TIDMBCN
RNS Number : 8491V
Bacanora Minerals Ltd
08 November 2017
8 November 2017
Bacanora Minerals Ltd
('Bacanora' or the 'Company')
Mining Licence Issued for Zinnwald Lithium Project in
Germany
Bacanora, the London and Canadian listed (AIM: BCN, TSXV: BCN)
lithium exploration and development company, is pleased to announce
that its jointly controlled entity, Deutsche Lithium GmbH
('Deutsche Lithium'), has been granted a mining licence ('the
Licence') covering 256.5 hectares of its Zinnwald Lithium Project
('Zinnwald') which is located in southern Saxony, Germany, close to
the key German automotive and downstream lithium chemical
industries. The 30 year Licence has been issued by the Saxony State
Mining Authority (Sächsisches Oberbergamt) in accordance with --8
of the German Mining Act (Bundesberggesetz).
Zinnwald is located in a granite hosted Sn/W/Li belt that has
been mined historically for tin, tungsten and lithium. Recent
testwork on Zinnwald concentrates has shown that a number of
downstream lithium products can be produced from the Zinnwald ores,
utilising chemicals and infrastructure available in the Dresden
area. As part of the ongoing development of Zinnwald, a Feasibility
Study is underway to develop a strategy to demonstrate the economic
viability of producing higher value downstream lithium products for
the European battery and automotive sectors and is expected to be
completed in mid-2019
The following work has been completed or is ongoing:
-- A resource infill drilling programme to upgrade the existing
resource model in accordance with National Instrument 43-101 -
Standards of Disclosure for Mineral Projects
o Four of out of 15 planned infill drilling holes have been
completed - the remaining holes are scheduled for completion by
January 2018
-- Collection of a 100 tonne bulk ore sample from the legacy
mine at Zinnwald to provide samples for metallurgical testwork
o Material has been crushed and sent to metallurgical
laboratories in Germany
o Grinding, magnetic separation and concentration testwork
programmes will be carried out over the next four months to develop
the final flowsheet to produce a lithium rich concentrate
-- On completion of the concentration testwork,
hydrometallurgical testwork for downstream processing will be
undertaken, focusing on the production of higher value lithium
battery chemical products
Bacanora currently has a 50% interest in, and joint operational
control, of the Zinnwald Lithium Project, with an option to acquire
the remaining 50% of the Project. Zinnwald complements Bacanora's
flagship Sonora Lithium Project ('Sonora') in Mexico, which is one
of the world's larger and scalable lithium deposits, where the
Feasibility Study is due to be completed in late 2017. The
Feasibility Study, which is focused on an initial operation capable
of delivering 17,500 tonnes per year of high quality battery-grade
Li(2) CO(3) , followed by an expansion to 35,000 tonnes Li(2) CO(3)
per year, is expected to confirm that Sonora occupies a favourable
position on the industry cost curve.
Bacanora CEO Peter Secker said, "The issue of the mining licence
is a key milestone for Zinnwald where various workstreams for the
Feasibility Study are well advanced. In Zinnwald and Sonora,
Bacanora has, in our view, two world class assets, which have the
potential to provide significant supplies of lithium products to
the strategically important European and Asian lithium
markets."
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.
--------------------- --------------------- --------------------------
Cairn Financial
Advisers LLP, Sandy Jamieson/Liam +44 (0) 20
Nomad Murray 7213 0880
--------------------- --------------------- --------------------------
Canaccord Genuity, Martin Davison, +44 (0) 20
Broker James Asensio 7523 8000
--------------------- --------------------- --------------------------
St Brides Partners,
Financial PR Frank Buhagiar / +44 (0) 20
Adviser Megan Dennison 7236 1177
--------------------- --------------------- --------------------------
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 provides
close geographical proximity 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 additional
infill drilling that is planned on the Zinnwald Project, potential
upgrading of resources, ongoing grinding, magnetic separation and
concentration testwork programs being carried out, development of
final flowsheet, undertaking of hydrometallurgical testwork and
potential production of products for the European battery and
automotive sectors. 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 information is provided by RNS
The company news service from the London Stock Exchange
END
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