LONDON (Alliance News) - Bacanora Minerals Ltd and Rare Earth Minerals PLC on Monday said the resource estimate for the Sonora Lithium Project in Mexico has been significantly increased.
The indicated mineral resources for the project has been more than quadrupled to 5.0 million tonnes of lithium, up from 1.14 tonnes previously, with increases for the La Ventana, El Sauz and Fleur prospects at the site.
Sonora is a joint venture project between Bacanora and Rare Earth.
"We set out to significantly increase the indicated portion of our mineral resource at the Sonora Lithium Project, and I am delighted to report that this has been achieved with a fourfold increase in Indicated Mineral Resources reported," said Bacanora Chairman Colin Orr-Ewing.
"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," added Kiran Morzaria, Rare Earth's chief executive.
Shares in Bacanora were up 1.3% at 80.00 pence, whilst Rare Earth shares were up 2.5% at 0.799 pence.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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