Pan American Lithium Corp. Completes First Phase Exploration Program at the Llanta, Chile Aquifer Project
December 06 2011 - 9:15AM
Pan American Lithium Corp. (TSX‐V:PL)
(OTCQB:PALTF)
("Pan American" or the "Company"),
www.panamericanlithium.com, is pleased to announce completion of
the Phase 1 exploration program at the Llanta, Chile Aquifer
Project. Montgomery & Associates of Tucson, Arizona, experts in
hydrology and with substantial experience in the evaluation of
lithium and other salts projects in South America, supervised the
exploration program at the Llanta Aquifer Project.
Exploration Program
Exploration was conducted during October and November 2011 and
consisted of a reverse circulation drilling program and transient
electromagnetic geophysical surveys. Exploration was conducted
in a 16 km-long canyon located between the towns of Diego del
Amagro and Llanta, which is part of a larger drainage system and
aquifer receiving saturated salt brines from a surface stream,
flowing in from the Rio de la Sal surface stream and other brines
that have been transported historically and over geologic time from
the Pedernales brine salar, which is Chile's second
largest. The geophysical program tested the aquifer for
brine-bearing capacity, and the well drilling program tested brine
quality and host rock parameters, including lithology, aquifer
depth and thickness, porosity and permeability, composition and
storage capacity of underlying alluvium, preliminary distribution
and quality of brines, preliminary estimates of brine yield, and
analysis for content of lithium, potassium, and other metals of
interest.
Under the supervision of Montgomery & Associates, a total of
four boreholes were drilled over a total of 342 meters. Of
these five, three boreholes in the main basin encountered brine and
the two boreholes in the valley east of the main Llanta basin did
not encounter brine. Brine fluid samples were obtained at
selected depths during drilling and were submitted for laboratory
chemical analyses to Alex Stewart Laboratories in Mendoza,
Argentina.
Zonge Ingeneria y Geofisica S.A. of Antofagasta Chile performed
a series of four transient electromagnetic ("TEM") surveys,
covering 10.2 line-Km focusing mainly on the west end of the Llanta
basin. These TEM surveys showed that a low resistivity zone occurs
in several parts of the basin, representing a porous aquifer
consisting of saturated basin-fill sediments.
Preliminary Results from Field and Laboratory
Activities
- Lithology of the Llanta basin appears to be mostly medium to
coarse grained basin fill deposits.
- Hydrogeologic bedrock at the locations drilled appears to be a
welded and poorly permeable volcanic tuff.
- Depth to water is variable, but seems to be about 50 meters
based on both drilling and geophysical surveys.
- Geophysics suggested that brine may exist at other locations in
the valley adjacent to the Llanta basin.
- The laboratory results (based on 4 samples) were fairly
consistent with Li grade averaging close to 140 mg/liter and K
grade at 1575 mg/liter.
As the Phase 1 exploration program encountered brines,
Montgomery & Associates has recommended a follow-up Phase 2
exploration program, including additional geophysics to better
define the eastern valley at Llanta, and the completion, casing and
pump testing of 6 small diameter wells. The Company anticipates
that this Phase 2 exploration will be scheduled for the first
quarter of 2012.
Montgomery also recommended that the Company investigate the
possibility of conveying brines pumped from the Company's holdings
at the Salar de Pedernales directly to Llanta for processing, using
the existing Rio de la Sal watercourse, and initiate a drill
program and TEM surveys at Pedernales. The Company currently
has 5,100 hac. of mineral exploration concessions, and rights in
over 17,000 hac. of senior water rights applications at the Salar
de Pedernales.
Existing Infrastructure at Llanta
The Llanta Aquifer Project has existing infrastructure
including: a paved road running through the project; a high voltage
power line running through the project, with sub-stations at Llanta
and Diego del Amagro; a local trained workforce located 5 minutes
from the project; an operating railway running through the project;
and a major port located approximately 40 miles distant. At
3,000 feet elevation, Llanta is also 10,000 feet or more lower in
elevation than other brine salts targets in the region, and
comparable brine salts targets in Argentina, which provides for a
year-round operating environment without the difficulties inherent
in high altitude operations.
Review by Qualified Person and Quality
Control
The contents of this news release have been reviewed and
approved by Mr. Michael Rosko, R.P. Geo. Mr. Rosko is a Registered
Professional Geologist in the State of Arizona and a qualified
person (QP) as defined in National Instrument 43‐101 and has
visited the Llanta Aquifer Project and the Salar de
Padernales. Mr. Rosko is independent of Pan American and owns
no securities in the Company.
About Pan American
In total Pan American has rights in eleven lithium-bearing
salars in Chile's Atacama Region III covering cumulatively more
than 20,000 hectares. The Company also has an option to acquire an
indirect interest in the Cierro Prieto geothermal lithium brine
project in Baja California Norte, Mexico. The Laguna Verde surface
brine lake project is the most advanced of the Company's portfolio
of 11 lithium and potassium bearing brines projects in Chile, and
has previously been the subject of a National Instrument 43-101
compliant inferred resource estimate which reported over 512,000
tonnes of lithium carbonate equivalent and over 4.2 million tonnes
of potash contained in the surface lake alone.
On Behalf of the Board
PAN AMERICAN LITHIUM CORP.
/s/ Andrew Brodkey
Andrew A. Brodkey President and CEO Tel: (520) 623‐3090
Neither 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
This press release contains projections and forward-looking
information that involve various risks and uncertainties regarding
future events. Such forward-looking information can include without
limitation statements based on current expectations involving a
number of risks and uncertainties and are not guarantees of future
performance of the Company, such as the statements that: the
Company anticipates the Phase 2 program will be scheduled for the
first quarter of 2012. There are numerous risks and uncertainties
that could cause actual results and the Company's plans and
objectives to differ materially from those expressed in the
forward-looking information, including: (i) adverse market
conditions; (ii) a decrease in demand for and price of lithium;
(iii) the inability to obtain, or a change in local governmental or
regulatory approval or policies that may adversely affect the
exploration work; and (iv) general uncertainties with respect to
mineral exploration in general. Actual results and future events
could differ materially from those anticipated in such information.
These and all subsequent written and oral forward-looking
information are based on estimates and opinions of management on
the dates they are made and are expressly qualified in their
entirety by this notice. Except as required by law, the Company
does not intend to update these forward-looking statements.
CONTACT: George McIntyre
CEOcast, Inc.
Tel: (212) 732-4300
gmcintyre@ceocast.com
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