Investor Alert - Rare Earth #Mining Sector Alert for Defense Metals
(TSX-V: $DEFN.V) (OTCQB: $DFMTF); @DefenseMetals #REE
Vancouver, British Columbiam December 9, 2020 – Investorideas.com Newswire
–Media alert for Defense Metals Corp. (TSX-V: DEFN
/ OTCQB: DFMTF
/ FSE: 35D).The company was featured in the following article and interview:
Read this news, featuring DEFN in full at https://www.investorideas.com/news/2020/mining/12091Defense-Metals-Rare-Earth-Elements.asp
Full article and Original source
https://stockhouse.com/opinion/interviews/2020/12/08/rare-earth-elements-set-to-take-centre-stage
Oliver Gray, The Market Herald
When it comes to the lucrative world of mining, the
long-standing stars of the show are gold and silver – particularly this year
with a pandemic-driven spike in gold prices to an all-time high of more than
US$2,000 per ounce.
But one sector, which to date has garnered little mainstream
attention, is starting to make some noise.
Rare earths, according to geologists, are not
necessarily rare but precious, particularly for their use in military,
technological and electric vehicle applications.
North America had previously been a champion of the
industry, with some of the world’s largest players, but production gradually
shifted to China in the early 2000s.
It began in 1997 when Magniquench was sold to an
investment consortium spearheaded by Archibald Cox, Jr. – the son of the Watergate
prosecutor by the same name – with two Chinese state-owned metals companies,
San Huan New Materials and China National Nonferrous Metals Import and Export
Company. Inevitably, Magniquench was shut down in the United States and moved
to China, re-opening there in 2003.
Molycorp was then left as the last remaining rare
earths producer of any significant scale, but ultimately collapsed in 2015.
Since then, China – with its low labour costs, less
concern for environmental impacts and generous state subsidies – has grown to
account for 97 per cent of global production.
But, with a global shift away Chinese dependence,
there appears to be a greater emphasis on the return of the rare earths
industry to North America.
At the start of October, Ellen Lord, Under Secretary
of Defense for Acquisition and Sustainment, gave a testimony to the Senate
Armed Services Subcommittee on Readiness and Management Support:
“A U.S. rare earth mineral strategy should … consist
of national stockpiles of certain rare earth elements, re-establishing rare
earth mineral processing in the U.S. by implementing new incentives and
removing disincentives, and [research and development] around new forms of
clean rare earth mineral processing and substitutes. We will need your help,”
she said.
The next day, U.S. President Donald Trump signed an
executive order declaring a national emergency in the mining industry, with a
view to “incentivising the domestic production of rare earth minerals critical
for military technologies while reducing American dependence on China.”
Before that, Nevada-based MP Minerals – owner of the
Mountain Pass rare earths mine in California’s Mojave desert, the largest rare
earth project in North America – signed a deal in July this year to list on the
New York Stock Exchange through a $1.5 billion merger with Fortress Value
Acquisition Corp. That deal has now been approved by Shareholders.
So, what does all this mean for Canada’s rare earth
sector?
If you’re Defense Metals (TSXV:DEFN, OTC:DFMTF,
FRA:35D, Forum), it means a great deal. The Vancouver-based company owns the
Wicheeda Project, located roughly 80 kilometres northeast of Prince George
British Columbia, which bears many of the same characteristics as the prolific
Mountain Pass mine[1].
A 30-tonne bulk sample from the project was sent to
SGS Canada in Lakefield, Ontario, for metallurgical and processing test work,
which returned a pilot plant concentrate grade averaging 51.6% LREO (Light Rare
Earth Oxide) and an average recovery of 77.3%[2]. These results, which were
published in September 2020, put among a select group of rare earth deposits
capable of producing a greater than 50% LREO flotation concentrate, including
Mountain Pass which boasts a concentrate grade of 60%[3].
In addition to a world-class rare earth deposit,
Defense Metals has the benefit of an experienced leadership team led by
President and CEO Craig Taylor, which includes Alex Knox – an advisor to the
company – who previously had a hand in exploration and development activities
at the aforementioned Molycorp.
We spoke to Craig to see what the impending return
of North American rare earth production means for the Defense Metals and for the
broader industry itself.
Thanks for taking the time to speak with us today,
perhaps you could give us a brief introduction to Defense Metals and its
operations?
Sure, and thanks for having me Oliver, first off,
Rare earth isn’t rare, but being able extract it from the rock and have the
infrastructure to deliver a viable product is extremely RARE! Through its
recently updated NI 43-101 mineral resource estimate, Defense Metals has shown
that the Wicheeda REE Deposit exhibits reasonable prospects for future economic
extraction, while large-scale floatation pilot plant metallurgical testing
demonstrates our ability to produce a potentially saleable high-grade REE
mineral concentrate with options for continued refining and separation to
purified rare earth oxide product.
