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20 Oct 2015 08:52
20 October 2015
Rare Earth Minerals Plc.
("Rare Earth Minerals", "REM" or "the Company")
Cinovec Lithium Project - Update
Rare Earth Mineral Plc (AIM: REM) advises that European Metals Holding Limited ("European Metals"), a company that REM holds a 11.87% equity interest in, has announced that pre-concentration and subsequent milling of a lithium bulk sample from the Cinovec Lithium-Tin-Tungsten Project ("the project" or "Cinovec") in the Czech Republic has now been completed. The full European Metals news release dated 20 October 2015 is available at: http://www.asx.com.au/asxpdf/20151020/pdf/4326jnxx0lv40t.pdf
Key Points from the Release:
· 420kg of lithium mica concentrate recovered.
· Mica concentrated by magnetic separation, excellent recoveries at a coarse grind of 1,200 micron.
· Potential to lower project Capex and Opex.
· Concentrate now being shipped to Australia.
· Mini-plant run on concentrate to produce lithium carbonate planned for Q4 2015 in conjunction with Lithium Australia.
· Lithium carbonate production cost including tin/tungsten by-product credits estimated to be approximately $800/t, based on inputs from European Metals Scoping Study dated 1 May 2015 and available at: http://www.asx.com.au/asxpdf/20150501/pdf/42y9c53l1443pc.pdf.
David Lenigas, The Company's Chairman, commented;
"The publication of the latest estimated production costs of approximately US$800/t of lithium carbonate is substantially lower than many of the existing or projected producers. It's location, close to the German border, makes Cinovec strategic for REM and its plans to ultimately supply lithium products in to mainland Europe."
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).
Cautionary Statement:
The Scoping Study referred to in this announcement is based on low level technical and economic assessments and is of insufficient certainty, under the JORC Code and ASX Listing Rules and guidance, to permit the technical and economic parameters required to imply economic viability. Investors should note that for the Company to establish economic viability of the Cinovec Project, European Metals would need to upgrade an appropriate portion of its Inferred Mineral Resource to a higher level of confidence with sufficient consideration of mining, processing, metallurgical, infrastructure, economic, marketing, legal, environmental, social and governmental factors. There is no assurance of an economic development case at this stage, or any certainty that conclusions of the study will be realised. The Scoping Study is based on European Metals Indicated and Inferred Mineral Resource and should not be solely relied upon by investors when making investment decisions.
- Ends -
For further information please contact:
Rare Earth Minerals plc +44 (0) 207 440 0647
David Lenigas
Kiran Morzaria
WH Ireland Limited (NOMAD & Broker) +44 (0) 207 220 1666
James Joyce
Mark Leonard
Square1 Consulting +44 (0) 207 929 5599
David Bick
Mark Longson
Glossary:
Lithium Mica | In the case of the Cinovec deposit this occurs in the form of Zinnwaldite. This is a silicate mineral in the mica group and contains potassium, lithium, iron, aluminium, oxygen and fluorine. It occurs associated with granites in greisens, pegmatites, and quartz veins and is often associated with tin ore deposits. |
Lithium Carbonate | This is an inorganic compound, the lithium salt of carbonate with the formula Li2CO3. Lithium carbonate is an important industrial chemical. It forms low-melting fluxes with silica and other materials. Glasses derived from lithium carbonate are useful in ovenware. Lithium carbonate is a common ingredient in both low-fire and high-fire ceramic glaze. Its alkaline properties are conducive to changing the state of metal oxide colorants in glaze particularly red iron oxide (Fe2O3). When added to aluminium trifluoride, it forms LiF which gives a superior electrolyte for the processing of aluminium. It is also used in the manufacture of most lithium-ion battery cathodes, which are made of lithium cobalt oxide. |
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