Canadian Orebodies Inc.
TSX VENTURE : CO

Canadian Orebodies Inc.

October 22, 2009 10:04 ET

Orebodies to Acquire 100% Interest in 5 Lithium/REE Properties

TORONTO, ONTARIO--(Marketwire - Oct. 22, 2009) - Canadian Orebodies Inc. (TSX VENTURE:CO) ("Orebodies") is pleased to announce that it is has entered into a Letter of Intent ("LOI") to acquire 100% legal and beneficial interest (subject to a 2% NSR retained by the vendor, 50% of which can be purchased by Orebodies for $1,000,000) in 5 separate Lithium/REE properties (the "Properties"). The Properties in total consist of 111 claim units comprising 1,776 hectares, all which are located in Ontario.

About the Properties:

The Vegan and Niemi South properties are both located approximately 150 km northeast of Thunder Bay in an area which is host to numerous known Lithium deposits and REE bearing pegmatites including those held by Lithium One Inc. (TSX VENTURE:LI) and TNR Gold Corp. (TSX VENTURE:TNR).

Vegan Property:

The Vegan property consist of 16 claim units and covers the Vegan lithium deposit which is considered as the extension of and tied directly onto the Newkirk lithium deposit reported to host 750,000 tons of pegmatite estimated to have an average grade of 1.38 percent Li20*. Historical results on the property include:

  • The Vegan No. l deposit has been traced in outcrops and in 19 diamond drill holes, aggregating 2,423.3 feet, over a length of about 700 feet*.
  • the central Lithia rich section of the deposit, reported on the basis of surface sampling to average 1.5 percent Li2O over a length of about 200 feet*.

Niemi South Property:

The Niemi South Property consist of 16 claim units which tie directly onto the southern boundary of the Niemi Lithium deposit held by TNR Gold Corp.. Historical results on TNR's Niemi include:

  • Drill hole which intersected 15.5 feet of pegmatite averaging 1.02 percent Li20; and the central section, 5 feet in core length, was found on analysis to contain 2.0 percent Li20*.

*(historical in nature and not 43-101 compliant and therefore should not be relied upon - the grade and tonnage estimates for the deposits was taken from the Ontario Department of Mines, Geological Report No. 31, Georgia Lake Area, by E.G. Pye, 1965).

The Falcon Lake and Despard properties are both located in the general area of Linear Metals Corp. (TSX:LRM) Seymour Lake Lithium/Tantalum/Beryllium Property, approximately 60 km northeast of Armstrong, Ontario.

Falcon Lake Property:

The Falcon lake property consists of 48 claim units which cover 3 historic lithium deposits known as the Falcon Discovery, Falcon East and Falcon West. Historical results on the deposits include:

  • Falcon East - One drill hole which encountered 18 feet of pegmatite, which was found on analysis to average 1.13 percent Li2O (Donaldson 1956)**.
  • Falcon West - One hole intersected 60 feet of pegmatite, of which 35 feet was found to average better than 1.0 percent Li20 (Donaldson 1956)**.

Despard Property:

The Despard property consists of 16 claim units which cover the Despard Lithium deposit. Historical results on the deposit include:

  • One drill hole cored 30.2 feet of unaltered spodumene pegmatite, of which 20.0 feet was found on analysis to average 1.68 percent Li20**.
  • A second drill hole cored 63.5 feet of unaltered spodumene pegmatite, including two sections, one 6.6 feet long, the other 9.0 feet long, grading 1.70 and 1.53 percent Li2O respectively (Middleton 1959)**.

**(historical in nature and not 43-101 compliant and therefore should not be relied upon - the grade and tonnage estimates for the deposits was taken from the Ontario Department of Mines, Geological Report No. 55, Crescent Lake Area, by E.G. Pye, 1968).

Greenbush Property:

The Greenbush property consists of 15 claim units and is located approximately 113 km northwest of Armstrong, Ontario and covers a known Lithium/REE occurrence in a relatively unexplored area. Historical results on the property include:

  • A 50 foot chip sample returned 1.25% Li2O with trace REE's including beryllium, cesium and rubidium***.
  • A grab sample taken in 1980 returned a value of 2.46% LiO2***.

***(historical information, not 43-101 compliant and therefore should not be relied upon was obtained from archived files and reports obtained from the Ontario Ministry of Northern Development and Mines (MNDM).)

In order to complete the purchase of 100% interest in the Property, Orebodies is required to issue an aggregate amount of 1,600,000 common shares of Orebodies and issue 1,600,000 share purchase warrants, each warrant entitling the holder to acquire one common share of Orebodies at an exercise price of $0.15 per share for a period of two years from closing.

This press release has been prepared under the supervision of Mr. Don Hains (P.Geo.), who is an independent consultant to the Company and a "qualified person" (as such term is defined in National Instrument 43-101). Mr. Hains has verified the technical data disclosed in this press release.

Closing of the transaction remains subject to the approval of the TSX Venture Exchange and the execution of a definitive purchase agreement.

Forward Looking Information:

Some of the statements and information contained herein may be forward-looking information which involves known and unknown risks and uncertainties, including statements respecting the proposed acquisition of the claim units pursuant to the purchase. Without limitation, statements regarding the potential purchase of the claims, statements regarding potential mineralization and resources, proposed exploration activities and future plans and objectives of Orebodies are forward looking statements that involve various degrees of risk. The following are important factors that could cause Orebodies actual results to differ materially from those expressed or implied by such forward looking statements: changes in the world wide price of mineral commodities, general market conditions, the uncertainty of access to capital. In particular, there can be no assurance that the definitive purchase agreement will be entered into, that TSX Venture Exchange approval of the purchase will be obtained, or that Orebodies will undertake any or all of the payments or issuances necessary to complete the purchase.

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