7 Jul 2016 07:00
Rare Earth Minerals Plc
("Rare Earth Minerals", "REM" or "the Company")
Bacanora Minerals Update on the Sonora Project
Rare Earth Minerals Plc (AIM: REM; OTC: REMMY)) is pleased to report that Bacanora Minerals Ltd ("Bacanora"), has provided an update on the activities being undertaken on the Sonora Lithium Project ("Project") ahead of its Definitive Feasibility Study. The full Bacanora announcement can be found at: http://web.tmxmoney.com/article.php?newsid=4765425803606401&qm_symbol=BCN
REM holds an interest in the Project though its 15.5% holding in Bacanora and the joint venture interests of 30% in each of Mexalit S.A. de CV ("Mexalit") and Megalit S.A. de CV ("Megalit") as fully described below. The Project update, Definitive Feasibility Study work and drilling do not cover the Megalit joint venture
Highlights
· Definitive Feasibility Study targeted for completion in Q1, 2017.
· Process engineering, mining resource estimate, reserve estimate and mine planning consultants all are now appointed.
· 3,000-metre infill drilling programme progressing well - over 2,000 metres drilled to date - target to upgrade part of Mineral Resource from Indicated to Measured category.
· Latest drill intercepts consistent with the average thickness of the deposit; a table summarising the unit intercepts are included in the full Bacanora announcement. Assay results expected next month
· Expansion of the pilot plant capacity has continued with a focus on delivery of battery-grade lithium carbonate samples to off-takers in Asia and Europe during Q3 this year. Over 30 professional and operational personnel are now working on the pilot plant with recruitment continuing.
· Continuing development of strategic relationships with international lithium trading companies and mining companies for the sale of its lithium carbonate products
· A number of detailed site and plant visits completed with potential off-take partners
· Negotiations on off-take agreements are being undertaken in tandem with the preparation of the Definitive Feasibility Study.
Commenting, Kiran Morzaria, Chief Executive Officer of REM, said:
"Progress continues apace at the Project. All the work streams are maintaining strong momentum and are on schedule. Discussions with potential off-take partners have made significant progress as has the Project's ability to supply battery-grade samples."
The Sonora Lithium Project and Details of REM's ownership:
REM owns a direct interest of 15.5% of Bacanora. The Sonora Lithium Project is comprised of the following lithium properties:
- La Ventana, La Ventana 1, and Megalit concessions, which are 100 percent owned by Minera Sonora Borax S.A. de C.V.("MSB"), a wholly-owned subsidiary of Bacanora; REM, through its direct interest of 15.5% of Bacanora, has an indirect interest in these concessions of 15.5%.
- El Sauz, El Sauz 1, El Sauz 2, Fleur and Fleur 1 concessions, which are held by Mexilit S.A. de C.V. ("Mexilit"). REM has a 30% direct interest in Mexalit through its Joint Venture with Bacanora, and when combined with REM's direct interest of 15.5% in Bacanora, has a total economic interest in Mexalit of 40.8%.
- The Buenavista, and San Gabriel concessions, which are held by Megalit S.A de C.V ("Megalit"). REM has a 30% direct interest in Megalit through its Joint Venture with Bacanora, and when combined with REM's direct interest of 15.5% in Bacanora, has a total economic interest in Megalit of 40.8%.
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 +1 (212) 933 9007
Kiran Morzaria +44 (0) 207 440 0647
WH Ireland Limited (NOMAD & Broker) +44 (0) 207 220 1666
James Joyce
Mark Leonard
Square1 Consulting +44 (0) 207 929 5599
David Bick
Brian Alexander