Canada Lithium Provides Background Information on the Quebec Lithium Project
TORONTO, March 3 /CNW/ --
TSX: CLQ; U.S. OTC: CLQMF
TORONTO, March 3 /CNW/ - In reference to its Feb. 28, 2011, press
release announcing the appointment of Roscoe Postle and Associates
(RPA) to undertake a preliminary mineral resource review, Canada Lithium Corp. (TSX: CLQ; U.S. OTC: CLQMF) (the 'Company') today
provided additional background information on its Quebec Lithium
Project.
The Quebec Lithium Mine operated from 1955 to 1965 as an underground
mine and processing plant that produced spodumene, lithium carbonate
and lithium hydroxide monohydrate. In 1974, Surveyer, Nenninger et
Chenevert Inc. ('SNC') was contracted by Sullivan Mining Group to write
a feasibility report on the rehabilitation of the former Quebec Lithium
mine. SNC calculated a 'historical' reserve estimate of 15,736,938
tonnes grading 1.14% Li(2)O. This estimate is not compliant with National Instrument 43-101 ('NI
43-101') standards.
In May 2008, Canada Lithium Corp. acquired the property from IAMGOLD
Corporation. The acquisition was based primarily on the existence of
the historical reserve referenced above. The acquisition included data
from previous exploration work on the property, including 81 surface
holes and 412 underground holes.
Historic mine data was digitized by Caracle Creek International
Consulting Inc. ('CCIC') in 2009. The 3D extent of the underground
workings in the Quebec Lithium Project was constructed based on this
information and mining widths cited in historic reports. The collars of
all available historic drill holes were digitized and basic lithology
and hole orientation information compiled from the associated drill
logs and plans. The resulting database for use in the 3D modelling
included the 493 historical surface and underground drill holes.
A confirmatory drill program designed by CCIC included the twinning of
several of the historical drill holes to confirm the grade and
thickness of the deposit. Holes were also drilled to test some of the
spodumene dykes at depth and at a distance to the historic mine. The
spodumene mineralisation is hosted within a number of steeply dipping
pegmatite dykes ranging between 10 and 50 metres in width over a strike
length of up to 1,500 metres.
Confirmatory drilling commenced on October 13, 2009 and was completed
December 19, 2009. A total of 9,646 metres were drilled. Six main
spodumene-bearing dykes were tested and their locations confirmed.
Assays for the new holes were higher typically by 0.1% to 0.4% Li(2)O than historical values, and were checked using an appropriate Quality
Assurance/Quality Control (QA/QC) procedure. Enough information was
obtained in the 2009 drill program to support the geological model and
a conceptual target of approximately 29-30 million tonnes.
On March 4, 2010, the Company announced a NI 43-101-compliant mineral
resource estimate. The mineral resource estimate undertaken by CCIC
used all data available from the historic exploration and mining, as
well as the results from the 2009 drill program to complete a detailed
3D polygonal model of the spodumene-bearing dykes using Surpac, a
geological modeling and resource estimation software package. Data was
drawn from a total of 506 drill holes (39 from the 2009 program, and
410 and 57 historic underground and surface drill holes, respectively).
The following table sets forth the estimated mineral resources for the
Quebec Lithium Project as of March 4, 2010.
Mineral Resources Reported by Class (0.8% Li(2)O cut-off)
___________________________________________
|Classification*|Million Tonnes**| Grade |
| | |(% Li(2)O)|
|_______________|________________|__________|
| Measured (M) | 6.9 | 1.10 |
|_______________|________________|__________|
| Indicated (I) | 24.7 | 1.11 |
|_______________|________________|__________|
| Total M + I | 31.6 | 1.11 |
|_______________|________________|__________|
| | | |
|_______________|________________|__________|
|Total Inferred | 38.9 | 1.12 |
|_______________|________________|__________|
* Mineral resources that are not mineral reserves do not have
demonstrated economic viability
** Rounded to the nearest thousand; total inferred mineral resource is
exclusive of total measured and indicated mineral resources
On March 22, 2010, the Company announced completion of a Pre-Feasibility
Study showing that, based on the above resource, a 2,950-tonne-per-day
(one-million-tonnes-per-annum) mine and processing plant could produce
19,300 tonnes of Li(2)CO(3) for an initial mine life of 14.8 years.
Between April and July, 2010, a second-resource drilling program
comprising 45 holes (6,938 metres) of diamond drilling was completed.
This program focused on drill targets that extended the strike length
of the known deposit and on infill drilling to increase the level of
confidence in the mineral resources.
An updated NI 43-101 mineral resource, utilizing an Inverse Distance
Squared geostatistical estimation method, was undertaken by Michelle
Stone (a Qualified Person as defined by NI 43-101), who had previously
completed the resource modelling for CCIC in March 2010. This mineral
resource update included the information from the 2010 drill program
and was released on October 28, 2010. The following table sets forth
the estimated mineral resources for the Quebec Lithium Project as of
October 28, 2010.
