Exploration Co. Makes Notable Progress Advancing RE Project
Research Report

Defense Metals Corp. (DEFN:TSX.V; DFMTF:OTCQB; 35D:FSE) is "well on its way" toward completing the prefeasibility study (PFS) of its Wicheeda rare earth elements project in British Columbia in H1/24, reported Mark Reichman, managing director and equity research analyst, natural resources, at Noble Capital Markets, in an Aug. 17 research note.

"Defense Metals is advancing toward what we believe will be a compelling PFS," Reichman wrote. "In addition to significant potential to expand the resource and extend the mine life, we expect grade enhancement and the meaningful conversion of Inferred to Indicated and, potentially, Measured resources."

Projected return of 367%

Canada-based Defense Metals offers investors a significant potential gain, of 367%, noted Reichman. This figure is reflected in the difference between Noble's $0.70 per share price target on the mineral exploration and development company and its $0.15 current share price.

Defense Metals is still rated Outperform.

Four firms assisting

Defense Metals has involved the numerous service providers it needs to get the PFS done, Reichman noted.

Leading the study effort is SRK Consulting, which also is handling the mining and tailings scope work. Already, SRK has inspected the various facilities sites at the Wicheeda property, investigated site infrastructure from a geotechnical perspective and started assessing tailings alternatives.

APEX Geoscience Ltd. is providing exploration, geology and resource consulting support to SRK.

Hatch Ltd.'s scope encompasses the hydrometallurgical processes, plant facilities, and capex and opex.

One-eighty Consulting Group is tackling the environmental studies, permitting, and social and community impact assessments.

2023 work overview

As far as progress on the Wicheeda project overall, during H1/23 Defense Metals completed a hydrometallurgical pilot plant and work required for environmental studies. Subsequently, it shifted its primary focus to preparing a PFS.

In H2/23, Defense Metals plans to optimize and scale up the flotation and hydrometallurgical plants. It also aims to engage prospective buyers of its light rare earth elements product.