Stellantis Invests in Mine to Satisfy Increasing Demand for Copper
Stellantis is the latest car company to invest in a mining company to help avoid any hiccups on its road to being carbon-free by 2038. The company just announced it acquired a 14.2% stake in McEwen Copper. Partnering with or securing a large stake in a mining company or projects has been a growing trend among car companies as they secure raw materials needed to assemble the next generation of vehicles. Stellantis, the world’s third-largest automaker, owns brands such as Chrysler, Jeep, Fiat, and Peugeot. It says it wants 100% of its European cars and 50% of its US cars and light trucks to be battery electric by 2030.
As automakers move to expand EV production, access to an uninterrupted source of raw materials such as lithium, cobalt, nickel, and copper is a concern that needs to be planned for. Some car companies have developed strategies to to directly sourcing raw materials from mines. And others are likely to follow. This year, Tesla (TSLA), Ford (F), and General Motors (GM) are all expected to be better represented than in the past at the top mining conferences being held over the next two weeks. These include the Global Metals and Mining Conference in South Florida (Feb. 27 – Mar. 1) and the Mineral Exploration & Mining Convention in Toronto (Mar. 5 – Mar. 8).
Because not all investors can make it to Toronto, analysts from Noble Capital Markets will be attending PDAC conference meetings and then interviewing select executives. This will be captured on video for the exclusive benefit of Channelchek subscribers (no cost). Learn more about the Channelchek Takeaway Series at PDAC.
The Stellantis Purchase
The $155 million investment in a project located in Argentina, is expected to make what the press release called, “a major contribution to the company’s plan to become carbon net zero by 2038.” It represents a 14.2% equity stake in McEwen Copper, a subsidiary of Canadian mining company McEwen Mining (MUX), which owns the Los Azules project in Argentina and the Elder Creek project in Nevada.
The large stake makes Stellantis McEwen Copper’s second-largest shareholder, along with Rio Tinto, through its copper leaching technology venture, Nuton. Los Azules plans to produce 100,000 tons per year of cathode copper at 99.9% purity starting in 2027 and the resources can secure the operation for at least 33 years.
“Stellantis intends to lead the industry with the commitment to be carbon net zero by 2038 – a goal that requires innovation and a complete redefinition of the entire business,” said Carlos Tavares, Stellantis CEO. “We are taking important steps in Argentina and Brazil, with the aim of decarbonizing mobility and ensuring strategic supplies of raw materials necessary for the success of the Company’s global electrification plans,” he said.
“Copper is a strategic raw material for the future of electric mobility, and it is estimated that global demand for the conductive metal will triple in the coming years. By making an investment in one of the top 10 international projects in the development of this commodity, Stellantis should be able to supply some of the projected copper demand starting in 2027,” said Carlos Tavares.
Take Away
The move to electric cars presents a number of opportunities to investors beyond picking which car company perform best, or even survive. Looking forward to areas of increased demand from the EV business, lithium is the mineral spoken about most. But copper is not only important in its use throughout the vehicle, it is also critical to distribute electricity to charging stations. It wouldn’t be a surprise to hear announcements by other car companies that they are also enhancing their vertical integration by partnering with or purchasing mining operations.
Channelchek is a great resource for information on small and microcap mining companies. For an extensive listing of companies involved in copper mining, including description, data, and stock price history, click here.
Will Tesla Investors be Inspired or Disappointed on March 1 (Investor Day)?
Tesla’s Investor Day is March 1st. The lead-up to these events is usually filled with speculation of how the founder, Elon Musk, may surprise EV fans and the investment community. Tesla’s (TSLA) innovations and unique marketing and distribution have made it the most valuable car company in the world. Part of that marketing is the mystique and confidence Musk brings whenever he has an audience. The company is also inspiring as it is less than 20 years in the making and is leading a revolution in how automobiles are built, driven, and fueled.
As plans are kept under wraps, most of the rumors as to what to expect fall in the category of speculation. Below are some of the most likely ideas from past announcements from Tesla and across the internet since the meeting date was announced.
Battery Production
Sourcing raw materials for batteries to make certain new EVs have all the needed components is becoming a concern among car manufacturers.
News has leaked of a proposed $3.6 billion Giga factory to produce up to 100 Gwh of batteries. The factory is expected to be in Nevada and eventually be used to assemble the Tesla semi when production eventually starts.
Tesla is expected to build a processing facility to make lithium hydroxide from spodumene concentrate in Corpus Christie, Texas. The location is good for shipping, and it is close to sources of sulfuric acid from the oil industry. This would be the first lithium hydroxide production facility in the U.S. If true, it would help Tesla fulfill the raw material sourcing requirements of the Inflation Reduction Act to qualify its cars for the $7,500 federal tax credit.
Those deals are at market prices; Tesla would reap the profits from processing the spodumene concentrate into hydroxide, but the bulk of the profit from the material supply accrues to the mining company. Tesla has hinted previously of plans to enter the lithium mining business.
The $25,000 EV
First mentioned in 2020, Tesla’s proposed $25,000 car earned the nickname “fluffy pillow” after Musk showed a picture of an object covered by a blanket that many thought resembled a large pillow. The project was put on hold in early 2022 when Musk said Tesla had too much on its plate.
Tesla’s existing best sellers, the Model 3 and Model Y, have been around for a while, a new model, whether it is the truck or an affordable entry level car would freshen up the line-up.
New Factory
Tesla’s production goals put it at or near capacity. The current factory capacity is listed as 1.9 million vehicles per year. The current goal is six million cars a year by 2026. This would require the expansion of existing plants and then some. A new factory takes three years to design, construct, and get rolling. So planning would have to start now. Musk is more likely to build a new plant than change his production goals.
