INVESTOR PRESENTATION - PDAC 2019 TSXV: DEFN OTCQB: DFMTF - Defense Metals Corporation
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INVESTOR PRESENTATION PDAC 2019 TSXV: DEFN OTCQB: DFMTF FSE: 35D www.defensemetals.com
FORWARD LOOKING STATEMENTS
2
Overview
Defense Metals Corp. is a Canadian, Toronto Venture
Company: Defense Metals Corp.
Exchange-listed company (TSXV:DEFN) focused on
Founded: 2016
sourcing, exploring and developing rare earth and
Head Office: Vancouver, Canada
uranium mineral properties. The company is
URL: www.defensemetals.com
committed to providing the world with resources
necessary to provide reliable energy as well as
contribute to the defense of nations globally.
The company is currently engaged in exploration and
development of it’s Wicheeda rare earth mineral
property near Prince George BC, and on two uranium
properties in Saskatchewan’s Athabasca basin.
3
KEY INVESTMENT HIGHLIGHTS
★ Well financed, strong shareholder base, tight share structure
★ Growing market opportunity for domestically produced Rare Earth Minerals
★ Extensive local infrastructure - Roads, Railway, Water, Power, Natural Gas and
Labour
★ Diversified approach (Uranium and Rare Earth)
★ Strong executive team and board implementing focused strategy
★ Proven asset base, large resource growth potential
4
PROJECTS
RARE EARTH ELEMENTS URANIUM
WICHEEDA GEIGER AND KLAPROTH
5
RARE EARTH ELEMENTS
KEY HIGHLIGHTS - WICHEEDA
★ The Wicheeda Property consists of 6 mineral
claims covering an area of 1,780 hectares,
located approximately 80 km northwest of
the city of Prince George, British Columbia
★ Favorable mineralogy and lanthanide
distribution make Wicheeda a very
attractive LREE deposit
★ Most of the rare earths are held in one specific
rare element mineral, bastnäsite
Strategic Location
★ Ideal opportunity for vertical integration, to
support rapidly growing market, reducing
★ Strategically positioned alongside a ★ Trained nearby workforce
reliance on China major forestry service road
connected to Highway 97 ★ Prince George is a strategic
mining centre
★ Major hydroelectric power line,
major gas pipeline and a Canadian
National railway line it the nearby
village of Bear Lake
6
WHAT ARE RARE EARTH ELEMENTS?
Light Rare Earth
Elements
Nd - Neodymium
Pr - Praseodymium
Ce - Cerium
Sm - Samarium
La - Lanthanum
7
RARE EARTH - DEFENSE
APPLICATIONS
Uses of rare-earth elements are applicable to the production of high-performance Guidance
and Control Systems, Electronic Jamming Devices (known as ECM pods), next generation
electric motors, high-powered laser targeting, Line of sight laser communications, and in next
generation fighter jet engine manufacturing
Nd - Neodymium Pr - Praseodymium Sm - Samarium Ce - Cerium La - Lanthanum
High-powered Neodymium Praseodymium is used in Used in Samarium/Cobalt Cerium is used in catalytic Used in camera and
rare earth magnet actuators Neodymium rare earth magnets and used to dope converters and telescope, night vision
control various air surfaces magnets, and is used as an calcium chloride crystals Cerium-based compounds lenses. Also, to gain
during military operation alloying agent with for use in optical lasers, are used as polishing media efficiency in converting
magnesium to create Infrared absorbing glass for many types of optical crude oil into refined
high-strength metals used in and as a neutron absorber lenses encountered in the gasoline.
aircraft engines. in nuclear reactors. battlefield.
8
RARE EARTH - OTHER
APPLICATIONS
Other major uses of rare-earth elements are applicable to the production magnets, electric
motors and high capacity lithium-ion batteries,
MAGNETS BATTERIES COMMERCIAL ELECTRIC CAMERA
Praseodymium based Rare Neodymium is used to AEROSPACE MOTORS LENSES
Earth magnets are used for a make rechargeable Used in camera and
Alloys containing niobium Magnet based electric
number of different batteries for cell phones, telescope, night vision
are used in commercial motors are essential to the
applications. laptops and hybrid lenses.
jet engines. electric vehicles of the
automobiles.
future.
