Sonora Lithium Project Update

RNS Number : 9691O

Rare Earth Minerals PLC

11 November 2016

 

Rare Earth Minerals Plc

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

Bacanora Minerals Update on the Sonora Project

Rare Earth Minerals Plc (AIM/ISDX: REM; OTC: REMMY)) is pleased to report that Bacanora Minerals Ltd ("Bacanora"), has provided an update on the activities being undertaken on the Sonora Lithium Project ("Project") ahead of its Definitive Feasibility Study. The full Bacanora announcement can be found at: http://web.tmxmoney.com/article.php?newsid=5759214543314422&qm_symbol=BCN

REM holds an interest in the Project though its 19.12% holding in Bacanora and the joint venture interests of 30% in each of Mexalit S.A. de CV ("Mexalit") and Megalit S.A. de CV ("Megalit") as fully described below. The Project update, Definitive Feasibility Study work and drilling do not cover the Megalit joint venture

Highlights

·      Definitive Feasibility Study aimed at establishing a production plan for a 35,000 ("tpa") lithium carbonate operation at the Project (production is contemplated to ramp up following an initial phase of producing 17,500 tpa).

·      Preliminary reserve model and mine plan are being prepared by International Mining Consultants ("IMC")

·      Ausenco Limited is approximately 35% of the way through the FS process engineering:

o  The initial process flow sheet has been finalised

o  Quotations are being sought from international vendors for larger equipment and machinery

o  Development and optimisation of preliminary operating cost models has commenced

·      The expanded Pilot Plant has been operating since May 2016, producing battery grade samples of lithium carbonate which has been supporting the following:

o  Distribution of battery-grade lithium carbonate samples to potential off-takers in Asia and Europe

o  Flow sheet development and optimisation of lithium recoveries and reagent consumption

o  Operator training

·      The Company is working with the SignumBox Group in Santiago to develop long-term lithium pricing scenarios and supply-demand models.

The Sonora Lithium Project and Details of REM's ownership:

REM owns a direct interest of 19.12% of Bacanora. The Sonora Lithium Project is comprised of the following lithium properties:

- La Ventana, La Ventana 1, and Megalit concessions, which are 100 percent owned by Minera Sonora Borax S.A. de C.V.("MSB"), a wholly-owned subsidiary of Bacanora; REM, through its direct interest of 19.12% of Bacanora, has an indirect interest in these concessions of 19.12%.

- El Sauz, El Sauz 1, El Sauz 2, Fleur and Fleur 1 concessions, which are held by Mexilit S.A. de C.V. ("Mexilit"). REM has a 30% direct interest in Mexalit through its Joint Venture with Bacanora, and when combined with REM's direct interest of 19.12% in Bacanora, has a total economic interest in Mexalit of 43.38%.

- The Buenavista, and San Gabriel concessions, which are held by Megalit S.A de C.V ("Megalit"). REM has a 30% direct interest in Megalit through its Joint Venture with Bacanora, and when combined with REM's direct interest of 19.12% in Bacanora, has a total economic interest in Megalit of 43.38%.

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).

- Ends -

For further information, please contact: 

Rare Earth Minerals plc

Andrew Suckling                                                                                                                     [phone]

Kiran Morzaria                                                                                                                 

WH Ireland Limited (NOMAD & Broker)                                                                        [phone]

James Joyce

James Bavister

Square1 Consulting                                                                                                               [phone]

David Bick

Brian Alexander

 

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