Thoughts from across the internet suggest this could be in Indonesia or Mexico. Cars built in Mexico could qualify for the $7500 tax credit to purchasers.
Capital Raise
To accomplish the above requires money. Currently, there is construction in progress building out Tesla’s German and Texas factories. Billions more would be needed to implement other plans.
There is as of recent reporting, $22 billion in cash on Tesla’s balance sheet. This is a snapshot of quarter-end and not an accurate representation of the company’s finances. Offsetting this large number is $15 billion in trade payables and $7 billion in accrued payables, much of which is due soon.
Tesla may have to go to the market to raise cash for projects that will be presented on March 1st.
About Tesla Day
The investor event will be live-streamed from Tesla’s Gigafactory in Texas, with some of the company’s institutional and retail investors attending in person. According to Tesla’s press release, investors will be able to see its most advanced production line as well as discuss long-term expansion plans, the generation 3 platform, and capital allocation.
Toronto, Ontario, February 24, 2023 – Aurania Resources Ltd. (TSXV: ARU; OTCQB: AUIAF; Frankfurt: 20Q) (“Aurania” or the “Company”) is pleased to announce that it will be attending the Prospector’s and Developers International Convention (PDAC) being held March 5th – 8th, 2023 at the Metro Toronto Convention Centre (MTCC) in Toronto, Canada.
PDAC Booth Location
Aurania will be exhibiting at booth 2948 in the Investors Exchange located in the MTCC South Building, Level 800. Please note our new booth location. For more information about PDAC and registration, please visit https://www.pdac.ca/convention/registration.
March 5th – 5:00pm Shareholder Meet and Greet with Management
Aurania is hosting a meet-and-greet for shareholders on Sunday, March 5th from 5:00pm-8:00pm in Salon 1, 19th Floor, at The Fairmont Royal York Hotel, 100 Front Street West, Toronto, Ontario. Due to capacity limitations, we kindly ask that you confirm your attendance no later than March 1st by RSVP to [email protected].
March 6th – 9:05am Ecuador Day
Ecuador Day will take place on Monday, March 6th at 8:00am ET in Room 206F at the MTCC. Ecuador Day is being organized and hosted by the Ecuador Chamber of Mines and will run from 8:00am-12:00pm. Representatives from the Government of Ecuador are expected to provide an update on the mining industry in Ecuador during this event.
March 7th – 10:00am Panel on Planning for Sustainable Mineral Development 101
Aurania’s Head of CSR, Ms. Carolina Lasso, has been invited to participate in a session sub-topic titled “Setting the stage for success with the S in ESG: Engagement and agreement making in early exploration” on Tuesday, March 7th at 10:00am in Room 715 at the MTCC.
ERM – Environmental Resources Management has put together this two-hour lightning talks panel in collaboration with the PDAC Sustainability Committee. The panel will feature key sub-topics within the sustainable mining framework explored by junior companies, community members, investors, and expert speakers. Click here for more information:
Aurania is a mineral exploration company engaged in the identification, evaluation, acquisition and exploration of mineral property interests, with a focus on precious metals and copper in South America. Its flagship asset, The Lost Cities – Cutucu Project, is located in the Jurassic Metallogenic Belt in the eastern foothills of the Andes mountain range of southeastern Ecuador.
Information on Aurania and technical reports are available at www.aurania.com and www.sedar.com, as well as on Facebook at https://www.facebook.com/auranialtd/, Twitter at https://twitter.com/auranialtd, and LinkedIn at https://www.linkedin.com/company/aurania-resources-ltd-.
Neither the TSX-V nor its Regulation Services Provider (as that term is defined in the policies of the TSX-V) accepts responsibility for the adequacy or accuracy of this release.
Mark Reichman, Senior Research Analyst, Natural Resources, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
Significant progress at Kingsway. Exploration and drilling at the company’s 100%-owned Kingsway gold project is targeting the Appleton Fault over a 12-kilometer strike length. With approximately $17 million in cash, Labrador Gold has ample financial resources to fund the remaining 34,000 meters of drilling of the company’s planned 100,000-meter drill program.
2023 drilling program. Drilling will continue this year at the Big Vein target and further drilling will be undertaken at the Midway and Pristine targets. Labrador Gold currently has two drill rigs deployed at the Big Vein target. The company expects to add a third rig to drill northeast of the Pristine target which could later move to the Midway target, and a fourth rig to drill in an area (“The Gap”) between Big Vein and Pristine.
Equity Research is available at no cost to Registered users of Channelchek. Not a Member? Click ‘Join’ to join the Channelchek Community. There is no cost to register, and we never collect credit card information.
This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).
*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.
Mark Reichman, Senior Research Analyst, Natural Resources, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
Fourth quarter and full year 2022 financial results. Coeur reported adjusted fourth quarter and full year 2022 losses per share of $(0.06) and $(0.32), respectively, and in line with our estimates. Fourth quarter and full year adjusted EBITDA were $35.9 million and $139.0 million. Full year gold and silver ounces produced were 330.3 thousand and 9.8 million, respectively, while ounces sold were 330.0 thousand and 9.8 million. Free cash flow during the fourth quarter and full year 2022 amounted to $(84.5) million and $(326.7) million due in part to heavy capital expenditures of $113.1 million and $352.4 million, respectively. On balance, financial results were in line with our expectations.
Completion of the Rochester expansion is expected by mid-2023. As of December 31, 2022, approximately $605 million of the $650 million to $670 million project cost has been committed, while $494 million had been incurred.
Equity Research is available at no cost to Registered users of Channelchek. Not a Member? Click ‘Join’ to join the Channelchek Community. There is no cost to register, and we never collect credit card information.
This Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).
*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.
