27th Aug 2014 11:20
LONDON (Alliance News) - Rare Earth Minerals PLC Wednesday said that it had continued to make progress on each of its principal investments in Mexico, Greenland and Australia in the half year to end-June.
The company posted a pretax loss of GBP647,000, widened from GBP323,000 in the previous year, as administrative expenses rose to GBP641,000 from GBP275,000. It is not revenue producing.
"The progress of the group over the last six months and subsequent period has continued at an excellent pace, and all of our key assets and investments continue to show results beyond our expectations," said Chairman David Lenigas in a statement.
The company highlighted progress at its Sonara lithium project in Mexico, where it has increased its interest in projects with Bacanora Minerals Ltd to 38%. During the period, the contained lithium carbonate equivalent at its joint venture with Bacanora Minerals Ltd was increased by 35% to 2.01 million tonnes. Additionally Bacanora's La Ventana concession's lithium carbonate equivalent estimate was increased 37% to 1.273 million tonnes.
Plant design is under way for a project to produce up to 50,000 tones of lithium carbonate equivalent per year, which it said underpins its believe that the Sonara lithium project has the potential to be a "globally significant lithium producer".
Following the period end, the maiden resource estimate at its Yangibana rare earth minerals project in Western Australia was declared at 3.36 million tonnes, comprising of an indicated resource of 1.86 million tonnes at 1.38% total rare earth oxides, and an inferred resource of 1.5 million tonnes at 1.29% total rare earth oxides.
At its project in Greenland, initial sampling confirmed the presence of a mineralised micro-kakortokite dyke. Of these samples, four exceed 2,000 parts per million of total rare earth oxides, with the highest being 2,887 parts per million total rare earth oxides.
Rare Earth Minerals said that its investments to date have been "both encouraging and potentially very rewarding." It said it will look to maximise the potential of the investments, and continue to evaluate further, similar opportunities.
Shares in Rare Earth Minerals were trading up 7.6% at 1.58 pence Wednesday afternoon.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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