Rare Earth Mineral Plc (AIM: REM) has told DirectorsTalk that Bacanora Minerals Ltd the lithium company which is developing the Sonora Lithium Project in northern Mexico, has today announced its interim results for the six months ended 31 December 2015. The full news release is available at:
http://www.londonstockexchange.com/exchange/news/market-news/market-news-detail/BCN/12717673.html
REM owns a direct interest of 17.19% of Bacanora, and 30% of the Mexalit and Megalit companies which hold various concessions. Further details of REM’s ownership of Bacanora and the Sonora Lithium Project are detailed below.
Highlights of the Bacanora release include:
· Pre-feasibility study (“PFS”) focused on designing a plant potentially capable of delivering up to 35,000 tonnes per annum of lithium carbonate at Sonora Lithium Project – on course to be completed in the near term.
· Subject to successful PFS Bacnanora will commence definative feasibility study (“DFS”).
· 337% increase in the Indicated portion of the Mineral Resource Estimate (‘MRE’) at Sonora to 5.0 million tonnes (“Mt”) lithium carbonate equivalent (“LCE”) contained in 364 Mt of clay, at a Li grade of 2,600 ppm compared to previous Indicated resource of 1.14 Mt LCE contained in 95 Mt of clay, at a Li grade of 2,200 ppm
· Major positive implications for mine planning and life of mine
· Latest MRE upgrade follows a 19 hole infill drilling programme (approximately 4,000 metres) which was completed during the period and forms part of the ongoing PFS
· Completion of a private placement financing of approximately CAD$17.8 million (£8.8 million) to fully fund, lithium engineering designs, pilot plant upgrade, DFS project work and metallurgical testwork during 2016.
· Cash balance at the end of the period CAD$23.2 million (£11.5 million).
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%.
