Wednesday, October 6, 2010
TALISON LITHIUM REPORTS STRONG YEAR-END PRODUCTION RESULTS
(Notes: Talison Lithium (“TSX: TLH”) is up 37% in first week of public trading.)
Talison also Announces Greenbushes Phase I Plant Expansion and Reserve Expansion Drilling Underway
Vancouver, British Columbia, October 5, 2010
Talison Lithium Limited (“Talison” or the “Company”) (“TSX: TLH”)
is pleased to provide the following year-end unaudited production results for its Greenbushes lithium mine (the “Greenbushes Lithium Operations”) in Western Australia.
Greenbushes Lithium Operations - Year End Production Results
The following production highlights are for the Greenbushes Lithium Operations for the financial year ended June 30, 2010:
Lithium concentrate production of 276,906 tonnes (41,000 tonnes lithium carbonate equivalent (“LCE”)), representing a 33% increase over 2009; and Lithium concentrate sales of 256,767 tonnes (38,000 tonnes LCE), representing a 19% increase over 2009.
The Greenbushes Lithium Operations finished fiscal 2010 with record lithium concentrate production. In addition, the demand for both technical and chemical grade lithium concentrate increased during 2010 as markets showed significant signs of recovery after the global financial crisis in 2009.
The Stage 1 expansion of chemical grade lithium concentrate production capacity at the Greenbushes Lithium Operations is currently underway with completion anticipated early in calendar 2011. This expansion is designed to add 50,000 tonnes per annum of lithium concentrate production capacity (8,000 tonnes LCE) to satisfy current customer demand.
Reserve & Resource Expansion Drilling Program
In September 2010 Talison initiated a drill program at the Greenbushes Lithium Operations with the aim of significantly increasing its lithium reserves and resources. An updated reserve and resources statement is currently planned to be completed during the second calendar quarter of 2011.
Talison’s current proven and probable mineral reserves total 9.6Mt at a grade of 3.9% Li2O. The measured and indicated mineral resource (inclusive of the mineral reserves) totals 22.0Mt at a grade of 3.7% Li2O. Talison’s current mineral resources and mineral reserves at the Greenbushes Lithium Operations are set out in its entirety in the tables below.
Measured Mineral Resource
Indicated Mineral Resource
Total Measured and Indicated Mineral Resource
Inferred Mineral Resource
Notes: Mineral Resources include Technical Grade ore type at a 4% Li2O block cut-off (and Fe2O3<0.1%) and Chemical Grade ore type at a 3.2% Li2O block cut-off; Mineral Resources estimated by Ordinary Kriging into 20mNx20mEx5mRL parent blocks; stockpiles included as Measured Mineral Resources; some rounding errors in totals; Lithium domains are drawn at a 2.8% Li2O grade boundary.
Total Proven Mineral Reserve
Total Probable Mineral Reserve
Total Proven and Probable Mineral Reserve
Notes: Proven Mineral Reserves comprise exclusively ROM stockpiles; some rounding errors in totals; Mineral Reserves at June 30, 2009 depleted by production of 431,000t to March 31, 2010; further depletion of the Mineral Reserves of 212,190t has occurred during the production period from April 1, 2010 to June 30, 2010 but the Mineral Reserves have not been updated from March 31, 2010.
Talison is an international mining company that is listed on the Toronto Stock Exchange. Talison is the leading global producer of lithium. Talison mines and processes the lithium bearing mineral spodumene at the Greenbushes Lithium Operations in Western Australia which has been in production for in excess of 25 years. During this time the operation has continually expanded as market demand warrants and based on current reserves and production plans boasts a mine life of in excess of 12 years. Talison is the primary supplier to the Chinese Lithium chemical producers, who in turn are the major suppliers to the Chinese battery market. In addition, Talison explores for lithium in Chile at the Salares 7 lithium project made up of seven salars (brine lakes that are prospective for sub-surface lithium and potassium) and the surrounding concessions in Region III, Chile. Talison also has an extensive, well established global customer network and a leading position in the growing Chinese market.