Our deposit is located 70 kilometres north of Prince
George BC, Canada, a highly skilled mining hub city. The infrastructure is
spectacular. We have amazing road access, electricity, water, and CN Rail only
30 Kilometres away! So that's what separates us from the rest of the crowd in
the rare earth space. Moving towards completing our Preliminary Economic
Assessment (PEA) we expect Wicheeda’s favourable location will have a positive
impact on our capex, relative the majority of other Canadian REE projects that
are typically located far from existing infrastructure. We are a primary NdPr
(neodymium-praseodymium) deposit, which are critical elements in lightweight
high-strength permanent magnets used in the green energy, EV and military /
national security markets, which are growing due to the anticipated widespread
adoption of EV’s, and as trade wars continue to escalate between China and the
US/ Canada, Japan, Europe, and Australia.
The results from the Wicheeda Project’s 30-tonne
bulk sample put the deposit up there with some of the world’s most promising –
what does this potential mean for the long-term path of the project?
We are extremely happy with the results of bench
scale hydrometallurgical and flotation pilot-scale testing of our bulk sample.
First and foremost, we have shown the ability to produce a very high-grade
>50% rare earth mineral concentrate, which is something many other Canadian
REE projects struggle to achieve. The downstream hydrometallurgical process is
expected to benefit significantly from this quality of flotation concentrate
grade. We have already seen the benefits in our bench scale hydrometallurgical
test work which achieved 90% REE recoveries from concentrate[4].
Since those results were published, the Wicheeda Project
has been the focus of additional exploration activities. Has that changed the
outlook for the project at all?
Click to enlargeThe fall 2019 drill program was
perfect, something I’ve never seen, a 13 for 13 drill program with
mineralization in every hole and significant expansion potential to the north
remaining. The 2020 indicated mineral resources of 4,890,000 tonnes averaging
3.02% LREO (Light Rare Earth Elements), and inferred resources of 12,100,000
tonnes averaging 2.90% LREO; represented a 49% increase in overall tonnage and
30% increase in overall average grade, compared to the maiden 2019 resource
estimate[5]. Our updated resource estimate and the results of subsequent
internal scoping studies have given us the confidence to pursue a PEA, which we
hope to release by end of Q1, 2021. Looking ahead to future project development
we also initiated baseline environmental monitoring in anticipation of future
project applications.
With a recently completed financing, Defense Metals
is working towards the completion of a preliminary economic assessment for the
Wicheeda Project. How will that change the development of the deposit?
Oliver, we are quite excited about moving towards
completion of a PEA as we are finally going to be able to put a value to the
company, not just our market cap. With Neodymium and Praseodymium prices
increasing steadily of the last 6 months, we are expecting extremely positive
results. We are targeting as a base-case a potential 15 year mine life at 2
million-tonne/year throughput. Let’s not forget our deposit remains open to
expansion to the north, therefore step-out and infill drilling presents
opportunities to increase the size of and confidence in our deposit moving
forward.
In late August, the Government of Saskatchewan
unveiled $31 million in funding for a rare earth element processing facility,
how does that benefit Defense Metals?
For Canada and Saskatchewan this a first ever
opportunity for Canada to start processing REE’s and compete with China and
increase North America’s need for critical minerals and reduce our reliance on
China.
What does a NYSE listing like that of MP Minerals’
mean for the North American rare earth sector?
Great question. MP Materials, 1.4 Billion valuation
and listing has been a huge lift for the entire REE market. Essentially
creating a barometer for REE interest. Large smart money has taken MP material
to numerous all-time highs from their recent listing last week. If you’re
interested look at our DEFN news dated November 16th, 2020, Defense Metals
Applauds Planned Advancement of North American REE Supply Chain with
Fortress-MP Materials Merger.
Has the increasing focus on North American
production changed Defense Metals’ strategy in any way?
Yes, this new focus really moves us up the ladder,
we believe access to infrastructure, high grades, and favourable metallurgical
test results places the Wicheeda REE Deposit no.1 in Canada and top 3 in North
America.
Thanks again for your time, is there anything you’d
like to add before we finish?
Do your due diligence, the facts will speak for
themselves, we are extremely under-valued, now is the time to invest in DEFN,
thanks Oliver.
About
Defense
Metals Corp. https://defensemetals.com/
Defense
Metals Corp. is a mineral exploration company focused on the acquisition of mineral
deposits containing metals and elements commonly used in the
electric power market, military, national security and the production of
“GREEN” energy technologies, such as, high strength alloys and rare earth
magnets. Defense Metals has an option to acquire 100% of the 1,708 hectare
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”.
For further information, please contact:
Todd
Hanas, Bluesky Corporate Communications Ltd.
Vice
President, Investor Relations
Tel:
(778) 994 8072
Email:
todd@blueskycorp.ca
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 finding partnerships, securing potential offtake
agreements, and other business opportunities, 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 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 those filed under
the Company’s profile on SEDAR at www.sedar.com. 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
conditions, failure to maintain all necessary government permits, approvals and
authorizations, failure to maintain community acceptance (including First
Nations), 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 increase in
costs, 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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