Talison Lithium Reports Positive Results From Initial Drill Program at Salares 7 Project Results From Salar de la Isla Indicate up to 1,080 mg/l Lithium and up to 9,830 mg/l Potassium
Results From Salar de la Isla Indicate up to 1,080 mg/l Lithium and up to 9,830 mg/l Potassium
PERTH, WESTERN AUSTRALIA -- (Marketwire) -- 05/25/11 -- Talison Lithium Limited ('Talison' or the 'Company') (TSX: TLH) is pleased to announce the results from the first drill program at two of the seven salars that comprise the Salares 7 Project ('Salares 7') in Chile.
Highlights
-- Initial shallow reconnaissance drill programs completed at Salar de la
Isla and Salar de Las Parinas
-- Brine analyses at Salar de la Isla indicate:
-- up to 1,080 milligrams per liter ('mg/l') lithium, with an average
of 863 mg/l lithium; and
-- up to 9,830 mg/l potassium, with an average of 7,979 mg/l potassium
-- Brine analyses at Salar de Las Parinas indicate:
-- up to 480 mg/l lithium, with an average of 331 mg/l lithium; and
-- up to 8,210 mg/l potassium, with an average of 5,650 mg/l potassium
Peter Oliver, Chief Executive Officer, commented, 'We are excited about the results from our initial reconnaissance drill program. The results are very encouraging for the further development of Salares 7 to meet the expected future growth in demand for lithium-ion batteries in the years ahead, and support the confidence that Talison has in the potential of Salares 7. With lithium values of up to 1,080 mg/l, we believe Salares 7 has the potential to be amongst the world's best new lithium brine prospects.'
Salares 7 Overview
Salares 7 consists of seven salars (salt lakes) and playas located in the Atacama Region of Northern Chile. Five of the seven salars are 100% owned by Talison and its Chilean partners, and these five are clustered within a radius of approximately 30 kms. The salars are largely underlain and surrounded by volcanic rocks of andesitic to basaltic affinity that make up some of the 800 volcanoes located in the Andes Mountains of northern Chile.
Talison's exploration program at Salares 7 to date has included Transient Electromagnetic (TEM) geophysical surveys, regional surface water geochemical sampling programs, site access preparation and an initial shallow reconnaissance drill program on two of the salars. The location of Salares 7 is set out in Figure 1.
Note: To view 'Figure 1: Location Map Salares 7', please click the following link: http://media3.marketwire.com/docs/tlh0525a.pdf
Initial Drill Program
a) Objectives
Talison established and achieved the following specific objectives for the initial drill program:
-- Shallow reconnaissance drilling in selected areas of the two salars;
-- Formation of a well-qualified and experienced team to oversee the
drilling program; and
-- Establishment of very stringent sampling and analytical quality control
procedures to ensure integrity of the drill samples and to meet the
requirements of NI 43-101 reporting.
b) Drill Program
The initial drill program consisted of shallow reconnaissance drilling utilizing a sonic drill rig at Salar de la Isla and Salar de Las Parinas. A total of 33 holes were completed for a total of 557 metres at sites generally located between one and three kilometres apart. The maximum depth drilled was 43.5 metres and the average depth of the holes was approximately 17 metres.
c) Drill Results
A total of 91 drill hole brine samples were collected at varying depths of up to 42 metres from 26 holes located in Salar de la Isla and 7 holes located in Salar de Las Parinas. Each sample was analysed to measure relevant chemical and physical characteristics. In addition, a comprehensive protocol of standard, blank and duplicate samples formed the Quality Control/Quality Assurance program.
Continuous drill cores have been collected and geologically logged. Selected drill core samples have been submitted for laboratory determination of physical characteristics including porosity and permeability. Results are not yet available.
Samples from Salar de la Isla demonstrate lithium values ranging from 220 mg/l to 1,080 mg/l with an average of 863 mg/l, and potassium values ranging from 1,960 mg/l to 9,830 mg/l with an average of 7,979 mg/l. The drill holes and corresponding lithium values on Salar de la Isla are shown in Figure 2, and further information is contained in Table 1.
