15th Jul 2014 11:23
LONDON (Alliance News) - Rare Earth Minerals PLC Tuesday said first phase drill results from its Yangibana North project in Australia have exceeded expectations, while it has continued to increase its interest in Mexican joint venture partner Bacanora Minerals Ltd.
The exploration and development resources company said final assay results from its 30% owned Yangibana project have met or exceeded its expectations for total rare earth oxides and contained neodymium oxides.
The first phase of drilling comprised 44 reverse circulation drill holes for a total of 1,836 metres.
The company said the highest grade intersections at various depths include a 5 metre space at 3.44% rare earth oxides and a 7 metre space at 3.39% rare earth oxides, with both regions showing over 0.6% neodymium.
"Neodymium is deemed a "critical element" in the rare earth element world, and REM is delighted with the results of the first detailed drilling programme on its 'free carried to feasibility study' rare earth joint venture in Western Australia," Chairman David Lenigas said in a statement. "The overall grades of total rare earth oxide's are deemed highly promising, and we are particularly pleased with the high levels of neodymium oxides."
As such, the company said it can now start a JORC resource estimate and preliminary metallurgy testwork for the Yangibana site.
Rare Earth Minerals said in a separate statement that it has further increased its stake in its joint venture partner on the Sonora lithium project in Mexico, Bacanora Minerals Ltd, to 12.19% through market purchases.
The news comes as the firm slowly has added to its stake in Bacanora. Between June 27 and last Friday, Rare Earth made on-market purchases totalling GBP315,600, increasing its stake in Bacanora from 11.27% to 12.14%.
The company said the new interest, along with its 30% direct interest in the Fleur-El Sauz Lithium joint venture and its 10% direct interest in the site's Megalit joint venture, means Rare Earth has a total economic interest in Megalit of roughly 20.97%.
"We continue to steadily increase our strategic shareholding in Bacanora Minerals, as we seek to increase REM's exposure to the Sonora lithium project in Mexico," Lenigas added.
In June, Bacanora Minerals received approval from Canadian regulators for a GBP4.75 million equity raising through an initial public offering on the AIM market in London, meaning the companies will both have the money needed to accelerate the development of their lithium project.
Rare Earth Minerals shares were down 6.0% to 1.50 pence on Tuesday.
By Tom McIvor; [email protected]; @TomMcIvor1
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