May 24 2013
BACANORA MINERALS LTD. ("Bacanora" or the "Company") is pleased to announce that it has executed formal agreements with Rare Earth Minerals Plc ("REM"), a London Stock Exchange listed company (AIM: REM), pursuant to which it has granted REM certain rights to participate in drilling and project evaluation of the El Sauz and Fleur Lithium concessions (the "Concessions" or individually, a "Concession") in northern Mexico per the Company's February 14, 2013 news release. The Concessions are adjacent to and along strike from the Company's La Ventana Concession.
Highlights of the Agreement:
- REM will earn an initial 10% interest in Bacanora's 100% owned subsidiary that will hold the Concessions by making an upfront cash payment of $250,000 (which has been received by Bacanora) and providing another $500,000 to the Company in two instalments, to be used for exploration and drilling on the Concessions and delivered in full no later than 4 weeks after drilling starts.
- Following completion of the above, REM shall have an option to increase its interest in the Company's subsidiary to 30% by providing written notice of exercise, together with delivery of an additional cash payment of $500,000, on or before August 11, 2013, and thereafter depositing a further $1,000,000 within 6 months of exercise of this option, which funds shall be used for drilling and exploration expenditures on the Concessions.
- Following completion of the prior two stages, REM will thereafter have an exclusive option to negotiate terms to increase interest in the subsidiary holding the Concessions from 30% to a maximum of 49.9%.
Drilling Update:
Bacanora is also pleased to announce that a diamond drill under contract from Godbe Drilling of Colorado, USA has arrived on the Concessions. The drill is set up and has commenced drilling the first of 10 holes on the Concessions.
The initial diamond drilling will consist of approximately 2,500 metres of NQ core in 10 holes, which will have the following objectives:
- Test the thickness and extent of the clay units exposed on El Sauz Concession;
- Provide an initial estimate of the lithium content of these units at depth;
- Determine if the clay units on El Sauz continue to the north and onto the Fleur Concession; and
- Determine if the clay units on the Concessions are the same units as those exposed on the adjoining La Ventana concession.
The drilling programme is estimated to take approximately 80 days, with final results of drill core analyses expected in roughly late August.
In conjunction with the drilling, mapping and rock sampling will resume on the Fleur Concession in order to provide the Company with a full assessment of the lithium potential of this Concession. Previous surface rock sampling, as announced April 10, 2013, demonstrated that exposures with lithium values range from 10 to 7,220 ppm Li (3.84% LCE*), with 10 samples greater than 2,168 ppm (0.95 percentile). The samples also have values in potassium which range from 0.04% to 3.07%, as well as other alkali metals. Results of geological mapping have delineated exposures of the sedimentary-volcanic succession that hosts the lithium-bearing clay units cover an area of 80 hectares in an arcuate belt approximately 2 km long in a northwesterly direction and 1 km in width. Sediments on the southwest side of the arc dip gently to the southwest, whereas those on the northeast dip to the northeast.
Source: http://www.bacanoraminerals.com/