TORONTO, ON / ACCESSWIRE / February 23, 2023 / Eskay Mining Corp. (“Eskay” or the “Company”) (TSXV:ESK) (OTCQX:ESKYF) (Frankfurt:KN7)(WKN:A0YDPM) is pleased to announce further encouraging diamond drill results from its 2022 exploration program at its 100% controlled Consolidated Eskay Property in the Golden Triangle, British Columbia.
“Results from our 2022 exploration season demonstrate Eskay’s team has made considerable progress toward unraveling the district-scale potential of VMS mineralization surrounding the Eskay Creek deposit,” commented Dr. John DeDecker, VP of Exploration for Eskay Mining Corp. “Achievements of the 2022 exploration program include defining a new trend of VMS mineralization along the Scarlet-Tarn corridor parallel to and approximately seven kilometers east of the Eskay anticline. Tarn Lake and Scarlet Knob are situated along an east-west trending VMS feeder structure hosted by Eskay rhyolite like that seen in the footwall of the Eskay Creek deposit. Mapping and prospecting define a westward stratigraphic younging direction suggesting that stockwork and replacement-style mineralization at Tarn Lake may represent feeders to seafloor-hosted mineralization up-section towards the important Contact Mudstone horizon, host to high-grade mineralization at Eskay Creek. This recognition is a significant step towards meeting our goal of discovering new Eskay Creek-like high-grade VMS systems. Drilling at TV now shows that Au- and Ag-bearing massive sulfide extends 100 m along strike and overlies an even more extensive zone of stockwork mineralization. We are eager to follow up on all of these encouraging results in 2023.”
TV Extensional Drilling
Highlight results:
4.61 gpt Au and 22.17 gpt Ag (4.89 gpt Au Eq) over 6.28m within 2.84 gpt Au and 22.17 gpt Ag (3.13 gpt Au Eq) over 16.36m in hole TV22-105
2.66 gpt Au and 30.45 gpt Ag (3.05 gpt Au Eq) over 10.56m within 1.51 gpt Au and 25.39 gpt Ag (1.83 gpt Au Eq) over 43.09m in hole TV22-120
3.36 gpt Au and 109.50 gpt Ag (4.76 gpt Au Eq) over 2.00m within 1.14 gpt Au and 30.40 gpt Ag (1.53 gpt Au Eq) over 30.56m in hole TV22-97
6.88 gpt Au and 21.00 gpt Ag (7.15 gpt Au Eq) over 1.10m within 1.28 gpt Au and 87.92 gpt Ag (2.41 gpt Au Eq) over 14.95m in hole TV22-109
Drilling at TV in 2022 expanded the footprint of both the Upper Massive Sulfide Zone and Stockwork Zone at TV (Figures 1, 2 and 3). Massive sulfide mineralization now extends approximately 100 m along strike, ranges from 5 to 10 m in thickness, and is characterized by sulfide lenses hosted by intensely silicified carbonaceous mudstone associated with peperitic dacite (Figures 4 and 5). Massive and semi-massive sulfide mineralization overlies an extensive stockwork feeder zone hosted by dacitic and andesitic breccia and peperite. Stockwork mineralization now extends approximately 175 m along strike, 175 m down dip, and ranges in thickness from 50 to 100 m. Significantly, drill holes testing the up-dip extent of the stockwork zone (TV22-106, 108, and 112) intercepted strongly anomalous Au and Ag values with interspersed values over 1 gpt Au equivalent. Rock chip samples collected from the vicinity of these drill holes suggest that this up-dip zone may contain higher grade pockets of Au and Ag mineralization (Figure 2).
Significant mineralized intervals from 2022 drill holes completed in the vicinity of the TV deposit are presented in the table below. A complete list of the coordinates of drill holes including holes without significant mineralized intercepts is found at the bottom of this release.
Hole
From (m)
To (m)
Length (m)
Au (gpt)
Ag (gpt)
Au Eq (gpt)
Ag Eq (gpt)
TV22-88
133.30
135.00
1.70
1.22
1.22
1.24
96.38
TV22-97
95.44
126.00
30.56
1.14
30.40
1.53
119.68
includes
114.00
116.00
2.00
3.36
109.50
4.76
371.58
TV22-99
88.72
93.60
4.88
0.70
23.50
1.00
78.17
97.64
103.34
5.70
1.77
19.46
2.02
157.82
includes
102.55
103.34
0.79
8.85
23.00
9.14
713.30
TV22-105
86.72
103.08
16.36
2.84
22.17
3.13
243.78
includes
86.72
93.00
6.28
4.61
22.17
4.89
381.59
and
96.00
101.00
5.00
2.39
25.40
2.71
211.66
TV22-106
2.56
4.60
2.04
1.69
2.38
1.72
134.20
24.91
26.91
2.00
0.78
17.50
1.00
78.30
TV22-108
4.20
6.99
2.79
1.94
6.00
2.02
157.32
15.00
18.00
3.00
1.33
2.17
1.36
105.76
TV22-109
50.05
65.00
14.95
1.28
87.92
2.41
188.00
includes
50.05
51.15
1.10
6.88
21.00
7.15
557.64
and
57.58
63.23
5.65
1.03
173.12
3.25
253.38
TV22-110
72.27
88.95
16.68
1.44
19.62
1.69
131.55
TV22-111
51.56
58.78
7.22
0.45
92.99
1.64
127.96
includes
54.83
56.51
1.68
0.87
309.00
4.84
377.21
TV22-112
0.00
7.00
7.00
0.75
9.31
0.87
68.05
includes
4.00
5.00
1.00
3.57
8.18
3.67
286.64
TV22-120
127.79
170.88
43.09
1.51
25.39
1.83
142.83
includes
130.18
131.00
0.82
4.19
15.00
4.38
341.82
and
136.58
147.14
10.56
2.66
30.45
3.05
238.18
TV22-121
95.00
97.18
2.18
0.13
121.87
1.69
131.82
128.31
132.00
3.69
1.27
40.31
1.79
139.37
Au Eq and Ag Eq values have all been adjusted to the silver-to-gold ratio of 78:1 for this news release.
