Rare Earth Minerals PLC Cinovec Lithium Project - Update (7930C)

TIDMREM

RNS Number : 7930C

Rare Earth Minerals PLC

20 October 2015

20 October 2015

Rare Earth Minerals Plc.

("Rare Earth Minerals", "REM" or "the Company")

Cinovec Lithium Project - Update

Rare Earth Mineral Plc (AIM: REM) advises that European Metals Holding Limited ("European Metals"), a company that REM holds a 11.87% equity interest in, has announced that pre-concentration and subsequent milling of a lithium bulk sample from the Cinovec Lithium-Tin-Tungsten Project ("the project" or "Cinovec") in the Czech Republic has now been completed. The full European Metals news release dated 20 October 2015 is available at: http://www.asx.com.au/asxpdf/20151020/pdf/4326jnxx0lv40t.pdf

Key Points from the Release:

   --    420kg of lithium mica concentrate recovered. 

-- Mica concentrated by magnetic separation, excellent recoveries at a coarse grind of 1,200 micron.

   --    Potential to lower project Capex and Opex. 
   --    Concentrate now being shipped to Australia. 

-- Mini-plant run on concentrate to produce lithium carbonate planned for Q4 2015 in conjunction with Lithium Australia.

-- Lithium carbonate production cost including tin/tungsten by-product credits estimated to be approximately $800/t, based on inputs from European Metals Scoping Study dated 1 May 2015 and available at: http://www.asx.com.au/asxpdf/20150501/pdf/42y9c53l1443pc.pdf.

David Lenigas, The Company's Chairman, commented;

"The publication of the latest estimated production costs of approximately US$800/t of lithium carbonate is substantially lower than many of the existing or projected producers. It's location, close to the German border, makes Cinovec strategic for REM and its plans to ultimately supply lithium products in to mainland Europe."

Qualified Person:

Kiran Morzaria B.Eng. (ACSM), MBA, has reviewed and approved the information contained in this announcement. Kiran holds a Bachelor of Engineering (Industrial Geology) from the Camborne School of Mines and an MBA (Finance).

Cautionary Statement:

The Scoping Study referred to in this announcement is based on low level technical and economic assessments and is of insufficient certainty, under the JORC Code and ASX Listing Rules and guidance, to permit the technical and economic parameters required to imply economic viability. Investors should note that for the Company to establish economic viability of the Cinovec Project, European Metals would need to upgrade an appropriate portion of its Inferred Mineral Resource to a higher level of confidence with sufficient consideration of mining, processing, metallurgical, infrastructure, economic, marketing, legal, environmental, social and governmental factors. There is no assurance of an economic development case at this stage, or any certainty that conclusions of the study will be realised. The Scoping Study is based on European Metals Indicated and Inferred Mineral Resource and should not be solely relied upon by investors when making investment decisions.

- Ends -

For further information please contact:

Rare Earth Minerals plc [phone]

David Lenigas

Kiran Morzaria

WH Ireland Limited (NOMAD & Broker) [phone]

James Joyce

Mark Leonard

Square1 Consulting [phone]

David Bick

Mark Longson

Glossary:

 
  Lithium Mica         In the case of the Cinovec deposit 
                        this occurs in the form of Zinnwaldite. 
                        This is a silicate mineral in the mica 
                        group and contains potassium, lithium, 
                        iron, aluminium, oxygen and fluorine. 
                        It occurs associated with granites 
                        in greisens, pegmatites, and quartz 
                        veins and is often associated with 
                        tin ore deposits. 
-------------------  ------------------------------------------------- 
  Lithium Carbonate    This is an inorganic compound, the 
                        lithium salt of carbonate with the 
                        formula Li(2) CO(3) . Lithium carbonate 
                        is an important industrial chemical. 
                        It forms low-melting fluxes with silica 
                        and other materials. Glasses derived 
                        from lithium carbonate are useful in 
                        ovenware. Lithium carbonate is a common 
                        ingredient in both low-fire and high-fire 
                        ceramic glaze. Its alkaline properties 
                        are conducive to changing the state 
                        of metal oxide colorants in glaze particularly 
                        red iron oxide (Fe(2) O(3) ). When 
                        added to aluminium trifluoride, it 
                        forms LiF which gives a superior electrolyte 
                        for the processing of aluminium. It 
                        is also used in the manufacture of 
                        most lithium-ion battery cathodes, 
                        which are made of lithium cobalt oxide. 
-------------------  ------------------------------------------------- 
 

This information is provided by RNS

The company news service from the London Stock Exchange

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October 20, 2015 03:52 ET (07:52 GMT)