Significant Resource Increase at Sonora Project

RNS Number : 5425G

Rare Earth Minerals PLC

23 November 2015

 

23 November 2015

Rare Earth Minerals Plc.

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

Significant resource increase at the Company's Sonora Lithium Project, Mexico

Rare Earth Minerals Plc (LSE AIM: REM)) is pleased to report an updated Mineral Resource estimate ("MRE") for the Sonora Lithium Project in northern Mexico (the "Project"), which has seen its Indicated Mineral Resources increase by over 300% from 1.1 million tonnes ("Mt") to 5 million tonnes of lithium carbonate equivalent ("LCE"). In addition, the Project's Inferred Mineral Resource has been estimated as a total of 3.9 Mt of LCE, increasing the overall Indicated and inferred resources from 7.4 Mt LCE to 8.8 Mt LCE.

The significant increase in the Indicated portion of the resource, and the resource in total, has a major positive impact for mine planning and the Project's life of mine. In particular, it will allow management to optimise the mine plan for a large and very long life lithium project, focusing on higher-grade mineral resources now identified and to maximise the Project's net present value.

REM holds an interest in the Sonora Lithium Project though its 17.19% holding in Bacanora Minerals Ltd ('Bacanora') and the joint ventures interest of 30% in each of Megalit S.A. de CV and Mexalit S.A. de CV as more fully described below.

Highlights: 

·     A 337% increase the Indicated Mineral Resource to 5.0 Mt of LCE (364 Mt of clay at a Li grade of 2,600 ppm), from the previously reported 1.14 Mt (95 Mt of clay, at a Li grade of 2,200 ppm).

o  La Ventana Indicated Mineral Resource has increased from the previously reported 0.84 Mt LCE to 1.9 Mt LCE.

o  El Sauz, El Sauz 1 and Fleur Indicated Mineral Resource has increased from the previously reported 0.30 Mt LCE to 3.1 Mt LCE.

·     The Inferred Mineral Resource is now 3.9 Mt of LCE (355 Mt of clay at a Li grade of 2,000 ppm), compared to the previously reported 6.3 Mt of LCE (500 Mt of clay at a Li grade of 2,300 ppm) - this change is mainly as a result of the significant upgrade of Inferred Mineral Resource to a Indicated Mineral Resource.

·     The Indicated Mineral Resource will be used for detailed life of mine planning with an initial focus on the higher-grade material on La Ventana and Fleur concessions.

·     The MRE forms part of the on-going feasibility study, which remains on schedule for completion in the first three months of 2016.

·     The updated MRE is a result of the latest drilling 16 hole (3,934 metre) drilling campaign and corresponding assay results, which were completed in October this year.

Kiran Morzaria, the Chief Executive Officer of REM, commented:

"The significant increase in Indicated Mineral Resource to 5Mt of LCE at the Sonora Lithium Project exceeded all our expectations. The drilling, interpretation and geological modelling has not only succeeded in delivering substantial increase in the mineral resource, but it has also, critically, improved the overall grade of the indicated portion of the resource. This will allow the management to maximise the economic returns by targeting high grade sections of the deposit, which in turn should result in a lowering of the unit costs of lithium compounds produced."

"In addition the inferred resource of 3.9Mt of LCE and the additional conceptual target of between 2.4Mt and 4.6Mt LCE, further illustrates that the Sonora Lithium Project still has ample scope for expansion, either in size or in production capacity."

Details of REM's ownership:

REM owns a direct interest of 17.19% of Bacanora and through that is has an indirect interest in the La Ventana asset of 17.19%. In addition the 17.19% 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 42.04%.

Mineral Resource Statement:

The Sonora Lithium Project has been explored and sampled using appropriate methods and is sufficiently well understood to support the estimation of Indicated and Inferred Mineral Resources. Table 1 shows the Mineral Resource Statement for the Sonora Lithium Project with an effective date of 19 November 2015.  The statement 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).  Mr. Pittuck is an engineering consultant who is independent of Bacanora.