Tarn Lake
Assay results from the maiden drill program at Tarn Lake have already defined an 80m-long open-ended trend of Au mineralization that dips west-northwest (Figures. 1, 7 and 8). Rock chip sample results suggest that Au mineralization extends up-dip from the drill holes to the surface. Mineralization remains open down-dip.
Sulfide mineralization intercepted by drilling is dominantly replacement-style and stockwork-style (Figure 9), and is hosted by intensely altered Eskay rhyolite. This style of mineralization and intense hydrothermal alteration are consistent with a position in the immediate sub-seafloor environment of a VMS feeder zone. Geological mapping, drilling, and lithological facies analyses show extensive rhyolite-bearing volcaniclastic debris flow beds, peperitic rhyolite, and flow-banded rhyolite defining a rhyolite dome complex that formed at a paleoseafloor position proximal to a syn-volcanic VMS feeder structure, supporting the interpretation based on mineralization and alteration. Based on this geology, Eskay’s exploration team thinks there is considerable potential for the presence of seafloor-hosted VMS mineralization at one or more horizons at Tarn Lake, as is seen along the parallel Eskay Creek-Sib-Lulu trend to the west (Figure 10).
Eskay’s geological mapping team has determined that the stratigraphic younging direction along the Scarlet-Tarn trend is to the west, and that the contact between the Eskay rhyolite and the Willow Ridge basalt lies to the west of Tarn Lake (Figure 10). The contact between these lithologies defines the Contact mudstone horizon that hosts the world-class Au-Ag mineralization at Eskay Creek Mine. Given that recent rock chip sampling indicates Au mineralization continues west of Tarn Lake, it is possible the Tarn VMS system continues up-stratigraphy to the Contact mudstone horizon. These findings are a significant step towards our goal of finding Eskay Creek-like VMS deposits on the Consolidated Eskay Property.
In addition to the potential for Au and Ag mineralization down-dip and up-section from 2022 drilling, there is considerable potential for mineralization to extend beneath Bruce Glacier to Scarlet Knob along east-west trending feeder structures (Figure 11). These feeder structures are delineated by andesite dikes surrounded by sulfide mineralization and intense hydrothermal alteration of the host Eskay rhyolite.
Significant drill results from hole TN22-8 completed at Tarn Lake are presented in the table below.
Hole
From (m)
To (m)
Length (m)
Au (gpt)
Ag (gpt)
Au Eq (gpt)
Ag Eq (gpt)
TN22-8
90.19
92.88
2.69
0.75
29.00
1.12
87.50
117.33
123.00
5.67
1.37
3.37
1.41
110.00
133.53
139.72
6.19
1.46
2.13
1.49
116.16
158.04
161.00
2.96
1.27
4.11
1.32
102.78
Au Eq and Ag Eq values have all been adjusted to the silver-to-gold ratio of 78:1 for this news release.
2022 Exploration Program
The fundamental goal of the 2022 exploration program was to identify new precious metal-rich VMS deposits across the Consolidated Eskay Project through early-stage work including mapping and geochemical sampling, and more advanced work including widely spaced drilling. During the 2022 exploration season, Eskay Mining successfully completed 29,500m of diamond drilling along the TV-Jeff corridor and along the Scarlet Ridge-Tarn Lake trend.
Drill results discussed in this news release come from holes drilled in the vicinity of the TV deposit and the newly discovered Tarn Lake mineralizing system. As of this news release, all assays have returned from the 2022 drill program.
Au Eq and Ag Eq Calculations and True Width:
Note on use of Au eq (Au eq=Au+Ag/78) and Ag eq (Ag eq=Au*78+Ag): Mineralization at the TV and Jeff deposits displays similar characteristics and mineralogy to the Eskay Creek deposit and therefore for Au eq, and Au:Ag, a ratio of 78:1 is used and Au eq and Ag eq values are deemed to be reasonable based on assumed gold recovery (84.2%) and silver recovery (87.3%) as reported in the Eskay Creek Project NI 43-101 Technical Report and Prefeasibility Study, British Columbia, Canada, Effective Date: 22 July, 2021, Prepared for: Skeena Resources Ltd., Prepared by: Absence Engineering Canada Inc.
True widths of reported intercepts are not fully understood at this time but given the moderately dipping tabular nature of these deposits and the steep angle of drilling, Eskay geologists estimate true widths represent approximately 70-90% of the reported drill intercept lengths.
QA/QC, Methodology Statement:
Halved HQ drill core samples are submitted to ALS Geochemistry in Terrace, British Columbia for preparation and analysis. ALS is accredited to the ISO/IEC 17025 standard for gold assays. All analytical methods include quality control standards inserted at set frequencies. The entire sample interval is crushed and homogenized, 250 g of the homogenized sample is pulped. All samples were analyzed for gold, silver, mercury, and a suite of 48 major and trace elements. Analysis for gold is by fire assay fusion followed by Inductively Coupled Plasma Atomic Emission Spectroscopy (ICP-AES) on 30 g of pulp. Analysis for silver is by fire assay and gravimetric analysis on 30 g of pulp. Mercury is analyzed using the trace Hg Inductively Coupled Plasma Mass Spectroscopy (ICP-MS) method. All other major and trace elements are analyzed by four-acid digestion followed by ICP-MS.
