NEWS OUT !!!!!! NICE WORK Lithium One!!
Lithium One Announces Successful Short Term Pumping Tests at the Sal De Vida Lithium and Potash Project, Argentina
Date : 03/01/2012 @ 10:53AM
Source : MarketWire Canada
Stock : Lithium One Inc. (LI)
Quote : 1.2 0.0 (0.00%) @ 4:30AM
Lithium One Announces Successful Short Term Pumping Tests at the Sal De Vida Lithium and Potash Project, Argentina
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Lithium One Inc. (the "Company") (TSX VENTURE:LI), is pleased to announce the
completion of the short-term pumping test program at the Sal de Vida
lithium-potash brine project in Argentina. The program successfully identified
multiple regions within the project area that are suitable for future high-yield
production well fields.
Lithium One CEO and Founding Director, Paul Matysek commented, "We are pleased
that this first phase of pumping tests have achieved our goal of identifying the
most prospective areas to extract the high quality Sal de Vida brine. The very
high grades of lithium and potassium in the pumped brine, and the fact that our
pumping rates were only limited by the pumps themselves, bodes well for future
production. We are moving directly into the next phase of pumping, long-term
testing, to optimize our modeling and provide the necessary data for the
definitive feasibility study."
Five of the short-term pumping test wells were pumped at a steady state of more
than 16 liters per second (L/s), while the pumping rate at well SVWW11_04 was 24
L/s. For each of these wells, the maximum pumping rate during testing was
limited by pump capacity and not by aquifer limitations. The hydrogeologists
used these tests to collect detailed hydrological data on the aquifers that will
aid in the final design of productions wells. The results obtained are
considered by the hydrogeologists to be favourable. Higher pumping rates are
anticipated for future larg diameter production wells that will be able to
accommodate larger pumps.
The pumping test wells yielded brine of consistently high concentration. The
average lithium and potassium content of the brine extracted during the pumping
tests exceeded the grade of the recently upgraded mineral resource (See original
news release dated January 25, 2012). The Company geologists collected brine
samples during each constant-rate test to confirm the wells were accessing brine
with concentrations of lithium and potassium in excess of minimum requirements.
Composite results (total of 37 samples) from the 5 wells with the highest
pumping rates indicated lithium content ranging from 702 to 859 mg/l, and
averaging 776 mg/l. Potassium content for these samples ranged from 8,318 to
10,230 mg/l, and averaged 8,871 mg/l; potassium is the key element in potash.
Based on the combination of acceptably high pumping rates, consistently high
grades of brine, and favourable aquifer parameters, three regions within the
basin have been identified as potential production well fields. Two of these
areas will be evaluated with long-term pumping tests as part of the next phase
of development. The long-term pumping tests will not only simulate production
pumping, but they will also provide several key inputs to the commercial well
field design, including: sustainable aquifer production rates, improved
confidence in computed aquifer parameters for groundwater flow modeling, and
other important inputs in determining capital and operating costs.
The Company conducted short-term pumping tests ranging from 12 to 24 hours in 6-
and 8-inch diameter wells at eleven locations. These exploratory wells were
designed to test the aquifer properties both regionally and in the various
hydrogeologic units observed in the Hombre Muerto basin. The deepest screened
intervals in pumped wells extended to approximately 160 meters below surface.
Most wells were located adjacent to previously drilled core holes, which had
been cased and were used as observation wells to obtain additional information
on the hydraulic parameters of the aquifer. The constant-rate tests were
conducted using standard hydrogeologic methods where water level drawdown and
recovery were measured in both pumping and nearby observation wells. The
calculated aquifer transmissivities for the tested wells range from
approximately 10 to 250 m2/d.
