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 the 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 CA$0.70 per share price target on the mineral exploration and development company and its CA$0.15 current share price.
Defense Metals is still rated as 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 is also 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 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.
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Important Disclosures:
- Defense Metals Corp. is a billboard sponsor of Streetwise Reports and pays SWR a monthly sponsorship fee between US$4,000 and US$5,000.
- As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Defense Metals Corp.
- Doresa Banning wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor.
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Disclosures for Noble Capital Markets, Defense Metals Corp., August 17, 2023
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ANALYST CREDENTIALS, PROFESSIONAL DESIGNATIONS, AND EXPERIENCE Senior Equity Analyst focusing on Basic Materials & Mining. 20 years of experience in equity research. BA in Business Administration from Westminster College. MBA with a Finance concentration from the University of Missouri. MA in International Affairs from Washington University in St. Louis. Named WSJ 'Best on the Street' Analyst and Forbes/StarMine's "Best Brokerage Analyst." FINRA licenses 7, 24, 63, 87.
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