Mexico Lithium Project Maiden Resource Estimate

RNS Number : 6969M

Rare Earth Minerals PLC

29 August 2013

 



29 August 2013

Rare Earth minerals plc

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

Mexico Lithium Project Maiden Resource Estimate

Rare Earth Minerals (AIM: REM) is pleased to announce that the first 10 diamond drill holes at the Fleur-El Sauz Lithium Project in northern Mexico have identified an estimated resource of 1,782,000 tonnes of Lithium Carbonate Equivalent ("LCE") at a cut-off of 1,000 ppm Li, within the 191 million tonnes of clays drilled over an initial 4 kilometres strike length, as a maiden estimated inferred resource compliant with the NI 43-101, CIM standard.

REM has at present a 10% interest in the Fleur-El Sauz Project, and as previously announced has given notice to its joint venture partner Bacanora Minerals Ltd. ("Bacanora") to increase its interest to 30%, implying inferred LCE resources at a cut-off of 1,000 ppm attributable to REM of 178,200 tonnes and 534,600 tonnes LCE respectively.

With Lithium Carbonate currently trading around US$5,000 - 6,000 a tonne, this resource estimate implies a potentially significant in-ground value.  Further drilling over the next 6 months is planned to test for further resources, as the Lithium bearing clays in the deposit identified to date remain open on strike to the south and to depth, down dip to the east.

Highlights:

·      Inferred resources of 1,782,000 tonnes of LCE from 153,806,000 tonnes (with a lower cut grade of 1,000 ppm Lithium)

·      Inferred resources of 1,486,000 tonnes of LCE from 88,271,000 tonnes (with a lower cut grade of 2,000 ppm Lithium)

·      Plans for stage 2 drilling with the objective of extending the resource will be announced in a further news release once the new programme is finalised.

David Lenigas, the Company's Chairman commented:

"REM is very pleased with the results of this maiden resource estimate which supports the belief that the deposit hosts a new discovery that is part of a significant lithium deposit. Grade and tonnes have far exceeded our expectations from just this first phase of drilling.

"The Company is optimistic about the second phase of drilling, during which it will increase its interest in the project to 30%, as previously announced."

Update:

REM has received the results for a maiden inferred lithium resource estimate for the Fleur and El Sauz concessions (the "Concessions") in northern Mexico from Bacanora. A summary of the inferred lithium resources estimated for the Joint Venture lands are shown below, the deposit identified to date remains open on strike to the south and depth, down dip to the east.

Table 1. Summary of gross inferred resources estimated for El Sauz & Fleur Concessions

			Grade
Cut-off (ppm Li)	True1 Thickness (m)	Tonnage4	Li ppm	Li2O2 %	LCE3 %	Tonnes of LCE4
Upper Clay
1,000	18.30	57,700,000	1,381	0.30	0.74	427,000
2,000	6.80	20,060,000	2,748	0.59	1.46	293,000
3,000	8.10	9,846,000	3,398	0.73	1.81	178,000
Lower Clay
1,000	27.60	96,103,000	2,526	0.54	1.35	1,297,000
2,000	14.70	68,211,000	3,278	0.71	1.75	1,193,000
3,000	24.00	44,083,000	4,030	0.87	2.15	948,000
Combined Clay Units
1,000	45.90	153,806,940	2,052	0.44	1.09	1,782,000
2,000	21.50	88,271,000	3,163	0.68	1.68	1,486,000
3,000	32.10	53,929,000	3,922	0.84	2.09	1,126,000

Notes

1) True thickness is estimated to be 94% of drill intercepts.

2) Li₂O = lithium oxide and is determined by multiplying Li value in percent by 2.153 to get an equivalent Li₂O value in percent 

3) LCE = lithium carbonate (Li₂CO₃) Equivalent: determined by multiplying Li value in percent by 5.324 to get an equivalent Li₂CO₃ value in percent. Use of LCE assumes 100% recovery and no process losses in conversion of Li to Li₂CO₃.

