Bacanora Announces Signing of Definitive Agreement Re Joint Venture
#2 With Rare Earth Minerals and Provides Progress Updates Re Sonora
Lithium Project, Mexico
CALGARY, ALBERTA--(Marketwired - Mar 12, 2014) - BACANORA
MINERALS LTD. ("Bacanora" or the "Company") (TSX-VENTURE:BCN) is
pleased to provide an update of recently completed corporate
activities, ongoing exploration work and future plans for the
Sonora Lithium Project in Mexico.
Highlights:
- Joint Venture #2
- Bacanora and Rare Earth Minerals PLC ("REM") have signed a
definitive joint venture agreement in respect of the San Gabriel,
Buenavista and Megalit concessions ("Joint Venture #2");
- A 1,500 metre diamond drill program is planned for the Penasco
lithium clay prospect on the Megalit concession, with mapping and
prospecting to commence soon; and
- Trenching of lithium clay surface showings on the Buenavista
concession will be undertaken as a part of the program.
- Joint Venture #1
- Stage 2 drill program recently completed on the El Sauz - Fleur
concessions ("Joint Venture #1") (for further information, please
refer to Bacanora's news release dated March 4, 2014);
- A 1,500 metre Stage 3 drill program will be initiated on the
Joint Venture #1 lands with the objective of upgrading the lithium
resourcefrom the inferred resource category to the indicated
resource category (though there can be no assurance at this stage
that such an upgrade will be declared) and for the purpose of
providing data for a Preliminary Economic Assessment ("PEA") on the
Joint Venture #1 lands; and
- 1 tonne bulk samples from surface exposures of the upper and
lower clay units exposed on both the La Ventana and Joint Venture 1
lands have been collected for metallurgical and mineral processing
test work.
The Sonora Lithium Project now consists of 10 contiguous
concessions, two of which (La Ventana and La Ventana 1) are owned
100% by Bacanora. Another five concessions (El Sauz, El Sauz 1, El
Sauz 2, Fleur and Fleur 1) form the lands under Bacanora's Joint
Venture #1 with REM, pursuant to which REM has a 30% interest (with
Bacanora holding the remaining 70%). Lastly, three concessions (San
Gabriel, Buenavista and Megalit) form the lands under Bacanora's
Joint Venture #2 with REM (in respect of which REM has an option to
earn up to a 49.9% interest - see the discussion below under the
heading "REM Formal Agreement").
REM Formal Agreement
Bacanora is pleased to
announce that is has signed a definitive agreement with REM, which
shall supercede the previously announced Memorandum of
Understanding between Bacanora and REM (see Bacanora's press
release dated December 5, 2013 for further details thereof).
Highlights of the formal agreement are:
- REM has the option to acquire an initial 10% interest in the
San Gabrial, Buenavista and Megalit concessions by virtue of REM
paying Bacanora an upfront cash consideration of U.S.$250,000 and
spending U.S.$500,000 on exploration and drilling on the Joint
Venture #2 concessions over a 6 month period.
- REM has the option to increase its interest to 30% by virtue of
an additional cash consideration of U.S.$500,000 and committing to
a further U.S.$1,000,000 in expenditures for exploration and
drilling on the same concessions over 1 year.
- REM will have the right to advance these payments and acquire
the 30% on an accelerated basis.
- REM will then have an exclusive option (exercisable until
December 2015) to negotiate terms to increase from a 30% interest
to a maximum of 49.9%.
San Gabriel, Buena Vista and
Megalit Concessions (Joint Venture #2) Update
The Company plans to test a
new lithium bearing clay prospect, Penasco, located on the Megalit
concession, to the south of El Sauz, with a five hole-diamond drill
program. In addition, a clay occurrence to the east of the Penasco
prospect will be drill tested. The initial drill program is
expected to start as soon as a rig can be mobilized to site and
will be in the order of 1,500 metres in 7 holes.
In conjunction with the
drilling, mapping and prospecting will continue on the large
(94,815 hectare) Megalit concession in order to locate and sample
additional exposures of the lithium-bearing clay basin. In
addition, trenching of surface exposures on lithium-bearing clays
striking northerly along 6 kilometres on the Buenavista concession
will be undertaken. Previous sampling by the Company returned
lithium values ranging from 121 to 1,350 ppm Li (0.72% LCE) from
surface clay samples collected on Buena Vista (see the Company's
press release dated December 5, 2013 for further details).
El Sauz and Fleur Concessions
(Joint Venture #1) Update
Stage 2 diamond drilling,
consisting of 2,384.76 metres in 19 holes, was completed in January
2014 (refer to attached Figure 1), with analytical results having
been recently received. To date, a total of 3,804.22 metres have
been drilled in 29 holes by the Company on Joint Venture #1 lands.
