Rare Earth Minerals (LON:REM) has mobilised a second drill rig at Sonora following its recent supply deal with lithium battery giant Tesla Motors (NASDAQ:TSLA).
REM and joint venture partner Bacanora Minerals (LON:BCN, CVE:BCN) have now completed drilling nine holes of a planned 18 at the Sonora Lithium project in Mexico.
The second rig has been mobilised to speed up drilling of the remaining holes, which is hoped to be completed this month.
Analysis from the first four holes indicate lithium content in the Upper Clay is 1,862 parts per million (ppm) lithium over 24.15 metres (m) in thickness and the Lower Clay averages 4,871 ppm lithium over 24.15m.
David Lenigas, executive chairman of REM, said: “The positive drilling results received to date coupled with the supply agreement with Tesla, announced recently, have fuelled the drive to accelerate the drilling programme and the mobilisation of a second drill to the Sonora Lithium Project.”
The plan, announced on Friday, is for Tesla to buy lithium hydroxide from Sonora, providing it passes product specifications and supply can be delivered in sufficient volume.
The pre-feasibility study for the Sonora Lithium Project in Mexico is due to be reported in at the start of next year.