Historical rock chip sample data is sourced from Assessment Report AR19675 by Granges dated February 7, 1990. Eskay Mining is unable to fully verify this data, and it should be treated as such by the reader.
Dr. Quinton Hennigh, P. Geo., a Director of the Company and its technical adviser, a qualified person as defined by National Instrument 43-101, has reviewed and approved the technical contents of this news release.
About Eskay Mining Corp:
Eskay Mining Corp (TSX-V:ESK) is a TSX Venture Exchange listed company, headquartered in Toronto, Ontario. Eskay is an exploration company focused on the exploration and development of precious and base metals along the Eskay rift in a highly prolific region of northwest British Columbia known as the “Golden Triangle,” 70km northwest of Stewart, BC. The Company currently holds mineral tenures in this area comprised of 177 claims (52,600 hectares).
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 release.
Forward-Looking Statements: This Press Release contains forward-looking statements that involve risks and uncertainties, which may cause actual results to differ materially from the statements made. When used in this document, the words “may”, “would”, “could”, “will”, “intend”, “plan”, “anticipate”, “believe”, “estimate”, “expect” and similar expressions are intended to identify forward-looking statements. Such statements reflect our current views with respect to future events and are subject to risks and uncertainties. Many factors could cause our actual results to differ materially from the statements made, including those factors discussed in filings made by us with the Canadian securities regulatory authorities. Should one or more of these risks and uncertainties, such as actual results of current exploration programs, the general risks associated with the mining industry, the price of gold and other metals, currency and interest rate fluctuations, increased competition and general economic and market factors, occur or should assumptions underlying the forward looking statements prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, or expected. We do not intend and do not assume any obligation to update these forward-looking statements, except as required by law. Shareholders are cautioned not to put undue reliance on such forward-looking statements.
VANCOUVER, BC, Feb. 22, 2023 /PRNewswire/ – Defense Metals Corp. (“Defense Metals” or the “Company“; (TSXV: DEFN) (OTCQB: DFMTF) (FSE: 35D) is pleased to announce that construction of the hydrometallurgical pilot plant has started and commissioning is scheduled to start in the second half of March.
Craig Taylor, CEO of Defense Metals, stated:
“We are excited to enter this important milestone of building and running the hydrometallurgical pilot plant, which is scheduled to be commissioned in late March. Pilot operations will be done in two segments and should be completed by the end of April. A successful pilot plant program will be essential for the completion of the engineering design and economics of the planned pre-feasibility study.”
Following the successful completion of laboratory flotation and acid bake tests from December 2021 to date, Defense Metals is now ready to build a hydrometallurgical pilot plant. It is important to note that the Independent Preliminary Economic Assessment1 was based on a different hydrometallurgy flowsheet, the gangue-leach – caustic-crack process (see the Company’s March 31, 2022 news release). However, after numerous laboratory tests the Company decided to pursue piloting of the less complex acid bake process, which has, in initial test-work, yielded better recovery rates, is an industry standard, and has the potential for improved economics.
The objective of the pilot plant is to demonstrate at a larger scale, and with continuous operation, the processing of Wicheeda flotation concentrate to produce rare earths using the acid bake flowsheet, to help confirm the quality of the project, and to gather data required for the pre-feasibility study.
The pilot plant will be configured to produce a high-purity rare earth precipitate suitable as feed for a separation plant. Samples produced from the pilot plant will also be shared with potential end-users for product development and qualification.
Methodology
The plant is being built at SGS Lakefield, Ontario and will run in two segments for approximately two weeks. The feed for the plant will total approximately 600 kg of mineral concentrate that was generated from a flotation pilot plant operated on a bulk sample from the Wicheeda deposit.
Qualified Person
The scientific and technical information contained in this news release, as it relates to the Wicheeda Rare-Earth Project, has been reviewed and approved by John Goode, P. Eng., a metallurgical consultant to the Company, and who is a Qualified Person as defined by National Instrument 43-101 and who has provided the technical information relating to metallurgy in this news release. Kristopher J. Raffle, P.Geo. (BC), a director of the Company, is the Qualified Person as defined in National Instrument 43-101 for the information relating to resources in this news release.
About the Wicheeda REE Property
Defense Metals 100% owned, 4,262-hectare (~10,532-acre) Wicheeda REE property 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 (“PEA”) outlined a robust after-tax net present value (NPV@8%) of $517 million and an 18% IRR[1]. 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.
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”.
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, starting and completing the hydrometallurgical pilot plant including anticipated timeline and expected results and outcomes, the Company’s plans for its Wicheeda REE Project, expected results and outcomes, 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, 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.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, 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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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.sedar.com).
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 market, 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 Property 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”.
Mark Reichman, Senior Research Analyst, Natural Resources, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
Pilot plant commissioning. Defense Metals has commenced construction of a hydrometallurgical pilot plant which is expected to be commissioned in March. Pilot plant operations will run in two segments and be completed by the end of April. The feed for the plant will total approximately 600 kilograms of mineral concentrate that was processed from a Wicheeda deposit bulk sample.
The proof will be in the precipitate. The pilot plant is being configured to produce a high-purity rare earth precipitate suitable as feed stock for a rare earths element (REE) separation plant. The objective of the pilot plant is to demonstrate, at a larger scale, the processing of Wicheeda flotation concentrate to produce rare earths using the acid bake hydrometallurgy process and to collect data for a preliminary feasibility study which is expected to be completed in the first quarter of 2024. Samples produced from the pilot plant will be shared with potential end-users for product qualification.
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*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.