Results from the last holes of the Stage 2 drilling varied from 150
ppm Li to 2,011 ppm Li (1.07% LCE(1)) across 36.58 metres in the
upper clay unit and from 41 to 5,351 ppm Li (2.85% LCE) across 25
metres in the lower clay unit (for further details, please refer to
the Company's news release dated March 4, 2014).
A stage 3 drilling program,
consisting of approximately 1,500 metres in 10 holes, is expected
to commence in the next few weeks. The objectives of this program
will be to provide further definition of the extent of the clay
units on El Sauz and to provide sufficient data to upgrade the Li
resources from the inferred resource category to the indicated
resource category (though there can be no assurance at this stage
that such an upgrade will be declared), as well as to provide data
for a PEA of the Li resources on the Joint Venture #1 lands.
Metallurgical and Mineral
Processing Test Work
Metallurgical and mineral
processing tests are ongoing on samples from La Ventana and Joint
Venture #1 lands. The pilot plant at Bacanora's test facility in
Hermosillo is operating and processing material. Bulk samples, each
of approximately one tonne in size, from the upper and lower clay
units of both La Ventana and El Sauz/Fleur are being readied for
process tests in order to produce lithium carbonate from the clays.
The results of this work will provide data for a pre-feasibility
study of the La Ventana lithium deposit as well as data for a PEA
on the southern extension of the La Ventana deposit and on the El
Sauz and Fleur concessions.
Martin Vidal, President of Bacanora, commented, "We are very
pleased with the rapid progress that has been made in developing
lithium resources and the testing metallurgy and process options
for production of lithium carbonate from the Sonora Lithium
Project. New lithium-bearing clay units discovered on Joint Venture
#2 lands provide further evidence regarding the Sonora Lithium
Project's potential to develop into a world class lithium property.
We look forward to further results as Stage 3 drilling commences on
the Joint Venture #1 and #2 lands, and we optimistically await
further metallurgical and mineral process results regarding lithium
recovery and lithium carbonate production from the clay units."
Carl G. Verley, P.Geo. is the Qualified Person pursuant to
National Instrument 43-101 - Standards of Disclosure for
Mineral Projects that has reviewed and approved the technical
contents of this news release.
(1) LCE = lithium carbonate equivalent (Li2CO3): determined by
multiplying Li value in percent by 5.324 to get an equivalent
Li2CO3value in percent. Use of LCE is to provide data comparable
with industry standards.
Reader
Advisory
Except for statements of historical fact, this news release
contains certain "forward-looking information" within the meaning
of applicable securities law. Forward-looking information is
frequently characterized by words such as "plan", "expect",
"project", "intend", "believe", "anticipate", "estimate" and other
similar words, or statements that certain events or conditions
"may" or "will" occur. In particular, forward-looking information
in this press release includes, but is not limited to future
drilling activities, future payments and property interests being
earned and transferred and results of metallurgical testing.
Although we believe that the expectations reflected in the
forward-looking information are reasonable, there can be no
assurance that such expectations will prove to be correct. We
cannot guarantee future results, performance or achievements.
Consequently, there is no representation that the actual results
achieved will be the same, in whole or in part, as those set out in
the forward-looking information.
Forward-looking information is based on the opinions and
estimates of management at the date the statements are made, and
are subject to a variety of risks and uncertainties and other
factors that could cause actual events or results to differ
materially from those anticipated in the forward-looking
information. Some of the risks and other factors that could cause
the results to differ materially from those expressed in the
forward-looking information include, but are not limited to:
commodity price volatility; general economic conditions in Canada,
the United States, Mexico and globally; industry conditions,
governmental regulation, including environmental regulation;
unanticipated operating events or performance; failure to obtain
industry partner and other third party consents and approvals, if
and when required; the availability of capital on acceptable terms;
the need to obtain required approvals from regulatory authorities;
stock market volatility; competition for, among other things,
capital, skilled personnel and supplies; changes in tax laws; and
the other risk factors disclosed under our profile on SEDAR at
www.sedar.com. Readers are cautioned that this list of risk factors
should not be construed as exhaustive.
The forward-looking information contained in this news
release is expressly qualified by this cautionary statement. We
undertake no duty to update any of the forward-looking information
to conform such information to actual results or to changes in our
expectations except as otherwise required by applicable securities
legislation. Readers are cautioned not to place undue reliance on
forward-looking information.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
To view Figure 1, click on the following link:
http://media3.marketwire.com/docs/933013m.pdf
Bacanora Minerals Ltd.Shane ShircliffChief Executive
Officer(306) 649-0602Bacanora Minerals Ltd.Martin
VidalPresident(+52 662) 210-0767www.bacanoraminerals.com
Bacanora Minerals Ltd. (TSXV:BCN)
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