DFMTF - Defense Metals (DFMTF)(DEFN:CA) - Preparing to Take A Leading Role in the North American and Global REE Supply Chain
Initiating coverage with an Outperform rating. We are initiating coverage of Defense Metals Corp. with an Outperform rating and a price target of US$0.70 or C$0.90 per share. The company is advancing its 100%-owned Wicheeda rare-earth project located near Prince George, British Columbia. The project has several competitive advantages, including a mining friendly location, well-developed infrastructure, and a strong technical team.Well positioned to meet growing demand for REEs. In January 2022, Defense Metals released a preliminary economic assessment NI 43-101 technical report which highlighted 5.0 million tonnes of indicated resources averaging 2.95% total rare earth oxides (TREO) and 29.5 million tonnes of inferred resources averaging 1.83% TREO within a conceptual pit shell. The study affirmed the economic value of advancing the project based on significant resource potential, favorable metallurgical recoveries, and attractive return potential.Exploration supports resource growth potential. Current resources are based on approximately 4,000 meters of drilling and do not include results from Defense Metals' 2021 drilling program that entailed 5,349 meters of drilling in 29 holes. The 2021 drilling program accomplished the company's goal of identifying the expansion of the REE mineralized zone to the north, along with further delineating existing resource mineralization zones within the central and northwestern areas of the deposit. Defense Metals expects to conduct an infill drilling program in May and June 2022 to expand and upgrade resources which will be incorporated, along with 2021 drill results, into a preliminary feasibility study to be released during the first half of 2023.Well-qualified management and technical team. Mr. Craig Taylor, chief executive officer and director, has extensive experience as a director or officer of mineral exploration and development companies. Ms. Luisa Moreno, PhD, a well-regarded expert in rare earths, serves as President and a director. The company’s seven-member board is comprised of accomplished individuals with a broad range of industry, capital markets, financial, and geo-technical experience. Read More >>