The updated Mineral Resource statement for the Sonora Lithium Project was reported using a cut-off grade of 450 ppm lithium and was contained within a pit shell based on reasonable optimisation parameters and LCE selling price agreed between SRK and Bacanora. The updated Mineral Resource statement comprises an Indicated Mineral Resource estimated at 364 Mt, averaging 2,600 ppm Li for 5.0 Mt of LCE, in addition to an Inferred Mineral Resource estimated at 355 Mt averaging 2,000 ppm Li for 3.9 Mt of LCE. The Mineral Resource statement is set out below in table 1 below.

In addition to the Mineral Resource statement, a further conceptual target of 300 to 350 Mt, at a grade of Li of approximately 1,500 to 2,500 ppm was estimated within a pit shell run using all classified and unclassified blocks within the model. This target is considered worthy of further exploration in order to increase the quantity of classified Mineral Resource down-dip.  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.

The updated MRE is based on the original assay results from the drilling and trenching made available to SRK and the additional assay results from the most recent 16 hole (3,934 metre) drilling campaign which was completed in October this year. A summary of the lithium bearing intercepts from this drilling campaign is contained in table 3. A technical report in respect of this updated MRE will be available on REM's website within 45 days from today.

Table 1: Mineral Resource Statement for the Sonora Lithium Project as of 19 November 2015

Classification	Concession	Owner and Operator	Geological Unit		Clay Tonnes (Mt)		Clay Grade (Li ppm)		Contained Metal (Kt Li)		Contained Metal (Kt LCE)
Indicated	La Ventana	Minera Sonora Borax	Lower Clay		75		3,500		261		1,385
			Upper Clay		66		1,500		99		523
	El Sauz	Mexilit	Lower Clay		60		2,900		174		924
			Upper Clay		47		1,100		52		274
	Fleur		Lower Clay		60		4,300		258		1,365
			Upper Clay		50		1,600		81		428
	El Sauz1		Lower Clay		4		4,000		15		80
			Upper Clay		3		1,200		3		18
Indicated Total			Combined	364		2,600		943		4,997
Inferred	La Ventana	Minera Sonora Borax	Lower Clay		55		3,800		209		1,108
			Upper Clay		80		1,500		120		636
	El Sauz	Mexilit	Lower Clay		85		1,600		136		721
			Upper Clay		55		800		44		233
	Fleur		Lower Clay		20		4,200		84		445
			Upper Clay		20		1,500		30		159
	El Sauz1		Lower Clay		20		4,000		80		424
			Upper Clay		20		1,200		24		127
Inferred Total			Combined	355		2,000		727		3,853

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 Mineral Resource statement is reported on 100 per cent basis for all project areas and the portion of LCE that is attributable to Bacanora is also stated for clarity.

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 an optimistic 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 17.19% direct interest in Bacanora s giving it a 17.19% indirect interest in the Mineral Resources at La Ventana and a 42.78% 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 and Operator	Geological Unit	Clay Tonnes (Mt)	Clay Grade (Li ppm)	Contained Metal (Kt Li)	Contained Metal (Kt LCE)
Indicated	La Ventana	Minera Sonora Borax	Lower Clay	13	3,500	45	238
			Upper Clay	11	1,500	17	90
	El Sauz	Mexilit	Lower Clay	25	2,900	73	388
			Upper Clay	20	1,100	22	115
	Fleur		Lower Clay	25	4,300	108	574
			Upper Clay	21	1,600	34	180
	El Sauz1		Lower Clay	2	4,000	6	34
			Upper Clay	1	1,200	1	8
Indicated Total			Combined	118	2,600	307	1,627
Inferred	La Ventana	Minera Sonora Borax	Lower Clay	9	3,800	36	190
			Upper Clay	14	1,500	21	109
	El Sauz	Mexilit	Lower Clay	36	1,600	57	303
			Upper Clay	23	800	18	98
	Fleur		Lower Clay	8	4,200	35	187
			Upper Clay	8	1,500	13	67
	El Sauz1		Lower Clay	8	4,000	34	178
			Upper Clay	8	1,200	10	53
Inferred Total			Combined	116	2,000	224	1,186

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.