Image: Student Santiago Andrade interning at Caterpillar
Not Your Grandfathers Nuclear Reactor – Educating the Needed Nuclear Talent Pool
Human infrastructure is critical to any industry. Building the foundations so a new or quickly expanding technology can begin to flourish requires foresight. This forward planning also requires schools to recognize a need, student interest, and old and new industries then understanding that internships are two-way streets that benefit both the young, and also the entrenched. MIT created a unique program for students in the field of nuclear power generation. Below is an article republished from their website on the success of one of their programs. – Paul Hoffman, Channelchek
As nuclear power has gained greater recognition as a zero-emission energy source, the MIT Leaders for Global Operations (LGO) program has taken notice. Two years ago, LGO began a collaboration with MIT’s Department of Nuclear Science and Engineering (NSE) as a way to showcase the vital contribution of both business savvy and scientific rigor that LGO’s dual-degree graduates can offer this growing field.
“We saw that the future of fission and fusion required business acumen and management acumen,” says Professor Anne White, NSE department head. “People who are going to be leaders in our discipline, and leaders in the nuclear enterprise, are going to need all of the technical pieces of the puzzle that our engineering department can provide in terms of education and training. But they’re also going to need a much broader perspective on how the technology connects with society through the lens of business.”
The resulting response has been positive: “Companies are seeing the value of nuclear technology for their operations,” White says, and this often happens in unexpected ways.
For example, graduate student Santiago Andrade recently completed a research project at Caterpillar Inc., a preeminent manufacturer of mining and construction equipment. Caterpillar is one of more than 20 major companies that partner with the LGO program, offering six-month internships to each student. On the surface, it seemed like an improbable pairing; what could Andrade, who was pursuing his master’s in nuclear science and engineering, do for a manufacturing company? However, Caterpillar wanted to understand the technical and commercial feasibility of using nuclear energy to power mining sites and data centers when wind and solar weren’t viable.
“They are leaving no stone unturned in the search of financially smart solutions that can support the transition to a clean energy dependency,” Andrade says. “My project, along with many others’, is part of this effort.”
“The research done through the LGO program with Santiago is enabling Caterpillar to understand how alternative technologies, like the nuclear microreactor, could participate in these markets in the future,” says Brian George, product manager for large electric power solutions at Caterpillar. “Our ability to connect our customers with the research will provide for a more accurate understanding of the potential opportunity, and helps provide exposure for our customers to emerging technologies.”
With looming threats of climate change, White says, “We’re going to require more opportunities for nuclear technologies to step in and be part of those solutions. A cohort of LGO graduates will come through this program with technical expertise — a master’s degree in nuclear engineering — and an MBA. There’s going to be a tremendous talent pool out there to help companies and governments.”
Andrade, who completed an undergraduate degree in chemical engineering and had a strong background in thermodynamics, applied to LGO unsure of which track to choose, but he knew he wanted to confront the world’s energy challenge. When MIT Admissions suggested that he join LGO’s new nuclear track, he was intrigued by how it could further his career.
“Since the NSE department offers opportunities ranging from energy to health care and from quantum engineering to regulatory policy, the possibilities of career tracks after graduation are countless,” he says.
He was also inspired by the fact that, as he says, “Nuclear is one of the less-popular solutions in terms of our energy transition journey. One of the things that attracted me is that it’s not one of the most popular, but it’s one of the most useful.”
In addition to his work at Caterpillar, Andrade connected deeply with professors. He worked closely with professors Jacopo Buongiorno and John Parsons as a research assistant, helping them develop a business model to successfully support the deployment of nuclear microreactors. After graduation, he plans to work in the clean energy sector with an eye to innovations in the nuclear energy technology space.
His LGO classmate, Lindsey Kennington, a control systems engineer, echoes his sentiments: This is a revolutionary time for nuclear technology.
“Before MIT, I worked on a lot of nuclear waste or nuclear weapons-related projects. All of them were fission-related. I got disillusioned because of all the bureaucracy and the regulation,” Kennington says. “However, now there are a lot of new nuclear technologies coming straight out of MIT. Commonwealth Fusion Systems, a fusion startup, represents a prime example of MIT’s close relationship to new nuclear tech. Small modular reactors are another emerging technology being developed by MIT. Exposure to these cutting-edge technologies was the main sell factor for me.”
Kennington conducted an internship with National Grid, where she used her expertise to evaluate how existing nuclear power plants could generate hydrogen. At MIT, she studied nuclear and energy policy, which offered her additional perspective that traditional engineering classes might not have provided. Because nuclear power has long been a hot-button issue, Kennington was able to gain nuanced insight about the pathways and roadblocks to its implementation.
“I don’t think that other engineering departments emphasize that focus on policy quite as much. [Those classes] have been one of the most enriching parts of being in the nuclear department,” she says.
Most of all, she says, it’s a pivotal time to be part of a new, blossoming program at the forefront of clean energy, especially as fusion research grows more prevalent.
“We’re at an inflection point,” she says. “Whether or not we figure out fusion in the next five, 10, or 20 years, people are going to be working on it — and it’s a really exciting time to not only work on the science but to actually help the funding and business side grow.”
White puts it simply.
“This is not your parents’ nuclear,” she says. “It’s something totally different. Our discipline is evolving so rapidly that people who have technical expertise in nuclear will have a huge advantage in this next generation.”
TORONTO–(BUSINESS WIRE)– Sierra Metals Inc. (TSX: SMT) (“Sierra Metals” or “the Company”) announces the filing at the BVL by its subsidiary, Sociedad Minera Corona S.A. (“Corona”) of its unaudited Financial Statements and the Management’s Discussion and Analysis (“MD&A”) for the fourth quarter and full-year 2022.
