LONDON (Alliance News) - Bacanora Minerals Ltd Thursday said it is making progress with the definitive feasibility study for the flagship Sonora lithium project in Mexico, which remains on track to be completed early next year.
Bacanora is developing one of the most advanced new lithium projects in the world as it races to meet substantial levels of expected growth within areas such as electric vehicles and energy storage that demand lithium as a key commodity.
Fellow London-listed Rare Earth Minerals PLC is also involved in the project, holding a 15.5% stake in Bacanora at a corporate level alongside the 30% stake it holds in two of the deposits being developed under the project.
Sonora will initially produce around 17,500 tonnes of lithium carbonate each year before doubling to 35,000 tonnes of annual production further down the line. First, however, Bacanora needs to complete the feasibility study for the project that is on track to be completed in the first quarter of 2017.
Importantly, Bacanora is fully financed through to the initial project development and the start of the construction stages.
Ausenco Engineers will be responsible for the process engineering for the study, SRK Consulting (UK) Ltd will undertake the mineral resource estimate and International Mining Consultants will carry out the reserve estimate and mine planning.
Bacanora plans to appoint more specialised consulting groups for additional sections of the study.
A 3,000 metre infill drilling programme at Sonora is already underway, with 2,039 metres drilled over 20 holes, as the company attempts to upgrade the mineral resource. A further 11 holes are planned to be drilled.
Intercepts discovered in the upper clay during drilling have been between 14.1 to 40.9 metres thick with an average thickness of 30.3 metres whilst the lower clay has ranged between 10.4 to 25.6 metres thick with an average thickness of 19.8 metres. Assay results are expected in August.
Currently, the indicated resource stands at 259.0 million tonnes of ore graded at 3,200 parts per million lithium - containing 4.5 million tonnes of lithium carbonate equivalent.
Bacanora said the expansion of the pilot plant at the project is continuing alongside metallurgical testwork. The plant is being optimised to ensure it can produce lithium carbonate that is suitable to be used in batteries, and the immediate focus is to secure battery-grade samples that can be sent to offtake partners in the third quarter.
Bacanora shares were down 1.0% to 92.60 pence per share on Thursday whilst Rare Earth shares were trading down 1.2% to 0.440 pence.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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