21st Aug 2014 09:55
LONDON (Alliance News) - Bacanora Minerals Ltd said Thursday that it had received USD1 million from its joint venture partner Rare Earth Minerals PLC, as Rare Earth Minerals said it has raised its interest in the Sonora Lithium Project in Northern Mexico.
Rare Earth Minerals exercised its second stage option, and upped its interest in the holding company of the project Megalit SA de CV. Bacanora continues to own the remaining 70% interest in the company.
It will use the funds for exploration and drilling expenditures over the following year. It is collecting surface bulk samples from trenches excavated in lithium bearing clay horizons on the Buenavista concession. Metallurgical test work to determine the lithium solubility and recovery from the clays there will be conducted as part of a programme of drill testing, it said.
Prospecting, geological mapping and rock sample of lithium bearing clay horizons on the San Gabriel and large Megalit concessions are ongoing, added Rare Earth Minerals.
The company received results from the first four drill holes on the Megalit concession. Samples from the clay intervals range from 352 to 1,470 parts per million lithium.
Additionally, it saw results from the last hole drilled on the Fleur concession; samples of the sediments ranged up to 438 parts per million lithium.
The company said work is progressing well on the plant design for a Lithium Carbonate project with a production target of up to 50,000 tonnes per year, and it is now planning a much larger drilling program on Sonora.
"Results to date continue to demonstrate the potential for finding additional lithium resources within the Sonora Lithium Project area," said President of Bacanora Martin Vidal.
Rare Earth Minerals has an 11.9% interest in Bacanora.
"This update on the Sonora Lithium project further shows the excellent progress that is being made toward the commercialisation of these assets," said Rare Earth Mineral's Chairman David Lenigas in a statement.
Shares in Bacanora were trading down 1.4% at 77.75 pence Thursday morning. Shares in Rare Earth Minerals were trading down 0.1% at 1.62 pence.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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