The Company holds an 81.8% interest in Corona. The unaudited Financial Statements and MD&A can be viewed at:
To search for the Company’s financial statements, enter the following parameters in the empty fields:
Empresa: Sociedad Minera Corona S.A. Periodo: 2022 and Trimestre IV
Sierra Metals will release its Q4 and full-year 2022 consolidated financial statements on Monday, March 13th, 2023, with an investor conference call on Tuesday, March 14th, 2023.
About Sierra Metals
Sierra Metals Inc. is a diversified Canadian mining company with Green Metal exposure including copper production and base metal production with precious metals byproduct credits, focused on the production and development of its Yauricocha Mine in Peru, and Bolivar and Cusi Mines in Mexico. The Company is focused on increasing production volume and growing mineral resources. The Company has large land packages at all three mines with several prospective regional targets providing longer-term exploration upside and mineral resource growth potential.
The Company’s Common Shares trade on the Toronto Stock Exchange under the symbol “SMT”.
For further information regarding Sierra Metals, please visit www.sierrametals.com or contact:
Haynes International, Inc. is a leading developer, manufacturer and marketer of technologically advanced, nickel and cobalt-based high-performance alloys, primarily for use in the aerospace, industrial gas turbine and chemical processing industries.
Mark Reichman, Senior Research Analyst, Natural Resources, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
Initiating coverage with an Outperform rating. Haynes International, Inc., headquartered in Kokomo, Indiana, is one of the world’s largest developers, producers, and distributors of advanced high-performance nickel- and cobalt-based alloys. Haynes’ products, which are sold primarily to companies in the aerospace, chemical processing, and industrial gas turbine industries, consist of high-temperature resistant alloy (HTA) and corrosion-resistant alloy (CRA) products.
Track record of innovation. Founded in 1912, Haynes has a track record of pioneering many well-known nickel- and cobalt-based super alloys. In fiscal 2022, 59% of the company’s revenues were from alloys the company invented. Haynes currently has 20 published U.S. patents and applications. Approximately 27% of its product margin dollars were from proprietary alloys that no one else produces due to Haynes’ patent protection and/or processing technology and expertise. Since 2003, Haynes’ technical programs have yielded nine new proprietary alloys.
Equity Research is available at no cost to Registered users of Channelchek. Not a Member? Click ‘Join’ to join the Channelchek Community. There is no cost to register, and we never collect credit card information.
This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).
*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.
Gold Softens as Yields Rise on US Treasuries From Inflation Stickiness
As the month of February began, the talk was for gold to hit $2,000 an ounce in the first quarter. But, as is often the case with investment markets, once certainty creeps into the mindset, something unexpected often comes along and undermines it. Gold may very well reach the $2,000 price in early 2023, but it has, for now, taken a small hit caused by a resurgence of expectations related to inflation’s pervasiveness. The inflation itself isn’t necessarily a problem, it is the chain reaction of events that then follows.
The One Two-Punch Catches Gold Off-Guard
Gold futures reached 10-month highs near $1,975 just before the release of January U.S. non-farm payrolls were reported on February 3rd. The Friday release showed large gains in the employment condition which stoked old inflation worries.
Concerns about inflation had been settling down before the jobs number. One indication of that is US bond yields had been priced, by most measures, for an eventual easing of rates, not tightening of conditions. The employment report itself began to unwind gold’s strength. The price sank to below $1,830 before recovering to around $1,875. The reason is that higher inflation, begets higher expectations of bond yields, which then begets capital flows into dollars to take advantage of the higher rates available. Gold becomes relatively weaker and less desirable under these conditions.
On February 14th, as some AU investors were falling out of love with gold, an inflation report (CPI) for January showed a tick-up in January prices over December’s numbers. This exacerbated U.S. inflation fears and helped to bring gold back under $1,850.
New Expectations
The shift in expectations over a two week period are not likely to unwind without new information which undermines the new employment and inflation reports. That doesn’t seem likely in the coming days as a just released wholesale price report (PPI) now indicates inflation is more than a services sector concern.
Gold long positions are now caught in the crosshairs of the Fed’s resolve to fight inflation. Every treasury yield spike has led to a dollar spike and been used as an opportunity to reduce demand for gold or reduce it’s relative value against US dollars.
Historically, gold prices had risen with inflation as investors bought the currency alternative as a hedge against paper currency. Currency typically loses value when prices go up. What happened then is more typical and is what is still taught in textbooks – good economic news was good for risk assets.
More recently, good economic news, worries investors because it has the potential to make inflation hotter, prompting the Fed to dial up rates and hurt everything from stocks to gold and oil. The positive correlation is on hiatus, probably until the Fed’s finger comes off the rates trigger.
Take Away
The markets had begun looking past the tightening phase after 450 bp worth of Fed Funds increases. The numbers reported in February have many investors, including those that trade currencies, precious metals, stocks, bonds, and other commodities less certain about the Fed calling for a cease fire in its inflation battle.
Of course, this new trend is young, it can conceivably be unwound in an instant in a changing world with many concerns outside and away from price increases.
VANCOUVER, BC, Feb. 14, 2023 /CNW/ – Defense Metals Corp. (“Defense Metals” or the “Company“) (TSXV: DEFN) (OTCQB: DFMTF) (FSE:35D) announces the completion of flotation tests on variability samples and a master composite (“Master Composite” or “MC”) prepared from drill core obtained from its 100% owned Wicheeda Rare Earth Element (REE) deposit located in British Columbia, Canada.
John Goode, Defense Metals’ metallurgical advisor, stated:
“Flotation tests on variability samples from the dominant lithological unit of the Wicheeda REE deposit gave an average of 81% recovery to a concentrate assaying 45% rare earth oxide. Wicheeda is one of the few rare earth deposits under development from which a high-grade mineral flotation concentrate can be produced at recovery rates similar to those obtained by current rare earth producers. High-grade concentrates at high recoveries are a critical requirement for positive production economics. These successful flotation results help to position Defense Metals’ Wicheeda deposit as one of the best in North America.”
