Black Pearl Minerals Consolidated Inc.

Black Pearl Minerals Consolidated Inc.

December 19, 2007 14:10 ET

Black Pearl Acquires Lithium Deposit in Manitoba

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 19, 2007) - Black Pearl Minerals (TSX VENTURE:BLK) has signed an Agreement with Strider Resources whereby it can acquire a 100% ownership position in the Thompson Bros. Lithium Deposit near Snow Lake, Manitoba. Black Pearl Minerals considers that the acquisition of the Thompson Bros. Lithium Project to be a unique business opportunity as the outlook for lithium carbonate in terms of demand and price has improved dramatically due primarily to the anticipated growth in the lithium product market as a result of the use of lithium ion batteries in hybrid motor vehicles.

The Thompson Bros. Lithium Deposit

The Thompson Bros. Lithium Deposit is located on the eastern shore of Crowduck Bay, Wekusko Lake, 20 km east of the mining community of Snow Lake, Manitoba. The main highway to Thompson and Flin Flon, plus the railway to the Winnipeg and the seaport of Churchill passes 40 km south of the property. The property consists of 12 contiguous claims covering 717 hectares. Manitoba is one of the top rated mining jurisdictions in the world and electricity costs are amongst the lowest in North America.

The lithium deposit is a spodumene rich pegmatite dike with a near vertical dip and a strike length of over 800 meters. The dike was originally drilled in 1956 by Combined Developments Limited, with three additional holes drilled by Carta Resources Limited in 1997; for a total of 30 drill holes. A resource calculation made by B. Ainsworth, P. Eng. in 1998, resulted in an "undiluted drill indicated mineral resource" of 3,968,000 tonnes with a weighted average value grade of 1.29% LiO2 to the 130 meter level, and an average width of 10 meters. A further 337,000 tonnes is indicated by the deepest hole (D.H. Car-97-2), to the 380 m level, which is over 200 meters from the nearest hole, and which cut a horizontal width of 8 m of 1.3% LiO2. Thus, Ainsworth suggests a total drill indicated and possible total resource calculation of 4,305,000 tonnes of 1.3% LiO2 for the deposit, open to depth and along strike. The 1998 resource calculation is historical and not National Instrument 43-101 compliant as it was completed prior to the implementation of these requirements. However, given the quality of the work completed, the company believes the resource estimate to be relevant and reliable. In addition, a qualified person has not done sufficient work to classify the historical estimate as a current mineral resource and the issuer is not treating the historical estimate as current. Hence, the historical estimate should not be relied upon.

A metallurgical evaluation of the spodumene deposit by Dr. W. Dressler of Laurentian University indicated that simple floatation would recover 92% of the spodumene and produce a concentrate grading 6.6% LiO2 or 89.2% spodumene. Carta Resources completed a business plan to develop the Thompson Bros. Lithium Deposit for the production of lithium carbonate, but a decline in lithium carbonate prices stalled the project in 1998.

A 100% interest in the property can be earned by issuing an aggregate of 1 million common shares and making $500,000 in option payments over 4 years; and completing a work commitment of $2.85 million over 6 years. In the first year of the agreement, the company is required to make $75,000 in option payments, issue 400,000 shares, and complete a work commitment of $100,000. Upon commercial production, there is also a one-time payment of $250,000 and a CPI indexed royalty of $0.50 per tonne of mined ore.

Black Pearl will proceed with Scoping Study level activities to develop a business plan for the Thompson Bros. Lithium deposit. Mitch Lavery (P.Geo), is the Company's qualified as required under NI 43-101 and has reviewed the technical information contained in this press release.

Shares Outstanding: 42,365,301

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Black Pearl Minerals Consolidated Inc.
    Robert Sibthorpe
    (604) 306-9889
    Black Pearl Minerals Consolidated Inc.
    Judy Baker
    (416) 587-7268
    Black Pearl Minerals Consolidated Inc.
    Andrew Cook
    (604) 218-5656
    Black Pearl Minerals Consolidated Inc.
    Jim MacDonald
    Corp. Communications
    (604) 602-4935