Mexico Lithium Project - NI43-101 Technical Report

RNS Number : 3804Q

Rare Earth Minerals PLC

14 October 2013

 



 

14 October 2013

Rare Earth minerals plc

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

Mexico Lithium Project - NI43-101 Technical Report

Rare Earth Minerals (AIM: REM) announces that the Company's Joint Venture Partner Bacanora Minerals Ltd ("Bacanora") has filed the Technical Report ("Report") on the maiden estimated resource in respect of the Fleur and El Sauz concessions ("Concessions") that form part of the Sonora Lithium Project in northern Mexico.

The Report, in compliance with the recognised Canadian Security Administrators' National Instrument 43-101 and CIM guidelines for reporting resources and reserves, has been filed by Bacanora on SEDAR and is also available for download on the Company's website at www.rareearthmineralsplc.com.

The total inferred Lithium Carbonate Equivalent ("LCE") resources at a cut-off of 2,000 ppm lithium  on the Fleur-El Sauz Project is 1,486,000 tonnes LCE from 88,271,000 tonnes of clay at an average grade of 1.68% LCE. REM has at present a 30% interest in the Fleur-El Sauz Project, implying REM's share of the estimated inferred resource is 445,800 tonnes of LCE.

The initial inferred lithium resources for the Concessions apply a cut-off of 2,000 ppm Li for the combined Upper and Lower Clay Units. The Upper Clay Unit has an inferred Li resource estimated at 20,060,000 tonnes averaging 2,748 ppm Li (1.46% LCE) and the Lower Clay Unit has an inferred Li resource estimated at 68,211,000 tonnes averaging 3,278 ppm (1.75% LCE).

The recently completed drilling campaign on the Concessions tested a 4 kilometre strike length of the lithium-bearing volcanic-sedimentary succession, which remains open down dip and to the east as well as on strike to the south. A relatively high-grade portion of the deposit underlies the northern 2.7 kilometres of the area tested and, at a cut-off of 3,000 ppm Li, contains 53,929,000 tonnes averaging 3,922 ppm Li (2.09% LCE).

In addition, other potentially valuable alkali metals and alkali earth metals, such as potassium, cesium, rubidium and strontium show marked anomalism in the clays that host the lithium and are being investigated to determine if they will add further value to the deposit.

Further drilling has commenced to test for additional resources, as the Lithium bearing clays in the deposit identified to date remain open on strike to the south and to depth, down dip to the east.

David Lenigas, the Company's Chairman commented:

"The NI 43-101 Report confirms the previously announced maiden estimated Lithium resource at the Fleur-El Sauz Lithium Project and REM's 30% attributable share of that resource is 445,800 tonnes of LCE. The Company is optimistic that the second phase of drilling will increase the size and the potential commercial viability of the Project and the Company will work on the opportunity it has to further increase its interest in the Project during this period."

"The potentially valuable alkali metals and alkali earth metals, such as potassium, cesium, rubidium and strontium will also be assessed in more detail in this next phase of exploration. A number of these alkali metals could add strongly to the Project's overall economics once their grades and recovery techniques have been determined as part of this second phase of drilling and metallurgical reviews."

NI 43-101 Summary:

REM has received the results for a maiden inferred lithium resource estimate for the Fleur and El Sauz concessions (the "Concessions") in northern Mexico from Bacanora Minerals Ltd. A summary of the inferred lithium resources estimated for the Joint Venture lands are shown below, the deposit identified to date remains open on strike to the south and depth, down dip to the east.

Table 1. Summary of gross inferred resources estimated for El Sauz & Fleur Concessions

			Grade
Cut-off ( 2000 ppm Li)	True1 Thickness (m)	Tonnage4	Li ppm	Li2O2 %	LCE3 %	Tonnes of LCE4
Upper Clay	6.80	20,060,000	2,748	0.59	1.46	293,000
Lower Clay	14.70	68,211,000	3,278	0.71	1.75	1,193,000
Combined Clay Units	21.50	88,271,000	3,163	0.68	1.68	1,486,000

Notes to Table 1:

1) True thickness is estimated to be 94% of drill intercepts.

2) Li₂O = lithium oxide and is determined by multiplying Li value in percent by 2.153 to get an equivalent Li₂O value in percent 

3) LCE = lithium carbonate (Li₂CO₃) Equivalent: determined by multiplying Li value in percent by 5.324 to get an equivalent Li₂CO₃ value in percent. Use of LCE assumes 100% recovery and no process losses in conversion of Li to Li₂CO₃.

4) It should be noted that figures expressed above are gross figures. The Concessions are the subject of a joint venture between REM and Bacanora, pursuant to which REM has an option to earn up to a 49.9% interest in the Concessions. To date, REM has earned a 30% interest in the Concessions.  REM's interest is set out in table 2, below.

5) Bacanora Minerals Ltd. is the operator of the Concessions

Table 2. Summary of inferred resources estimated for the Concessions attributable to REM

	Tonnes of LCE
	Exercised interest (30%)6
Upper Clay	87,900
Lower Clay	357,900
Combined Clay Units	445,800

Notes to Table 2:

6) At a cut-off of 2,000 ppm Li and as previously announced, REM currently has a 30% vested interest in the Concessions.

The recently completed drilling campaign on the Joint Venture lands tested a 4 kilometre strike length of the lithium-bearing volcanic-sedimentary succession, which remains open down dip and to the east as well as on strike to the south. A relatively high-grade portion of the deposit underlies the northern 2.7 kilometres of the area tested and, at a cut-off of 3,000 ppm Li, contains 53,929,000 tonnes averaging 3,922 ppm Li (2.09% LCE). It adjoins and is the southward extension of Bacanora's La Ventana Li Deposit, situated immediately to the north, which contains an NI 43-101 compliant inferred lithium resource of 60 million tonnes averaging 3,000 ppm Li (1.6% LCE).

 

Qualified Person's Statement:

Information in this announcement relates to information compiled by Carl G Verley, P.Geo, a consultant to the Company, who is a member of the Association of Professional Engineers and Geoscientists of British Columbia and is a Qualified Person with respect to the information disclosed herein.

Glossary of Technical Terms

HTHP = High Temperature High Pressure

LCE = Lithium Carbonate (Li₂CO₃) Equivalent: determined by multiplying Li value in percent by 5.324 to get an equivalent Li₂CO₃ value in percent. Use of LCE assumes 100% recovery and no process losses in conversion of Li to Li₂CO₃.

Li = Lithium

Li₂O = lithium oxide and is determined by multiplying Li value in percent by 2.153 to get an equivalent Li₂O value in percent.

ppm = parts per million

- 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

XCAP Securities plc (Joint Broker)                                           [phone]

Guy Peters

Jon Belliss

Square1 Consulting

David Bick                                                                             [phone]

Mark Longson

 

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