9
RARE EARTH DEMAND
TRENDS
★
★
★
★
★
★
★
10RARE EARTH DEPOSITS,
PRODUCTION AND FLOW
★
★
★
DEFN HAS TO POTENTIAL TO BE MAJOR DOMESTIC
SUPPLIER OF CRITICAL RARE EARTH MINERALS
11WICHEEDA
PROPERTY
GEOGRAPHY AND HISTORY
★ Zinc mineralization first reported in the
Wicheeda area in the 1970s
★ Early work identified presence of
elevated levels of Niobium
★ Teck Corporation acquired tenure and
from 1985-1987 completed geological
mapping, soil geochemical sampling,
ground magnetometer surveying & blast
trenching
★ This work outlined several areas
enriched in the Lanthanide suite of light
rare earth elements (LREE) as well as
Niobium, Barium, Strontium, Zinc &
Fluorine
★ The ‘Main’ zone is outlined by a 400 ppm
Cerium (Ce) soil geochemical anomaly
measuring 1000 m by 500 m
★ Teck did not pursue the targets by drilling
and eventually its claims lapsedMETALLURGY TESTING 2019
SGS Labs Phase 1A Bi-Weekly Timeline
✔✔
13METALLURGY TESTING 2019 - February 25th
Defense Metals Corp has been informed by SGS that the entire 30 tonne bulk sample has been crushed to a
nominal 1 inch size and a 400 kg subsample has been taken for batch and grindability tests. Preparation is
underway to prepare a grindability sample, flotation charges and head assays, which is expected to be completed
early this week. The subsample from the head will be submitted for chemical and mineralogical analysis is also
scheduled for early this week as well.
Chris Graf, Technical Advisor comments “Building on the successful bench scale flotation testwork conducted in
2012 by SGS on a 100 kg composite sample of Wicheeda drill core, the goal of the Phase 1A testwork is to develop a
robust flow sheet for producing high grade REE flotation concentrates from a 200 kg sample of the 30 tonne
Wicheeda REE deposit bulk sample. It is anticipated that 20 kg of REE concentrate will be produced by Phase 1A.”
Following a successful Phase 1A, Phase 1B hydrometallurgical testwork is to commence on the 20 kg sample of
flotation concentrate once it has been produced, by the end of May. The goal of this hydrometallurgical testwork
will be to produce a purified, mixed REE concentrate and provide data that can be used to design a
hydrometallurgical pilot plant.
The Phase 1A flow sheet will be used in a Phase 2 flotation concentrate pilot plant program where the entire 30 tonne
Wicheeda bulk sample will be processed with the goal of demonstrating that the Phase 1 A flowsheet is capable of
producing a high grade REE concentrate at an industrial scale. It is expected that the Phase 2 pilot plant
metallurgical testwork will produce approximately 3 tonnes of REE concentrate that can be tested by a Phase 3
hydrometallurgical pilot plant.
14URANIUM
Geiger and Klaproth
The Geiger project consists of two claims, Geiger North
and Geiger South, totalling 3,046 acres, and is adjacent
to the Wollaston-Mudjatik transition zone – a major
crustal suture related to most of the major uranium
deposits in the eastern Athabasca Basin.
The Project is approximately 35km northwest of the
McClean Lake mine and mill, in a relatively
under-explored area of the Athabasca Basin. The
Klaproth properties consist of two mineral claims
totalling approximately 20,089 acres.
The DEFN properties in the Athabasca Basin are
surrounded by multiple major mining companies, giving
the company a strategic foothold in a proven uranium
deposit.
*Not necessarily indicative of mineralization within the Geiger and Klaproth Properties
**Source: IsoEnergy Drills 8.5m @ 1.26% U3O8 Including 2.5m @ 3.58% U3O8 at the Hurricane Zone at the
Larocque East Property, News Release, August 8, 2018 www.sedar.com. The QP has been unable to verify
the information and that the information is not necessarily indicative of the mineralization on the
property.
15ATHABASCA
BASIN
STRATEGICALLY
POSITIONED
★
★
★
*Not necessarily indicative of mineralization
within the Geiger and Klaproth Properties
16URANIUM MARKET
★ Spot price now up $9/lb or 43% from
April 2018 low of $20.25 to $29.10
★ Over the past 3 years equities have been
strongly correlated with the spot price
★ Major divergence has emerged
★ Equity correction to the upside is
inevitable
★ Additional gains to come from end of
year contracting which will put further
upward pressure on uranium price
17MANAGEMENT AND DIRECTORS
MAXIMILIAN SALI CRAIG TAYLOR
CEO & Director Director
Mr. Sali has been in the capital markets for 10 years managing private family assets. He is the president of Since 1994 Mr. Taylor has been President and CEO of Vanville Projects Ltd., a private company which
Baccarat Investments Inc., a private company providing consulting and management services to public provides products and services to resorts, hotels and restaurants worldwide. From March 2008 until
companies along with investing. He is the founder and CEO of Defense Metals Corp. December 2016, Mr. Taylor was a director of Saber Capital Corp., a former capital pool company, which
completed its qualifying transaction and was renamed Emblem Corp. In addition, he was a director of
ANDREW BURGESS Advantage Lithium Corp., a TSX-V listed junior exploration company, from March 2007 until August
2016.From April 2012 until April 2016, he was a director of Clear Mountain Resources Corp., a TSX-V listed
Director junior resource exploration company (now named Patriot One Technologies Inc.). Mr. Taylor has also
Mr. Andrew S. Burgess, C.A., C.P.A.is a Chartered Accountant and a Certified Public Accountant. He is served as director and officer of several other public companies engaged in mineral exploration and
currently the CFO of Spectrum Mining Corporation. He is an experienced professional with more than 35 development.
