Defense Metals – Robust Economics from Wicheeda Rare Earth Deposit PFS

by ahnationtalk on February 18, 202531 Views

Vancouver, British Columbia – February 18, 2025: Defense Metals Corp. (“Defense Metals” or the “Company”; TSX-V:DEFN / OTCQB:DFMTF / FSE:35D) is pleased to release the results of its independent Pre-Feasibility Study (PFS) concerning the on-going development of its 100%-owned Wicheeda Rare Earth Element (REE) deposit located in British Columbia (BC), Canada.

All amounts herein are in United States dollars, unless otherwise stated.

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 North America and Europe are prioritizing economic resilience and supply chain security for critical minerals.

“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 North America or Europe that is not yet in production, positioning it as a leading, near-term solution to meet the growing demands for Western-aligned supply chains.

“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 and after-tax NPV of $1.0 billion, at an 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 of 18.9%. 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/kg NdPrO (equivalent contained1) recovered. 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) at 81% 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.

NT4