Note: To view 'Figure 2: Salar de la Isla Drill Hole Collar Plan and Lithium Results Summary', please click the following link: http://media3.marketwire.com/docs/tlh0525b.pdf
Samples from Salar de Las Parinas demonstrated lithium values ranging from 260 mg/l to 480 mg/l with an average of 331 mg/l, and potassium values ranging from 4,440 mg/l to 8,210 mg/l with an average of 5,650 mg/l. The drill holes and corresponding lithium values on Salar de Las Parinas are shown in Figure 3, and further information is contained in Table 2.
Note: To view 'Figure 3: Salar de Las Parinas Drill Hole Collar Plan and Lithium Results Summary', please click the following link: http://media3.marketwire.com/docs/tlh0525c.pdf
Further Exploration at Salares 7
The drilling completed to date at Salares 7 is considered preliminary. Wider coverage and follow-up drilling to greater depths will be required to support the definition of a potential mineral resource.
Interpretation of the shallow reconnaissance drilling results in relation to geological profiles and TEM surveys is continuing and is expected to provide input to further drill programs currently being planned for Salar de la Isla, Salar de Las Parinas and the other salars.
The next stage of exploration on site will include environmental base line studies, regional geochemical sampling programs and drill testing on a number of the salars, and is planned to commence during the summer season in Chile.
Quality Control
The brine liquid samples from the Salares 7 drill program, including randomly inserted quality control samples comprising blind standards, replicates and duplicates, were analyzed by Talison's laboratory at the Greenbushes Lithium Operations. Talison's laboratory at the Greenbushes Lithium Operations is certified ISO9002 for the preparation and analysis of various sample types, included waters.
Furthermore, the laboratory at the Greenbushes Lithium Operation has internal quality systems, which include replicate laboratory analyses, and analysis of known standards. Known solution standards and blanks are embedded in each batch and the accuracy of the calibration is monitored during the analysis of each batch.
In addition, blind standard samples from Salares 7 were submitted to several independent check laboratories in South America and North America, as a round robin test. Results for these round robin samples are being finalised at this time. However, available quality control results (discussed above) indicate that the Salares 7 dataset is valid and acceptable for the purposes of this initial reconnaissance program.
Table 1: Drill Hole Brine Sample Results - Salar de la Isla
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Salar de la Isla
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Sample
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Depth
Hole (m) SG Li Na B Ca K Mg SO4 Cl
----------------------------------------------------------------------------
g/cm(3) mg/l mg/l mg/l mg/l mg/l mg/l mg/l mg/l
----------------------------------------------------------------------------
SLI-01 8.0 1.18 720 87200 180 420 6550 4840 10700 159335
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SLI-01 17.0 1.21 860 104000 196 520 7860 5610 12300 196888
----------------------------------------------------------------------------
SLI-02 16.8 1.21 840 102000 198 520 7700 5480 11900 190987
----------------------------------------------------------------------------
SLI-03 6.5 1.21 880 104000 200 480 8260 5800 12500 198498
----------------------------------------------------------------------------
SLI-03 12.5 1.22 900 106000 200 480 8360 5870 12500 194206
----------------------------------------------------------------------------
SLI-03 18.5 1.21 900 106000 200 480 8310 5840 12400 194742
----------------------------------------------------------------------------
SLI-03 24.5 1.21 880 105000 200 500 8130 5720 12300 185086
----------------------------------------------------------------------------
SLI-03 30.5 1.2 900 105000 220 480 8280 5830 12400 188305
----------------------------------------------------------------------------
SLI-03 36.5 1.21 900 105000 200 460 8250 5810 12500 192060
----------------------------------------------------------------------------
SLI-03 39.5 1.21 860 106000 200 480 8210 5830 12500 191524
----------------------------------------------------------------------------
SLI-04 6.5 1.21 820 109000 194 520 7830 5420 11800 193670
----------------------------------------------------------------------------
SLI-04A 6.0 1.2 780 105000 182 500 7230 5040 10700 194079
----------------------------------------------------------------------------
SLI-05 6.0 1.21 880 108000 220 480 8320 5870 12400 197425
----------------------------------------------------------------------------
SLI-07 6.0 1.06 220 26100 54 220 1960 1460 2750 46710.5
----------------------------------------------------------------------------
SLI-07 12.0 1.15 580 70600 140 420 5230 4020 8730 119408