years accounting, finance and financial reporting experience with listed companies. Mr. Burgess has a
broad base of experience with natural resource, service and industrial companies in the areas of general
management, financial and management reporting, taxation, corporate reorganizations, investments,
acquisitions, divestitures, equity and debenture financing, budgeting, investor relations and
administration. He has extensive public company and IPO experience.
RICHARD GRAYSTON
CFO & Director
CHRIS GRAF Mr. Grayston has spent thirty-five years in public company management and as a finance and economics
P. Eng & Advisor consultant. He sits on the board of several different public companies. Mr. Grayston received a Ph.D. in
finance and economics from the University of Chicago in 1971, an M.B.A. from the University of Chicago in
Mr. Graf was born in Cranbrook, B.C. and graduated from Mount Baker high school in Cranbrook in 1969. He 1969 and a B. Comm. from the University of British Columbia in 1966 and became a Certified General
obtained a B.Ap.Sc. degree in geological engineering from UBC in Vancouver, B.C. in 1974 and has been Accountant in 1977.
registered as a Professional Engineer with the Association of Professional Engineers of British Columbia since
1980. He has successfully applied his profession for the past 40 years, conceiving and conducting mineral
exploration programs in British Columbia, Alberta and Yukon as well as northern Mexico. His forte has been
mineral property evaluation, field exploration and diamond drilling. In 2011, Mr. Graf was the recipient of the KRISTOPHER J. RAFFLE
Chamber’s Frank Woodside Past Presidents Award for distinguished service to the Minerals Industry.
P.Geo
DALE WALLSTER Kristopher J. Raffle, B.Sc., P.Geo. serves as the Qualified Person for the Company. Mr. Raffle is also a
Advisor current director of Barrian Mining Corp. Mr. Raffle is a Partner and Principal Geologist with
Edmonton-based leading geologic consulting firm APEX Geoscience Ltd. Mr. Raffle has over 18 years’
Dale Wallster is a geologist and prospector with 35 years’ experience in North American mineral deposit experience conducting property evaluation, intensive exploration data analysis, exploration program
exploration, with a focus on the targeting and discovery of unconformity-related uranium deposits since design, and geological modelling with respect to Archean lode gold, copper-gold porphyry, epithermal,
2002. He was president and founder of Roughrider Uranium Corp., a company acquired by Hathor volcanic-hosted massive sulphide (VMS), and kimberlite deposits throughout Canada, USA, and Mexico.
Exploration Limited in 2006 for its strategically located uranium properties in the Athabasca Basin. Dale and
his team are widely credited in the mineral exploration sector for the discovery of the Hathor’s Roughrider
deposit. In January 2012, Hathor became a wholly-owned subsidiary of Rio Tinto as part of a CAD$650 million
acquisition.
18CAPITAL STRUCTURE
Shares Outstanding (as of February 1st, 2019) 23,753,333
Warrants @ $0.30 (expr. September 27th, 2020) 3,823,333
Compensation Options @ $0.25 (expr. January 19th, 2020) 400,000
Stock Options 2,375,333
@ $0.15 (expr. February 12th, 2020) 1,254,000
@ $0.20 (expr. September 28th, 2023) 750,000
@ $0.25 (expr. January 22nd, 2024) 371,333
FULLY DILUTED AND OUTSTANDING 30,351,999
19DEFN:TSXV
DFMTF:OTC
www.defensemetals.com
DEFENSE METALS CORP. EXCHANGE LISTING CONTACT
605-815 Hornby St. TSX-V: DEFN - OTCQB: DFMTF - FSE: 35D Todd Hanas
Vancouver BC, Canada V6Z-2E6 CUSIP: 244633103 VP Investor Relations
Toll Free: +1 833-562-9916 Registrar & Transfer Agent: Mobile (778) 994 8072
Investor Relations: +1 (778) 994-8072 Toll Free 1-833-562-9916
Computershare Trust Company
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