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SAL DE LOS ANGELES PROJECT -- A lithium/potash brine project located in Argentina

11/02/2009


The Sal de los Angeles  lithium-potash brine project (previously known as the Diablillos Project) covers over 95% of the Salar de Diablillos located in Salta, Argentina at an average elevation of approximately 4,050 metres above sea level, and is comprised of 32 mining claims covering approximately 8,156 hectares.

To date, over CDN$19 million has been spent on the project, including extensive exploration and definition drilling, pump tests, seismic & gravity geophysical surveys, basin and solute transport models; all of which collectively account for the bulk of work towards an updated pre-feasibility or feasibility study on the project which is still to be completed.

The latest resource statement (dated December 22, 2011) contains a recoverable inferred brine resource of 2.8 million tonnes lithium carbonate equivalent from an in-situ inferred brine resource of 4.9 million tonnes lithium carbonate equivalent. The project also contains a recoverable inferred brine resource of 11.2 million tonnes potassium chloride equivalent from an in-situ inferred brine resource of 19.83 million tonnes potassium chloride equivalent.

On December 22, 2011, a preliminary economic assessment for the Project was completed by SRK Consulting (US) (the "PEA") which outlines an operation producing 15,000 tonnes lithium carbonate ("LC") per year and approximately 51,000 tonnes of potash ("KCl") per year, projecting a 34% internal rate of return ("IRR") pre-tax and a US$561 million pre-tax net present value ("NPV") at an 8% discount rate. The PEA also outlines the available option to increase production to 25,000 tonnes LC and 85,000 tonnes potash per year. This increased production scenario generates a much higher pre-tax NPV estimate of US$964 million, along with a pre-tax IRR of 36%.

 NI 43-101Technical Report Sal de los Angeles Project