Mineral Resources Reported by Class (0.8% Li(2)O cut-off)
______________________________________
| Category* |Million Tonnes|Li(2)O %|
|______________|______________|________|
| Measured (M) | 5.7 | 1.15 |
|______________|______________|________|
|Indicated (I) | 41.0 | 1.20 |
|______________|______________|________|
| Total M+I | 46.7 | 1.19 |
|______________|______________|________|
| | | |
|______________|______________|________|
|Total Inferred| 57.6 | 1.18 |
|______________|______________|________|
* Rounded to the nearest thousand; total inferred mineral resource is
exclusive of total measured and indicated mineral resources
** Mineral resources that are not mineral reserves do not have
demonstrated economic viability
Core samples from the 2010 drilling program were analyzed for Li(2)O at ALS Laboratory Group in Vancouver. Duplicate pulp samples were
sent to Agat Laboratory in Mississauga for check analyses. All sample
results were monitored with an appropriate QA/QC program and passed the
quality checks.
In May 2010, Canada Lithium appointed Montreal-based engineering group
BBA Inc. to conduct a Feasibility Study. In mid-December 2010, a
Feasibility Study was announced for a mine and plant capable of
processing one million tonnes of ore per year and producing 20,000
tonnes of Li(2)CO(3. )Mine and plant construction was estimated at a capital cost of US$202
million.
On January 24, 2011, the Company announced the awarding of a contract to
GENIVAR Inc. for the engineering, procurement, construction and
management of its planned 14.8-year open-pit mine and processing plant.
In mid-February 2011, the Company asked Michelle Stone, the author of
the Company's Oct. 28, 2010, NI 43-101-compliant report, to undertake
additional analysis for potential future long-term debt, project equity
or product off-take investment. As a result of this review, on February
28, 2011, the Company announced that RPA, as noted above, had
been appointed as an independent consultant to conduct a preliminary
review.
The Company anticipates that the independent review could be completed
within two weeks. A detailed audit, if required, would take a number of
months.
The Measured, Indicated and Inferred Mineral Resource and Proven and
Probable Mineral Reserve estimates in this press release were prepared
in accordance with the CIM 'Definition Standards on Mineral Resources
and Mineral Reserves' adopted by the CIM Council on Dec. 11, 2005, and
the CIM 'Estimation of Mineral Resources and Mineral Reserves Best
Practice Guidelines,' adopted by CIM Council on Nov. 23, 2003, in
compliance with NI 43-101 guidelines, using inverse distance squared
for the mineral resources announced October 28, 2010 and a detailed 3D
polygonal method on the March 4, 2010 mineral resource estimate.
Michelle Stone, Ph.D., P.Geo., is a Geologist with the Company and the
Qualified Person for the 2010 resource estimate for the Quebec Lithium
Project in accordance with NI 43-101. She has supervised the
preparation of the information that forms the basis of this press
release and approved the contents of this press release.
About Canada Lithium Corp.
Canada Lithium Corp., a 'clean-tech' mine developer, has completed a
definitive Feasibility Study (FS) on its Quebec Lithium Project near
Val d'Or, the geographical heart of the Quebec mining industry. The
Company plans to build an open-pit mine and processing plant on-site.
Metallurgical tests have produced battery-grade lithium carbonate from
deposit samples. The Company trades under the symbol CLQ on the TSX and
on the U.S. OTCQX under the symbol CLQMF.
Cautionary Statement Regarding Forward-Looking Information
This press release contains 'forward-looking information' within the
meaning of applicable Canadian securities legislation. Generally,
forward-looking information can be identified by the use of
forward-looking terminology such as 'plans', 'expects' or 'does not
expect', 'is expected', 'budget', 'scheduled', 'estimates',
'forecasts', 'intends', 'anticipates' or 'does not anticipate', or
'believes', or variations of such words and phrases or statements that
certain actions, events or results 'may', 'could', 'would', 'might' or
'will be taken', 'occur' or 'be achieved'.
Forward-looking information is based on reasonable assumptions that have
been made by the Corporation as at the date of such information and is
subject to known and unknown risks, uncertainties and other factors
that may cause the actual results, level of activity, performance or
achievements of the Corporation to be materially different from those
expressed or implied by such forward-looking information.
Forward-looking information in this press release includes, among other
things, disclosure regarding the anticipated timing for completion of
the independent review and audit and the review of the existing mine
plan of the Company.
Although the Company has attempted to identify important factors that
could cause actual results to differ materially from those contained in
forward-looking information, there may be other factors that cause
results not to be as anticipated, estimated or intended. There can be
no assurance that such information will prove to be accurate, as actual
results and future events could differ materially from those
anticipated in such information. Accordingly, readers should not place
undue reliance on forward-looking information. The Corporation does not
undertake to update any forward-looking information referenced herein,
except in accordance with applicable securities laws.
To view this news release in HTML formatting, please use the following URL: http://www.newswire.ca/en/releases/archive/March2011/03/c7677.html
Peter Secker, President and CEO (416) 361-2821
Olav Svela, Director, Investor Relations (416) 361-2821 or (416) 479-4355 or email osvela@canadalithium.com
Christine Stewart, Renmark Financial Communications Inc. (416) 644-2020 or email cstewart@renmarkfinancial.com
Please visit the Canada Lithium website at www.canadalithium.com.
Corporate Office: 401 Bay Street, Suite 2010, P.O. Box 118, Toronto, ON, M5H 2Y4
