Defense Metals Corp. (DEFN:TSX.V; DFMTF:OTCQB; 35D:FSE) announced the last of the 2022 drill results from its Wicheeda rare earth project, one hole of which returned the best intercept of the program, on a grade times width basis, reported Noble Capital Markets senior research analyst Mark Reichman in a Jan. 25 research note.
Along with an Outperform rating, Noble has a price target on the critical metals firm of US$0.70. Given Defense Metals' current share price is about US$0.29, the potential return for investors in the company is significant.
Reichman reviewed the results of the final two drill holes of the 2022 season, which covered 295 meters (295m). Both were exploration geotechnical core drill holes.
More High Grades
The best intercept of the 2022 campaign was 3.66% total rare earth oxides (TREOs) over 138m and came from the upper interval of hole WI22-79, noted Reichman. This hole also returned an intercept from the lower interval, 0.5% TREOs over 43m. WI22-79 was placed in the central area of the Wicheeda deposit, in the east pit wall.
The other hole, WI22-78, was drilled into the west pit wall. This hole intersected 2.63% TREOs over 97m from surface within a broader mineralized interval of 2.03% TREOs over 167.7m.
Now, Defense Metals has reported all data from last year's 18-hole, 5,510-meter program of resource expansion, delineation, and pit slope geotechnical drilling at its project in British Columbia.
Resource Update on Horizon
Next for Defense Metals is updating the mineral resource estimate for Wicheeda. The new estimate will encompass data from the 10,859 meters of drilling in 47 core holes carried out in 2021 and 2022, which were not incorporated into the preliminary economic assessment.
The revised resource is expected to be done by Q4/23.
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