cut-off grades for a potential open-pit
operation scenario with reasonable outlook for economic extraction.
The reader is cautioned that the figures provided in these tables
should not be interpreted as a statement of mineral resources.
Quantities and estimated grades for different cut-off grades are
presented for the sole purpose of demonstrating the sensitivity of
the resource model to cut-off grade.
Table 3: Wicheeda Mineral Resource by Lithology (cut-off
grade of 0.5% TREO)
Lithology
|
Category
|
Tonnes
|
TREO
|
TREO
|
CeO2
|
La2O3
|
Pr6O11
|
Nd2O3
|
Sm2O3
|
Gd2O3
|
Eu2O3
|
Dy2O3
|
Tb4O7
|
Ho2O3
|
(Million)
|
( %)
|
(kt)
|
( %)
|
( %)
|
( %)
|
( %)
|
(ppm)
|
(ppm)
|
(ppm)
|
(ppm)
|
(ppm)
|
(ppm)
|
Dolomite
Carbonatite
|
Measured
|
5.9
|
2.98
|
177
|
1.44
|
1.04
|
0.12
|
0.32
|
320
|
142
|
65
|
35
|
12
|
4
|
Indicated
|
11.8
|
2.88
|
342
|
1.40
|
1.01
|
0.11
|
0.31
|
315
|
141
|
64
|
34
|
12
|
4
|
M&I
|
17.8
|
2.92
|
519
|
1.41
|
1.02
|
0.11
|
0.31
|
316
|
141
|
64
|
34
|
12
|
4
|
Inferred
|
0.6
|
2.66
|
15
|
1.30
|
0.91
|
0.11
|
0.29
|
281
|
134
|
60
|
37
|
11
|
4
|
Xenolithic-Dolomite
Carbonatite
|
Measured
|
0.3
|
1.43
|
5
|
0.69
|
0.46
|
0.06
|
0.17
|
209
|
107
|
47
|
35
|
10
|
5
|
Indicated
|
11.6
|
1.22
|
142
|
0.59
|
0.38
|
0.05
|
0.15
|
188
|
95
|
42
|
30
|
9
|
4
|
M&I
|
12.0
|
1.22
|
147
|
0.60
|
0.39
|
0.05
|
0.15
|
189
|
95
|
42
|
30
|
9
|
4
|
Inferred
|
4.0
|
1.28
|
51
|
0.63
|
0.40
|
0.05
|
0.16
|
198
|
98
|
43
|
32
|
9
|
4
|
Syenite
|
Measured
|
0.1
|
0.81
|
1
|
0.39
|
0.26
|
0.03
|
0.10
|
138
|
84
|
34
|
32
|
9
|
5
|
Indicated
|
4.1
|
0.74
|
31
|
0.36
|
0.22
|
0.03
|
0.10
|
132
|
73
|
31
|
28
|
7
|
4
|
M&I
|
4.2
|
0.74
|
31
|
0.36
|
0.22
|
0.03
|
0.10
|
132
|
73
|
31
|
28
|
7
|
4
|
Inferred
|
5.8
|
0.73
|
42
|
0.36
|
0.21
|
0.03
|
0.10
|
136
|
78
|
33
|
33
|
8
|
5
|
Limestone
|
Measured
|
0.0
|
1.05
|
0
|
0.49
|
0.34
|
0.05
|
0.13
|
178
|
120
|
43
|
63
|
14
|
10
|
Indicated
|
0.2
|
0.81
|
1
|
0.38
|
0.25
|
0.03
|
0.11
|
156
|
117
|
41
|
62
|
14
|
10
|
M&I
|
0.2
|
0.83
|
2
|
0.39
|
0.26
|
0.03
|
0.11
|
157
|
117
|
41
|
63
|
14
|
10
|
Inferred
|
0.7
|
0.73
|
5
|
0.34
|
0.22
|
0.03
|
0.09
|
143
|
111
|
39
|
70
|
14
|
11
|
Table 3 above illustrates the 2023 MRE
by lithology which illustrates the relatively high REE grade nature
of the dominant dolomite carbonatite unit, intermediate grade
xenolithic dolomite carbonate rocks and lower grade syenite and
limestone lithologies peripheral to the main body of the Wicheeda
REE Deposit.
Qualified Persons
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
analytical and test data underlying the information and opinions
contained therein.
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,
Canada; population 77,000. The Wicheeda Project is readily
accessible by all-weather gravel roads and is near infrastructure,
including hydropower transmission lines and gas pipelines. The
nearby Canadian National Railway and major highways allow easy
access to the deep-water port facilities at Prince Rupert, the closest major North
American port to Asia.
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 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".
Defense Metals is a proud member of Discovery Group. For more
information please visit:
http://www.discoverygroup.ca/
National Instrument 43-101
Technical Report
A technical report for the Wicheeda Project will be prepared in
accordance with National Instrument 43-101 and will be filed on
SEDAR at www.sedarplus.ca and on the Defense Metals' website within
45 days of this news release. Readers are encouraged to read the
technical report in its entirety, including all qualifications,
assumptions and exclusions that relate to the details summarized in
this news release. The technical report is intended to be read as a
whole, and sections should not be read or relied upon out of
context.
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 completion
of the PFS and the expected timelines, the completion of the
environmental tests on flotation and hydrometallurgical and the
expected timelines, advancing the Wicheeda REE Project, 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 and metallurgical results, risks
related to the inherent uncertainty of exploration 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 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 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.