Defense Metals Corp. (DEFN:TSX.V; DFMTF:OTCQB; 35D:FSE) recently increased the resource estimate for its Wicheeda rare earth element project in Canada by 18% and continues working towards a preliminary feasibility study in 2024, noted Noble Capital Markets analyst Mark Reichman in a November 29 report.
Resource Upgrade Lays Groundwork for Mine Plan
The updated 43-101 compliant resource represents a 31% increase in tonnage to 34 million indicated and inferred tonnes grading 2.02% rare earth oxide.
With larger measured and indicated resources, Wicheeda can now support baseline economics in the upcoming preliminary feasibility study.
Advancing Offtake and Development Efforts
Beyond the resource update, Defense Metals has shipped samples to potential customers and partners in North America, Europe, and Asia as it works towards securing future offtake agreements.
The company is also conducting additional site development drilling.
Well Positioned Heading Into 2024
With permitting progress and a feasibility study imminent next year, the analyst sees Defense Metals on a positive trajectory. Its financial position remains strong after another quarter of exploration spending, ending September with CA$7.6 million cash.
Based on significant catalysts upcoming over the next 12-18 months, Noble Capital Markets rates Defense Metals as an "Outperform" with a CA$0.90 price target.
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Disclosures for Noble Capital Markets, Defense Metals Corp., November 29, 2023
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