Defense Metals completed flotation tests on variability samples that are representative of the three key REE-bearing lithologies in the Wicheeda deposit: 1) the higher-grade dolomite carbonatite (“DC”) which makes up 73% of the deposit, 2) the xenolithic carbonatite (“XE”) that represents 24%; and 3) the syenite (“SYN”). The primary rare earths minerals are monazite, bastnäsite and synchysite/parisite. Figure 1 shows the mine plan as presented in the Independent Preliminary Economic Assessment issued in 20221.
Figure 1. Wicheeda REE Deposit Lithologies During Mine Life
Key Highlights:
Table 1 results show that if the flotation plant is fed DC material at an average grade of 3.3% Total Rare Earth Oxide (“TREO”) and is operated to produce a flotation concentrate containing 45% TREO, an average 81% recovery will be observed. If 50% TREO were targeted, recovery would be expected to be 77%. The DC mineralized material will be essentially the only lithology fed to the flotation plant in the first eight years as shown in Figure 1.
Table 1:Recovery rates at concentrates of specified grades – DC samples
Note to Table 1: DC Comp is a blend of all DC variability samples.
If the flotation plant is fed DC material mixed with other lithological types, as planned for later in the mine life, recoveries at different target concentrate grades will be as shown in Table 2. Of the four blends tested, when producing a 40% TREO flotation concentrate the recovery rate averaged 80% with higher recoveries when the DC content was higher.
Table 2: Recovery rates at concentrates of specified grades – DC blends
Notes to Table 2: DC-XE2 and DC-XE3 are 1:2 and 2:1 blends of DC and XE Comp, respectively. DC-SYN2 is 2:1 blend of DC Comp and SYN2. MC is a blend of DC (73.4%), XE (22.5%), and SYN (3.8%).
Table 3 shows the testwork results for the variability samples comprising pure XE and SYN lithologies. The flotation plant is expected to only see such lithologies when they are blended with DC. However, the data show that if the lower grade XE and SYN material are processed alone, at a target flotation concentrate grade of 40% TREO, the average recovery rate will be 59%.
Table 3: Recovery rates at concentrates of specified grades – SYN and XE samples
Notes to Table 3: SYN Comp and XE Comp are composites of respective variability samples. DC01 was mis-identified as being DC, but assays and mineralogy showed it to be XE and it was treated as such. N/A indicates insufficient data for meaningful average.
As noted above, in the first 8 years of the mine life, over 90% of the flotation plant feed will be DC material, with higher rare earth grade, with the later years being mostly DC and XE material at relatively lower grades (see Figure 1).
The grade-recovery-concentrate data provided above will support the upcoming preliminary feasibility study (PFS) and allow the development of an updated and enhanced mine plan incorporating drilling completed following the PEA that identifies lithology and feed grades to arrive at estimates of the concentrate and REO production rates in each year.
Methodology and QA/QC
Defense Metals prepared 17 variability samples covering different lithologies, areas of the deposit, and head grades using drill core material. The average mass of each sample was 31 kg, with the Total Rare Earth Oxide (“TREO”) assays ranging from 1.07% to 4.52% with an average of 2.34% TREO. Drill core material was also used to make a 260 kg Master Composite sample containing each of the three lithologies in their respective life-of-mine proportions. The MC sample had a head grade assay of 2.49% TREO.
All variability samples and the MC sample were shipped to SGS, Lakefield, Ontario where they were checked, crushed, and composited. A total of 87 flotation tests were completed to investigate the impact of collector type and dosage, depressant type and dosage, pulp temperature, pulp density, pulp pH, and flotation feed size.
Bulk flotation and other operations continue at SGS in order to prepare concentrate samples for continuing hydrometallurgical test work and planned hydrometallurgical pilot plant testing.
Feed samples were analyzed by Inductively coupled plasma mass spectrometry (ICP-MS) and flotation products were analyzed by SGS using wavelength dispersive X-ray fluorescence (WD-XRF) following lithium borate fusion of the sample. The SGS analyses included a quality assurance / quality control (QA/QC) program including the insertion of rare earth element standard and blank samples.
Defense Metals detected no significant QA/QC issues during review of the data. Defense Metals is not aware of any sampling, recovery or other factors that could materially affect the accuracy or reliability of the data referred to herein. SGS Lakefield is an ISO/IEC 17025 and ISO9001:2015 accredited laboratory. SGS is independent of Defense Metals Corp.
Qualified Person
The scientific and technical information contained in this news release, as it relates to the Wicheeda Rare Earth Element Project, has been reviewed and approved by John Goode, P. Eng., who is a Qualified Person as defined by National Instrument 43-101 and has provided the technical information relating to metallurgy in this news release. Kristopher J. Raffle, P.Geo. (BC), a director of the Company, is the Qualified Person as defined in National Instrument 43-101 for the information relating to resources in this news release.
About the Wicheeda REE Project
Defense Metals 100% owned, 4,262-hectare (~10,532-acre) Wicheeda REE property 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 (“PEA”) 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.
About Defense Metals Corp.
Defense Metals Corp. is a company focused on the development of its 100% owned Wicheeda Rare Earth Element mineral deposit, located near Prince George, British Columbia, Canada, that contains metals and elements commonly used in in green energy, aerospace, automotive and defense technologies. Rare earth elements are especially important in the production of magnets used in wind turbines and in permanent magnet motors for electric vehicles. 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”.
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, the continuing hydrometallurgical test work and planned hydrometallurgical pilot plant testing, completing the planned PFS, the Company’s plans for its Wicheeda REE Project, the 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 and metallurgy 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, 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 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.
