Filing of Technical Report, Sonora Lithium Project

RNS Number : 4653R

Rare Earth Minerals PLC

29 June 2015

 

29 June 2015

Rare Earth Minerals Plc.

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

Filing of Technical Report on Updated Mineral Resource Estimate for the Sonora Lithium Project, Mexico

Rare Earth Mineral Plc (AIM: REM) is pleased to announce that Bacanora Minerals Ltd ("Bacanora") in which REM holds 16.42%, has filed a Technical Report ("Report") in respect to the Ventana, Fleur and El Sauz concessions that form part of the Sonora Lithium Project in northern Mexico. The Report has been prepared in accordance with National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101") and is entitled, A Mineral Resource Estimate for Sonora Lithium Project, Mexico, May 2015.  The lead author of the Technical Report is Mr. Martin Pittuck (MSc., C.Eng., MIMMM), who is a "qualified person" within the meaning of NI 43-101 and is independent of the Company.  The Report is available for download from REM's website.

The Report provides detail in relation to the Mineral Resource Statement ("MRE") for the lithium properties announced by REM in its press release dated May 14, 2015.  These properties consist La Ventana lithium concession (100% owned by Bacanora) and the El Sauz, El Sauz 1 and Fleur concessions, which are held by Mexilit S.A. de C.V. ("Mexilit"). Mexilit is owned 30 percent by REM and 70 percent by Bacanora. When REM's direct interest in BCN of 16.42% is combined with REM's 30% direct interest in Mexilit S.A de CV it results in a total economic interest in this company of 41.49%.

The updated MRE of the Sonora Lithium Project, using a cut off of 450 ppm lithium is comprised of:

·      Indicated portion of the MRE is gross 1.14 million Mt LCE contained in 95 Mt of clay, at lithium ("Li") grade of 2,200 ppm.

·      Inferred portion of the MRE is gross 6.30 Mt LCE contained in 500 Mt of clay at a Li grade of 2,300 ppm.

In addition to the MRE, a further conceptual target of 300 to 350 Mt, at a grade of Li of approximately 1,500 to 2,500 ppm within the current pit shell is considered worthy of further exploration. If these figures were converted to a Mineral Resource via successful drilling and exploration, it is estimated that this could represent an additional 2.4 to 4.6 Mt of LCE at the Sonora Lithium Project. It must be noted however, that the potential quantity and grade of this target is conceptual in nature, that there has been insufficient exploration to define a mineral resource and that it is uncertain if further exploration will result in the target being delineated as a mineral resource.

Table 1 below shows the MRE for the Sonora Lithium Project with an effective date of 12 May 2015. It should be noted that the MRE table published on 14 May 2015 had assigned an inferred portion of the resource to the Megalit concessions. This has been updated in the final Report and correctly assigned to the El Sauz 1 Concession. In addition as a result of rounding effects the indicated resources have increased by 0.09 Mt of LCE to 1.14 Mt of LCE.  The MRE has been classified in accordance with the terminology, definitions and guidelines given in the Canadian Institute of Mining, Metallurgy and Petroleum ("CIM") Definition Standards for Mineral Resources and Mineral Reserves (May 2014) and has been reported in accordance with NI 43-101, by the Qualified Person, Mr. Martin Pittuck (MSc., C.Eng., MIMMM).

Table 1: Mineral Resource Statement for the Sonora Lithium Project

Classification	Concession	Owner	Geological Unit	Mt Clay	Clay Grade (Li ppm)	Contained Li (Kt)	Contained Li2CO3 (Kt)
Indicated	La Ventana	Minera Sonora Borax	Lower Clay	35	3,250	110	580
			Upper Clay	35	1,400	50	260
	El Sauz	Mexilit (JV-1)	Lower Clay	15	2,350	40	220
			Upper Clay	8	1,000	8	40
	Fleur		Lower Clay	1	4,250	4	20
			Upper Clay	2	1,800	4	20
Indicated			Combined	95	2,200	220	1,140
Inferred	La Ventana	Minera Sonora Borax	Lower Clay	30	3,700	100	500
			Upper Clay	90	1,700	150	800
	El Sauz	Mexilit (JV-1)	Lower Clay	100	2,500	250	1,300
			Upper Clay	100	1,100	100	500
	Fleur		Lower Clay	80	4,200	350	2,000
			Upper Clay	60	1,800	100	500
	El Sauz1		Lower Clay	20	4,300	80	400
			Upper Clay	30	1,700	60	300
Inferred			Combined	500	2,300	1,200	6,300