4) It should be noted that figures expressed above are gross figures. The Concessions are the subject of a joint venture between REM and Bacanora, pursuant to which REM has an option to earn up to a 49.9% interest in the Concessions. To date, REM has earned a 10% interest in the Concessions and has provided notice of its intention to exercise its option to increase its interest in the Concessions to 30%.  REM's interest is set out in table 2, below.

5) Bacanora Minerals Ltd. is the operator of the Concessions

Table 2. Summary of inferred resources estimated for the Concessions attributable to REM

Cut-off (ppm Li)	Tonnes of LCE
	Vested interest (10%)6	Exercised interest (30%)7
Upper Clay
1,000	42,700	128,100
2,000	29,300	87,900
3,000	17,800	53,400
Lower Clay
1,000	129,700	389,100
2,000	119,300	357,900
3,000	94,800	284,400
Combined Clay Units
1,000	178,200	534,600
2,000	148,600	445,800
3,000	112,600	337,800

Notes

6) As previously announced, REM currently has a 10% vested interest in the Concessions.

7) As previously announced, REM has given notice of exercise in respect of an option over a further 20% interest in the Concessions, and subject to satisfaction of its farm-in obligations, will in due course have a total 30% interest in the Concessions.

The recently completed drilling campaign on the Joint Venture lands tested a 4 kilometre strike length of the lithium-bearing volcanic-sedimentary succession, which remains open down dip and to the east as well as on strike to the south. A relatively high-grade portion of the deposit underlies the northern 2.7 kilometres of the area tested and, at a cut-off of 3,000 ppm Li, contains 53,929,000 tonnes averaging 3,922 ppm Li (2.09% LCE). It adjoins and is the southward extension of Bacanora's La Ventana Li Deposit, situated immediately to the north, which contains an NI 43-101 compliant inferred lithium resource of 60 million tonnes averaging 3,000 ppm Li (1.6% LCE). A technical report, compliant with Canadian NI 43-101 standards, detailing the resource estimate in the Concessions will be available in approximately 45 days.

About the Sonora Lithium Project:

Lithium is the lightest of the alkali metals and has unique electrochemical properties that make it the element of choice for batteries of high energy storage capacity and other energy applications as well as a host of industrial and health applications. Lithium-bearing clays also have application in the petroleum industry for high temperature - high pressure tolerant drilling muds.

The total known world resource of lithium metal is estimated to be only just over 30 million tonnes, with total world annual production expected to rise from the current 150,000 tonnes of Lithium Carbonate Equivalent ("LCE") to 300,000 tonnes by 2020. The majority of current world production is based on brine pumping from Salars in South America, and deposits in China and Australia.

Lithium is an important metal in today's quest for energy and energy storage solutions, for example in the fast-growing electric car market. To be part of this discovery is a very exciting prospect for the Company. The substantial amount of lithium-bearing clays present also represents an interesting opportunity for supply to the oil industry since these clays are becoming increasingly necessary for HTHP drilling muds now being used in deep oil and gas wells and for fracking.

 

 

Qualified Person's Statement:

Information in this announcement relates to information compiled by Carl G Verley, P.Geo, a consultant to the Company, who is a member of the Association of Professional Engineers and Geoscientists of British Columbia and is a Qualified Person with respect to the information disclosed herein.

Glossary of Technical Terms

HTHP = High Temperature High Pressure

LCE = Lithium Carbonate (Li₂CO₃) Equivalent: determined by multiplying Li value in percent by 5.324 to get an equivalent Li₂CO₃ value in percent. Use of LCE assumes 100% recovery and no process losses in conversion of Li to Li₂CO₃.

Li = Lithium

Li₂O = lithium oxide and is determined by multiplying Li value in percent by 2.153 to get an equivalent Li₂O value in percent.

PPM = parts per million

For further information please contact:     

Rare Earth Minerals Plc                                                              www.rareearthmineralsplc.com 

David Lenigas, Chairman                                                           

[phone]                                                                

NOMAD - WH Ireland Limited

James Joyce/Nick Field

[phone]

PR - Pelham Bell Pottinger

Charlie Vivian/ Weston Macklem

[phone]

 

END

 

 

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