HENDERSON, NV, Oct. 6 /PRNewswire/ -- AmeriLithium Corp. (OTC Bulletin Board: AMEL; "AmeriLithium" or "the Company") is pleased to announce rough preliminary volume estimates of up to 26,000 tons of potential Lithium resource underlying the Company's Paymaster Canyon Lithium brine project in Nevada, USA. With Lithium carbonate trading in the range of $5,500-$6,000 per metric tonne according to a Q3 report by Resource Capital Research,(1) AmeriLithium's potential Lithium resource on this single Nevada property could represent a market valuation from $132.8 to $144.9 million. The Company's Lithium holdings also include two other Nevada-based projects nearby, as well as more sizeable claims in Canada and Australia.
The Paymaster estimates were made to determine if the project's potential Lithium resource warranted further investigation, as well as to guide decisions involving the scope and nature of the Company's proposed drilling program. Motivated by the very positive nature of the Paymaster Lithium brine estimates, the AmeriLithium team is already in the final stages of putting together a 10-hole drill program, and will be releasing details on the program in the near future.
"Time is of the essence in maximizing the very large potential yield of our Paymaster project, followed by our other two Nevada-based projects, and our international projects in turn," commented Matthew Worrall, Chief Executive Officer of AmeriLithium. "The Resource Capital Research (RCR) report also stated '[t]here is an opportunity for developers, with projects that are advanced or can be fast tracked, to gain market share as demand increases,' and we plan to be among those developers." Worrall also added, "Seeing as the RCR report indicated Lithium carbonate prices are already up from the 2009 average of $5,300 per tonne, and are expected to reach $6,757 per tonne by 2015, our Paymaster project's estimates could point to a potential valuation that even exceeds $163 million."
PAYMASTER PROJECT BACKGROUND
AmeriLithium's domestic Paymaster Project represents a 5,880-acre claim block adjacent to the Clayton Valley playa, where Lithium-rich brines and evaporates have been accumulating for more than 30,000 years, resulting in the highest Lithium content found in any brines tested by the US Geological Survey (USGS) in southwestern US playas and basins.(2)
Clayton Valley is home to the only US-based Lithium producing plant, operated by neighboring Chemetall Foote Corporation, a subsidiary of Rockwood Holdings, Inc. The plant has been in production since 1967, producing an estimated 50 million kg (55,000+ tons) of Lithium to date from the region's rich brines.(3)
PAYMASTER RESOURCE ESTIMATE DETAILS
Robert Allender, AmeriLithium's VP of Exploration and Chief Geologist, commented on the Paymaster estimates, clarifying that the estimates are not CNI 43-101 compliant, and, as such, should not be relied upon for other purposes. Furthermore, sufficient testing has not yet been completed for a Qualified Person to make definitive determinations.
Mr. Allender went on to indicate that, based on the dimensions of the depression as measured from the gravity survey results, the "trap" that could contain Lithium-bearing brines could have a volume of from 320 to 1,138 million cubic meters. Depending on the size and configuration of the depression, the amount of water contained within the depression, and the concentration of Lithium and other constituents in the water, the Paymaster Canyon property could contain up to 24,142 tonnes (up to 26,000 tons) of Lithium.
The estimates are based on the interpretation of geophysical investigation results and preliminary assumptions derived from available published reports on the Clayton Valley area Lithium resources. Assumptions have been made concerning the dimensions of the bedrock depression, the nature and extent of high EM conductivity zones, the presence of Lithium-enriched brine, the amount of water contained within the trap, and the concentration of Lithium in the groundwater. No consideration for stratigraphic confinement of Lithium-bearing groundwater has been included, and the entire sequence was assumed to be saturated to a degree.
Further investigation and drilling will be necessary to define critical geochemical and hydrogeologic parameters such as Lithium and other constituent concentrations and porosity, permeability, and storativity, along with other groundwater characteristics that will allow the Company to more accurately determine the Lithium resource.
FOR MORE INFORMATION
More information on the Paymaster Project's resource potential and drilling program, and additional information regarding the Company, can be found at AmeriLithium's corporate website www.amerilithium.com along with the facility to sign up for regular news updates.
ABOUT LITHIUM: Lithium is a lightweight metal used in a wide range of consumer products the world over: the medical industry uses Lithium as an anti-depressant; industrial uses include glass, ceramic and porcelain enamel manufacture; the aviation industry uses Lithium in alloys. Of particular interest is the use of Lithium for battery production, which has expanded significantly in recent years due to rechargeable Lithium batteries being used increasingly in electrical tools and in the rapidly expanding portable electronics market. Furthermore, the next generation of hybrid and electric vehicles are being designed to use high-capacity Lithium-ion batteries as environmentally-friendly fuel alternatives while the Obama administration has introduced $5 billion in funding and incentives for the development of a secure, domestic battery industry with special focus on Lithium-ion batteries.
ABOUT AMERILITHIUM: AmeriLithium is a publicly traded (NASD OTC BB: AMEL), mining company committed to progressively developing into one of the leading American players in the global Lithium industry. The Company is headquartered in Henderson, NV. AmeriLithium has amassed a Lithium portfolio consisting of ~724,000 acres, including three Nevada-based projects nearby the only Lithium producing plant in the US, a large project in Alberta, Canada, and a project in Western Australia.
ON BEHALF OF THE BOARD OF DIRECTORS,
Matthew Worrall, Chief Executive Officer
Certain statements in this press release are forward-looking and involve a number of risks and uncertainties. Such forward-looking statements are within the meaning of that term in Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. AmeriLithium Corp. bases these forward-looking statements on current expectations and projections about future events, based on information currently available. The forward-looking statements contained in this press release may also include statements relating to AmeriLithium Corp.'s anticipated financial performance, business prospects, new developments, strategies and similar matters. AmeriLithium Corp. disclaims any obligation to update any of its forward-looking statements, except as may be required by law.
(1) Resource Capital Research - Rare & Minor Minerals Review 3Q10 Abridged (http://www.rcresearch.com.au/documents/rare-and-minor-metals/reports/0/australia/)
(2) NI 43-101 Technical Report by Coast Mountain Geological Ltd for Rodinia Minerals Inc, Mar. 12, 2009
(3) Rodinia Minerals Inc website, Feb. 25, 2009
SOURCE AmeriLithium Corp.