6th Oct 2015 15:51
LONDON (Alliance News) - Rare Earth Minerals PLC Tuesday said its resources at the Yangibana project in Western Australia have been increased following an updated report.
In a separate statement later Tuesday, the company also said it expects the results from the drilling campaign being carried out on the Cinovec lithium, tin and tungsten project in the Czech Republic to be received sometime in the middle of November.
The Yangibana project is 30% owned by Rare Earth and 70% by its partner Hastings Rare Metals Ltd. The updated report has shown a "significant increase" in the resources covering the Yangibana North, Gossan, Hook, Kanes Gossan, Lions Ear and Bald Hill North areas.
The indicated resource now stands at 2.7 million tonnes at 1.46% TREO, which is the sum of the oxides of the heavy rare earth elements and the light rare earth elements, which contains 0.5% neodymium oxide-equivalent.
The inferred resource has been updated to 2.6 million tonnes at 1.25% TREO, containing 0.42% neodymium oxide-equivalent. The total mineral resource stands at 71,828 contained tonnes of TREO.
Rare Earth said mining studies have commenced with pit optimisations utilising indicted resources at Yangibana North and said the maiden JORC compliant reserve estimate will be delivered "in the coming weeks".
The pre-feasibility study for the project is due to be completed by the end of the fourth quarter of 2015.
In a separate statement later Tuesday, Rare Earth said the results from the drilling campaign on the Cinovec project, in which it holds a 9.8% stake, will be ready sometime in mid-November. The latest drillhole, PSn06 has been completed and drilled to a depth of 401.5 metres.
Those results will underpin the conversion of inferred resources to indicated resources and provide material for additional metallurgical testing, it said.
Cinovec is "one of the largest lithium deposits in the European Union," with an inferred resource of 514.8 million tonnes at 0.43% lithium for 5.5 million tonnes lithium carbonate equivalent.
Rare Earth shares closed down 2.7% to 0.983 pence per share on Tuesday.
By Joshua Warner; [email protected]; @JoshAlliance
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