Cadence Minerals PLC - Bacanora Minerals - Update London Stock Exchange
RNS Number : 1989U
Cadence Minerals PLC
20 October 2017
 

Cadence Minerals Plc

 

("Cadence Minerals", "Cadence" or "the Company")

 

Bacanora Minerals Update - Environmental Approval for Sonora Lithium Project  

 

Cadence Minerals (AIM/NEX: KDNC; OTC: KDNCY) reports that Bacanora Minerals (AIM: BCN, TSXV: BCN) has announced that the Environmental Impact Statement, the Manifestacion de Impacto Ambiental ('MIA'), for its flagship Sonora Project ('Sonora') in Mexico has been approved by SEMARNAT, the Environment Ministry of Mexico. Bacanora Minerals ("Bacanora") has also provided an update on its Feasibility Study ('FS') for a 35,000 tonnes per annum lithium carbonate operation at Sonora, which on course for completion in late 2017.

Highlights

·      MIA approval received for a 35,000tpa lithium carbonate operation at Sonora, following completion of comprehensive environmental and social baseline studies.

·      Approval represents a major milestone for Bacanora and is in line with its strategy to construct an open-pit mine and a large-scale beneficiation processing facility at Sonora.

·      FS expected to confirm Sonora occupies a favourable position in the industry cost curve.

·     Development of a conventional beneficiation process followed by a standard SO4 roasting process that has been de-risked by the Project's pilot plant which has continuously produced battery grade lithium since May 2016.

·      Ability to re-cycle Na2SO4 into the roaster negates the requirement to purchase expensive sulphuric acid as a sulphate SO4 source.

·      Sonora has an Indicated Mineral Resource of 4.5 million tonnes Lithium Carbonate Equivalent ("LCE") and 2.7 million tonnes Inferred and Probable Mineral Reserves of 2.1 million tonnes.

The full release can be found at: https://www.investegate.co.uk/bacanora-minerals-ld--bcn-/rns/environmental-approval-for-sonora-lithium-project/201710200700021384U/ .

 

Kiran Morzaria, Chief Executive Officer of Cadence, commented:

"It is great to see the Progress being made at Sonora, the environmental approvals are a key step in the development of bringing this excellent asset into production. It is also important to note that the change in roasting process has continued to produce battery grade lithium carbonate since May and that the process mitigates the requirement for sulphuric acid."

"Sonora is considerably de-risked and scalable and we look forward to seeing the results from the upcoming feasibility study."

- Ends -

For further information, please contact.




Cadence Minerals plc

+44 (0) 207 440 0647

Andrew Suckling


Kiran Morzaria




WH Ireland Limited (NOMAD & Broker)

+44 (0) 207 220 1666

James Joyce


James Bavister




Hannam & Partners LLP (Joint Broker)

+44 (0) 207 907 8500

Neil Passmore


Giles Fitzpatrick




Square1 Consulting

+44 (0) 207 929 5599

David Bick


 

 

The Sonora Lithium Project and Details of Cadence's ownership:

Cadence Minerals holds 9.3% of the equity in Bacanora Minerals and 30% of Mexalit and Megalit joint venture companies. Mexalit is the owner of the El Sauz, El Sauz 1, El Sauz 2, Fleur and Fleur 1 mineral concessions. These concessions form part of the Sonora Lithium Project as assessed in the Pre-Feasibility Study ("PFS") published in April 2016 by Bacanora.

As of the date of publication of the PFS,  The Sonora Lithium Project contained some 7.2 million tonnes of Lithium Carbonate Equivalent ("LCE") within the indicated and inferred mineral resource estimate categories sit on the of which  of which 2.1 million tonnes of LCE were classified as probable mineral reserves. Of these mineral resources and reserves, 4.1 million tonnes of LCE total mineral resources and 1.7 million tonnes of LCE probable mineral reserves sit within mineral concessions owned by Mexalit.

Megalit does not form part of the Sonora Lithium Project as defined PFS and as yet has had no mineral resource estimate carried out on it.

The direct and indirect interests of Cadence in the Sonora Lithium Project and other mineral concessions in the Sonora province are as follows:

- La Ventana and La Ventana 1, which are 100 percent owned by Minera Sonora Borax S.A. de C.V.("MSB"), a wholly-owned subsidiary of Bacanora; Cadence, through its direct interest of 9.3% of Bacanora, has an indirect interest in these concessions of 9.3%.

- El Sauz, El Sauz 1, El Sauz 2, Fleur and Fleur 1 concessions, which are held by Mexilit S.A. de C.V. ("Mexilit"). Cadence has a 30% direct interest in Mexalit through its Joint Venture with Bacanora, and when combined with Cadence's direct interest of 9.3% in Bacanora, has a total economic interest in Mexalit of 36.5%.

- Buenavista, San Gabriel and Megalit concessions, which are held by Megalit S.A. de C.V. ("Meglait"). Cadence has a 30% direct interest in Mexalit through its Joint Venture with Bacanora, and when combined with Cadence's direct interest of 9.3% in Bacanora, has a total economic interest in Mexalit of 36.5%.

 

Qualified Person

 

Kiran Morzaria B.Eng. (ACSM), MBA, has reviewed and approved the information contained in this announcement. Kiran holds a Bachelor of Engineering (Industrial Geology) from the Camborne School of Mines and an MBA (Finance) from CASS Business School.

 

About Cadence Minerals:

 

Cadence is dedicated to smart investments for a greener world. The planet needs rechargeable batteries on a global scale - upcoming supersized passenger vehicles, lorries and buses - require lithium and other technology minerals to power their cells. Cadence is helping find these minerals in new places and extracting them in new ways, which will meet the demand of this burgeoning market. With over £25 million vested in key assets globally, Cadence is helping us reach tomorrow, today.

 

Cadence invests across the globe, principally in lithium mining projects. Its primary strategy is taking significant economic stakes in upstream exploration and development assets within strategic metals. We identify assets that have strategic cost advantages that are not replicable, with the aim of achieving lower quartile production costs. The combination of this approach and seeking value opportunities allows us to identify projects capable of achieving high rates of return.

 

The Cadence board has a blend of mining, commodity investing, fund management and deal structuring knowledge and experience, that is supported by access to key marketing, political and industry contacts. These resources are leveraged not only in our investment decisions but also in continuing support of our investments, whether it be increasing market awareness of an asset, or advising on product mix or path to production. Cadence Mineral's goal is to assist management to rapidly develop the project up the value curve and deliver excellent returns on its investments.

 

 


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