LONDON (Alliance News) - Bacanora Minerals Ltd and Rare Earth Minerals both said Thursday that the mineral resource estimate for the Sonora Lithium project in Mexico has been significantly upgraded following a number of successful drilling campaigns, and drilling on a new exploration target at the project could lift the resource further.
In its statement, Bacanora said that the combined Sonora project now has an updated Mineral Resource Estimate containing an indicated resource of 1.12 million tonnes of lithium carbonate equivalent contained in 95 million tonnes of clay at a lithium grade of 2,200 parts per million.
The inferred portion of the estimate is now 6.3 million tonnes of lithium carbonate equivalent contained in 500 million tonnes of clay at a lithium grade of 2,300 parts per million.
The updated estimate, wahich was carried out by SRK Consulting (UK) Ltd, was developed using a 3D geological model and Kriged grade estimates. The indicated portion of the estimate will be used for initial open pit mine design while Bacanora further develops the inferred portion of the estimate.
It added that conceptual extensions within the current pit shell have the potential to add 2.4 to 4.6 million tonnes of lithium carbonate equivalent contained in 300 to 350 million tonnes of clay at a lithium grade of approximately 1,500 to 2,500 parts per million.
"The updated MRE underpins the potential of the Sonora Lithium Project in terms of scale and grade. Importantly, SRK's report also highlights additional conceptual extensions to potentially further expand upon this MRE. Importantly, with Sonora's close proximity to infrastructure, its location in a supportive jurisdiction and the increasing role of lithium products in industry, we believe that our company is well placed to capitalize on world demand as it strengthens and to build value for our shareholders," Bacanora Chairman Colin Orr-Ewing said in a statement.
Bacanora owns all of the La Ventana lithium concession at Sonora, and owns 70% of the El Sauz and Fleur concessions and 70% of the Megalit concession. Rare Earth Minerals owns the other 30% of the El Sauz and Fleur concessions and the rest of the Megalit concession. Rare Earth Minerals also has a 15.4% stake in Bacanora itself.
"The size of the Sonora Lithium Project as a whole has grown significantly since the last resource update to a combined Indicated and inferred resource of 7.42 million tonnes of LCE, 226% larger than previously reported, thanks to a number of successful drilling campaigns," Rare Earth Chairman David Lenigas said.
"Further drilling, if successful, has the potential to add a further 2.4 - 4.6 million tonnes of LCE within the defined SRK pit shell from conceptual extensions and Sonora still has further upside to be tested at the new Buenavista concession and elsewhere on the Sonora concession package," he added.
Still, Rare Earth Minerals shares were down 1.1% at 1.15 pence Thursday morning, while Bacanora's AIM-listed shares were down 0.6% at 89.50 pence.
By Steve McGrath; stevemcgrath@alliancenews.com; @stevemcgrath1
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