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TICKERS: DEFN; DFMTF; 35D

New Rare Earth Resource is Bigger, of Better Quality
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The company that recently updated the mineral resource estimate of its project in British Columbia offers investors a compelling, 233% return, noted a Noble Capital Markets report.

Defense Metals Corp.'s (DEFN:TSX.V; DFMTF:OTCQB; 35D:FSE) revised mineral resource estimate for its flagship Wicheeda rare earth elements project in British Columbia is bigger and of higher quality than the previous iteration, reported Mark Reichman, Noble Capital Markets managing director and equity research analyst, in a September 13 research note.

The new total Measured and indicated resource is "a significant upgrade compared to the previous estimate," Reichman wrote. "With a significantly larger and upgraded mineral resource, Defense Metals is advancing toward what we think will be a compelling preliminary feasibility study," due out in H1/24.

Attractive Gain Offered

Accordingly, Noble maintained its CA$0.70 per share target price on British Columbia-based Defense Metals, the share price of which now is about CA$0.21 per share, noted Reichman. From this current price, the return to target suggests a potential return for investors that is sizable: 233%.

"The current price is an excellent entry point for investors seeking exposure to one of North America's advanced rare earth elements projects," Reichman commented.

The mining explorer-developer remains rated Outperform.

Details of New Resource

Reichman reviewed the current Wicheeda resource estimate, which encompasses the results of 45 holes drilled over 10,350 meters (10,350m) in 2021 and 2022 and is based on an updated geological model.

The new quantities and grades for each resource category are as follows:

  • Measured: 6,400,000 tons (6.4 Mt), averaging 2.86% total rare earth oxides (TREOs)
  • Indicated: 27.8 Mt averaging 1.84% TREOs
  • Measured & Indicated: 34.2 Mt averaging 2.02% TREOs
  • Inferred: 11.1 Mt averaging 1.02% TREOs

Compared to the 2021 version, the recently updated Wicheeda resource estimate reflects 18.2% more TREOs and 31.3% more tons, Reichman pointed out.

"In the months ahead, we expect more information regarding the project's process flowsheet to reinforce [Wicheeda's] commercial value," wrote Reichman. This includes a final flotation report based on extensive hydrometallurgical testing.

Upcoming Catalyst

Wicheeda could be expanded even further, Reichman purported, and "has the potential to be a globally significant producer."

Defense Metals has identified but not yet drill-tested some prospective targets, including previously identified geologic anomalies in the eastern and western portions of the deposit.

It plans to pursue drill testing at least some of these, starting with the western anomaly this fall, via four holes over 915m. It may follow up with more holes depending on the initial results. New drill data could catalyze the company's stock.


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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., September 13, 2023

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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Company Specific Disclosures The following disclosures relate to relationships between Noble and the company (the "Company") covered by the Noble Research Division and referred to in this research report. The Company in this report is a participant in the Company Sponsored Research Program ("CSRP"); Noble receives compensation from the Company for such participation. No part of the CSRP compensation was, is, or will be directly or indirectly related to any specific recommendations or views expressed by the analyst in this research report. Noble intends to seek compensation for investment banking services and non-investment banking services (securities and non-securities related) within the next 3 months. Noble is not a market maker in the Company.

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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Receipt of Compensation No part of my compensation was, is, or will be directly or indirectly related to any specific recommendations or views expressed in the public appearance and/or research report.





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