REM become top earner in early morning LSE trading

PUBLISHED: Aug 29 2013 @ 05:25 | Comments (0) |

Rare Earth Minerals (LSE:REM) became the top earner on the London Stock Exchange during this morning’s early trading following a sudden rise from 1.23p to 2.38p. The stock, which started the month at 0.06p, has seen over 524m million shares traded so far today.

The company’s 93.5% rise in value was spurred by the announcement that REM the first 10 diamond drill holes at the Fleur-El Sauz Lithium Project in northern Mexico have identified an estimated resource of 1,782,000 tonnes of Lithium Carbonate Equivalent (“LCE”) at a cut-off of 1,000 ppm Li, within the 191 million tonnes of clays drilled over an initial 4 kilometres strike length, as a maiden estimated inferred resource compliant with the NI 43-101, CIM standard.

In a statement the miner’s said that it had a “10% interest in the Fleur-El Sauz Project”. With Lithium Carbonate currently trading around US$5,000 – 6,000 a tonne, this resource estimate implies a potentially significant in-ground value. Further drilling over the next 6 months is planned to test for further resources, as the Lithium bearing clays in the deposit identified to date remain open on strike to the south and to depth, down dip to the east.

Commenting on the announcement David Lenigas, REM’s Chairman, said that they were “very pleased with the results of this maiden resource estimate which supports the belief that the deposit hosts a new discovery that is part of a significant lithium deposit. Grade and tonnes have far exceeded our expectations from just this first phase of drilling”.

Today’s news follows reports from yesterday that REM’s JV partner in the Fleur – El Sauz Lithium Project in northern Mexico, Bacanora Mineral Ltd (“Bacanora”) had requested a Trading Halt of their shares on the Canadian Exchange.

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