For further information please contact:
Talison Lithium Limited
Investor Relations Director
Talison Lithium Limited
Tel: 604 443 3831
Certain information contained or incorporated by reference in this press release, including any information as to Talison’s strategy, projects, plans, prospects, future outlook, anticipated events or results or future financial or operating performance, constitutes “forward-looking statements” within the meaning of Canadian securities laws. All statements, other than statements of historical fact, are forward-looking statements. Forward-looking statements can often, but not always, be identified by the use of words such as “plans”, “expects”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates”, “predicts”, “potential”, “continue” or “believes”, or variations (including negative variations) of such words; or statements that certain actions, events or results “may”, “could”, “would”, “should”, “might”, “potential to”, or “will” be taken, occur or be achieved or other similar expressions concerning matters that are not historical facts.
The purpose of forward-looking statements is to provide the reader with information about management’s expectations and plans for 2011 and subsequent years. Actual results may vary.
Forward-looking statements are necessarily based on a number of factors, estimates and assumptions that, while considered reasonable by Talison, are inherently subject to significant business, economic and competitive uncertainties and contingencies. Such factors, estimates and assumptions include, but are not limited to, lithium market and lithium concentrate prices; sales risks related to China; currency risks; dependence on limited mining properties; uncertainty in the estimation of mineral reserves and mineral resources; uncertainty relating to inferred mineral resources; production and operating risk; uncertainty relating to production estimates; total cash cost of lithium concentrate production; environmental risks and hazards; licenses and permits; uncertainty relating to remediation costs; proposed Australian mineral resource rent tax; government regulation; lithium exploration and exploitation in Chile; uncertainty relating to land over-staking; availability of water rights; human resources availability and retention; native title; aboriginal heritage; no assurance of titles or boundaries; exploration and mining tenements forfeiture; exploration risk; counterparty risk; concentrated customer base; risks to the Greenbushes Lithium Operations as a result of Talison’s recent reorganization; insurance and uninsured risks; impairment of asset carrying values; general economic condition, business environment and other risks; financing requirements; control risk; dividend policy; director and officer conflicts of interests; difficulty enforcing judgements and effective service of process; volatile market for ordinary shares; and future sales of ordinary shares by Talison’s founding shareholders. These risks and uncertainties are fully described in detail in Appendix “D”, Information Concerning Talison Lithium Limited, to the Management Information Circular of Salares Lithium Inc. (“Salares”) dated August 20, 2010, which can be found on Salares’ SEDAR profile at www.sedar.com. While Talison considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect.
Readers are cautioned that forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Talison and/or its subsidiaries, including costs, production and returns, to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. These factors are fully discussed in Appendix “D”, Information Concerning Talison Lithium Limited, to the Management Information Circular of Salares dated August 20, 2010, which can be found on Salares’ SEDAR profile at www.sedar.com. Readers are cautioned that forward-looking statements are not guarantees of future performance. All of the forward-looking statements made or incorporated in this press release are qualified by these cautionary statements.
Although Talison has attempted to identify statements containing important factors that could cause actual actions, event or results to differ materially from those described in forward-looking information, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended.
Forward-looking information contained herein are made as of the date of this document based on the opinions and estimates of management on the date statements containing such forward looking information are made. Except as required by law, Talison disclaims any obligation to update any forward-looking information, whether as a result of new information, estimates or opinions, future events or results or otherwise. There can be no assurance that forward-looking 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.
Certain technical information in this press release has been summarized or extracted from the technical report in respect of the Greenbushes Lithium Operations titled “Greenbushes Lithium Operations in Western Australia – Australia” dated July 26, 2010 (the “Technical Report”) prepared by Peter D. Ingham, Adrian J. Brett, and Ian R. White of Behre Dolbear Australia Pty Limited, and Scott Jackson of Quantitative Group Pty Limited, each of whom is an independent “Qualified Person” as defined in National Instrument 43-101 Standards of Disclosure for Mineral Projects. Scientific and technical information contained in this press release has been prepared under the supervision of Andrew Purvis, BSc (Hons), MSc, MAusIMM, Group Geologist of Talison whom is a “Qualified Person” as defined in National Instrument 43-101. Readers are cautioned not to rely solely on the summary of information contained in this release, but should read the Technical Report which is posted on Talison’s website at www.talisonlithium.com and filed under Talison’s SEDAR profile at www.sedar.com and any future amendments to such report. Readers are also directed to the cautionary notices and disclaimers contained therein
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