Defense Metals Corp. (DEFN:TSX.V; DFMTF:OTCQB; 35D:FSE) had extensive comminution and beneficiation test work done on variability samples from its Wicheeda rare earth elements project in British Columbia, and results showed high recoveries and concentrate grade over a range of feed grades, reported Noble Capital Markets analyst Mark Reichman in an October 12 research note.
"Results from the test work demonstrate that Wicheeda feedstock can be crushed, ground, and floated to produce a rare earth flotation product competitive with other global producers," Reichman wrote.
400% Gain Implied
Noble reiterated its CA$0.70 per share target price on the Canadian critical metals company, currently trading at about CA$0.14 per share, noted Reichman.
Given these two prices, the projected return for investors is significant, at 400%.
Defense Metals remains rated as Outperform.
Dolomite Dominates
Reichman summarized the results of the tests, all performed by SGS Canada Inc.
The Wicheeda deposit was shown to be made up of these lithologies that contain rare earth elements: 73% higher-grade dolomite carbonatite, 24% xenolithic carbonation, and 3% syenite.
"The dolomite carbonatite material is expected to comprise most of the mill feed, with the deeper xenolithic carbonatite and syenite mined later," Reichman wrote.
SGS carried out 90 open-circuit flotation tests, using 1 kilogram (1 kg) or 2 kg of feed, on 17 individual variability samples, various composites, and blends.
Recoveries and Grades
The best-fit line, at a feed grade of 3% total rare earth oxide (TREO), Reichman reported, showed 80% recovery to a 45% total rare earth oxide (TREO) concentrate. Results also indicated that higher recoveries and grades could be achieved in a closed circuit operation, like a flotation plant.
A locked cycle test on a deposit composite with a 2.9% feed grade demonstrated a rare earths recovery rate of 85% at a concentrate grade of 50.7% TREO.
Comminution Methodology
As far as the amount of energy needed to grind the material, it was shown to be generally low, even for the desired results of high flotation recovery and favorable concentrate grade. This was consistent over multiple feed grades.
"Work suggests than an autogenous or semi-autogenous grinding system followed by a ball mill will work well at the comminution plant," Reichman wrote.
Study in Progress
Defense Metals is continuing to work on a preliminary feasibility study of Wicheeda and aims to complete it in H1/24.
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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 Partners, Defense Metals Corp., October 11, 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. CONTINUING COVERAGE Unless otherwise noted through the dropping of coverage or change in analyst, the analyst who wrote this research report will provide continuing coverage on this company through the publishing of research available through Noble Capital Market's distribution lists, website, third party distribution partners, and through Noble’s affiliated website, channelchek.com.
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