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]

Brian Alexander

Further Details on Mineral Resource Statement:

SRK visited the Sonora Lithium Project and inspected diamond drilling core, geological outcrop and drill rigs. Field and laboratory data have since been reviewed and analysed such that the scale and nature of the geology and the quality of data upon which this resource relies is well understood.  Data has been gathered using industry standard methods and assays have a basic level of quality control sufficient to underpin the confidence SRK has in this resource.

SRK has worked with the drilling results, mapping data, aerial photography and detailed topographic survey provided by Bacanora to develop a 3D geological model of the lithium bearing Upper and Lower Clay units.  In many areas the continuity of the clay units is established to the level required for input to project finance studies (Indicated Mineral Resource).  In other areas a combination of wide spaced drilling, extrapolation beyond drilling, absence of mapped outcrop and uncertainty around fault presence and location means that confidence in the model is lower (Inferred Mineral Resource) and further work will be required to feed into such studies. Parts of the model that are further way from geological information are unclassified have therefore been excluded from the Mineral Resource (instead, these are referred to as an exploration target).

SRK's block model is some 10 km long and 5 km wide covering the La Ventana in the north and the Fleur - El Sauz concessions in the south.  The drillhole grades have been averaged using length-weighting for each drillhole intersection of each clay unit domain (lower clay, upper clay high-grade and upper clay low-grade) and then these composite values have been interpolated to provide block grade estimates in their respective clay units.  The block model has been validated using several methods, including visual inspection of block and sample grades, swath plots, statistical comparisons and check estimates using different methodologies.

Drillhole spacing is variable, achieving approximately 200 m by 200 m in several places; the blocks measure 50 x 50 x 10 m and the model covers the majority of the drilled area except for the far southeast where a couple of isolated drillholes achieved low grade intersections.

Density has been assigned based on drill core samples; a value of 2.3 kg/m² has been applied to the clay units and a value of 2.7 kg/m² has been applied to the overlying capping basalt.  A Mineral Resource has been reported after due consideration of the reasonableness of eventual economic extraction.  Processing methods, efficiencies, rates and costs have been provided by Bacanora.  The configuration of the deposit lends itself to open pit mining and SRK has used mining costs provided by Bacanora and has assumed a 45 degree overall pit slope angle.  Revenue to the project is expected to be derived from sales of battery grade (99.5 per cent. pure) LCE. Geological samples were assayed for Lithium metal; every 1 ppm Li metal is equivalent to 5.32 ppm LCE.

Whilst no detailed review of market forecast prices has been undertaken, SRK considers a price of USD 6,500 per tonne of LCE to be reasonable given general reported view in the public domain; for the purpose of limiting the Mineral Resource to that part considered to have reasonable prospects of eventual economic extraction; SRK applied a 30 per cent uplift to the commodity price and derived a cut-off grade using anticipated technical-economic parameters associated with mining, processing and selling the product.  SRK derived a marginal cut-off grade based on Bacanora's unit cost of USD 14 per tonne fed to the processing plant and a 90 per cent recovery of product from the feed; on this basis the cut-off grade is 450 ppm Li (2,400 ppm LCE).  A basic open pit shell ensures mining costs of USD 2.5 per tonne mined are applied giving consideration to topography driven waste stripping; in conjunction with metal deportment in the deposit, this limits the Mineral Resource to a defendable depth and lateral extent.

This updated MRE differs from the previous estimate announced in May 2015.  The updated MRE has a greater proportion of Indicated Mineral Resource following the recent targeted infill drilling programme. The infill drilling confirmed the previous geological interpretation in most areas, which, along with good quality control results and the improved quality of estimation, allowed for a higher level of confidence to be attributed to more of the estimated block model. The overall tonnage within the Mineral Resource statement (Indicated and Inferred Mineral Resource combined) also increased from 595 Mt to 719 Mt. This is due to three main factors:

1)   The additional drilling allowed for improved geological control on the model, which extended the interpreted clay units to the west, allowing for the pit optimisation to include more material to the west than the previous MRE.

