Rodinia Lithium Inc. Completes Initial Exploration Program At Salar de Diablillos, Argentina
January 13, 2011
- DRILLING INTERSECTS 66 METRES GRADING 629 mg/L Li, 7600 mg/L K, 491 mg/L B WITH AVERAGE 3.21 Mg:Li
- EXPLORATION PROGRAM DEFINES A MINERALIZED AREA OF 32 SQUARE KILOMETRES COVERING THE ENTIRE SALAR AND MARGINS
- DRILLING AT DEPTH EXCEEDS THE PREDICTED GRAVITY MODEL
- EXCELLENT POROSITY VALUES AVERAGE 38.4% OVER THE SURVEYED STRATIGRAPHY
Toronto, Ontario, January 13, 2011: Rodinia Lithium Inc. (“Rodinia” or the “Company”) (TSX-V: RM; OTCQX: RDNAF), is pleased to report that it has completed its initial exploration program on its Salar de Diablillos lithium brine project in Salta, Argentina (“Diablillos” or the “Salar”). The Company has successfully completed 16 reverse circulation drill holes covering the Salar to depths of up to 264 metres. In addition the Company has completed surface gravity and down hole geophysical surveys that will allow the estimation of the basin volume and porosity, respectively.
William Randall, President and CEO of Rodinia, commented “this is a major milestone in the development of the Company. We now have the data required to complete an initial resource estimate, which will shift the Company into a more prominent position within the lithium mining sector. We are very excited about the results of the exploration program, having defined a mineralized area of approximately 3,200 hectares that exceeds the boundaries of the Salar itself and extends to significant depths, the majority of which is comprised of highly porous material averaging 38 percent porosity.”
Results from the last five drill holes are summarized in Table 1. The reverse circulation drill holes were drilled vertically to ensure proper representation of the stratigraphic column. As in the previous drill holes the stratigraphy is composed primarily of sands and gravels. The clay content in all holes drilled to date continues to be low to negligible. The five holes did not reach basement rock and are open at depth; in many cases the lithium grade has increased slightly at depth.
Preliminary down hole geophysical data have been received and indicate porosity values generally ranging from 20 to 60%, with an average value for all surveyed holes of 38.4%. This figure represents the void space that is potentially occupied by lithium-rich brines within the mineralized aquifers. The average porosity values for individual surveyed holes are shown in Table 2.
As previously announced (November 17, 2010) AMEC Internacional IngenierÃa y Construcción Limitada (“AMEC”) has been contracted to complete an initial mineral resource estimate for the Salar under the guidelines of National Instrument 43-101. Management anticipates being able to provide an update on this process over the next several weeks.
| Drill Hole | From (m) | To (m) | Interval (m) | Li (mg/l) | K (mg/l) | B (mg/l) | Mg:Li | SO4:Li | |
| D-RC-12 | 42 | 60 | 18 | 527 | 5867 | 603 | 3.43 | 11.73 | |
| zone open at depth | |||||||||
| D-RC-13 | 108 | 163.5 | 55.5 | 649 | 7011 | 677 | 3.56 | 13.90 | |
| zone open at depth | |||||||||
| D-RC-14 | 54 | 120 | 66 | 629 | 7600 | 491 | 3.21 | 10.78 | |
| including | artesian brine @ 102m | 540 | 6400 | 410 | 3.15 | 10.74 | |||
| zone open at depth | |||||||||
| D-RC-15 | 60 | 114 | 54 | 612 | 6082 | 582 | 3.25 | 14.43 | |
| zone open at depth | |||||||||
| D-RC-16 | artesian brine @ 76m | 600 | 6700 | 710 | 3.17 | 12.67 | |||
| and | artesian brine @ 106.5m | 600 | 6700 | 700 | 3.17 | 12.67 | |||
| zone open at depth | |||||||||
Table 2: Porosity Results
| Drill Hole | From (m) | To (m) | Interval (m) | Porosity (%) |
| D-RC-07 | 2.5 | 90.6 | 88.1 | 35.7 |
| D-RC-08 | 3.1 | 62.6 | 59.5 | 35.1 |
| D-RC-11 | 19.8 | 26.8 | 7.0 | 46.8 |
| D-RC-13 | 19.1 | 92.7 | 73.6 | 37.0 |
| D-RC-14 | 2.3 | 65.0 | 62.7 | 38.6 |
| D-RC-16 | 2.4 | 78.3 | 75.9 | 37.0 |
| Average porosity (all holes) | 38.4 | |||
A sampling procedure was enforced by management to ensure sample integrity during the drill program. Where possible, brine and sediments samples were air lifted, and water restricted to the upper part of the hole before the water table was intercepted. Once brine bearing horizons were intercepted, drilling was halted and the drilling pipe lifted 2 feet or more to allow the total flushing of the internal pipe by means of air pressure for approximately ten minutes or until the brine appeared reasonably clean of sediment. After sufficient air lifting of the brine, a sample was collected in 500 ml sample bottles that had been washed three times with the brine. Liquid was also collected in five gallon buckets and the time of filling of the bucket recorded, in order to aid in quantifying the formational flow.
