30th Jan 2014 10:05
LONDON (Alliance News) - Rare Earth Minerals PLC Thursday said the current drilling programme at its Fleur-El Sauz Lithium project has significantly increased the potential size of the Mexican deposit.
The rare metals and minerals projects investment company, along with its joint venture partner at the site, Bacanora Mineral Ltd, also announced that the building of a bulk-testing pilot plant has commenced.
The company said results from the additional seven new holes at the site show lithium values averaging 1,683 parts per million over 20.88 metres in the upper clay and 4,821 parts per million over 20.88 metres in the lower clay, in line with expectations.
Rare Earth Minerals said that an additional five holes drilled further along strike to the south-east have extended the deposit by three kilometres further than previously drilled, with analytical results pending.
The company said that surface grades have now been recorded up to 16,410 parts per million of 1.64% lithium.
Rare Earth Minerals said the new pilot plant will be constructed at Bacanora's laboratory in Hermosillo and will produce lithium carbonate from the roast-leach process.
The company added that the significant increase in drilled strike length should have a material impact on the size of the lithium carbonate equivalent resources once the drilling programme is completed.
"This is a project of global significance, the grade is now bigger, the deposit has been extended, and we're going to build a pilot plant," the company's Chief Executive David Lenigas told Alliance News.
"The plan moving forward is to continue drilling. The joint venture wants to see how big this can become," he said.
Rare Earth Minerals has a 32.2% interest in the joint venture with Bacanora, but it has an option to earn up to a 49.9% interest.
In October, the company announced a maiden lithium carbonate estimated resource for the project at 1.5 million tonnes from 88.2 million tonnes of clay at an average grade of 1.68% lithium and a cut-off grade of 2,000 parts per million lithium.
The report showed the existence of the other potentially valuable alkali metals which were studied in a further test in January.
Rare Earth Minerals shares were up 8.9% to 0.550 pence, putting it in the top AIM movers in early trading Thursday.
By Tom McIvor; [email protected]; @TomMcIvor1
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