Rare Earth Mineral Plc Technical Report filed – here are the highlights

Rare Earth Mineral Plc (AIM: REM) has told DirectorsTalk that Bacanora Minerals Ltd in which REM holds 17.19%, has filed a Technical Report in respect to the Sonora Lithium Project in Mexico.  

The updated Mineral Resource statement for the Sonora Lithium Project was reported using a cut-off grade of 450 ppm lithium and was contained within a pit shell based on reasonable optimisation parameters and lithium selling price agreed between SRK and Bacanora.

The updated Mineral Resource statement comprises:

·     Indicated Mineral Resource estimated at 364 Mt, averaging 2,600 ppm Li for 5.0 Mt of LCE.

·     Inferred Mineral Resource estimated at 355 Mt averaging 2,000 ppm Li for 3.9 Mt of LCE.

In addition to the Mineral Resource statement, a further conceptual target of 300 to 350 Mt, at a grade of Li of approximately 1,500 to 2,500 ppm was estimated within a pit shell run using all classified and unclassified blocks within the model. This target is considered worthy of further exploration in order to increase the quantity of classified Mineral Resource down-dip.  If these figures were converted to a Mineral Resource via successful drilling and exploration, it is estimated that this could represent an additional 2.4 to 4.6 Mt of LCE at the Sonora Lithium Project. It must be noted however, that the potential quantity and grade of this target is conceptual in nature, that there has been insufficient exploration to define a Mineral Resource and that it is uncertain if further exploration will result in the target being delineated as a Mineral Resource.

Table 1: Mineral Resource Statement for the Sonora Lithium Project as of 19 November 2015

Notes:

1.   LCE is the industry standard terminology for, and is equivalent to, Li₂CO₃.  1 ppm Li metal is equivalent to 5.32 ppm LCE / Li₂CO_3. Use of LCE is to provide data comparable with industry reports and assumes complete conversion of lithium in clays with no recovery or process losses.

2.   Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability. All figures are rounded to reflect the relative accuracy of the estimate and have been used to derive sub-totals, totals and weighted averages. Such calculations inherently involve a degree of rounding and consequently introduce a margin of error. Where these occur, SRK does not consider them to be material.

3.   The reporting standard adopted for the reporting of the MRE uses the terminology, definitions and guidelines given in the CIM Standards on Mineral Resources and Mineral Reserves (May 2014) as required by NI 43-101 and JORC.

4.   The Mineral Resource statement is reported on 100 per cent basis for all project areas

5.   SRK assumes the Sonora Lithium deposit to be amenable to surface mining methods. Using results from initial   metallurgical test work, suitable surface mining and processing costs, and an optimistic forecast LCE price SRK has reported the Mineral Resource at a cut-off 450 ppm Li (2,400 ppm LCE).

6.   SRK completed a site inspection of the deposit by Mr. Martin Pittuck, MSc, C.Eng., MIMMM, an   appropriate “independent qualified person” as such term is defined in NI 43-101.

REM has a 30% direct interest in the Megalit and Mexilit in Joint Venture with Bacanora Minerals.  In addition, REM also owns a 17.19% direct interest in Bacanora s giving it a 17.19% indirect interest in the Mineral Resources at La Ventana and a 42.04% indirect interest in the Mineral Resources at Mexilit. These percentage interests have been used by REM to calculate its net attributable contained LCE presented in Table 2.

Table 2: Net attributable contained LCE to REM based on total economic interest.

Note: All figures are rounded to reflect the relative accuracy of the estimate and have been used to derive sub-totals, totals and weighted averages. Such calculations inherently involve a degree of rounding and consequently introduce a margin of error. Where these occur, REM does not consider them to be material.

The Sonora Lithium Project and Details of REM’s ownership:

REM owns a direct interest of 17.19% of Bacanora.The Sonora Lithium Project is comprised of the following lithium properties:

·     La Ventana, La Ventana 1, and Megalit concessions, which are 100 per cent. owned by Minera Sonora Borax S.A. de C.V.(“MSB”), a wholly-owned subsidiary of Bacanora; REM, through its direct interest of 17.19% of Bacanora, has an indirect interest in these concessions of 17.19%.

·     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 17.19% in Bacanora, has a total economic interest in Mexalit of 42.04%.

·     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 17.19% in Bacanora, has a total economic interest in Megalit of 42.04%.