Canada Lithium Corp fka CLQ

[Ace Trader]

TORONTO, /CNW/ - Canada Lithium Corp. (TSX: CLQ.TO - News) (OTCQX: CLQMF.PK - News) announced today an updated National Instrument 43-101 ("NI 43-101") compliant Mineral Resource estimate for the Québec Lithium Project that indicates Total Measured and Indicated Mineral Resources have increased to 33.2 million tonnes grading 1.19% lithium oxide.
The updated Mineral Resource estimate prepared by AMC Mining Consultants ("AMC") incorporates results of the latest 56-hole, 10,300-metre drill program undertaken between June and August 2011. Table 1 below shows the updated Mineral Resource estimate for the Québec Lithium Project, reported by category, using a 0.8% Li2O cut-off grade, the same cut-off used previously by the Company and AMC for the delineation of Mineral Resources.
Table 1: Mineral Resources by Category (0.8% Li2O cut-offs)
AMC December 2011
Category Tonnes Li2O %
Measured (M) 6,914,000 1.18
Indicated (I) 26,325,000 1.19
Total M+I 33,239,000 1.19
Inferred 13,757,000 1.21
(Mineral resources that are not mineral reserves do not have demonstrated economic viability. Tonnes rounded to the nearest thousand.)
The tables below show AMC's updated estimates of Mineral Resources over a range of cut-off grades, with the preferred 0.8% cut-off estimate in bold.
Table 2a: Measured and Indicated Mineral Resources (December 2011)
Measured (M) Indicated (I) Total (M+I)
Cut-off (%) Tonnes Li2O % Tonnes Li2O % Tonnes Li2O %
0.0 9,711,000 0.98 45,920,000 0.89 55,632,000 0.90
0.6 8,028,000 1.11 33,527,000 1.09 41,556,000 1.09
0.8 6,914,000 1.18 26,325,000 1.19 33,239,000 1.19
1.0 5,356,000 1.25 18,511,000 1.31 23,867,000 1.30
(Tonnes rounded to the nearest thousand.)
The Company notes that the Measured plus Indicated Mineral Resources at a 0.6% Li2O cut-off are approximately 41.6 million tonnes at a grade of 1.09% Li2O (Table 2a). The cut-off grade used in the June 2011 Mineral Reserve modelling was 0.6% Li2O.
Table 2b: Inferred Mineral Resources (December 2011)
Inferred
Cut-off (%) Tonnes Li2O %
0.0 22,368,000 0.95
0.6 17,766,000 1.10
0.8 13,757,000 1.21
1.0 8,845,000 1.38
(Tonnes rounded to the nearest thousand. All AMC resource figures, other than those in the October 28, 2010 report in Table 3 below, are constrained by a pit shell.)
As noted previously, the drill program included both step-out and in-fill drilling with the aim of increasing the mineral resource, which has been achieved, and potentially lowering the strip ratio.
The Company will file a NI 43-101 compliant Mineral Resource estimate technical report within 45 days of this press release. The report, which will include all drill results from the latest program undertaken this past summer, will be posted on the Company's website following the filing.
Mineral Resources Update
During the period June to August 2011, the Company completed approximately 56 exploration drill holes, comprising some 10,300 metres of drilling, at the Québec Lithium Project. The purpose of the drilling program was to infill the resource within the current pit design and also to extend the ore zones along strike and at depth. This drilling was carried out to complement previous drilling programs completed in 2009 and 2010. By way of background, on February 28, 2011 the company announced the appointment of Roscoe, Postle & Associates ("RPA") to undertake a preliminary independent review of the previous October 28, 2010 Mineral Resource estimate. On March 16, 2011, the Company announced that RPA had confirmed there were significant issues with the geological modelling that had produced the Mineral Resource estimate announced on October 28, 2010. The Company subsequently appointed AMC to independently conduct a Mineral Resource estimate for the Project and expeditiously prepare a new technical report compliant with National Instrument 43-101 Standards of Disclosure for Mineral Projects. The initial AMC Mineral Resource estimate was released May 16, 2011 and the technical report was released June 10, 2011.
The December 2011 AMC Mineral Resource estimate updates all previous estimates, which are shown in Table 3, below:
Table 3: Summary of Mineral Resources Reported by Category (0.8% Li2O cut-off)
AMC December 2011 AMC May 2011 October 2010
Category Tonnes Li2O % Tonnes Li2O % Tonnes Li2O %
Measured (M) 6,914,000 1.18 6,101,000 1.16 5,654,000 1.15
Indicated (I) 26,325,000 1.19 23,194,000 1.20 41,015,000 1.20
Total M+I 33,239,000 1.19 29,295,000 1.19 46,669,000 1.19
Inferred 13,757,000 1.21 20,935,000 1.15 57,581,000 1.18
(Tonnes rounded to the nearest thousand. Both AMC resource figures are constrained by a pit shell while the October 2010 figures are not.)
The new Mineral Resource estimate will be incorporated into a new mining plan with the intention of optimising the strip ratio during the first five years of the mining operation. This work will be carried out during 2012.
The AMC Mineral Resource estimates (designated AMC December 2011 and AMC May 2011 in the table above) were prepared by Dinara Nussipakynova, P.Geo, Senior Geologist, AMC, under the supervision of J. Morton Shannon, P.Geo., Geology Group Manager and Principal Geologist, AMC. Ms. Nussipakynova and Mr. Shannon are independent Qualified Persons as defined by NI 43-101. Mr. Shannon has read and approved the contents of this press release.
Mitch Lavery, P.Geo., is the Qualified Person for the Québec Lithium Project in accordance with NI 43-101. Mr. Lavery has read and approved the contents of this press release.
The Measured, Indicated and Inferred Mineral Resource 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 December 11, 2005, and the CIM "Estimation of Mineral Resources and Mineral Reserves Best Practice Guidelines," adopted by CIM Council on November 23, 2003, in compliance with NI 43-101 guidelines.
About Canada Lithium Corp.
The Company holds a 100% interest in the Québec Lithium Project near Val d'Or, the geographical heart of the Québec mining industry. The Company plans to build an open-pit mine and processing plant on-site with capacity to produce approximately 20,000 tonnes of battery-grade lithium carbonate. Metallurgical tests have produced battery-grade lithium carbonate 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.
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.
Contacts
Peter Secker
President and CEO [phone]
Olav Svela
Director
Investor Relations [phone] or [phone] or email [e-mail]
Christine Stewart
Renmark Financial Communications Inc. [phone] or email [e-mail]
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