1. Wicheeda Project is one of the most advanced rare earth projects in North America. 2. The project has a pre-tax NPV of $1.8 billion and IRR of 24.6%. 3. Cash breakeven for NdPrO is $37.42/kg, with strong profit margins. 4. High purity products will secure high margins in volatile rare earth market. 5. Growing demand for REEs is driven by electric vehicles and renewable energy.
The strong project economics and strategic relevance increase DFMTF's attractiveness, similar to past rare earth surges.
The PFS results significantly enhance investor confidence in DFMTF, aligning with long-term market needs.
Sustained demand for REEs due to EV and clean energy trends will bolster prices over time.
• The completion of the Pre-Feasibility Study establishes Defense Metals' Wicheeda Project as one of the most advanced undeveloped rare earth projects in North America or Europe.
• The Wicheeda Project economics of pre-tax NPV at 8% of US$1.8 billion and IRR of 24.6% with after-tax payback of 3.7 years are robust.
• The breakeven price of NdPrO1 for the project is US$67.60/kg (for IRR of zero). The operating cash breakeven price of NdPrO is US$37.42/kg.
• The Wicheeda Project will stand out in the Western rare earth industry as a result of the exceptional purity of its final product, which in turn will enable it to secure a very high margin in the sector and ensure resilience, even in times of lower REE market prices.
VANCOUVER, BC, Feb. 18, 2025 /PRNewswire/ - Defense Metals Corp. ("Defense Metals" or the "Company"; (TSXV: 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."
Defense Metals has taken a focused and conservative approach to all costs and inputs to deliver a realistic and compelling PFS that it believes maximizes the scope and scale of its Wicheeda Project over the long term.
The PFS incorporates an initial proven and probable mineral reserve estimate that supports a 15-year, open-pit mining operation (excluding pre-production) that will produce ore feed for a 5,000 tpd flotation plant. The flotation plant will produce a high-grade REE mineral concentrate that will feed hydrometallurgical and SX process facilities to produce a value-added MREC product.
Mark Tory, President and CEO of Defense Metals, commented: "We are thrilled to announce the successful completion of an independent Pre-Feasibility Study for our Wicheeda Rare Earth Deposit, marking a major milestone in its development.
"The high-grade mineral concentrate produced by the Wicheeda Project will undergo hydrometallurgical and solvent extraction processing, and according to our flowsheet design will enable us to produce a high-value Mixed Rare Earth Carbonate product, due to the substantial removal of lanthanum and cerium."
"With a pre-tax IRR of 24.6% and a pre-tax NPV of US$1.8 billion, our PFS confirms the robust economics this project has to offer. These results position the Wicheeda Project as one of the most compelling rare earth projects in North America or Europe."
"Looking ahead, we will focus on optimizing the project's design to maximize operational efficiency and ultimately shareholder returns. Additionally, we will engage with potential strategic partners to support the project's growth and development."
| Financial Metrics | Units | Base Case |
|---|---|---|
| Pre-tax NPV @ 8% | $M | 1,803 |
| After-tax NPV @ 8% | $M | 992 |
| Pre-tax IRR | % | 24.6 |
| After-tax payback period from start of production | Years | 3.7 |
The PFS was conducted by Hatch Ltd. (Hatch) and SRK Consulting (Canada) Inc. (SRK). The Hatch and SRK Qualified Person (QP) authors confirm that the Wicheeda Project PFS disclosure meets the standards established by the Canadian Securities Administrators' National Instrument 43-101 – Standard of Disclosure for Mineral Projects (NI 43-101).
The mineral reserve estimate for the Wicheeda Rare Earth Element Deposit has been prepared for Defense Metals as part of the 2025 Pre-Feasibility Study (PFS). This mineral reserve estimate has been prepared in accordance with the Canadian Institute of Mining, Metallurgy and Petroleum (CIM) Definition Standards on Mineral Resources and Mineral Reserves adopted by CIM Council in May 2014.
Defense Metals Corp. is focused on the development of its 100% owned, 11,800-hectare (~29,158-acre) Wicheeda REE deposit that is located on the traditional territory of the McLeod Lake Indian Band in British Columbia, Canada.
For further information, please visit www.defensemetals.com or contact:
Alex Heath
Senior Vice President, Corporate Development & Interim CFO
Tel: +1 604-354-2491
Email: info@defensemetals.com
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