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The company has drilled over 5,500 metres in 18 holes this year as part of the Wicheeda resource delineation and pit geotechnical program. The company has released assays for a total of 2,493 metres in seven holes. Assays for the remaining 11 holes totalling 3,017 m are expected in the coming weeks and months.
“With these additional assay results our 2022 drilling continues to yield significant intervals of the high-grade REE dolomite carbonatite lithology,” Defense Metals president Luisa Moreno said in a release. “Recent flotation variability test work has shown this type of mineralization consistently delivers high-grade mineral concentrates greater than 40% TREO, at recoveries in excess of 80%.”
The 2021 preliminary economic assessment (PEA) for Wicheeda project demonstrated an after-tax net present value (8% discount) of C$517 million and an internal rate of return of 18%. A unique advantage of the project is the production of a saleable high-grade flotation-concentrate, according to Defense Metals.
The PEA contemplates a 1.8 million tonnes per year mill throughput, open pit mining operation with 1.75:1 (waste/mill feed) strip ratio over a 19-year mine life producing and average of 25,423 tonnes REO annually. The mining plan includes rapid access to higher grade surface mineralization in year one and payback of C$440 million initial capital within five years.
The Wicheeda deposit has an indicated resource of 5.0 million tonnes averaging 2.95% TREO and an inferred resource of 29.5 million tonnes at 1.83% TREO.
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