Mexican Mining

[Lone Clone]

Bacanora Minerals hits new annual high on increased lithium resources at Sonora project

4th Jun 2014, 2:30 pm by Deborah Bacal

http://www.proactiveinvestors.com/companies/news/54546/update-bacanora-minerals-hits-new-annual-high-on-increased-lithium-resources-at-sonora-project-54546.html

Bacanora Minerals ( CVE:BCN) surged Wednesday after announcing a sharp increase in lithium resources at three of the concessions on its Sonora lithium project in Mexico.

The company revealed this morning updated resources for its 100% owned La Ventana deposit, as well as the El Sauz and Fleur concessions, which are held 70% by Bacanora and 30% by Rare Earth Minerals (LON:REM).

The Sonora project is comprised of 10 mineral concessions, two of which are fully owned by Bacanora with the remainder owned together with joint venture partner Rare Earth Minerals.

At the La Ventana deposit, indicated mineral resources jumped 37% to 1.27 million tonnes of lithium carbonate equivalent from the previous 930,000 tonnes.

Meanwhile, at El Sauz and Fleur, indicated resources increased 35% to 2.01 million tonnes of lithium carbonate equivalent, up from 1.49 million tonnes previously. All resources used a base cut off of 2,000 parts per million of lithium, according to the statement.

When combined, the La Ventana, El Sauz and Fleur deposits are estimated to host indicated lithium resources of 3.28 million tonnes of lithium carbonate equivalent.

The newest resource reports are based on results from additional drilling, including another six holes and six trenches at La Ventana, and 31 more holes from the other two concessions.

"We are very pleased with the recent drill and trench results from the Sonora Lithium Project, which support the reclassification of the lithium resources, as well as the continuing expansion of known lithium resources," said president Martin Vidal in the release.

Bacanora fully owns both the La Ventana and La Ventana 1 concessions, while it owns 70% of the El Sauz, El Sauz 1, El Sauz 2, Fleur and Fleur 1 concessions. The remaining three concessions on the Sonora lithium project are owned under a separate joint venture with Rare Earth Minerals, with Bacanora holding a 90% stake in the San Gabriel, Buenavista and Megalit concessions.

Work on the three concessions under the second joint venture are progressing well, Bacanora said, with drill results expected by late June.

Bacanora has also developed a process for recovering lithium from the clays at its deposits and converting the material into battery-grade lithium carbonate, demand for which is anticipated to grow exponentially over the next decade.

Shares were rising fast on Wednesday, increasing over 56% to a new 52-week high of 89 cents. The stock, which opened today's session at 61 cents, has now more than doubled since the beginning of the year.