Rare Earth Minerals (AIM: REM) has reported that the drilling programme at its Fleur-El Sauz Lithium Project in northern Mexico has now been completed and assay results are providing firm evidence that it has the potential to be part of a major high grade lithium discovery.

The 10 diamond drill holes ES-01 to ES-10 show a 4 kilometre strike length of high grade Lithium clay units.

These lithium-bearing clays have possible applications in the petroleum industry, specifically for high temperature - high pressure ("HTHP") tolerant drilling muds.

David Lenigas, the company's chairman, commented: "REM is pleased to report that the extension of mineralisation through the Fleur-El Sauz licences has increased the potential of outlining a new and substantial lithium deposit.

"The total known world resource of lithium metal is estimated to be only just over 30m tonnes, with total world annual production expected to rise from the current 150,000 tonnes of Lithiun Carbonate Equivalent ("LCE") to 300,000 tonnes by 2020.

"The majority of current world production is based on brine pumping from Salars in South America, and deposits in China and Australia."