TIDMBCN
RNS Number : 3273V
Bacanora Minerals Ltd
02 November 2017
2 November 2017
Bacanora Minerals Ltd
('Bacanora' or the 'Company')
Access and Surface Rights Secured for Sonora Lithium Project,
Mexico
Bacanora, the London and Canadian listed (AIM: BCN, TSXV: BCN)
lithium exploration and development company, is pleased to announce
that access and surface rights have been secured for its flagship
Sonora Project ('Sonora' or 'the Project') in Mexico. This is in
line with the Company's strategy to construct an open-pit mine and
large-scale beneficiation processing facility at Sonora, which is
one of the world's larger lithium deposits. A Feasibility Study
('FS') for a 35,000 tonnes per annum lithium carbonate operation at
Sonora is on course for completion in late 2017.
The access and surface rights mainly relate to the land area
covering mineral resources contained within the La Ventana, Fleur
and El Sauz areas. Bacanora has entered into binding agreements to
acquire the freehold to two parcels of land which, following
completion of the FS, will provide the Company with unrestricted
access to develop the Project and operate it for the initial life
of mine. The Sonora Lithium Project consists of ten contiguous
concessions covering 97,389 hectares approximately 190 kilometres
northeast of the city of Hermosillo in Sonora State, Mexico and 200
kilometres south of the border with Arizona, USA.
Significant progress has been made towards the completion of the
FS by the end of 2017. The mass balances, energy balances and
detailed flow sheets have now been completed. All of the vendor
quotes for the supply of equipment have been received and are being
evaluated. Reagent and chemical supply pricing has been received.
Final quotes for the long-term energy supply are being evaluated.
Over the next few weeks the final operating and capital costs will
be developed in order to complete the FS.
The pilot plant in Hermosillo continues to operate to produce
battery grade lithium carbonate product samples and the Company
receives ongoing feedback from future customers in Asia and Europe
regarding the quality of the product. The Company continues to
focus on the high quality of Sonora lithium carbonate products as
being a strong differentiator from other new lithium projects.
Battery grade quality becomes more important for both increasing
the range of electric vehicles and extending battery life in the
current push to develop longer lasting lithium batteries.
Bacanora CEO Peter Secker said, "Securing access and surface
rights for the large and scalable Sonora Project represents another
major milestone towards delivering on our objective to develop a
world class lithium mining operation at Sonora. Today's news
closely follows the recent Sonora Government Environmental Approval
for the Sonora Lithium Project."
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulations (EU) No. 596/2014 ("MAR")
**ENDS**
For further information please visit www.bacanoraminerals.com or
contact:
Bacanora Minerals Peter Secker, CEO info@bacanoraminerals.com
Ltd.
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Cairn Financial
Advisers LLP, Sandy Jamieson/Liam +44 (0) 20
Nomad Murray 7213 0880
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Canaccord Genuity, Martin Davison, +44 (0) 20
Broker James Asensio 7523 8000
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St Brides Partners,
Financial PR Frank Buhagiar / +44 (0) 20
Adviser Megan Dennison 7236 1177
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ABOUT BACANORA:
Bacanora is a Canadian and London listed lithium exploration and
development company (TSX-V: BCN and AIM: BCN). The Company is
exploring for, and developing a pipeline of international lithium
projects, with a primary focus on the Sonora Lithium Project. The
Company's operations are based in Hermosillo in northern Mexico.
The Company is led by a team with lithium expertise and proven mine
development, construction and operations experience.
The Sonora Lithium Project, which consists of ten mining
concession areas covering approximately 100 thousand hectares in
the northeast of Sonora State. The Company, through drilling and
exploration work to date, has established an Indicated Mineral
Resource (in accordance with NI 43-101) of 4.5 million tonnes
(LCE[1]) and 2.7 million tonnes Inferred.[2] A Pre-Feasibility
Study completed in Q1 2016[3] established Probable Mineral Reserve
(in accordance with NI 43-101) of 2.1 million tonnes LCE and
demonstrated the economics associated with becoming a 35,000 tpa
lithium carbonate and 50,000 tpa SOP producer in Mexico.
In addition to the Sonora Lithium Project, the Company also has
a 50% interest in the Zinnwald Lithium Project in southern Saxony,
Germany. The Zinnwald Lithium Project is located in a granite
hosted Sn/W/Li belt that has been mined historically for tin,
tungsten and lithium at different times over the past 300 years.
The strategic location of the Zinnwald Lithium Project allows
immediate access to the German automotive and downstream lithium
chemical industries.
1 LCE = lithium carbonate (Li(2) CO(3) ) equivalent; determined
by multiplying Li value in percent by 5.324 to get an equivalent
Li(2) CO(3) value in per cent. Use of LCE is to provide data
comparable with industry reports and assumes complete conversion of
lithium in clays with no recovery or process losses.
2 See Amended Mineral Resource Estimate for the Sonora Lithium
Project, Mexico, April 2016. The lead author of the amended report
is Mr. Martin Pittuck (MSc., C.Eng., FGS, MIMMM) of SRK Consulting
(UK) Limited ('SRK'). A copy of this report is available under
Bacanora's corporate profile at www.sedar.com.
3 See Technical Report on the Pre-Feasibility Study for the
Sonora Lithium Project, Mexico, 15 April 2016. The authors of the
PFS are Ausenco Limited, SRK and Independent Mining Consultants
Inc. A copy of this report is available under Bacanora's corporate
profile at www.sedar.com.
FORWARD LOOKING STATEMENTS:
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 the Company's
intention of becoming a lithium carbonate producer, potential
35,000 tonnes per annum lithium carbonate operation, completion of
the FS for such operation by late 2017 and completion of final
operating and capital costs for the FS. 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. Readers are cautioned that this list of
risk factors should not be construed as exhaustive.
This announcement contains inside information for the purposes
of Article 7 of EU Regulation 596/2014.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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