Last checked at 14 Aug 2013 10:51
14 August 2013
Rare Earth minerals plc
("Rare Earth Minerals", "REM" or "the Company")
Update on Mexico Lithium Project
Rare Earth Minerals (AIM: REM) is providing the following update on its Fleur-El Sauz Lithium Project in northern Mexico, where the drilling programme has now been completed and assay results are providing firm evidence that Fleur-El Sauz has the 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 at strike and depth.
Highlights:
· REM intersects significant lithium values in both Upper Clay and Lower Clay Units in drill hole ES-02, ES-03 & ES-04 at its Fleur - El Sauz Lithium Project.
· All ten planned diamond drill holes ES-01 to ES -10 have now been completed showing a 4 kilometre strike length of the high grade Lithium clay units.
· The combined clay units average 63.67 metres in thickness in the area drilled, with the Upper Clay Unit averaging 28.64 metres and the Lower Clay Unit averaging 34 metres.
· Results from all the drill holes will be reported by the end of September.
· These lithium-bearing clays also have possible applications in the petroleum industry, specifically for high temperature - high pressure ("HTHP") tolerant drilling muds.
David Lenigas, The Company's Chairman commented:
"REM is pleased to report that the extension of mineralisation through the Fleur - El Sauz licences has increased 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 Lithiun 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 again demonstrate the continuity and persistence of the lithium-bearing clay units onto the joint venture lands and highlight the potential for a significant lithium resource to be outlined. Theresults 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, once all of the drilling results are available."
Update:
Drill hole locations can be found on the Company's website (www.rareearthmineralsplc,com)
Table 1. Significant Lithium Intercepts
From | To | Interval | Lithology | Li ppm | LCE* % | Li2O % | K2O % | |||
Drill Hole ES-02 | ||||||||||
193.55 | 197.21 | 3.66 | Upper Clay | 3,114 | 1.65 | 0.67 | 1.25 | |||
203.55 | 233.78 | 30.23 | Lower Clay | 3,968 | 2.11 | 0.85 | 1.73 | |||
Drill Hole ES-03 | ||||||||||
186.39 | 199.85 | 13.46 | Upper Clay | 3,073 | 1.64 | 0.66 | 0.72 | |||
210.31 | 239.65 | 29.34 | Lower Clay | 3,877 | 2.06 | 0.83 | 1.05 | |||
Drill Hole ES-04 | ||||||||||
120.70 | 131.37 | 10.67 | Upper Clay | 2,547 | 1.36 | 0.55 | 0.65 | |||
140.39 | 171.75 | 31.37 | Lower Clay | 3,594 | 1.91 | 0.77 | 0.89 | |||
*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.
In terms of the lithologies intersected in the remaining holes that have not been previously reported, these intercepts are tabulated below in Table 2 and illustrated in Figure 1. The combined clay units average 63.67 metres in thickness in the area drilled, with the Upper Clay Unit averaging 28.64 metres and the Lower Clay Unit averaging 34 metres.
The drilling tested 4 kilometres of strike length of the clay units, which at the northern part of the concession area is capped by basalt, but is exposed in the southern part.
Table 2. Summary of Lithologies intersected Holes ES-03 to ES-10
ES-03 | ES-04 | ES-05 | ES-06 | |||||||||||||
Lithology | From | - | To | LI* | From | - | To | LI* | From | - | To | LI* | From | - | To | LI* |
Basalt | 0.0 | 146.9 | 0.0 | 86.1 | 0.0 | 11.3 | 0.0 | 6.1 | ||||||||
Sandstone | 146.9 | 158.5 | 86.1 | 96.4 | 11.3 | 23.2 | 6.1 | 17.16 | ||||||||
Upper clay | 158.5 | 201.5 | 42.9 | 96.4 | 132.5 | 36.0 | 23.2 | 55.5 | 32.3 | 17.2 | 32.2 | 22.4 | ||||
Ignimbrite | 201.5 | 210.9 | 132.5 | 140.4 | 55.5 | 59.8 | 32.2 | 33.5 | ||||||||
Lower clay | 210.9 | 239.6 | 28.7 | 140.4 | 163.4 | 22.9 | 59.8 | 92.1 | 32.2 | 33.5 | 78.3 | 44.8 | ||||
Basement | 239.6 | 256.0 | 163.4 | 195.1 | 92.1 | 123.8 | 78.3 | 92.6 | ||||||||
ES-07 | ES-08 | ES-09 | ES-10 | |||||||||||||
Lithology | From | - | To | LI* | From | - | To | LI | From | - | To | LI | From | - | To | LI |
Basalt | 0.0 | 8.3 | 0.0 | 3.6 | ||||||||||||
Sandstone | 0.0 | 3.4 | 8.3 | 19.2 | 3.6 | 14.9 | ||||||||||
Upper clay | 3.4 | 32.0 | 28.6 | 19.2 | 45.1 | 25.9 | 14.9 | 46.8 | 31.9 | |||||||
Ignimbrite | 32.0 | 36.0 | 45.1 | 49.4 | 46.8 | 51.2 | 0.0 | 4.0 | ||||||||
Lower clay | 36.0 | 69.5 | 33.5 | 49.4 | 73.8 | 24.2 | 51.2 | 82.0 | 30.0 | 4.0 | 28.4 | 24.4 | ||||
Basement | 69.5 | 96.3 | 73.8 | 85.4 | 82.0 | 97.5 | 28.4 | 59.7 | ||||||||
LI* = length of interval intersected in drill hole, rounded to nearest tenth of a metre. All holes were drilled vertically (-90o); clay units dip approximately 20o to the north east; consequently true thickness is estimated to be 94% of intervals intersected.
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