Notes:

1.   LCE is the industry standard terminology for, and is equivalent to, Li₂CO₃.  1 ppm Li metal is equivalent to 5.32 ppm LCE / Li₂CO_3.. Use of LCE is to provide 

data comparable with industry reports and assumes complete conversion of lithium in clays with no recovery or process losses.

2.   Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability. All figures are rounded to reflect the relative accuracy of the estimate and have been used to derive sub-totals, totals and weighted averages. Such calculations inherently involve a degree of rounding and consequently introduce a margin of error. Where these occur, SRK does not consider them to be material.

3.   The reporting standard adopted for the reporting of the MRE uses the terminology, definitions and guidelines given in the CIM Standards on Mineral Resources and Mineral Reserves (May 2014) as required by NI 43-101 and JORC.

4.   The MRE is reported on 100 percent basis for all project areas.

5.   SRK assumes the Sonora Lithium deposit to be amenable to surface mining methods. Using results from initial   metallurgical test work, suitable surface mining and processing costs, and forecast LCE price SRK has reported the Mineral Resource at a cut-off 450 ppm Li (2,400 ppm LCE).

6.   SRK completed a site inspection of the deposit by Mr. Martin Pittuck, MSc, C.Eng, MIMMM, an   appropriate "independent qualified person" as such term is defined in NI 43-101.

REM has a 30% direct interest in the Megalit and Mexilit in Joint Venture with Bacanora Minerals.  In addition, REM also owns a 16.42% direct interest in Bacanora, giving it a 16.42% indirect interest in the Mineral Resources at La Ventana and a 41.49% indirect interest in the Mineral Resources at both Megalit and Mexilit. These percentage interests have been used by REM to calculate its net attributable contained LCE presented in Table 2.

Table 2: Net attributable contained LCE to REM based on total economic interest.

Classification	Concession	Owner	Geological Unit	Mt Clay	Clay Grade (Li ppm)	Contained Li (Kt)	Contained Li2CO3 (Kt)
Indicated	La Ventana	Minera Sonora Borax	Lower Clay	5	3,250	18	95
			Upper Clay	5	1,400	8	43
	El Sauz	Mexilit (JV-1)	Lower Clay	6	2,350	17	90
			Upper Clay	2	1,000	3	16
	Fleur		Lower Clay	1	4,250	2	8
			Upper Clay	1	1,800	2	8
Indicated			Combined	20	2,200	50	260
Inferred	La Ventana	Minera Sonora Borax	Lower Clay	5	3,700	16	80
			Upper Clay	15	1,700	25	135
	El Sauz	Mexilit (JV-1)	Lower Clay	40	2,500	104	540
			Upper Clay	40	1,100	41	210
	Fleur		Lower Clay	30	4,200	145	830
			Upper Clay	25	1,800	41	210
	El Sauz1		Lower Clay	10	4,300	33	170
			Upper Clay	15	1,700	25	125
Inferred			Combined	180	2,300	430	2,300

Note: All figures are rounded to reflect the relative accuracy of the estimate and have been used to derive sub-totals, totals and weighted averages. Such calculations inherently involve a degree of rounding and consequently introduce a margin of error. Where these occur, REM does not consider them to be material.

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.

Martin Pittuck, MSc., C.Eng., MIMMM of SRK Consulting (UK) Ltd., is a Qualified Person pursuant to NI 43-101 and the AIM Note for Mining and Oil and Gas Companies who has reviewed and approved the technical contents of this news release.

- 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                                                                             [phone]

David Bick, Mark Longson                                                                     

 

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