It was a well written article today. This is a partial … We were pleased with the response to the financing, particularly when economic indicators suggest the Canadian economy is likely to slip into a recession in 2023. I think the oversubscribed financing is indicative of the market's understanding of the demand for rare earths in the clean energy transition," says Dr. Luisa Moreno, president of Defense Metals Corp.
Last year, Defense Metals Corp published a preliminary economic assessment (PEA) based on circa 4,300 meters of diamond drilling, with Indicated Mineral Resources of five million tonnes averaging 2.95 percent total rare-earth oxide and Inferred Mineral Resources of 29.5 million tonnes averaging 1.83 percent total rare earth oxide.
Furthermore, the PEA demonstrated an after-tax net present value (NPV@8%) of $517 million and an 18% internal rate of return. The PEA contemplates a 1.8 million tonnes per year mill throughput open pit mining operation with a 1.75:1 (waste: mill feed) strip ratio over a 19-year mine life, producing an average of 25,423 tonnes of rare earths annually. A Phase one initial pit strip ratio of 0.63:1 (waste: mill feed) would yield rapid access to higher grade surface mineralization in year one and a five-year payback. Initial capital costs estimates amounted to $440 million initial capital including offsite infrastructure.
In 2022, an additional 5,500 metres of diamond drilling was completed in 18 holes, including five (5) pit slope geotechnical and hydrogeologic holes totalling 1,150 metres, designed in part to support a Preliminary Feasibility Study (PFS) expected to commence 1Q 2023.