Sonora Lithium and Borates Project Update

RNS Number : 3114P

Rare Earth Minerals PLC

05 June 2015

 

05 June 2015

Rare Earth Minerals Plc.

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

Sonora Lithium and Borates Project Update

Rare Earth Minerals Plc (LSE AIM: REM)) is pleased to announce an update on the upcoming milestones relating to the on-going transition of Bacanora Minerals Ltd (Bacanora) from an exploration to a mine development company.

During the last few weeks Bacanora has announced an update to the Mineral Resources for the Sonora Lithium Project and the appointment of a new CEO. Over the next six months, commencing 1 July 2015, Bacanora will undertake the following project development tasks at Sonora:

·     Commencement of an expansion and infill drilling programme at the Sonora Lithium Project which is expected to be followed by a further Mineral resource update and mining design and scheduling;

·     Continued optimisation of the lithium pilot plant operations and finalisation of the  process flowsheet designs and mass balances;

·     Utilisation of the lithium pilot plant flowsheet designs to continue the Pre-Feasibility Study, ("PFS"); and

·     Production of lithium marketing samples in order to continue discussions with a number of global lithium end user groups and potential off-take partners, with which non-disclosure agreements have been signed.

During this development phase, Bacanora will continue to grow its project management team in Hermosillo, Mexico, as it builds its internal lithium operating expertise. This team will then lead the Definitive Feasibility Study following the completion of the PFS. At the same time, the project team will continue to finalise the PFS for the Magdalena Borates Project in Sonora State, Mexico and review potential cashflows from this project as a source of working capital for Bacanora.

Details of REM's ownership:

REM owns a direct interest of 15.4% in Bacanora (AIM:BCN), and through that holds an indirect interest in the La Ventana asset of 15.4%. In addition the 15.4% in Bacanora, when aggregated with REM's 30% direct interest in Megalit S.A de CV (the company holding the Buenavista, Megalit and San Gabriel concessions) and the 30% direct interest in Mexalit S.A de CV (the company holding El Sauz, El Sauz 1, El Sauz 2, Fleur and Fleur 1 concessions), results in a total economic interest in each of these companies of Megalit S.A. de CV and Mexalit S.A. de CV of 40.78%.

Qualified Person:

Kiran Morzaria B.Eng. (ACSM), MBA, has reviewed and approved the information contained in this announcement. Kiran holds a Bachelor of Engineering (Industrial Geology) from the Camborne School of Mines and an MBA (Finance) from CASS Business School.

Ends

For further information please contact: 

Rare Earth Minerals plc                                                                   [phone]

David Lenigas

Kiran Morzaria

WH Ireland Limited (NOMAD & Broker)                                       [phone]

James Joyce

Mark Leonard

Square1 Consulting

David Bick                                                                                           [phone]

Mark Longson

 

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