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TICKERS: DEFN; DFMTF; 35D

Co. Advances Wicheeda Rare Earth Project Towards PFS
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Defense Metals Corp. completed geotechnical fieldwork to support an upcoming preliminary feasibility study (PFS) on its Wicheeda rare earth element (REE) project, noted Noble Capital Partners.

Defense Metals Corp. (DEFN:TSX.V; DFMTF:OTCQB; 35D:FSE) completed geotechnical fieldwork to support an upcoming preliminary feasibility study (PFS) on its Wicheeda rare earth element (REE) project, according to a December 28, 2023 report by Mark Reichman, Managing Director at Noble Capital Markets. The PFS remains on track for release in the second quarter of 2024.

The Phase III results build on positive Phase II drilling and highlight resource expansion potential, in Reichman's view. His CA$0.70 price target implies a 335% upside for the CA$0.16 small-cap developer.

Phase III Geotech Program

Over 225 meters of drilling and test pits were completed during the latest campaign. This data was gathered to inform mine planning and design engineering for the PFS. An additional drill core was shipped for ongoing metallurgical test work.

The geotechnical and metallurgical results will feed into the PFS, along with environmental baseline studies used to support project permitting. Permitting and project development costs will be detailed within the preliminary economic study.

Compelling Project Economics

According to Reichman, Wicheeda benefits from nearby infrastructure, favorable mineralogy, and an expandable resource with 5.7 million tonnes already outlined. 

With the PFS expected by mid-2024, Reichman sees Defense Metals rapidly advancing the project. The company could move to feasibility study and construction decisions next year, potentially reaching production within a few years.

The analyst's Outperform rating and CA$0.70 target ascribe value to these milestones underpinning Wicheeda's development. Upcoming preliminary economic metrics could catalyze substantial upside for Defense Metal's currently depressed valuation, in his view.


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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.].
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Disclosures for Noble Capital Partners, Defense Metals Corp., December 28, 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.

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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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