Last checked at 11 Dec 2013 07:00
11 December 2013
RARE EARTH MINERALS PLC
("Rare Earth Minerals", "REM" or "the Company")
Mexico Lithium Project - First Results Stage 2 Drilling confirms thickness and grades
Rare Earth Minerals PLC (AIM: REM) announces that it has received analytical results for the first 6 holes of the second phase of diamond drilling (Stage 2 Programme) onthe El Sauz and Fleur Lithium concessions (the "Concessions" or individually, a "Concession") in northern Mexico.
David Lenigas, Rare Earth Minerals Chairman commented:
"The Company is very pleased to have confirmed continuity of the clay units between holes. The results demonstrate excellent consistency in thickness of the clay units and grade of lithium within the clays."
"Reiterating Bacanora's President views of the new drilling results so far; these step-out and infill holes demonstrate an increase in thickness of the upper clay unit as well as an increase in grade of Li within the clays when compared to previously reported results."
Update:
Significant lithium-bearing intervals were intersected in all of the drill holes. The weighted average values for these intercepts are listed below (Table 1).
The first 6 holes of Stage 2 tested, by way of infill and step out holes between the first 5 holes of Stage 1, a strike length of 2,100 metres of the clay units south from the southern boundary of the La Ventana concession across the Fleur and onto the El Sauz concession. Within the area drilled, the average intercept length for the Upper Clay Unit was 35.841 metres (33.69 m estimated true thickness2) and 27.373 metres (25.73 m estimated true thickness) for the Lower Clay Unit. The average length of sample intervals in the Upper Clay is 1.47 metres and Li values range from 27 to 5,910 ppm Li, averaging 1,404 ppm Li for individual samples. For the Lower Clay Unit the average length of sample intervals is 1.49 metres and Li values in individual core samples range from 1,250 to 9,660 ppm Li, averaging 4,177 ppm Li.
Table 1. Lithium intercept lengths in metres for Upper & Lower Clay Units
From | To | Length | Lithology | Li ppm | LCE* % | Li2O % | ||
Drill Hole ES-11 | ||||||||
183.74 | 218.69 | 34.95 | Upper Clay | 1,923 | 1.02 | 0.41 | ||
231.34 | 256.34 | 25.00 | Lower Clay | 5,351 | 2.85 | 1.15 | ||
Drill Hole ES-12 | ||||||||
188.06 | 221.74 | 33.68 | Upper Clay | 1,966 | 1.05 | 0.42 | ||
233.63 | 240.49 | 6.86 | Lower Clay | 4,050 | 2.16 | 0.87 | ||
Drill Hole ES-13 | ||||||||
278.74 | 315.32 | 36.58 | Upper Clay | 2,011 | 1.07 | 0.43 | ||
322.48 | 347.01 | 24.53 | Lower Clay | 4,322 | 2.30 | 0.93 | ||
Drill Hole ES-14 | ||||||||
13.72 | 59.74 | 46.02 | Upper Clay | 1,342 | 0.71 | 0.29 | ||
65.53 | 95.10 | 29.57 | Lower Clay | 4,733 | 2.52 | 1.02 | ||
Drill Hole ES-15 | ||||||||
From | To | Interval | Lithology | Li ppm | LCE* % | Li2O % | ||
18.59 | 24.38 | 5.79 | Upper Clay | 855 | 0.46 | 0.18 | ||
32.31 | 64.01 | 31.70 | Lower Clay | 4,157 | 2.21 | 0.89 | ||
Drill Hole ES-16 | ||||||||
34.21 | 62.18 | 27.97 | Upper Clay | 793 | 0.42 | 0.17 | ||
69.34 | 95.40 | 26.06 | Lower Clay | 3,426 | 1.82 | 0.74 | ||
*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.
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Clay units continued to exhibit anomalous values in other alkali metals, including K, Na, Cs, and Rb, as well as alkali earth metals: Mg, Ca and Sr.
Analysis of the drill core was performed by ALS Chemex, in Vancouver, BC, a member of ALS Global, an internationally recognized assay service provider. The project operator (Bacanora) 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. Bacanora detected no significant QA/QC issues during review of the data.
The drilling programme is continuing and it is expected to be completed in late February or early March 2014, with final results of drill core analyses to follow shortly thereafter. REM will continue to keep investors informed of drilling progress with periodic announcements of results as they become available.
In conjunction with the drilling, geological mapping and rock sampling will resume on the Concessions in order to provide the Company with a full assessment of the lithium potential of its land holdings.
Metallurgical test work is also underway through Inspectorate Exploration & Mining Services Ltd of Canada to determine potential recoveries of lithium and a number of the alkali metals present in the deposit.
About the Sonora Lithium Project:
The Sonora Lithium Project consists of the La Ventana, La Ventana 1 and the San Gabriel, Buenavista and Megalit concessions, which are owned 100% by Bacanora, along with the contiguous El Sauz, El Sauz 1, El Sauz 2, Fleur and Fleur 1 concessions (the "Joint Venture #1 Lands") which are owned 70% by Bacanora and 30% by REM under Joint Venture #1. Bacanora has declared inferred resources on each of the La Ventana concessions and the Joint Venture #1 Lands, in respect of which reports have been prepared in accordance with National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101") (please refer to Bacanora's SEDAR filings for copies of these reports and related press releases). Inferred resources have been estimated for the La Ventana Lithium Deposit totaling 60 million tonnes, averaging 3,000 ppm Li (equivalent to 1.6% lithium carbonate equivalent4 assuming 100% recovery and no process losses). Inferred resources for the El Sauz and Fleur concessions total 88,271,000 tonnes, averaging 3,163 ppm Li at a 2,000 ppm cut-off (1.68% lithium carbonate equivalent assuming 100% recovery and no process losses). The resource on the Joint Venture #1 Lands is open down dip to the east and to the south. For further details concerning the Company's first agreement with Bacanora and details of Joint Venture #1, please refer to the Company's announcement dated May 23, 2013. The Buenavista, Megalit and San Gabriel concessions are subject to a Joint Venture agreement (Joint Venture #2) between Bacanora and REM. For details on this agreement please refer the Company's announcement dated December 5, 2013.
____________4 LCE = lithium carbonate equivalent (Li2CO3): determined by multiplying Li value in percent by 5.324 to get an equivalent Li2CO3value in percent. Use of LCE is to provide data comparable with industry standards.
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.
Glossary of Technical Terms
· 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.
· Li = Lithium
· ppm = parts per million
· NQ Core = Refers to the size of drill bit used to drill and recover core from a drill hole. The outside diameter of the bit is 75.7mm and the inside diameter of the bit is 47.6mm. The core extracted from the drilling will have a diameter of slightly less than 47.6mm.
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For further information please contact:
Rare Earth Minerals plc +44 (0) 207 440 0647
David Lenigas
Kiran Morzaria
WH Ireland Limited (NOMAD & Joint Broker) +44 (0) 20 7220 1666
James Joyce
Nick Field
XCAP Securities plc (Joint Broker) +44 (0) 207 101 7070
Guy Peters
Jon Belliss
Square1 Consulting
David Bick +44 (0) 207 929 5599
Mark Longson