Sonora Lithium Project expanded

RNS Number : 2069C

Rare Earth Minerals PLC

15 January 2015

 

15 January 2015

Rare Earth Minerals Plc.

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

Sonora Lithium Project expanded with new drilling discovery.

Rare Earth Minerals Plc (London AIM: REM) is pleased to announce the results of the successful drilling campaign on the southern 3 km of an estimated 6 km strike extent of lithium bearing clays on the Buenavista Project ("Buenavista"). The exploration programme targeted a new and previously untested deposit type in the Sonora Lithium Project, which is thought to be of fluvial origin and eroded from a primary lithium source, as opposed to the types of deposits previously drilled at the Sonora Lithium Project in northern Mexico. The results confirm significant thicknesses of lithium bearing clays, very close to surface, at greater than 1,000 ppm Lithium values.

David Lenigas, the Company's Chairman, commented: 

"These drilling results from Buenavista are highly encouraging, especially given the geological simplicity of the deposit and the minimal overburden which overlies the lithium, both of which would serve to reduce the potential mining costs of such a deposit. Moreover the results prove that there are other continuous lithium deposits within the Sonora Lithium Project, which will add to the already substantial Indicated Lithium Resources of 3.28 million tonnes of Lithium Carbonate Equivalent ("LCE") already defined at La Ventana, Fleur and El Sauz."

Highlights of Drill Results

·     24 reverse circulation holes tested approximately half of the 6 km strike length of the lithium-bearing clays exposed at Buenavista.

·     The lithium-bearing clays outcrop at surface and dip gently to the east, providing a target for potential open pit mining with a minimal strip ratio.

·     Significant lithium values (i.e. greater than 1,000 ppm Li) were found in 13 of the 24 holes.

·     Of those 13 holes, 11 reported significant thicknesses and grades of lithium-bearing clays, as tabulated below in Table 1.

·     Lithium values of individual 1.0 metre samples, within the significant intervals, range from 336 to 2,210 ppm Li.

Table 1: Buenavista - Drill Holes with Significant Li Intervals

HOLE_ID	From (m)	To (m)	Interval (m)	Li (ppm) Weighted Ave.	LCE %
BV-01	29	41	12	1,421	0.76
BV-02	8	14	6	1,057	0.56
BV-02	23	26	3	1,107	0.59
BV-03	6	16	10	1,043	0.56
BV-06	18	33	15	1,032	0.55
BV-08	14	35	21	1,118	0.60
BV-09	13	36	23	1,077	0.57
BV-10	15	39	24	1,107	0.59
BV-18	17	39	22	1,063	0.57
BV-19	15	31	16	1,035	0.55
BV-20	28	40	12	1,277	0.68
BV-23	26	30	4	1,018	0.54

These drilling results along with other geological data are currently being reviewed to determine if further drilling is required in the northern portion of the deposit. Once this drilling is completed it is anticipated that a NI41-101 resource statement would be prepared on Buenavista.

Details of Ownership

The Buenavista concession forms part of the lands held by Megalit S.A. de C.V. ("Megalit"), which is owned 70% by Bacanora Mineral Limited ("Bacanora") and 30% by REM. REM has an exclusive right to negotiate the terms of acquisition to increase its interest in Megalit to 49.9%.

REM has a 12% shareholding in Bacanora. This interest, when aggregated with REM's 30% direct interest in Megalit 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 concession), results in a total economic interest in each of these joint ventures of approximately 38.4%the Company's joint owner of the Megalit and assets in Mexico.

Qualified Person

Carl G. Verley, P.Geo. is the Qualified Person pursuant to National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101") and the AIM Note for Mining and Oil and Gas Companies that has reviewed and approved the technical contents of this news release.

Glossary of Technical Terms

Dip =               the steepest angle of descent of a tilted bed or feature relative to a horizontal plane

Fluvial =           refers to the processes associated with rivers and streams and the deposits and landforms created by them

LCE =              Lithium Carbonate (Li2CO3) Equivalent: determined by multiplying Li value in percent by 5.324 to get an equivalent Li2CO3 value in percent.

Li =                  Lithium

ppm =              parts per million

Strike =            the geographic direction of a line created by the intersection of a plane and the horizontal.

Strip ratio =     the ratio of the volume of overburden required to be handled in order to extract ore

Overburden = rock or soil overlying a mineral deposit.

-END-

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, Mark Longson                                                                  [phone]

 

END

 

 

DRLBIMTTMBABTPA