Connect with us

Energy & Critical Metals

Drill Bit Hits High Grades, Second Longest Intercept at REE Asset

Source: Mark Reichman   01/23/2023

New drill results from this project in British Columbia returned a total rare earth oxide grade of 3.77%…

Share this article:

Published

on

This article was originally published by Streetwise Reports

Source: Mark Reichman   01/23/2023

New drill results from this project in British Columbia returned a total rare earth oxide grade of 3.77% and an intercept length of 222m, noted a Noble Capital Markets report.

Defense Metals Corp.‘s (DEFN:TSX.V; DFMTF:OTCQB; 35D:FSE) latest drill results from its Wicheeda project are noteworthy for two reasons: high grades and the second longest rare earth elements-mineralized intercept of the 2021 and 2022 drill programs, reported Noble Capital Markets analyst Mark Reichman in a Jan. 18 research note.

Noble has an Outperform rating and a US$0.70 per share price target on this Canadian critical metals company, currently trading at about US$0.24 per share.

“We think Defense Metals is well positioned to benefit from growing demand for rare earths used in electric vehicle batteries, metal alloys, and advanced technology applications,” Reichman wrote.

Results at a Glance

These new data are from eight drill holes, representing 2,104 meters (2,104m) of drilling, part of the 2022 drill program. Of these eight holes, two were exploration, three were resource delineation, and three were pit slope geotechnical cores.

In his report, Reichman presented some of the standout results, which reflect the high grades.

“In addition to [the] significant potential to expand the resource and extend the mine life beyond 19 years, we expect grade enhancement and the meaningful conversion of Inferred to Indicated and potentially Measured resources,” he wrote.

Hole WI22-74, for instance, returned 3.77% total rare earth oxides (TREOs) over 30m from surface and 2.52% TREOs over 59m, both midhole. These intercepts were contained within a broader zone of 2.03% TREOs over 192m.  

Additionally, hole WI22-71 yielded 2.83% TREOs over 66m and was within a broader mineralized zone showing 1.47% TREOs over 207m.

Hole WT22-73 returned 2.35% TREOs over 81m, also enveloped in a larger mineralized zone. The broader zone yielded 1.42% TREOs in the second-longest intercept encountered in all of 2021 and 2022 drilling: 222m.

Both WI22-71 and WT22-73 intersected dolomite-carbonatite mineralization from surface.

On the Horizon

Once the remaining 2022 drill campaign results are in, Defense Metals intends to update the Wicheeda resource estimate, noted Reichman. Results from 10,859m of drilling in 47 core holes, not included in the preliminary economic assessment (PEA), will be incorporated into the new resource.

Subsequently, the Vancouver, British Columbia-based company plans to do a prefeasibility study (PFS) of Wicheeda, to include all results from the past two years’ drill campaigns. Completion of this report is expected by Q4/23.

Reichman pointed out Noble expects the PFS will show meaningful differences from the PEA.

“In addition to [the] significant potential to expand the resource and extend the mine life beyond 19 years, we expect grade enhancement and the meaningful conversion of Inferred to Indicated and potentially Measured resources,” he wrote.

Sign up for our FREE newsletter at: www.streetwisereports.com/get-news

Disclosures:
1) Doresa Banning compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.

2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: Defense Metals Corp. Click here for important disclosures about sponsor fees. As of the date of this article, an affiliate of Streetwise Reports has a consulting relationship with: Defense Metals Corp. Please click here for more information.

3) Statements and opinions expressed are the opinions of the author and not of Streetwise Reports or its officers. The author is wholly responsible for the validity of the statements. The author was not paid by Streetwise Reports for this article. Streetwise Reports was not paid by the author to publish or syndicate this article. Streetwise Reports requires contributing authors to disclose any shareholdings in, or economic relationships with, companies that they write about. Streetwise Reports relies upon the authors to accurately provide this information and Streetwise Reports has no means of verifying its accuracy.

4) This 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.

5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the decision to publish an article until three business days after the publication of the article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases. 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., a company mentioned in this article.

Disclosures For Noble Capital Partners, Defense Metals Corp., January 18, 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.

This publication is intended for information purposes only and shall not constitute an offer to buy/sell or the solicitation of an offer to buy/sell any security mentioned in this report, nor shall there be any sale of the security herein in any state or domicile in which said offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or domicile. This publication and all information, comments, statements or opinions contained or expressed herein are applicable only as of the date of this publication and subject to change without prior notice. Past performance is not indicative of future results.

Noble accepts no liability for loss arising from the use of the material in this report, except that this exclusion of liability does not apply to the extent that such liability arises under specific statutes or regulations applicable to Noble. This report is not to be relied upon as a substitute for the exercising of independent judgement. Noble may have published, and may in the future publish, other research reports that are inconsistent with, and reach different conclusions from, the information provided in this report. Noble is under no obligation to bring to the attention of any recipient of this report, any past or future reports. Investors should only consider this report as single factor in making an investment decision.

IMPORTANT DISCLOSURES

This publication is confidential for the information of the addressee only and may not be reproduced in whole or in part, copies circulated, or discussed to another party, without the written consent of Noble Capital Markets, Inc. (“Noble”). Noble seeks to update its research as appropriate, but may be unable to do so based upon various regulatory constraints. Research reports are not published at regular intervals; publication times and dates are based upon the analyst’s judgement. Noble professionals including traders, salespeople and investment bankers may provide written or oral market commentary, or discuss trading strategies to Noble clients and the Noble proprietary trading desk that reflect opinions that are contrary to the opinions expressed in this research report.

The majority of companies that Noble follows are emerging growth companies. Securities in these companies involve a higher degree of risk and more volatility than the securities of more established companies. The securities discussed in Noble research reports may not be suitable for some investors and as such, investors must take extra care and make their own determination of the appropriateness of an investment based upon risk tolerance, investment objectives and financial status.

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.

RESEARCH ANALYST CERTIFICATION

Independence Of View All views expressed in this report accurately reflect my personal views about the subject securities or issuers. 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.

Ownership and Material Conflicts of Interest: Neither I nor anybody in my household has a financial interest in the securities of the subject company or any other company mentioned in this report.

NOTE: On August 20, 2018, Noble Capital Markets, Inc. changed the terminology of its ratings (as shown above) from “Buy” to “Outperform”, from “Hold” to “Market Perform” and from “Sell” to “Underperform.” The percentage relationships, as compared to current price (definitions), have remained the same. 

( Companies Mentioned: DEFN:TSX.V; DFMTF:OTCQB; 35D:FSE,
)

tsx
otcqb
tsxv
rare earths
ree
rare earth oxides
batteries
electric vehicle
tsxv-defn
defense-metals-corp
defense metals corp

Share this article:

Energy & Critical Metals

Elon Musk Vs. Michael Burry: Who’s Right About TSLA Stock?

Source: Rokas Tenys / Shutterstock.com
Michael Burry is no stranger to ominous market warnings. The expert who predicted the 2008 housing market crash…

Share this article:

Continue Reading
Base Metals

Sprott Asset Management Launches Four New Critical Mineral ETFs

Sprott Asset Management LP has announced that four new critical mineral ETFs will be launched, giving investors exposure to critical minerals essential…

Share this article:

Continue Reading
Energy & Critical Metals

How Analysts Feel About Uranium Energy Corp. (UEC)?

As of Thursday close, Uranium Energy Corp.’s (AMEX:UEC) stock was up $0.06, moving up 1.45 percent to $4.19. The average number of shares traded per…

Share this article:

Continue Reading

Trending