2)   The upper clay unit was split into high-grade footwall and low-grade hangingwall units, which improved the estimation quality and improved the grades in some parts of the model, particularly along strike to the north. This allowed for the pit optimisation to include more material to the north than the previous MRE.

3)   The block model used for reporting was changed from a regularised block model with all blocks at 50x50x10m dimensions, to a model including sub-blocks down to 25x25x1m dimensions. This improved the accuracy of reporting tonnage and increased the overall reported tonnage within the Mineral Resource statement.

Further Details on Drilling Programme:

In July 2015 Bacanora announced that it had commenced an infill drilling campaign on Fleur and Sauz as part of the PFS programme. The primary objective was to significantly increase the Indicated Mineral Resources within the Sonora Lithium Project. The drilling campaign was also designed to test the continuity of higher grade, near surface mineralisation in the northern area of the Fleur concession that immediately adjoins the southern end of the La Ventana concession with the objective of further expanding the resource base.

Bacanora completed 16 NQ-core diamond holes in October, totalling 3,934 metres. 718 core samples were collected, including standards, blanks and duplicated intercalated within the samples in order to perform QA/QC analyses. All of the samples were analysed in ALS-Chemex lab, a Canadian certified analytical laboratory. A summary of the lithium bearing intercepts from the drill programme is contained in table 3 below.

Table 3. Summary of Lithium bearing intercepts from 16 hole drill programme.

Drillhole ID	Lithological Unit	From (m)	To (m)	Interval (m)	Length-Weighted Average Li (ppm)
ES-44	Lower Clay	117.1	133.2	16.1	5,034
	Upper Clay	74.7	105.3	30.6	2,119
ES-45	Lower Clay	125.7	140.5	14.8	4,503
ES-46	Lower Clay	162.5	178.9	16.5	4,604
	Upper Clay	133.2	154.4	21.2	2,033
ES-47	Lower Clay	124.7	150.1	25.5	5,146
	Upper Clay	94.8	111.6	16.8	1,288
ES-48	Lower Clay	215.7	244.5	28.8	4,523
	Upper Clay	182.6	203.3	20.7	2,135
ES-50	Lower Clay	240.2	254.8	14.6	4,916
	Upper Clay	193.9	228.6	34.8	1,682
ES-51	Lower Clay	238.7	267.3	28.6	4,400
	Upper Clay	197.1	230.1	33.1	1,622
ES-52	Lower Clay	275.8	302.5	26.7	4,572
	Upper Clay	263.0	269.6	6.6	3,239
ES-53	Lower Clay	346.0	381.9	36.0	4,844
	Upper Clay	286.6	330.1	43.5	1,445
ES-54	Lower Clay	288.8	326.4	37.6	3,802
	Upper Clay	274.8	280.9	6.1	804
ES-55	Lower Clay	236.7	243.7	7.0	2,639
	Upper Clay	204.8	230.9	26.1	708
ES-56	Lower Clay	217.9	253.3	35.4	3,140
	Upper Clay	179.5	209.4	29.9	1,411
ES-57	Lower Clay	251.0	284.1	33.0	2,770
	Upper Clay	207.0	243.0	36.1	943
ES-58	Lower Clay	195.4	228.0	32.6	2,482
	Upper Clay	161.9	191.7	29.9	677

Glossary:

