Name of the Project
Wicheeda rare earths project.

Location
British Columbia, Canada.

Project Owner/s
Defense Metals.

Project Description
Defense Metals announced a positive preliminary economic assessment (PEA) in November 2021.

The PEA envisages a 1.8-million-tonne-a-year openpit mining operation with a 1.75:1 (waste:mill feed) strip ratio over a 19-year mine life that includes three years of construction, and early revenue generation through phased openpit development.

Material from the Wicheeda deposit will be processed in a flotation concentrator to produce a flotation concentrate, which will be further processed at the hydrometallurgical plant.

Average rare-earth oxide production is estimated at 25 423 t/y.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has a pretax net present value, at an 8% discount rate, of $765-million and an internal rate of return of 20%.

The capital payback is five years from the start of production, and assumes partial self-funding of construction of the hydrometallurgical plant from concentrate sales.

Capital Expenditure
Initial capital expenditure (capex) is estimated at $461.42-million and includes a contingency allowance of 20% to 25% for major items.

The expansion capex under a cash-funded scenario is $474.09-million.

Planned Start/End Date
Not stated.

Latest Developments
The project has progressed to an advanced stage, with a detailed prefeasibility study nearing completion and the results expected by year-end. 

Key Contracts, Suppliers and Consultants
SRK Consulting (PEA) and HCF International Advisers (strategic funding review).

Contact Details for Project Information
Defense Metals, tel +1 778 994 8072 or email todd@defensemetals.com.