8th Jul 2015 08:07
LONDON (Alliance News) - Rare Earth Minerals PLC and Bacanora Minerals Ltd on Wednesday said the drilling programme at the Sonora lithium project in Mexico has started ahead of an updated resource model being developed for the mine design at the site.
The pair said a 4,000-metre drilling programme has started on the Fleur and El Sauz concessions at the site with a view to significantly increasing the indicated mineral resource estimate for the project.
The drill programme will test the continuity of higher grade, near-surface mineralisation in Fleur and El Sauz and, upon completion, will form the basis of an updated resource model with an initial focus on higher grade, open-pit resources in the La Ventana and Fleur concessions.
"We are now approaching one of the more exciting phases of the project as we compile the necessary technical information and lithium product specifications required for potential debt providers and potential off-take partners and end users," said Rare Earth Chairman David Lenigas.
Bacanora owns all of the La Ventana lithium concession at Sonora, and owns 70% of the El Sauz and Fleur concessions and 70% of the Megalit concession. Rare Earth Minerals owns the other 30% of the El Sauz and Fleur concessions and the rest of the Megalit concession. Rare Earth Minerals also has a near 16% direct stake in Bacanora.
In a separate statement published on Wednesday, Rare Earth said it has further increased its interest in the Cinovec lithium deposit in the Czech Republic by upping its stake in site owner European Metals Holdings Ltd to 11.08%.
Shares in Rare Earth were trading flat at 0.915 pence on Wednesday, while Bacanora shares were up 0.8% to 78.14p.
By Sam Unsted; [email protected]; @SamUAtAlliance
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