"block model"	Is a model generated within specialised computer software, which consists of cuboid blocks representing a volume of ground which has grades and densities assigned to it is used in the calculation of mineral resources
"cut-off grade"	lowest grade of mineralised material considered economic, used in the calculation of mineral resources
"deposit"	coherent geological body such as a mineralised body
"exploration"	method by which ore deposits are evaluated
"footwall"	is the wall or rock on the lower or bottom side or a deposit
"grade"	relative quantity or the percentage of ore mineral or metal content in an ore body
"hanging wall"	is the wall or rock on the upper or topside of a deposit
"Indicated Mineral Resource" or "Indicated"	is that part of a Mineral Resource for which quantity, grade or quality, densities, shape and physical characteristics are estimated with sufficient confidence to allow the application of Modifying Factors in sufficient detail to support mine planning and evaluation of the economic viability of the deposit. Geological evidence is derived from adequately detailed and reliable exploration, sampling and testing and is sufficient to assume geological and grade or quality continuity between points of observation. An Indicated Mineral Resource has a lower level of confidence than that applying to a Measured Mineral Resource and may only be converted to a Probable Mineral Reserve. Mineralisation may be classified as an Indicated Mineral Resource when the nature, quality, quantity and distribution of data are such as to allow confident interpretation of the geological framework and to reasonably assume the continuity of mineralization. An Indicated Mineral Resource estimate is of sufficient quality to support a Pre-Feasibility Study which can serve as the basis for major development decisions.
"Inferred Mineral Resource" or "Inferred"	is that part of a Mineral Resource for which quantity and grade or quality are estimated on the basis of limited geological evidence and sampling. Geological evidence is sufficient to imply but not verify geological and grade or quality continuity. An Inferred Mineral Resource has a lower level of confidence than that applying to an Indicated Mineral Resource and must not be converted to a Mineral Reserve. It is reasonably expected that the majority of Inferred Mineral Resources could be upgraded to Indicated Mineral Resources with continued exploration. An Inferred Mineral Resource is based on limited information and sampling gathered through appropriate sampling techniques from locations such as outcrops, trenches, pits, workings and drill holes. Inferred Mineral Resources must not be included in the economic analysis, production schedules, or estimated mine life in publicly disclosed Pre-Feasibility or Feasibility Studies, or in the Life of Mine plans and cash flow models of developed mines.
"Kt"	thousand tonnes
"life of mine"	number of years that an operation is planning to mine and treat ore, taken from the current mine plan.
"lithium"	a soft, silvery-white metallic element of the alkali group, the lightest of all metals, with a chemical symbol Li.
"lithium carbonate"	This is an inorganic compound, the lithium salt of  carbonate with the formula Li2CO3. Lithium carbonate is an important industrial chemical. It forms low-melting fluxes with silica and other materials. Glasses derived from lithium carbonate are useful in ovenware. Lithium carbonate is a common ingredient in both low-fire and high-fire ceramic glaze. Its alkaline properties are conducive to changing the state of metal oxide colorants in glaze particularly red iron oxide (Fe2O3). When added to aluminium trifluoride, it forms LiF, which gives a superior electrolyte for the processing of aluminium. It is also used in the manufacture of most lithium-ion battery cathodes, which are made of lithium cobalt oxide.
"lithium carbonate equivalent" or "LCE"	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.
"metallurgical"	Describing the science concerned with the production, purification and properties of metals and their applications
"mine planning"	The main purpose of mine planning is to ensure the enduring sustainability of the mines mining activity whilst achieving economic profitability.  Planning incorporates a coherent set of forecast figures reflecting the key aspects of company activity and desirable and possible directions for development. These forecasts provide a comprehensive framework for establishing the company's major strategic guidelines and the resources required for their implementation. This is what the strategic and operating plan is designed to achieve. Planning is seen as a system of data indicating the future development of the company as envisaged by its senior management.
