Sonora Lithium Project Drilling Results

RNS Number : 9929N

Rare Earth Minerals PLC

22 May 2015

 

22 May 2015

Rare Earth Minerals Plc.

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

Sonora Lithium Project Drilling Results

Rare Earth Minerals Plc (LSE AIM: REM)) is pleased to announce the assay results of the 23 hole drilling campaign completed on the Sonora Lithium Project, Sonora Mexico ("the Project"), previously announced on 23 March 2015.

The campaign was primarily carried out on La Ventana and consisted of infill drilling. The geological intersections were utilised in the Mineral Resource Estimate published on the 14 May 2015.

In addition, we report the hole that was drilled to identify possible resource expansion targets to the west of the current delineated ore bodies at La Ventana and El Sauz / Fleur, which successfully intersected two clay beds at shallow depth and returned strong assay results of up to 2.3% LCE.

Highlights:

·     A total of 2,946 metres were drilled in the 22 in-fill holes from La Ventana.

·     Intercepts of the Upper Clay range from 26.10 to 50.83 metres in length and those for the Lower Clay range from 12.98 to 23.57 metres at La Ventana.

·     Analyses received for 18 of the 22 holes indicate that the lithium content of both the Upper and Lower clays increase to the south at La Ventana as well as maintaining grade and thickness:

o  Weighted averages (Table 1 below) for lithium content in the Upper Clay Unit varies from 955 ppm Li (0.5% LCE ) over 41.6 metres (hole LV-19) to 3,215 ppm Li (1.7% LCE) over 17.48 metres (hole LV-27);

o  For the Lower Clay Unit lithium content varies from 1,143 ppm Li (0.6% LCE) over 19.20 metres (hole LV-18) to 5,830 ppm Li (3.1% LCE) over 20.42 metres (LV-27).

o  Individual 1.5 metre long samples of clay range up to 10,000 ppm Li (5.32% LCE).

·      The hole drilled on the Fleur concession intersected 7.16 metres of the Upper Clay unit, which averaged 3,107 ppm Li (1.7% LCE) and 25.30 metres of the Lower Clay, which averaged 4,242 ppm Li (2.3% LCE).

A map with the drill holes highlighted is available on the Company's website (www.rareearthmineralsplc.com)

David Lenigas, the Company's Chairman commented:

"We are delighted with the assay results from the La Ventana infill drilling programme, these numbers correlate well with our current geological model, in particular the higher grades in southern portion of Ventana and northern portion of Fleur."

"Additionally, the assay results in the exploratory hole at Fleur  were very encouraging, given both the strong assay results and the intersection of the mineralised zone from only 17 metres below the surface, we believe this to be viable target for further exploration work, with the potential to  deliver further mineral resources at low strip ratios."

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%.

Table 1. Summary of Lithium-bearing intercepts - La Ventana

Hole No	Unit	From (m)	To (m)	Length (m)	Weighted average Li ppm	LCE %
LV-18	Upper Clay	218.24	245.67	27.43	577	0.3
	including	226.31	230.43	4.12	1,213	0.65
	Lower Clay	260.30	279.50	19.20	1,143	0.6
	including	274.02	279.50	5.49	2,248	1.2
LV-19	Upper Clay	10.24	51.82	41.58	955	0.5
	including	16.46	22.40	5.94	1,340	0.7
	including	32.92	48.77	15.85	1,595	0.85
LV-20	Upper Clay	219.46	252.07	32.61	584	0.3
	including	240.49	247.19	6.71	1,284	0.7
	Lower Clay	268.35	291.39	23.04	1,618	0.9
	including	279.20	289.86	10.67	2,141	1.1
LV-21	Upper Clay	8.92	59.74	50.83	1,194	0.6
	including	30.96	38.71	7.75	2,264	1.2
	including	49.07	59.74	10.67	2,150	1.1
	Lower Clay	72.24	92.96	20.73	1,759	0.9
	including	80.16	92.96	12.80	2,649	1.4
LV-22	Upper Clay	25.91	35.86	9.96	1,339	0.7
	Upper Clay	44.50	57.30	12.80	2,643	1.4
	Lower Clay	77.40	90.02	12.62	3,915	2.1
LV-23	Upper Clay	38.56	53.64	15.10	2,982	1.6
	Lower Clay	69.65	85.95	16.20	3,756	2.0
LV-24	Upper Clay	101.19	112.17	11.00	1,716	0.9
	Upper Clay	116.43	130.02	13.60	2,780	1.5
	Lower Clay	145.21	158.88	13.60	4,122	2.2
LV-25	Upper Clay	137.72	155.75	18.03	2,199	1.2
	including	145.08	154.23	9.14	3,035	1.6
LV-26	Upper Clay	30.48	48.77	18.29	2,018	1.1
	Lower Clay	59.44	76.05	16.61	2,701	1.4
	including	59.44	66.45	7.01	4,203	2.2
LV-27	Upper Clay	48.67	66.14	17.48	3,215	1.7
	Lower Clay	78.03	98.45	20.42	5,830	3.1
LV-28	Upper Clay	138.38	165.93	27.55	2,617	1.4
	including	153.62	165.93	12.31	4,306	2.3
	Lower Clay	179.83	203.30	23.47	5,228	2.8
LV-29	Upper Clay	8.23	35.66	27.43	2,284	1.2
	including	24.69	35.66	10.97	3,297	1.8
	Lower Clay	51.82	79.25	27.43	4,507	2.4
	including	51.82	74.68	22.86	5,395	2.9
LV-31	Upper Clay	147.83	185.52	37.69	1,453	0.8
	including	173.61	185.52	11.91	2,963	1.6
	Lower Clay	203.68	227.38	23.70	2,921	1.6
	including	206.65	218.85	12.19	4,174	2.2
LV-35	Lower Clay	12.34	33.41	21.06	5,786	3.1
LV-36	Lower Clay	15.32	35.36	20.04	4,370	2.3
LV-37	Lower Clay	14.81	35.36	20.55	4,105	2.2
LV-38	Lower Clay	13.92	37.49	23.57	3,153	1.7
LV-39	Lower Clay	6.40	26.52	20.12	2,379	1.3

Table 2. Summary of Lithium-bearing intercepts - Fleur

Hole No	Unit	From (m)	To (m)	Length (m)	Weighted average Li ppm	LCE %
ES-42	Upper Clay	16.15	23.32	7.16	3,107	1.7
	Lower Clay	39.32	64.62	25.30	4,242	2.3

The lithological intersections from these drill results were used in the MRE prepared by SRK Consulting (UK) Limited (as announced by the Company via its news release dated May 13, 2015), however as the assay results were not available at the time and therefore were excluded from the MRE calculations.

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

Glossary:

LCE:  is the industry standard terminology for, and is equivalent to, Li₂CO₃.  1 ppm Li metal is equivalent to 5.32 ppm LCE / Li₂CO₃. 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.

ppm: parts per million

 

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