Defense Metals (TSXV:DEFN) (OTCQB:DFMTF) inked a mineral exploration agreement with the McLeod Lake Indian Band about its Wicheeda Rare Earth Element exploration project located 80 kilometres northeast of Prince George, Canada.
The agreement was to address the interests of the parties involved regarding the mineral exploration involved in the project, and also to implement a framework for communication and cooperation. The agreement also provides current economic opportunities for the community and provides a roadmap the community could use in the future to get involved as exploration continues.
“McLeod Lake Indian Band has always been open to working with companies that respect our rights, laws and interests in the protection of our lands, and that provide meaningful economic and commercial opportunities for our community. We are therefore pleased to have completed this initial agreement with Defense Metals, and look forward to its successful implementation,” said Chief Harley Chingee.
Defense Metals is a junior explorer and development company focused on finding and developing mineral deposits containing metals and elements used in the electric power market, defense industry, national security sector and also in the green energy sector. These include rare earth magnets commonly found in wind turbines and in permanent magnet motors used for electric vehicles.
Defense Metals owns 100 per cent of the Wicheeda Rare Earth Element property found near Prince George, BC. The McLeod Lake Indian Band is located near the unincorporated village of McLeod Lake, which is approximately 150 kilometers north of Prince George.
“We are delighted to have the McLeod Lake Indian Band engaged with Defense Metals and the opportunities presented by the Wicheeda exploration project. We look forward to building a long-term and mutually beneficial relationship with the McLeod Lake Indian Band through the implementation of this initial agreement,” said Craig Taylor, CEO of Defense.
The Wicheeda REE property project pulled in a strong 2021 preliminary economic assessment (PEA) that demonstrated an after-tax net present value (at 8 per cent) $517 million and an 18 per cent internal rate of return. The principle unique advantage of the project is the production of a saleable high-grade flotation concentrate. The PEA showed a 1.8 million tonne per year mill throughput open-pit mining operation with a 1.75 to 1 (waste to mill feed) strip ratio over a 19 year mine life, which would produce an average of 25,423 tonnes rare earth oxides annually.
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