Sonora Lithium Project

RNS Number : 2727F

Rare Earth Minerals PLC

23 April 2014

 



23 April 2014

Rare Earth Minerals Plc.

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

Battery Grade Lithium Carbonate Produced from Clays at the Sonora Lithium Project

Rare Earth Minerals Plc (LSE AIM: REM)) is pleased to announce that the independent third party, Metallurgical Division of Inspectorate Exploration and Mining Services Ltd ("Inspectorate"), has demonstrated and verified that our joint venture partner, Bacanora Minerals Ltd ("Bacanora"), is able to produce battery grade lithium carbonate (99.5%) from the lithium bearing clays on the Sonora Lithium Project in northern Mexico. The full news release from Bacanora is shown below.

Battery grade lithium carbonate is the premium lithium product employed by the battery industry in the production of lithium ion batteries, which are used in applications from small consumer and industrial appliances to electric vehicles and large stationary energy storage facilities for electric utilities.

David Lenigas, the Company's Chairman commented:

"These results represent a very important milestone and breakthrough that establishes we can recover a very high grade Lithium product from this large, newly discovered clay-based deposit. The fact that a "battery grade" lithium carbonate product can be produced, with over 99.5% lithium carbonate purity, is an excellent result for the Project."

"The Sonora Lithium Project as a whole has already reported inferred resources of over 2.4 million tonnes of Lithium Carbonate Equivalent (LCE) and drilling is continuing to upgrade the deposit. Further drilling and project updates should be reported shortly."

Summary of Metallurgical Test Results:

Laboratory scale metallurgical and mineral process tests on composite clay samples from REM's 30% owned El Sauz and Fleur concessions (Joint Venture #1 lands) and Bacanora's adjoining La Ventana Lithium Deposit, were conducted by Inspectorate. REM has an interest in adjoining La Ventana Lithium Deposit due to its 6.06% shareholding in Bacanora.

The Company's pilot plant uses a roast-leach process to take lithium into solution from the clays and the resulting solution is reduced in volume by evaporation in order to concentrate lithium.  After duplicating this process in its independent laboratory, Inspectorate concluded that lithium carbonate product with over 99% purity was achieved from condensed leach solutions in laboratory scale test work.  XRD ("x-ray diffraction") performed on products from two test samples confirmed over 99.5% lithium carbonate purity as mineral zabuyelite.  These test results have been confirmed on duplicate samples tested under similar process parameters at the Company's pilot plant in Hermosillo.

About REM's interests in the Sonora Lithium Project:

REM has a 30% interest in the Bacanora subsidiary that owns the contiguous El Sauz, El Sauz 1, El Sauz 2, Fleur and Fleur 1 concessions (the "Joint Venture #1 Lands") under joint venture with Bacanora. Inferred lithium resources for the El Sauz and Fleur concessions total 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). The resource on the Joint Venture #1 Lands is open down dip to the east and to the south. For further details concerning the Company's first agreement with REM and details of Joint Venture #1, please refer to the Company's press release dated May 22, 2013. REM has a 10% interest in the Bacanora subsidiary that will hold the Buenavista, Megalit and San Gabriel concessions which are subject to an agreement (Joint Venture #2) with Bacanora in which REM has rights to acquire up to a 30% interest - for details on this agreement please refer the Company's press release dated March 13, 2014.

REM also has a 6.06% of Bacanora where Inferred resources have also been estimated for the La Ventana Lithium Deposit totalling 60 million tonnes, averaging 3,000 ppm Li (equivalent to 1.6% lithium carbonate equivalent assuming 100% recovery and no process losses).

- 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

Hume Capital plc (Joint Broker)                                                     [phone]

Guy Peters

Jon Belliss

Square1 Consulting

David Bick, Mark Longson                                                                  [phone]

Bacanora Mineral Ltd's News Release date 22 April, 2014:

NEWS Release

BACANORA ANNOUNCES BATTERY GRADE LITHIUM CARBONATE PRODUCED FROM LA VENTANA & EL SAUZ COMPOSITE SAMPLES, SONORA LITHIUM PROJECT, MEXICO

BACANORA MINERALS LTD. ("Bacanora" or the "Company") is pleased to announce results of bench scale metallurgical and mineral process testing conducted by the Metallurgical Division of Inspectorate Exploration & Mining Services Ltd. ("Inspectorate") on clay composite samples from the La Ventana lithium concession, owned 100% by Bacanora, and the El Sauz concession, held under Joint Venture #1 with Rare Earth Minerals PLC ("REM"), each of which is located in Sonora, Mexico. 

The Company's pilot plant uses a roast-leach process to take lithium into solution from the clays and the resulting solution is reduced in volume by evaporation in order to concentrate lithium.  After duplicating this process in its independent laboratory, Inspectorate concluded that lithium carbonate product with over 99% purity was achieved from condensed leach solutions in laboratory scale test work.  XRD ("x-ray diffraction") performed on products from two test samples confirmed over 99.5% lithium carbonate purity as mineral zabuyelite.  These test results have been confirmed on duplicate samples tested under similar process parameters at the Company's pilot plant in Hermosillo.

Martin Vidal, President of Bacanora, commented "We are very pleased to be able to produce battery grade¹ lithium carbonate from our pilot plant and are further excited to have had this work independently verified by an arm's length, third party laboratory.  It is our intention to use the results of this work to move the project forward to the pre-feasibility stage, with engineering work designed to develop a commercial scale lithium carbonate recovery plant for the La Ventana clays. In addition, successful production of high purity lithium carbonate in tests of clay composite samples from the adjoining El Sauz concession, under joint venture with REM, further demonstrates the significant economic potential of the Sonora Lithium Project."

About the Sonora Lithium Project:

The Sonora Lithium Project consists of the La Ventana and La Ventana 1 concessions, which is owned 100% by Bacanora, along with the contiguous El Sauz, El Sauz 1, El Sauz 2, Fleur and Fleur 1 concessions (the "Joint Venture #1 Lands") which are owned 70% by Bacanora and 30% by REM under Joint Venture #1 and the San Gabriel, Buenavista and Megalit concessions (the Joint Venture #2 Lands) which are owned 90% by Bacanora and 10% by REM under Joint Venture #2. The Company has declared inferred resources on each of the La Ventana concessions and the Joint Venture #1 Lands, in respect of which reports have been prepared in accordance with National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101") (please refer to the Company's SEDAR filings for copies of these reports and related press releases). 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 equivalent assuming 100% recovery and no process losses). Inferred resources for the El Sauz and Fleur concessions total 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). The resource on the Joint Venture #1 Lands is open down dip to the east and to the south. For further details concerning the Company's first agreement with REM and details of Joint Venture #1, please refer to the Company's press release dated May 22, 2013. For further details concerning the Company's second agreement with REM and details of Joint Venture #2, please refer the Company's press release dated March 12 and March 26, 2014.

Carl G. Verley, P.Geo. is the Qualified Person pursuant to NI 43-101 that has reviewed and approved the technical contents of this news release.

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¹ It is industry standard terminology that "battery grade" lithium carbonate is lithium carbonate product with over 99.5% lithium carbonate purity. Battery-grade lithium carbonate is employed by the battery industry in the production of lithium ion batteries, which are used in a variety of applications, from small consumer and industrial appliances to electric vehicles and large stationary energy storage facilities for electric utilities.

 

 

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