----------------------------------------------------------------------------
SLI-07 18.0 1.21 840 102000 191 460 7870 5570 11900 182940
----------------------------------------------------------------------------
SLI-07 24.0 1.21 860 107000 200 480 8170 5750 12300 189378
----------------------------------------------------------------------------
SLI-07 30.0 1.21 860 106000 200 460 8150 5770 12400 190987
----------------------------------------------------------------------------
SLI-07 36.0 1.21 860 106000 200 460 8140 5740 12200 190451
----------------------------------------------------------------------------
SLI-07 42.0 1.19 860 105000 200 460 8090 5690 11900 189914
----------------------------------------------------------------------------
SLI-08 6.0 1.21 900 110000 200 540 8500 5920 12600 187232
----------------------------------------------------------------------------
SLI-08 12.0 1.2 840 102000 199 480 7780 5550 11900 188048
----------------------------------------------------------------------------
SLI-08 15.5 1.21 840 104000 200 520 7690 5500 11200 194079
----------------------------------------------------------------------------
SLI-09 6.0 1.11 460 56000 114 680 3960 3200 7520 104795
----------------------------------------------------------------------------
SLI-09 12.0 1.2 820 101000 191 460 7540 5390 11600 194079
----------------------------------------------------------------------------
SLI-10 6.0 1.13 560 70200 142 1040 5140 3880 10200 118062
----------------------------------------------------------------------------
SLI-10 12.0 1.2 820 98500 190 500 7470 5370 11600 183017
----------------------------------------------------------------------------
SLI-10 18.0 1.21 880 104000 200 500 8130 5880 12300 190241
----------------------------------------------------------------------------
SLI-10 24.0 1.21 880 106000 220 520 8300 5940 12500 194079
----------------------------------------------------------------------------
SLI-11 6.0 1.21 880 106000 200 500 8320 5930 12700 194627
----------------------------------------------------------------------------
SLI-11 12.0 1.21 900 106000 200 500 8500 6050 12600 193966
----------------------------------------------------------------------------
SLI-11 18.0 1.21 880 103000 197 480 8240 5880 12200 193531
----------------------------------------------------------------------------
SLI-11 24.0 1.19 820 97600 180 600 7620 5490 11900 174342
----------------------------------------------------------------------------
SLI-11 30.0 1.2 840 103000 195 460 7800 5570 11700 177632
----------------------------------------------------------------------------
SLI-11 36.0 1.21 960 118000 220 500 9020 6330 13300 197917
----------------------------------------------------------------------------
SLI-12 6.0 1.21 840 103000 194 500 7860 5540 11600 198312
----------------------------------------------------------------------------
SLI-13 6.0 1.2 860 105000 187 520 8090 5580 11800 185307
----------------------------------------------------------------------------
SLI-15 6.0 1.21 1060 99600 240 380 9630 6900 14400 194627
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SLI-15 12.0 1.2 1080 100000 240 380 9820 6990 14300 191886
----------------------------------------------------------------------------
SLI-15 18.0 1.21 980 106000 220 440 9020 6360 13400 196272
----------------------------------------------------------------------------
SLI-15 24.0 1.21 900 107000 220 460 8380 5920 12500 195175
----------------------------------------------------------------------------
SLI-15 30.0 1.21 920 105000 200 440 8460 5970 12400 196272
----------------------------------------------------------------------------
SLI-16 6.0 1.22 860 106000 220 480 8180 5830 12000 197176
----------------------------------------------------------------------------
SLI-16 12.0 1.21 880 106000 220 480 8300 5920 12300 184100
----------------------------------------------------------------------------
SLI-17 6.0 1.2 820 100000 220 580 7740 5660 11800 184623
----------------------------------------------------------------------------
SLI-17 12.0 1.21 860 104000 220 500 8160 5840 12000 196653
----------------------------------------------------------------------------
SLI-18 6.0 1.22 880 105000 220 560 8230 5840 10800 198222
----------------------------------------------------------------------------
SLI-19 6.0 1.21 860 101000 196 460 7570 5500 11800 187261
----------------------------------------------------------------------------
SLI-19 12.0 1.21 920 104000 200 520 8050 5800 12200 193487
----------------------------------------------------------------------------
SLI-20 6.0 1.18 760 89200 179 360 6770 4950 11600 170019
----------------------------------------------------------------------------
SLI-20 12.0 1.2 860 102000 200 420 7690 5590 13100 185345
----------------------------------------------------------------------------
SLI-20 18.0 1.2 940 107000 280 440 8640 6130 13600 190217
----------------------------------------------------------------------------
