Drilling Re-Commences at Sonora Lithium Project

RNS Number : 0510W

Rare Earth Minerals PLC

04 November 2014

 

4 November 2014

Rare Earth Minerals Plc.

("Rare Earth Minerals", "REM" or "the Company")

Drilling Re-Commences at the Sonora Lithium Project

Rare Earth Minerals (AIM: REM) is pleased to announce that a significant drilling programme will shortly commence on the Sonora Lithium Project in Mexico (the "Sonora Project"). This programme represents a five-fold increase in drilling on the project compared to the last stage of drilling undertaken.

The purpose of this new drilling programme is to add further lithium resources to the already defined indicated lithium mineral resource of 3.28 million tonnes of lithium carbonate equivalent ("LCE") on the Sonora Project, and upgrade certain sections of the indicated resource to the higher measured resource category which will underpin the mine design and in particular the open pit mine plan and future production scheduling.

The full news release from Bacanora, REM's Joint Venture partner at the Sonora Lithium Project, dated 3 November 2014, is available at Bacanora's website http://www.bacanoraminerals.com.

David Lenigas, the Company's Chairman commented:

"The commencement of this new drill programme at the Sonora Lithium Project is part of our strategy to potentially deliver a significant increase in the overall lithium resource in Mexico, whilst continuing to assess the optimum mining and plant design criteria for a potential lithium operation capable of up to 50,000 tonnes a year of lithium compounds."

Drilling Update - Sonora Lithium Project, Mexico:     

Bacanora Minerals Ltd ("Bacanora"), REM's joint venture partner in the Project, have mobilized a reverse circulation ("RC") drilling rig and a diamond drilling rig to commence the new 5,000 metre drilling programme.

An RC drill rig has been mobilised to drill the Buenavista area of the Joint Venture #2 Lands where initial exploration has identified a surface lithium clay deposit covering an area of approximately 6 km by 1.2 km with lithium values in surface samples grading of up to 1,700 ppm. This drilling programme will initially compromise of 25 holes ranging between 30 metres and 50 metres with the aim of defining a NI 43-101 compliant lithium resource to add to the already defined indicated lithium mineral resource of 3.28 million tonnes LCE on La Ventana and the Mexalit Joint Venture (Joint Venture #1 Lands).

REM has pre-paid US$1.5 million towards the exploration and drilling expenses on the Joint Venture #2 Lands in March and August this year.

A second, diamond drill rig, will be mobilised to complete a resource infill programme at La Ventana, which already has a defined Indicated Lithium Resource Estimate of 1.27 million tonnes of LCE. This drill programme will compromise of 15 holes ranging between 80 metres and 120 metres in depth. This infill programme is designed to upgrade certain sections of the resource to the higher measured resource category that will underpin the mine design and in particular the open pit mine plan and production scheduling.

Further resource expansion and infill drilling will follow on once these initial RC and diamond drilling programmes are completed.

Drilling Update - Magdalena Borate Project, Mexico:

In addition, Bacanora have also commenced 1,000 metres of HQ-core drilling at their 100% owned Magdalena Borate Project in order to define and outline the second borate bearing target (Unit B) at the most advanced target, the El Cajon borate deposit.

REM's interest in Bacanora:

REM has an 11.29% shareholding in Bacanora. This interest, when aggregated with REM's 30% direct interest in the Joint Venture #1 Lands and the 30% direct interest in the Joint Venture #2 Lands, results in a total economic interest in each of these joint ventures of approximately 38%

For further information please contact:

Rare Earth Minerals Plc                                                                       [phone]

David Lenigas

Kiran Morzaria

WH Ireland Limited (NOMAD & Joint Broker)                                     [phone]

James Joyce

Mark Leonard

Hume Capital plc (Joint Broker)                                                          [phone]

Guy Peters

Jon Belliss

Square1 Consulting

David Bick                                                                                           [phone]

Mark Longson

Glossary:

LCE = lithium carbonate (Li₂CO₃) equivalent, determined by multiplying Li value by 5.324 to get an equivalent Li₂CO₃ value in per cent. Use of LCE is to provide data comparable with industry reports and assumes complete conversion of lithium in clays with no recovery or process losses.

ppm = parts per million.

indicated resource = An indicated mineral resource is that part of a mineral resource for which quantity, grade or quality, densities, shape and physical characteristics can be estimated with a level of confidence sufficient to allow the appropriate application of technical and economic parameters, to support mine planning and evaluation of the economic viability of the deposit. The estimate is based on detailed and reliable exploration and testing information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes that are spaced closely enough for geological and grade continuity to be reasonably assumed.

measured resource = A measured mineral resource is that part of a mineral resource for which quantity, grade or quality, densities, shape and physical characteristics are so well established that they can be estimated with confidence sufficient to allow the appropriate application of technical and economic parameters, to support production planning and evaluation of the economic viability of the deposit. The estimate is based on detailed and reliable exploration, sampling and testing information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes that are spaced closely enough to confirm both geological and grade continuity.

 

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