Last checked at 21 Aug 2013 07:00
Rare Earth minerals plc
("Rare Earth Minerals", "REM" or "the Company")
Final Drill Results Mexico Lithium Project
Rare Earth Minerals (AIM: REM) has received final analytical results for drill core from its Fleur-El Sauz Lithium Project in northern Mexico. The results provide continued firm evidence that Fleur-El Sauz has potential to be part of a major high grade lithium discovery.
In addition to the assay results shown below, the Fleur - El Sauz deposits identified to date remain open on strike and at depth.
Highlights:
· REM intersects significant lithium values in both Upper Clay and Lower Clay Units in all drill holes of the first phase programme conducted at its Fleur - El Sauz Lithium Project.
· All ten diamond drill holes, ES-01 to ES-10, show a 4 kilometre strike length for the lithium clay units on the concessions.
· Intervals with significant lithium (greater than 1,000 ppm Li) average 18.27 metres and 27.62 metres in true thickness for the Upper and Lower Clay Units, respectively.
· Preparation of a maiden lithium resource estimate is now underway, with results from this study expected within the next several weeks.
David Lenigas, the Company's Chairman commented:
"REM is pleased to report that the final holes confirm the extension of mineralisation through the Fleur - El Sauz licences and increase the potential of outlining a new and substantial lithium deposit.
"The total known world resource of lithium metal is estimated to be only just over 30 million tonnes, with total world annual production expected to rise from the current 150,000 tonnes of Lithium Carbonate Equivalent ("LCE") to 300,000 tonnes by 2020. The majority of current world production is based on brine pumping from Salars in South America, and deposits in China and Australia.
"Lithium is an important metal in today's quest for energy and energy storage solutions, for example in the fast-growing electric car market. To be part of this discovery is a very exciting prospect for the Company. The substantial amount of lithium-bearing clays present also represents an interesting opportunity for supply to the oil industry since these clays are becoming increasingly necessary for HTHP drilling muds now being used in deep oil and gas wells and for fracking.
"We are very pleased with the lithium grades obtained to date and widths of intercepts of the clay units in the holes. These results continue to demonstrate the persistence of the lithium-bearing clay units onto the joint venture lands and highlight the potential for a significant lithium resource to be outlined. The results from drilling are consistent with the mineralisation in the adjoining La Ventana deposit to the north-west. REM's management expects to provide an initial resource estimate within the next several weeks."
"REM will have 14 days after receipt of the initial resource estimate from Bacanora Minerals Ltd. ("Bacanora") to give final notice to increase its holding from 10% to 30% of the Fleur-El Sauz Joint Venture, under existing agreements with Bacanora."
Update:
Drill hole locations can be found on the Company's website (www.rareearthmineralsplc.com)
Table 1. Significant Lithium (≥1,000 ppm Li) Intercepts (metres)
From | To | Interval | Lithology | Li ppm | LCE* % | Li2O % | K2O % | |||
Drill Hole ES-01 | ||||||||||
115.52 | 143.56 | 28.04 | Upper Clay | 1,848 | 0.98 | 0.4 | 0.91 | |||
156.0 | 179.83 | 23.83 | Lower Clay | 4,422 | 2.36 | 0.95 | 2.26 | |||
Drill Hole ES-02 | ||||||||||
190.50 | 197.21 | 6.71 | Upper Clay | 1,821 | 0.97 | 0.39 | 0.99 | |||
201.78 | 235.31 | 33.58 | Lower Clay | 3,621 | 1.93 | 0.78 | 1.96 | |||
Drill Hole ES-03 | ||||||||||
158.50 | 201.47 | 43.13 | Upper Clay | 1,565 | 0.83 | 0.34 | 0.69 | |||
210.31 | 239.65 | 29.34 | Lower Clay | 3,877 | 2.06 | 0.83 | 1.94 | |||
Drill Hole ES-04 | ||||||||||
96.39 | 132.74 | 36.35 | Upper Clay | 1,207 | 0.64 | 0.26 | 0.69 | |||
140.39 | 171.75 | 31.37 | Lower Clay | 3,594 | 1.91 | 0.77 | 1.67 | |||
Drill Hole ES-05 | ||||||||||
47.55 | 54.56 | 7.01 | Upper Clay | 2,107 | 1.12 | 0.45 | 0.73 | |||
