Watch List Update: Defense Metals

[dan_s]

Defense Metals Corp. is a mineral exploration company focused on the acquisition of mineral deposits containing metals and elements commonly used in the electric power market, military, national security and the production of “GREEN” energy technologies, such as, high strength alloys and rare earth magnets. Defense Metals has an option to acquire 100% of the 1,708 hectare Wicheeda Rare Earth Element Property located near Prince George, British Columbia, Canada. Defense Metals Corp. trades in Canada under the symbol “DEFN” on the TSX Venture Exchange, in the United States, under “DFMTF” on the OTCQB and in Germany on the Frankfurt Exchange under “35D”.

I still consider this one HIGH RISK, but it definitely has potential for us. Rare Earth Elements are vital to the energy transition to more EV and other electric motors.

Press Release:

October 4, 2021: Defense Metals Corp. (“Defense Metals”) (TSX-V:DEFN / OTCQB:DFMTF / FSE:35D) is pleased announce plans for the mobilization of a second diamond drill to expedite its ongoing Wicheeda Rare Earth Element (REE) deposit resource expansion and delineation diamond drill program.

Defense Metals is currently advancing the road accessible Wicheeda Critical Rare Earth Element (REE) Property, which is located close to infrastructure approximately 80 kilometres northeast of Prince George, British Columbia (BC). The Wicheeda project has indicated mineral resources of 4,890,000 tonnes averaging 3.02% LREO (Light Rare Earth Elements) and inferred mineral resources of 12,100,000 tonnes averaging 2.90% LREO.

Drilling to date at Wicheeda has been progressing rapidly with over 1,500 metres in eight diamond drill holes completed to date since commencement of the drill campaign less than four weeks ago. Rig #1 is expected to continue drilling on the north end of the Wicheeda REE Deposit, while Rig #2 is expected to commence coring a series of infill holes within the central deposit area by mid-week.

Craig Taylor, CEO of Defense Metals, stated: “We are extremely pleased to have secured a second diamond drill to expedite completion of our Wicheeda REE Deposit resource expansion and delineation program. With this additional drilling capacity, we expect to be well positioned to deliver on our 2021 exploration goals. Based on contractor negotiations, we expect the second drill rig to be in a positioned to commence coring by the mid-week.”

About the Wicheeda REE Property
The 1,708 hectare Wicheeda REE Property, located approximately 80 km northeast of the city of Prince George, British Columbia, is readily accessible by all-weather gravel roads and is nearby to infrastructure, including power transmission lines, the CN railway and major highways.

Geologically, the property is situated in the Foreland Belt and within the Rocky Mountain Trench, a major continental geologic feature. The Foreland Belt contains part of a large alkaline igneous province, stretching from the Canadian Cordillera to the southwestern United States, which includes several carbonatite and alkaline intrusive complexes hosting the Aley (niobium), Rock Canyon (REE), and Wicheeda (REE) deposits.

[mkarpoff]

Color me skeptical. Yes, REEs are critically important. However, I have followed Canadian miners of all sorts (gold, silver, vanadium, diamonds) for quite awhile, and so many of these juniors never find the pathway to success. Do these folks have a roadmap of which you are aware?

[dan_s]

Yes it is High Risk. I am just keeping an eye on some of the mining companies that have survived and appear to be proving up large resources. I recently added Ero Copper (NYSE: ERO) to our Small-Cap Growth Portfolio because they are generating strong revenues and FCF now.

My Watch List is NOT my recommended list.

We have members that like to "gamble" on these small-cap story stocks. I realize they are not for everyone, but neither or our "Elite Eight" which are rock solid.

[mkarpoff]

If you are tracking mining companies, might I suggest you consider the royalty companies such as Franco Nevada, Wheaten, et al. As in the energy space, their risk is diversified, and they know the risk/rewards of investing in particular properties much better than we can discern.