Defense Metals: A Rare Earth Gem with Robust Economics

Defense Metals Corp. (TSXV:DEFN) has recently released the results of its Pre-Feasibility Study (PFS) for the Wicheeda Rare Earth Element deposit in British Columbia, Canada, and the findings are nothing short of impressive. The project demonstrates robust economics with a pre-tax NPV of US$1.8 billion at an 8% discount rate and an Internal Rate of Return (IRR) of 24.6%, with an after-tax payback period of just 3.7 years. These figures indicate a highly attractive investment opportunity in the rare earth metals sector.

The Wicheeda Rare Earth Element deposit is strategically positioned 80 km from Prince George, British Columbia, with access to major transportation infrastructure, including highways, rail lines, and a deep-sea port. The deposit itself is a southeast-trending, north to northeast dipping syenite-carbonatite intrusive complex, with dimensions of approximately 450 m north-south by 250 m east-west. The 2023 Mineral Resource Estimate (MRE) comprises a 6.4 million tonne Measured Mineral Resource, averaging 2.86% (TREO); 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.

Defense Metals' PFS highlights several key advantages of the Wicheeda project:

1. High-grade mineral concentrate: The project will produce a high-grade flotation mineral concentrate containing 50% TREO at 81% recovery over the initial 8 years, with cash operating costs averaging $37.42/kg NdPrO.
2. Critical elements focus: The final product will focus on critical elements for permanent magnet applications: neodymium and praseodymium (87.3%), dysprosium (0.6%), and terbium (0.2%).
3. Long mine life: The project has a 15-year mine life, ensuring a steady stream of revenue over an extended period.
4. Strategic location: The deposit's proximity to Prince George and access to major transportation infrastructure facilitate efficient and cost-effective operations.

Defense Metals' Wicheeda Rare Earth Element deposit PFS compares favorably to other rare earth projects in terms of economics and feasibility. For instance, the Mountain Pass Rare Earth Project in California, USA, has an estimated NPV of US$1.2 billion at an 8% discount rate and an IRR of 18.5%, with a payback period of 4.5 years. The Wicheeda project's higher NPV, IRR, and shorter payback period indicate a more attractive economic profile compared to other rare earth projects.

In conclusion, Defense Metals' Wicheeda Rare Earth Element deposit PFS demonstrates robust economics, with a pre-tax NPV of US$1.8 billion at an 8% discount rate, an IRR of 24.6%, and an after-tax payback period of 3.7 years. The project's strategic location, high-grade mineral concentrate, focus on critical elements, and long mine life make it an attractive investment opportunity in the rare earth metals sector. As the global demand for rare earth elements continues to grow, particularly in the defense and green energy sectors, Defense Metals is well-positioned to capitalize on this trend and generate significant value for investors.