Rare Earth Minerals (REM) was “optimistic” about the potential of the Fleur and El Sauz lithium concessions in Mexico as partner Bacanora Minerals filed a technical report on the maiden estimated resource.

According to the report, the project has total inferred lithium carbonate equivalent resources of 1,486,000 tonnes from 88,271,000 tonnes of clay at an average grade of 1.68%.

The most recent drilling campaign tested a four kilometre strike, finding a high-grade portion of 2.7 kilometres, which contained 53,929,00 tonnes averaging 3,922 parts per million of lithium. Further drilling has now commenced, and the company hopes this will identify further resources to the south and east of the strike.

Rare Earth’s 30% stake in the project will entitle it to a 445,800 tonne share of the current inferred resource. However, the company still retains first right of refusal to increase its stake to 49.9%.

“The company is optimistic that the second phase of drilling will increase the size and the potential commercial viability of the project and the company will work on the opportunity it has to further increase its interest in the project during this period,” commented chairman David Lenigas.

He also added on Twitter on the morning of the announcement: “Do not underestimate the vastness of this Mexican lithium deposit from a global perspective after next drilling is completed.”

Bacanora and Rare Earth are also testing potential deposits of other alkali metals and alkali earth metals including potassium, cesium, rubidium and strontium to see if they will add value to the deposit.

However, the share price remained low on Monday, dropping over 2% in early trading before climbing back to a 1% rise, and some Interactive Investor discussion board users seemed uninspired by the update.

“Not sure what the numbers mean,” commented ‘vicjain’. “Is it good?”