"mineral resource" or "resource"	Is a concentration or occurrence of solid material of economic interest in or on the Earth's crust in such form, grade or quality and quantity that there are reasonable prospects for eventual economic extraction. The location, quantity, grade or quality, continuity and other geological characteristics of a Mineral Resource are known, estimated or interpreted from specific geological evidence and knowledge, including sampling. Mineral Resources are sub-divided, in order of increasing geological confidence, into Inferred, Indicated and Measured categories. An Inferred Mineral Resource has a lower level of confidence than that applied to an Indicated Mineral Resource. An Indicated Mineral Resource has a higher level of confidence than an Inferred Mineral Resource but has a lower level of confidence than a Measured Mineral Resource.
"mineralisation"	Process of formation and concentration of elements and their chemical compounds within a mass or body of rock
"Mt"	Million tonnes
"net present value"	Is defined as the sum of the present values  of incoming and outgoing cash flows over a period of time. Incoming and outgoing cash flows can also be described as benefit and cost cash flows, respectively
"pit shell"	The pit shell is the outer limit or extremity of the defined area where the mining is to take place. The pit shell establishes the quality, position of the deposit, and determines the extent in three dimensions of the potential mining operation.
"preliminary feasibility study" or "PFS"	This is a detailed study that involve the use of metrics and data specific to the project under consideration. Employment of project specific metrics is actually what sets them apart from preliminary economic assessments, or scoping studies, which are generally based on industry standards rather than derived from detailed site-specific data. PFS usually include a range of options for the technical and economic aspects of a project and are used to justify continued exploration, to complete the required project permitting. The overriding aim of a PFS is to select the preferred option, also known as base case scenario, for the project development, which commonly factor in mine access, mining and processing methods. This base case scenario is then developed in sufficient detail to underpin decisions to devote any additional funds required to move the project through subsequent stages of development and to a final feasibility study. The National Instrument 43-101 for the Standards of Disclosure for Mineral Projects within Canada, which describes a PFS as a "comprehensive study of the viability of a mineral project that has advanced to a stage where the mining method, in the case of underground mining, or the pit configuration, in the case of an open pit, has been established and an effective method of mineral processing has been determined, and includes a financial analysis based on reasonable assumptions of technical, engineering, legal, operating, economic, social, and environmental factors and the evaluation of other relevant factors which are sufficient for a qualified person, acting reasonably, to determine if all or part of the mineral resource may be classified as a mineral reserve".
"ppm"	parts per million
"Sonora Lithium Project"	The Sonora Lithium Project is comprised of the following lithium properties: La Ventana lithium concession, which is 100 percent owned by Bacanora; El Sauz and Fleur concessions, which are held by Mexilit S.A. de C.V. ("Mexilit"); and the Megalit concession, which is held by Megalit S.A de C.V ("Megalit"). Mexilit and Megalit are owned 70 percent by Bacanora Minerals Ltd and 30 percent by REM.
"swath plots"	A swath plot is a graphical representation of grade distribution derived from a series of sectional zones or bands (swaths), generated in two-dimensional sections which are propagated by a given step size along the vector normal to the sectional data. In other words, your area of interest is divided into sections in a specified direction and the item values (usually grade or tonnage information) in those zones are recorded on a single representative graph. Swath plots are useful tools for analysing grade distributions in order to identify similarities, differences, or unidirectional trends in block model data.
"recovery"	Proportion of valuable material obtained in the processing of an ore, stated as a percentage of the material recovered compared with the total material present
"tonne"	A metric ton

Lithium Classification and Conversion Factors

Lithium grades are normally presented in percentages or parts per million (ppm). Grades of deposits are also expressed as lithium compounds in percentages, for example lithium oxide (Li₂O) content or per cent or lithium carbonate (Li₂CO₃) content or percent. Assuming the lithium content in the deposit is converted to lithium carbonate, using the conversion rates in the table included further below to get an equivalent Li₂CO₃ value in per cent. Use of LCE assumes 100% recovery and no process losses in the extraction of Li₂CO₃ from the deposit.

Lithium Mineral Resources and Reserves are usually presented in tonnes of LCE or Li. The standard conversion factors are set out in the table below:

Conversion Factors for Lithium Compounds and Minerals

Convert from		Convert to Li	Convert to Li2O	Convert to Li2CO3
Lithium	Li	1.000	2.153	5.323
Lithium Oxide	Li2O	0.464	1.000	2.473
Lithium Carbonate	Li2CO3	0.188	0.404	1.000

 

END

 

 

DRLDBBDBSBDBGUD