59.82 | 92.05 | 32.23 | Lower Clay | 3,038 | 1.62 | 0.65 | 1.48 | |||
Drill Hole ES-06 | ||||||||||
39.62 | 45.72 | 6.1 | Upper Clay | 2,140 | 1.14 | 0.46 | 0.44 | |||
52.88 | 75.90 | 23.02 | Lower Clay | 1,999 | 1.06 | 0.43 | 0.82 | |||
Drill Hole ES-07 | ||||||||||
6.40 | 31.09 | 24.69 | Upper Clay | 1,026 | 0.55 | 0.22 | 0.53 | |||
35.97 | 61.26 | 25.29 | Lower Clay | 1,032 | 0.55 | 0.22 | 0.97 | |||
Drill Hole ES-08 | ||||||||||
32.92 | 43.59 | 10.67 | Upper Clay | 1,057 | 0.56 | 0.23 | 0.62 | |||
50.90 | 74.07 | 23.17 | Lower Clay | 1,630 | 0.87 | 0.35 | 0.83 | |||
Drill Hole ES-09 | ||||||||||
24.08 | 27.13 | 3.05 | Upper Clay | 1,115 | 0.59 | 0.24 | 0.51 | |||
51.97 | 81.08 | 29.11 | Lower Clay | 1,174 | 0.63 | 0.25 | 0.68 | |||
Drill Hole ES-10 | ||||||||||
3.96 | 27.43 | 23.47 | Lower Clay | 1,175 | 0.63 | 0.25 | 0.64 | |||
*LCE = lithium carbonate (Li2CO3) Equivalent: determined by multiplying Li value in percent by 5.324 to get an equivalent Li2CO3 value in percent. Use of LCE assumes 100% recovery and no process losses in conversion of Li to Li2CO3.
Li2O = lithium oxide and is determined by multiplying Li value in percent by 2.153 to get an equivalent Li2O value in percent.
Clay units also exhibited elevated values in other alkali metals, including K, Na, Cs, and Rb, as well as alkali earth metals: Mg, Ca and Sr.
Analyses of the drill core were performed by ALS Chemex, in Vancouver, BC, an internationally recognized assay service provider. The Company followed industry standard procedures for the work carried out during the drill program, with a quality assurance/quality control (QA/QC) program. Internal standard samples were inserted into each drill core sample sequence sent to the laboratory for analysis. No significant QA/QC issues were detected during review of the data.
Over the 4 kilometre interval drilled, the average length of intercepts for the Upper Clay Unit is 28.10 metres and for the Lower Clay Unit is 30.51 metres. The average true thickness, based on the estimated dip of the units at 20 degrees to the northeast, is 94% of the length of intercepts. Therefore the average true thickness for the Upper Clay Unit is estimated to be 26.42 metres and for the Lower Clay Unit it is estimated to be 28.68 metres. For intervals with significant lithium values (i.e. greater than 1,000 ppm Li) the average length of these intercepts of the Upper Clay Unit is 19.43 metres (True thickness: 18.27 metres). The average drill core sample length for the significantly Li mineralized intervals in the Upper Clay was 1.51 metres and Li values ranged from 41 to 6,200 ppm Li, averaging 1,386 ppm Li for individual samples. For the Lower Clay Unit the average length of significantly Li mineralized intervals is 29.38 metres (true thickness: 27.62 metres) and Li values in individual core samples (1.54 metres average length) range from 38 to greater than 10,000 ppm Li, averaging 2,497 ppm Li.
About the Sonora Lithium Project:
The Company's optioned concessions cover 3,411 hectares out of a total of 5,786 contiguous hectares that make up the Sonora Lithium Project owned by Bacanora.
Lithium is the lightest of the alkali metals and has unique electrochemical properties that make it the element of choice for batteries of high energy storage capacity and other energy applications as well as a host of industrial and health applications. Lithium-bearing clays also have application in the petroleum industry for high temperature - high pressure tolerant drilling muds.
Qualified Person's Statement:
Information in this announcement relates to information compiled by Carl G Verley, P.Geo, a consultant to the Company, who is a member of the Association of Professional Engineers and Geoscientists of British Columbia and is a Qualified Person with respect to the information disclosed herein.
For further information please contact:
Rare Earth Minerals Plc www.rareearthmineralsplc.com
David Lenigas, Chairman
+44 (0) 207 440 0640
NOMAD - WH Ireland
James Joyce/Nick Field
+44 (0) 207 220 1666
PR - Pelham Bell Pottinger
Charlie Vivian/ Weston Macklem
+44 (0)20 7861 3232