LONDON (ShareCast) - AIM-listed Rare Earth Minerals(REM) has unveiled positive results for its diamond drill programme in northern Mexico.

In an operational update issued on Monday, the company reported that it had intersected 84 metres of clays in diamond drill hole ES-03 at its Fleur – El Sauz Lithium Project in northern Mexico. It said that this was the "thickest clay intercept to date" from the current drilling programme.

The three holes completed to date extended the strike length of the clay-bearing sedimentary succession on the La Ventana Lithium deposit by 1.7km to the southeast for a total drill indicated length of both the La Ventana and Fleur concessions of approximately 6.7km.

Furthermore, the company said that it had entered into a £300,000 placing agreement and, separately, a £150,000 equity swap agreement with YA Global Master SPV.

Lithium is the lightest of the alkali metals and has unique electrochemical properties giving it key applications in the IT, electronics and automotive sectors.

David Lenigas, Chairman of Rare Earth Minerals, commented: "REM is pleased to report that the first three holes of the drill program have clearly established continuity of the clay units over a strike length of 1,700 metres on the joint venture lands."

He added: "These clay sequences form a part of the basin that hosts the adjacent 60 million tonne La Ventana lithium deposit, which is estimated to contain a resource grading the equivalent of 1.6% lithium carbonate. We look forward to reporting the grades of the core drill in due course."

Rare Earth Minerals’ share price was unchanged at 0.05p at 08:05 on Monday.

MF

Email this article to a friend

or share it with one of these popular networks:

• DIGG
• FACEBOOK
• STUMBLEUPON
• MIXX
• YAHOO BUZZ
• DELICIOUS
• REDDIT
• NEWSVINE