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Indicated Mineral Resource Estimate increased to 5.0 million tonnes of LCE at the Sonora Lithium Project
Bacanora, the Canadian and London listed (TSX-V: BCN and AIM: BCN) lithium and borates company, has reported an updated Mineral Resource estimate for the Sonora Lithium Project in Mexico, which has seen its Indicated Mineral Resource estimate increase by over 300 per cent. to 5.0 million tonnes of lithium carbonate equivalent. In addition, the Project’s Inferred Mineral Resource has been estimated as a total of 3.9 Mt of LCE contained within the deposit.
This significant increase in the Indicated portion of the resource, and the resource in total, has a major positive impact for mine planning and the Project’s life of mine. In particular, it will allow management to optimise the mine design, focusing on higher grade mineral resources and to maximise the Project’s net present value.
Highlights:
· A 337% increase of the Indicated Mineral Resource estimate to 5.0 Mt of LCE (364 Mt of clay at a Li grade of 2,600 ppm), from the previously reported 1.14 Mt (95 Mt of clay, at a Li grade of 2,200 ppm).
o La Ventana Indicated Mineral Resource estimate has increased from the previously reported 0.84 Mt3 LCE to 1.9 Mt LCE.
o El Sauz, El Sauz 1 and Fleur Indicated Mineral Resource estimate has increased from the previously reported 0.30 Mt3 LCE to 3.1 Mt LCE.
· The Inferred Mineral Resource estimate is now 3.9 Mt of LCE (355 Mt of clay at a Li grade of 2,000 ppm), compared to the previously reported 6.3 Mt of LCE (500 Mt of clay at a Li grade of 2,300 ppm)3 – this change is mainly as a result of the significant upgrade of Inferred Mineral Resource to a Indicated Mineral Resource.
· The Indicated Mineral Resource will be used for detailed life of mine planning with an initial focus on the higher grade Mineral Resources on La Ventana and Fleur concessions.
· The MRE forms part of the ongoing Preliminary Feasibility Study (“PFS”), which remains on schedule for completion in the first three months of 2016.
· The updated MRE is a result of the latest drilling 16 hole (3,934 metre) drilling campaign and corresponding assay result analysis, which was completed in October this year.
· This update is in line with Bacanora’s strategy to continue to develop the Sonora Lithium Project’s significant potential, which benefits from high grades and scalability.
Colin Orr-Ewing, Chairman of Bacanora, commented, “We set out to significantly increase the Indicated portion of our Mineral Resource at the Sonora Lithium Project, and I am delighted to report that this has been achieved with a fourfold increase in Indicated Mineral Resources reported. We have now completed a critical part of the PFS, and this resource upgrade represents a major step forward in terms of mine planning and life of mine. With the Sonora Lithium Project’s close proximity to excellent infrastructure and location in a stable jurisdiction, we firmly believe Sonora Lithium Project is a high grade and scalable lithium asset. We look forward to the completion of the ongoing PFS (expected in the first quarter 2016) to provide further third party confirmation of the Sonora Lithium Project’s potential.
“With the completion of our recent financing, we now have sufficient funds in place to carry us through the next phases of the Sonora Lithium Project’s development, specifically a Feasibility Study (assuming satisfactory completion of the PFS), and the upgrading of our Pilot Plant. I look forward to providing further updates on our progress, as we continue to focus on monetizing the Project’s maximum potential, and in the process build value for our shareholders.”