The Project is supervised by Ray Spanjers, Rodinia’s Manager of Exploration. Mr. Spanjers is considered a qualified person, as defined by National Instrument 43-101, and has reviewed and approved the scientific and technical information in this release. According to the Company’s sampling protocol, sample size is to exceed 500 millilitres and be stored in clean, secure containers for transportation. The prepared samples are then forwarded to the ALS Laboratory Group, Environmental Division, in Fort Collins, Co (USA) for analysis. A rigorous QA/QC program is implemented consisting of regular insertion of standards and blanks to ensure laboratory integrity.
Rodinia Lithium Inc. is a Canadian mineral exploration company with a primary focus on lithium exploration and development in North and South America. The Company is positioned to capitalize on the expected increase in demand for lithium carbonate that is projected to result from the anticipated paradigm shift to mass adoption and use of key lithium applications like lithium-ion batteries as well as glass ceramics, greases, pharmaceuticals etc.
Rodinia is currently exploring its Clayton Valley project in Nevada, USA, which surrounds the only lithium-brine producer in North America, and its Salar de Diablillos project in Salta, Argentina.
| For further information please contact | |
| Neil Simon | Aaron Wolfe |
| Investor Cubed Inc. | Vice-President, Corporate Development |
| Tel: +1 (647) 258-3311 | Tel: +1 (416) 309-2696 |
Cautionary Notes
Except for statements of historical fact contained herein, the information in this press release constitutes “forward-looking information” within the meaning of Canadian securities law. Such forward-looking information may be identified by words such as “plans”, “proposes”, “estimates”, “intends”, “expects”, “believes”, “may”, “will” and include without limitation, statements regarding the impact of the drill program at the Diablillos property and results of such drill program; the potential of the Diablillos property; the potential results and timetable for further exploration with respect to the Clayton Valley project and the Diablillos property, the timetable with respect to future acquisitions and exploration developments at Clayton Valley and Diablillos, timetable for further exploration, analysis and development, title disputes or claims; and governmental approvals and regulation. There can be no assurance that such statements will prove to be accurate; actual results and future events could differ materially from such statements. Factors that could cause actual results to differ materially include, among others, metal prices, competition, financing risks, acquisition risks, risks inherent in the mining industry, and regulatory risks. Most of these factors are outside the control of the Company. Investors are cautioned not to put undue reliance on forward-looking information. Except as otherwise required by applicable securities statutes or regulation, the Company expressly disclaims any intent or obligation to update publicly forward-looking information, whether as a result of new information, future events or otherwise.
NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
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Analyst Opinions:
Rodinia Lithium Inc.'s (TSX.V:RM; OTCQX:RDNAF) Salar de Diablillos lithium brine project in Argentina looks like a good one to us. Again, it's one of those deposits that's been blessed by reasonably good chemistry. They've got relatively high levels of lithium. Good magnesium levels. Good sulfate levels. It should be a relatively tractable project. (Jan 2011)(12 month projection stock price: $2.25)
Jon Hykawy, Byron Capital Markets.
"Key brine asset strategically adjacent to the U.S.'s only existing lithium producer—RM holds a 100%-interest in its flagship Clayton Valley project, which we believe has high exploration potential to document aquifers with economically viable brine chemistry and volumes (low Mg:Li ratios and commercially viable Li quantities). The proximity to a major producer in a pro-mining district lowers the company's exploration and development risk, and positions it well to serve the needs of the potentially emerging EV market in the U.S.
Attractive valuation—We believe RM is well diversified with multiple brine assets. We are initiating coverage of Rodinia Minerals with a BUY recommendation and a 12-month target price of $1.80." (Mar 2010)
Michael Gray, Genuity Capital Markets
One of the lithium exploration companies that is aggressively moving to capitalize on the burgeoning demand for lithium is Rodinia Lithium Inc. (TSXV: RM). Rodinia has been busily putting the pieces together to become a significant player in the strategic metal expected to power 250 million electric cars by 2020.
Rodinia’s Diablillos project in Argentina may be a hidden gem. Based on available public information, Diablillos ranks at the top of the class amongst Argentine salars for average lithium and potassium grades, and has favorable magnesium and sulphate levels. Rodinia has secured control of 90% of the salar and 100% of the salar nucleus, ensuring a fast track through the legal and permitting processes.
Besides a top Argentine project, Rodinia has secured all the prospective lithium brine bearing land in Clayton Valley, Nevada, surrounding the Chemetall operation that is the only lithium carbonate producer in North America. In Clayton Valley, Rodinia has a significant land position, in a mining friendly jurisdiction, with significant indications of lithium that is in close proximity to a massive domestic end market for automobiles and lithium batteries. Two projects are many times better than one, and to have them in two separate but equally strategic geographies is good and something many of its competitors don’t have.
Peter Grandich - The Grandich Letter
Notes: Rodinia Lithium traded at .57 today.
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