RARE METAL DEPOSITS
IN NORTHERN BRITISH COLUMBIA present value (NPV) of $765 million, and after-tax NPV of $512 million, at 8 per cent discount rate. The pre-tax internal rate of return (IRR) is 20 per cent, and the after-tax IRR is 16 per cent. The PEA contemplates a 1.8
R
are earth elements (REE)
Canada has some of the largest
are key components in
known reserves and resources
many electronic devices
(measured and indicated) of rare
that we use in our daily
earths in the world, estimated at
lives including smart phones, flat
over 15 million tonnes of rare earth
screen televisions, computer hard
oxides. (Source: Government of
drives, and monitors. REEs are also
Canada)
necessary components in industrial applications such as wind energy, aircrafts, automotive, and defence technologies. The manufacturing of permanent magnets represents the single largest and most important end use for REEs, accounting for 38 per
32
Mtpa (million tonnes per year)
This fall, Defense Metals Corp. (“Defense Metals”), a mineral exploration company headquartered in Vancouver, B.C., announced completion of a 29-hole 5,350 metre
mill throughput open pit mining operation with 1.75:1 (waste:mill feed) strip ratio over a 16 year mine life, yielding annual rare earth oxide (REO) production averaging 25,423 tonnes at average revenues of $397 million per year. The study demonstrates five-year payback of $461 million in initial capital expenditures (CAPEX) that includes a 20 to 25 per cent contingency for major items, and $137 million per year operating cost (OPEX) average.
resource expansion and delineation
The updated Wicheeda mineral
diamond drill program at its
resource estimate comprises a 5
Wicheeda REE Project.
million tonne indicated mineral resource, averaging 2.95 per cent
cent of total forecasted demand.
Three weeks later, Defense Metals
Permanent magnets are an essential
announced the results of a positive
component of modern electronics
preliminary economic assessment
mentioned above, but REEs are also
(PEA) and updated mineral resource
widely used in high-technology and
estimate for the Wicheeda Project.
“green” products because of their
The PEA demonstrates strong
The road accessible Wicheeda REE
luminescent and catalytic properties.
financial metrics with a pre-tax net
property, located approximately
Resource Connector North 2022
TREO and a 29.5 million tonne inferred mineral resource, averaging 1.83 per cent TREO, reported at a cut-off grade of 0.5 per cent TREO.