Data analysis by the Company's consulting hydrogeologists indicates that several
areas of relatively high aquifer transmissivity exist and justify construction
of pilot production wells at these locations. The most favorable well field
locations identified to date are in the southwest part of the project, near the
pilot plant, in wells SVWW11_04, SVWW11_08 and SVWW11_10 (For a map of drill
hole/well locations please refer to:
www.lithium1.com/i/maps/SV_DH_LocationMap.pdf). In these areas, pumping
tests evaluated strata of halite, travertine and reworked volcanic rocks where
some of the most favorable results for flow rates and brine quality were
achieved. Additional favorable areas occur in the vicinity of exploration wells
SVWW11_07 and SVWW11_13 along the east basin margin, and in test well SVWW11_05,
along the north margin of the north sub-basin. The Company plans to conduct at
least two long-term pumping tests in these areas.
Review by Qualified Person
The contents of this news release, analytical data, and quality control
procedures have been reviewed and approved by Mr. Michael Rosko of Montgomery &
Associates Water Resource Consultants (M&A). Mr. Rosko is a Registered Geologist
in Arizona, California, and Texas and a qualified person (QP) as defined in NI
43-101. Mr. Rosko and M&A are completely independent of Lithium One, owning no
securities of any kind in the Company.
About Lithium One:
Lithium One Inc. is well positioned to be a next-generation low cost producer of
lithium and potash. The Company has two major projects advancing to feasibility
in 2012: the Sal de Vida lithium and potash brine project in Argentina and the
James Bay bulk tonnage spodumene project in Quebec. The October 2011 preliminary
economic assessment by ARA Worley Parsons for the Sal de Vida project outlined
an operation producing 25,000 tonnes pa lithium carbonate and 107,000 tonnes pa
potash, with a 28% internal rate of return ("IRR") and a US$1.066 billion net
present value ("NPV") at an 8% discount rate. End-user partners are earning a
maximum 30% project equity in Sal de Vida by funding $15M towards feasibility,
providing an off-take agreement for up to 50% of the lithium production, and
providing a completion guarantee for the debt component of the capital
development costs. Galaxy Resources is earning a maximum 70% project equity in
the James Bay Project through an earn-in agreement that includes delivery of a
feasibility study by early 2013. The Company's strategy is to draw upon its
quality team and employ best practice to develop its projects into leading
suppliers of low-cost, high quality lithium products to the global market.
ON BEHALF OF THE BOARD OF DIRECTORS,
Paul Matysek, Chief Executive Officer
Forward-Looking Statements
This document may contain "forward-looking information" within the meaning of
Canadian securities legislation (hereinafter referred to as "forward-looking
statements"). All statements, other than statements of historical fact, included
herein including, without limitation statements relating to the Preliminary
Economic Assessment, estimated capital and operating costs, productions rates,
cash flows, rates of return, mine life or mineral resources, securing of debt
for future project construction, purchase of future mine production, the timing
for completion of an NI 43-101 resource and other matters related to the
exploration and development of the Project, are forward-looking statements.
These forward-looking statements are made as of the date of this document and
the Company does not intend, and does not assume any obligation, to update these
forward-looking statements. Forward-looking statements relate to future events
or future performance and reflect management's expectations or beliefs regarding
future events. By their very nature forward-looking statements involve known and
unknown risks, uncertainties and other factors which may cause the actual
results, performance or achievements of the Company to be materially different
from any future results, performance or achievements expressed or implied by the
forward-looking statements. Factors that could cause actual results to differ
materially from those in forward-looking statements include unsuccessful
exploration results, changes in metals prices, changes in the availability of
funding for mineral exploration, unanticipated changes in key management
personnel and general economic conditions, title disputes as well as those
factors detailed from time to time in the Company's interim and annual financial
statements and management's discussion and analysis of those statements, all of
which are filed and available for review on SEDAR at www.sedar.com.
In certain cases, forward-looking statements can be identified by the use of
words 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" or the negative of these
terms or comparable terminology. Although the Company has attempted to identify
important factors that could cause actual actions, events or results to differ
materially from those described in forward-looking statements, there may be
other factors that cause actions, events or results not to be as anticipated,
estimated or intended. There can be no assurance that forward-looking statements
will prove to be accurate, as actual results and future events could differ
materially from those anticipated in such statements. Accordingly, readers
should not place undue reliance on forward looking statements.
