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TICKERS: DEFN; DFMTF; 35D

Exploration Co. Makes Notable Progress Advancing RE Project
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Now the Canadian minerals explorer is working on a prefeasibility study that is expected to be "compelling," noted a Noble Capital Markets report.

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:

  1. 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. 
  2. 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. 
  3. Doresa Banning wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor.
  4. The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.

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Disclosures for Noble Capital Markets, Defense Metals Corp., August 17, 2023

GENERAL DISCLAIMERS All statements or opinions contained herein that include the words "we", "us", or "our" are solely the responsibility of Noble Capital Markets, Inc. ("Noble") and do not necessarily reflect statements or opinions expressed by any person or party affiliated with the company mentioned in this report. Any opinions expressed herein are subject to change without notice. All information provided herein is based on public and non-public information believed to be accurate and reliable, but is not necessarily complete and cannot be guaranteed. No judgment is hereby expressed or should be implied as to the suitability of any security described herein for any specific investor or any specific investment portfolio. The decision to undertake any investment regarding the security mentioned herein should be made by each reader of this publication based on its own appraisal of the implications and risks of such decision.

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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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