SLI-20 24.0 1.2 960 109000 280 420 8690 6190 14700 192529
----------------------------------------------------------------------------
SLI-20 30.0 1.2 900 102000 200 400 7850 5680 13500 192529
----------------------------------------------------------------------------
SLI-21 6.0 1.2 920 106000 200 420 8110 5820 13400 196360
----------------------------------------------------------------------------
SLI-21 12.0 1.21 900 108000 220 460 8540 6150 14300 191092
----------------------------------------------------------------------------
SLI-21 18.0 1.21 920 107000 220 440 8710 6280 14100 193676
----------------------------------------------------------------------------
SLI-22 6.0 1.21 1060 107000 300 440 9830 6790 15600 192529
----------------------------------------------------------------------------
SLI-22 12.0 1.21 1040 105000 300 440 9770 6750 15200 193966
----------------------------------------------------------------------------
SLI-23 6.0 1.21 860 104000 200 440 8070 5870 12800 196839
----------------------------------------------------------------------------
SLI-23 12.0 1.21 880 109000 220 480 8300 5990 13300 193487
----------------------------------------------------------------------------
SLI-23 18.0 1.21 900 110000 220 480 8330 6000 13300 194923
----------------------------------------------------------------------------
SLI-24 6.0 1.21 960 110000 214 460 8750 6160 13500 194444
----------------------------------------------------------------------------
SLI-25 6.0 1.2 940 108000 214 460 8550 6030 13000 196429
----------------------------------------------------------------------------
SLI-25 12.0 1.21 900 104000 194 480 8250 5840 12400 195437
----------------------------------------------------------------------------
SLI-26 6.0 1.21 960 109000 214 480 8780 6170 13000 196429
----------------------------------------------------------------------------
SLI-27 6.0 1.2 940 110000 214 460 8530 5970 12800 204365
----------------------------------------------------------------------------
Table 2: Drill Hole Brine Sample Results - Salar de Las Parinas
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Salar de Las Parinas
----------------------------------------------------------------------------
Sample
----------------------------------------------------------------------------
Depth
Hole (m) SG Li Na B Ca K Mg SO4 Cl
----------------------------------------------------------------------------
g/cm(3) mg/l mg/l mg/l mg/l mg/l mg/l mg/l mg/l
----------------------------------------------------------------------------
SLP-01 6.0 1.2 260 108000 300 580 4440 2610 11000 189854
----------------------------------------------------------------------------
SLP-01 12.0 1.2 260 108000 300 580 4550 2740 11400 189854
----------------------------------------------------------------------------
SLP-01 18.0 1.21 280 110000 320 580 4580 2830 11600 185824
----------------------------------------------------------------------------
SLP-01 24.0 1.2 320 111000 360 540 5220 3290 12400 188808
----------------------------------------------------------------------------
SLP-01 30.0 1.21 300 109000 360 480 5110 3130 13800 186192
----------------------------------------------------------------------------
SLP-02 6.0 1.21 300 113000 380 480 5120 3250 13900 191946
----------------------------------------------------------------------------
SLP-02 12.0 1.21 300 108000 380 500 5020 3190 13000 188697
----------------------------------------------------------------------------
SLP-02 18.0 1.21 320 115000 420 520 5320 3320 13800 191423
----------------------------------------------------------------------------
SLP-02 24.0 1.21 320 114000 400 520 5380 3440 13700 189854
----------------------------------------------------------------------------
SLP-03 6.0 1.21 340 113000 500 360 5810 3720 17400 186715
----------------------------------------------------------------------------
SLP-03 12.0 1.21 300 112000 400 500 5270 3350 13800 189854
----------------------------------------------------------------------------
SLP-03 18.0 1.21 340 110000 440 440 5620 3620 15300 186715
----------------------------------------------------------------------------
SLP-03 24.0 1.21 340 109000 440 460 5670 3620 14600 186715
----------------------------------------------------------------------------
SLP-04 6.0 1.21 280 114000 320 480 4870 3160 12700 191946
----------------------------------------------------------------------------
SLP-04 12.0 1.21 280 115000 320 500 4950 3200 12900 192469
----------------------------------------------------------------------------
SLP-05 6.0 1.21 320 114000 420 400 5560 3370 15100 196653
----------------------------------------------------------------------------
SLP-05 12.0 1.21 360 113000 480 400 6210 3870 18100 187762
----------------------------------------------------------------------------
SLP-06 6.0 1.22 480 111000 380 420 8210 5080 16100 197318
----------------------------------------------------------------------------
