Update on Cinovec Lithium-Tin Project

RNS Number : 1648N

Rare Earth Minerals PLC

21 October 2016

 

Rare Earth Minerals Plc

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

Outstanding lithium recoveries at the Cinovec Lithium - Tin Project

Rare Earth Mineral Plc (AIM: REM; OTC: REMMY) is pleased to report the mettalurgical results  from the Cinovec Lithium - Tin project which has delivered some outstanding lithium recoveries from the completed concetration test work. REM holds a 17.64% economic interest in the project (increasing to 20.84% following the Annual General Meeting of EMH to approve a further investment by REM, as previously announced) through its direct equity stake in European Metals Holdings Limited ("EMH").

The concentration test work for lithium is part of the on-going prefeasibility study ("PFS") for the Cinovec Lithium-Tin Project. The full EMH announcement can be found at:  http://europeanmet.com/assets/21_October_2016_-_Outstanding_Lithium_Recoveries.pdf

Highlights:

§  Near pure lithium mica recovery of 92% equating to a grade of 2.85% Li2O, achieved via wet magnetic separation ("WMS")

§  10-15% improvement in recoveries, compared to those achieved in the scoping study via flotation

§  Revised recovery methodology will deliver substantial cost savings:

§ WMS allows for coarser grinding which reduced milling power consumption

§ WMS requires no imported re-agents improving not only cost but environmental impact

§ WMS plant has a smaller footprint and water demand than flotation

§ Ore has been identified as suitable for a single stage jaw crush and SAG mill, further reducing operational and capital costs.

§  PFS metallurgy work will now focus on the lithium carbonate processing plant with the aim of maximizing both lithium and tin recoveries. Results from this work are expected by the end of the year

Kiran Morzaria, Chief Executive of REM, commented:

"These industry leading levels of recovery and concentration of the lithium mica via wet magnetic separation have exceeded my expectations and will deliver some significant advantages to the Cinovec project.

I continue to be impressed by the projects development and the continued operational and capital cost improvements. These, plus the previously announced, forecasted lower capital cost will deliver higher the net present value, shorten payback periods and ultimately assist in securing competitive development finance."

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).

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For further information, please contact: 

Rare Earth Minerals plc

Andrew Suckling                                                                                                                                  [phone]

Kiran Morzaria                                                                                                                                 [phone]

WH Ireland Limited (NOMAD & Broker)                                                                             [phone]

James Joyce

James Bavister

Square1 Consulting                                                                                                                     [phone]

David Bick

Brian Alexander

 

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