Mike Fagan,
Editor
Sept. 24, 2021
Defense Metals (TSX-V: DEFN)(OTC: DFMTF) — currently trading around C$0.26 per share — has intersected 200-plus meters of visually mineralized carbonatite in the first hole of its ongoing drill program at the flagship Wicheeda Rare Earth Element (REE) project in British Columbia, Canada, representing the longest carbonatite interval ever drilled on the project.
Core from that hole (Hole #WI21-33) is pictured below:
The hole was designed to test the North Zone and signifies a potentially highly successful follow-up to adjacent drilling from 2019, which produced a highlight intercept of 4.43% LREO (Light Rare Earth Elements) over 83 meters.
Keep in mind that the Wicheeda project currently boasts a resource of 4.9 million tonnes Indicated at 3.02% LREO plus 12.1 million tonnes Inferred at 2.90% LREO. The current 32-hole, 5,000 meter program is being deployed with the aim of extending mineralization to the north while further delineating existing inferred resources within the central and northwestern areas of the deposit.
Intersecting visible mineralization in the first hole is an exciting way to kick-off the program, which is currently on hole number four with over 750 meters drilled to-date. Assays are due in short order and should continue to trickle in as subsequent drill holes are completed.
Defense Metals CEO, Craig Taylor, commented via press release:
"Defense Metals is extremely pleased to not only be making steady progress in completing our 2021 resource expansion and delineation drill program, but to have out first hole exceed our expectation in terms of visual indications of REE mineralization and being the longest carbonatite interval drilled to date on the Project. This reaffirms our believe in the significant expansion potential of the Wicheeda REE Deposit."
Defense has also entered into an MOU with Sinosteel MECC — a leading global metallurgical firm — on ore processing testwork and the potential establishment of an onsite, large-scale pilot plant at Wicheeda.
Perhaps most importantly for speculators, Defense Metals is on-track to complete a PEA on the project in Q4 to be followed by pre-feasibility in 2022.
Those studies will be crucial to formulating next-steps for the project as the company aims to advance Wicheeda as one of only a handful of potentially mineable REE projects on North American soil. And the timing could not be better with China continuing to dominate the rare earths market to the tune of about 85 percent.
Defense Metals is also commencing a technical review of its substantial uranium assets in Saskatchewan’s prolific Athabasca Basin as the price of uranium continues to soar.
We’ve been regularly reporting on Defense’s Wicheeda Rare Earth Element (REE) project in British Columbia, which is clearly the flagship. Yet, with uranium sharply on the rise, the Defense Metals team is wasting no time pushing their uranium assets forward.
Those assets include the 100%-owned Geiger North and Klaproth projects in the northeast Athabasca Basin. Defense plans to use the dataset gleaned from the upcoming technical review to initiate further exploration including commissioning of project wide airborne electromagnetic geophysical surveys to identify prospective basement conductive anomalies.
Defense Metals CEO, Craig Taylor, commented via press release:
"The renewed interest in uranium has prompted Defense Metals to reassess its considerable land position in the prolific northeast Athabasca Basin. While the Company's focus remains on advancing it flagship Wicheeda REE Deposit near Prince George, British Columbia , we look forward to further capitalizing on the shareholder value brought by the Geiger North and Klaproth Projects."
As mentioned, the price of uranium has been on a powerful uptrend this year, rising from the US$25 per pound level in February to multi-year highs above US$50 per pound now. And that may be just the start of what’s to come for a sector that’s been long, long overdue for a sustained resurgence.
My colleague Gerardo Del Real of Junior Resource Monthly has been calling for higher uranium prices for some time, and he has a lot to say about the sector and how to position for near-term gains. He cautions that it’s a market that always eventually overshoots… so the idea is to get in fast and get out relatively fast as well… with a much fatter wallet to-boot! Click here to learn more about the space in this video presentation.
Also, click here for our feature report on Defense Metals.
Yours in profits,
Mike Fagan
Editor, Resource Stock Digest
Mike Fagan has mining in his blood. As a teenager he staked countless gold and silver properties in Nevada alongside his dad, Brian Fagan, who created the Prospect Generator model that’s still widely used today in the resource space. One of those staking projects was put into production by a major Canadian mining company — a truly rare and profitable experience. That background uniquely qualifies him as a mining stock speculator. One of the most well-known names in the business, Mike is now putting that experience to use for the benefit of Resource Stock Digest readers.