SLP-06 12.0 1.21 380 118000 400 460 6770 4040 16500 191571
----------------------------------------------------------------------------
SLP-06 18.0 1.21 380 111000 420 420 6560 4030 15700 194444
----------------------------------------------------------------------------
SLP-06 24.0 1.21 400 111000 420 420 6920 4260 16300 189655
----------------------------------------------------------------------------
SLP-06 30.0 1.22 380 114000 440 440 6690 4080 15900 192050
----------------------------------------------------------------------------
SLP-07 6.0 1.21 340 109000 340 500 5750 3850 13000 188218
----------------------------------------------------------------------------
SLP-07 12.0 1.21 360 113000 340 540 5990 3980 13500 190134
----------------------------------------------------------------------------
Scientific and technical information in this press release was reviewed and approved by Andrew Purvis (BSc (Hons), MSc, MAusIMM), General Manager Geology, and a full time employee of Talison; Dr. Ian Hutcheon (PhD., P. Geo.);and Dr. Mark King (Ph.D., P. Geo.), of Groundwater Insight Inc. Dr. Hutcheon and Dr. King are independent of Talison and each is a 'Qualified Person' in accordance with National Instrument 43-101.
About Talison
Talison is a leading global producer of lithium. Talison mines and processes the lithium bearing mineral spodumene at the Greenbushes Lithium Operations in Western Australia. In addition, Talison explores for lithium at the Salares 7 lithium project made up of seven salars (brine lakes and surrounding concessions) located in Region III, Chile. Talison has an extensive, well established global customer network and a leading position in the growing Chinese market.
Cautionary Note Regarding Forward-Looking Statements
Certain information contained in this press release, including any information as to Talison's mineral reserve and mineral resource estimates, strategy, projects, plans, prospects, future outlook, anticipated events or results or future financial or operating performance, may constitute 'forward-looking information' within the meaning of Canadian securities laws. All statements, other than statements of historical fact, constitute forward-looking information. Forward-looking information can often, but not always, be identified by the use of words such as 'plans', 'expects', 'is expected', '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 information is to provide the reader with information about management's expectations and plans. Readers are cautioned that forward-looking statements are not guarantees of future performance. All forward-looking statements made or incorporated in this press release are qualified by these cautionary statements.
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: anticipated financial and operating performance of Talison, its subsidiaries and their respective projects; Talison's market position; future prices of lithium or lithium concentrates; estimation of mineral reserves and mineral resources; realization of mineral reserve and mineral resource estimates; timing, amount and costs of estimated future production; grade, quality and content of concentrate produced; sale of production; capital, operating and exploration expenditures; costs and timing of the expansion of the Greenbushes Lithium Operations; exploration and development of the Salares 7 lithium project; costs and timing of future exploration; requirements for additional capital; government regulation of exploration, development and mining operations; environmental risks; reclamation and rehabilitation expenses; title disputes or claims; absence of significant risks relating to Talison's mining operations; the costs of Talison's hedging policy; sales risks related to China; currency; interest rates, and limitations of insurance coverage. While Talison considers these factors, estimates and assumptions to be reasonable based on information currently available to it, they may prove to be incorrect and actual results may vary.
Readers are cautioned that forward-looking information involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Talison and/or its subsidiaries to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information. Such risk factors include, amount others, those described in the Financial Statements and under the heading 'Risk Factors' in the annual information form of Talison for the year ended June 30, 2010 dated January 12, 2011, each of which can be found on Talison's 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 and actual results may vary.
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 is made as of the date of this press release 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.
Contacts:
ICR, LLC
Gary T. Dvorchak, CFA
Senior Vice President
Investor Relations
1 (310) 954-1123
Gary.Dvorchak@icrinc.com
Talison Lithium Limited
Todd Hilditch
Investor Relations Director
604 443 3831
Todd.Hilditch@talisonlithium.com
www.talisonlithium.com