Mexico Lithium Project - Update Stage 2 Drilling

RNS Number : 2591R

Rare Earth Minerals PLC

24 October 2013

 



24 October 2013

RARE EARTH MINERALS PLC

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

Mexico Lithium Project - First Update Stage 2 Drilling

Rare Earth Minerals PLC (AIM: REM) announces that the first hole of a scheduled 24 hole second phase of diamond drilling (Stage 2 Programme) has been successfully completed and identified 59 metres of the same clay formation previously encountered during Phase one drilling on the El Sauz and Fleur Lithium concessions (the "Concessions" or individually, a "Concession") in northern Mexico.

David Lenigas, Rare Earth Minerals Chairman commented:

"The Company is very pleased to have started the second stage of drilling on this Lithium Project and that the first hole has successfully intersected the same sequence of clay down dip from the previously identified lithium-bearing clays. With drill and assay results from the expanded programme, it is expected the new data will provide further evidence that the concessions host a new, large lithium resource."

Update:

The diamond drill under contract from Godbe Drilling of Colorado, USA has completed the first hole of this campaign (ES-11) approximately 200 metres northeast of hole ES-01 and within 20 metres of the boundary with the neighbouring La Ventana concession to the north. It was drilled to a total depth of 258.16 metres and intersected a 35 metre interval of the upper clay unit and a 24 metre interval of the lower clay unit. The estimated true thickness of the upper clay is 33 metres and that for the lower clay is 22.5 metres.  The preliminary log of the main units intersected in ES-11 is tabulated below.

The result of the first hole successfully demonstrates continuity of the clay units to depth down dip of the previously drilled resource and this new mineralisation will add to the overall resource once assays confirm the quantities of Lithium in the clay. A full suite of analytical results for lithium and other alkali metals and alkali earth metals from drill core samples are expected over the coming weeks.

Table 1. Preliminary Log of Hole ES-11

Hole: ES-11

From                 To                     Interval              Lithology

0                       169.7                169.7                Capping basalt

169.7                183.52               13.82                Upper sandstone

183.52              218.72               35.20                Upper clay (potential lithium bearing clay unit)

218.72              231.95               13.23                Ignimbrite

231.95              256.03               24.08                Lower clay (potential lithium bearing clay unit

256.03              258.16               2.13                  Basal volcanics

The full Stage 2 diamond drill programme will consist of approximately 3,500 metres of NQ core in 24 holes which will have the following objectives:

·     Complete infill holes required to upgrade the previously determined inferred resources on the Concessions, and

·     Conduct step-out drilling to test for extensions of the previously determined inferred resources, particularly into the newly staked concessions, where geological mapping and the results of previous drilling conducted by the Company indicate that the lithium-bearing clay units may extend.

The drilling programme is estimated to take approximately 5 months with final results of drill core analyses expected in late March 2014. REM expects to make periodic announcements of results as they become available.

In conjunction with the drilling, geological mapping and rock sampling will resume on the Concessions in order to provide the Company with a full assessment of the lithium potential of its land holdings.

Metallurgical test work is also underway through Inspectorate Exploration & Mining Services Ltd of Canada to determine potential recoveries of lithium and a number of the alkali metals present in the deposit.

About the Sonora Lithium Project:

The Sonora Lithium Project consists of the La Ventana, La Ventana 1 and the San Gabriel concessions which are owned 100% by Bacanora along with the contiguous El Sauz, El Sauz 1, El Sauz 2, Fleur and Fleur 1 concessions owned 70% by Bacanora and 30% by REM. NI 43-101 compliant inferred resources have been estimated for the La Ventana Lithium Deposit totaling 60 million tonnes averaging 3,000 ppm Li (equivalent to 1.6% lithium carbonate assuming 100% recovery and no process losses). The initial NI- 43101 compliant inferred resource for the El Sauz and Fleur concessions reported a total of 88,271,000 tonnes, averaging 3,163 ppm Li at a 2,000 ppm cut-off (1.68% lithium carbonate equivalent assuming 100% recovery and no process losses) of which REM owns a 30% share. The resource is open down dip to the east and to the south. For further details concerning the Company's agreement with REM and details of the joint venture, please refer to the Company's press release dated May 22, 2013.

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

·      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

·      ppm = parts per million 

·      NQ Core = Refers to the size of drill bit used to drill and recover core from a drill hole. The outside diameter of the bit is 75.7mm and the inside diameter of the bit is 47.6mm. The core extracted from the drilling will have a diameter of slightly less than 47.6mm.

- Ends -

For further information please contact:

Rare Earth Minerals plc                                                          [phone]

David Lenigas

Kiran Morzaria

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

James Joyce

Nick Field

XCAP Securities plc (Joint Broker)                                          [phone]

Guy Peters

Jon Belliss

Square1 Consulting

David Bick                                                                             [phone]

Mark Longson

 

END

 

 

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