Cadence Minerals PLC Update - Bacanora Lithium (4172D)

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RNS Number : 4172D

Cadence Minerals PLC

09 October 2018

Cadence Minerals Plc

("Cadence Minerals", "Cadence" or "the Company")

Bacanora Lithium (BCN) ("Bacanora") announces NI-43-101 lithium resource estimate at Zinnwald Project, Germany.

Cadence Minerals (AIM/NEX: KDNC; OTC: KDNCY) is pleased to note the announcement today by Bacanora Lithium (AIM:BCN) ("Bacanora") of NI 43-101 compliant Measured + Indicated resources of 124,974 tonnes of contained lithium ('Li') at its 50% owned Zinnwald lithium project ('Zinnwald' or 'the Project') in southern Saxony, Germany, representing a 30% increase from the previous PERC resource estimate of 96,200 tonnes. The total resource estimate for the Project (Measure + Indicated + Inferred) is 142,240 tonnes of contained Li. The mineral resource estimate forms part of the Feasibility Study ('FS') for a high value lithium product operation at Zinnwald that will supply the fast-growing European battery and automotive sectors. The FS remains on course to be completed in Q2 2019..

Highlights:

-- The Bacanora Zinnwald project is located in at Zinnwald SE Germany, some 35 km from Dresden and adjacent to the border of the Czech Republic and within 5 km of the town of Altenberg and 50 km of the town of Freiberg.

-- The Project is in a granite hosted Sn/W/Li belt that has been mined historically for tin, tungsten and lithium at different times over the past 300 years.

-- The strategic location of the Project allows immediate access to the German automotive and downstream lithium chemical industries.

-- This new NI 43-101 mineral resource estimate upgrades the PERC compliant report produced in 2014, and is based on 76 surface holes plus 12 underground holes completed in 2017.

-- The upgraded resource is part of an ongoing FS at Zinnwald. To date, concentrator and roasting testwork and resource definition workstreams have been completed. The remaining FS workstreams, including mine design, hydrometallurgical testwork and engineering design, are all underway and proceeding on schedule. As a result, the FS is on course to be completed in Q2 2019.

-- The upgraded resource has been reported in accordance with National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101") and was carried out by G.E.O.S. Ingenieurgesellschaft mbH (G.E.O.S).

Bacanora is a lithium exploration and development company. As at the 31 August 2018 Cadence held 7.5% of Bacanora's equity and 30% of Mexalit and Megalit joint venture companies. Mexalit is the owner of the El Sauz, El Sauz 1, El Sauz 2, Fleur and Fleur 1 mineral concessions, which forms part of the 20-year mine plan of the Sonora Lithium Project in Northern Mexico.

The full release can be found at: https://www.londonstockexchange.com/exchange/news/market-news/market-news-detail/BCN/13820883.html

As at the 31 August 2018 Cadence had the following key investments: 19.7% of the equity in European Metal Holdings, which, through its wholly owned Subsidiary, Geomet s.r.o., controls the mineral exploration licenses awarded by the Czech State over Cinovec; 7.5% of the equity in Bacanora Lithium Plc and 30% of Mexalit and Megalit joint venture companies. Mexalit is the owner of the El Sauz, El Sauz 1, El Sauz 2, Fleur and Fleur 1 mineral concessions, which forms part of the 20-year mine plan of the Sonora Lithium Project in Northern Mexico; 6.6% of Auroch Minerals Ltd; 4.5% of Clancy Exploration Ltd; 12.1% of Macarthur Minerals Ltd; 4% of the San Luis lithium exploration project in Argentina; 30% free carried interest in one mining lease and six exploration license in part of the the Yangibana Rare Earth Mineral deposit and a 100% interest in and exploration license on the eastern boundary of boundaries of Greenland Minerals and Energy Limited's licences that encompass the world-class Kvanefjeld, Sørenson, Zone 3 and Steenstrupfjeld Rare Earth Element deposits.

- Ends -

For further information:

 
For further information: Cadence Minerals plc                    [phone] 
  Andrew Suckling 
  Kiran Morzaria 
 
  WH Ireland Limited (NOMAD & Broker)     [phone] 
  James Joyce 
  James Sinclair-Ford 
 
  Hannam & Partners LLP (Joint Broker)    [phone] 
  Neil Passmore 
  Giles Fitzpatrick 
 
  Novum Securities Limited (Joint 
   Broker)                                [phone] 
  Jon Belliss 
 

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) from CASS Business School.

About Cadence Minerals:

Cadence is dedicated to smart investments for a greener world. The planet needs rechargeable batteries on a global scale - upcoming supersized passenger vehicles, lorries and buses - require lithium and other technology minerals to power their cells. Cadence is helping find these minerals in new places and extracting them in new ways, which will meet the demand of this burgeoning market.

Cadence invests across the globe, principally in lithium mining projects. Its primary strategy is taking significant economic stakes in upstream exploration and development assets within strategic metals. We identify assets that have strategic cost advantages that are not replicable, with the aim of achieving lower quartile production costs. The combination of this approach and seeking value opportunities allows us to identify projects capable of achieving high rates of return.

The Cadence board has a blend of mining, commodity investing, fund management and deal structuring knowledge and experience, that is supported by access to key marketing, political and industry contacts. These resources are leveraged not only in our investment decisions but also in continuing support of our investments, whether it be increasing market awareness of an asset, or advising on product mix or path to production. Cadence Mineral's goal is to assist management to rapidly develop the project up the value curve and deliver excellent returns on its investments.

Forward-Looking Statements:

Certain statements in this announcement are or may be deemed to be forward-looking statements. Forward-looking statements are identi ed by their use of terms and phrases such as "believe" "could" "should" "envisage" "estimate" "intend" "may" "plan" "will" or the negative of those variations or comparable expressions including references to assumptions. These forward-looking statements are not based on historical facts but rather on the Directors' current expectations and assumptions regarding the Company's future growth results of operations performance future capital and other expenditures (including the amount. nature and sources of funding thereof) competitive advantages business prospects and opportunities. Such forward-looking statements re ect the Directors' current beliefs and assumptions and are based on information currently available to the Directors. Many factors could cause actual results to differ materially from the results discussed in the forward-looking statements including risks associated with vulnerability to general economic and business conditions competition environmental and other regulatory changes actions by governmental authorities the availability of capital markets reliance on key personnel uninsured and underinsured losses and other factors many of which are beyond the control of the Company. Although any forward-looking statements contained in this announcement are based upon what the Directors believe to be reasonable assumptions. The Company cannot assure investors that actual results will be consistent with such forward-looking statements.

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October 09, 2018 05:19 ET (09:19 GMT)