Canadian Orebodies Inc.

Canadian Orebodies Inc.

March 04, 2010 09:00 ET

Orebodies to Acquire 80% Interest in Zigzag Lithium/Rare Metals Property

TORONTO, ONTARIO--(Marketwire - March 4, 2010) - Canadian Orebodies Inc. (TSX VENTURE:CO) ("Orebodies") is pleased to announce that it is has entered into an Option Agreement (the "Option") with Ultra Lithium Inc. ("Ultra") and the underlying property owners (the "Owners") to acquire an 80% legal and beneficial interest (subject to a 2% NSR retained by the Owners, 50% of which can be purchased by Orebodies for $1,000,000) in the Zigzag Lithium, Tantalum, Beryllium, Gallium property (the "Property"). The Property in total consists of 129 claim units comprising 2,064 hectares, located approximately 60 km northeast of Armstrong, Ontario.

About the Property:

The Property is tied directly onto Linear Metals Corp. (TSX:LRM) Seymour Lake Lithium/Tantalum/Beryllium property and is in the general area of Orebodies' Falcon and Despard Lithium properties.

This is a key property acquisition for Orebodies that holds great potential in this very prospective lithium/rare metal pegmatite field. The Property significantly adds to Orebodies land position by nearly doubling its interest in the area again and bringing Orebodies total land holdings to over 4,300 hectares.

The property hosts 5 different showings of interest as listed below:


  • Consists of sub parallel pegmatite lenses*
  • Channel cuts across No. 2 lens averaged 1.28 percent Li2O across 32 feet (Hoiles 1958)*
  • The No. 4 lens has been channel-sampled at intervals throughout a length of 500 feet. According to Hoiles (1958), it averages 1.65 percent Li2O across a mean width of 22 feet*
  • Breaks (2003) stated that the majority of the tantalum-oxide minerals in the Crescent Lake pegmatite group are manganotantalite. Individual analysis of manganotantalite from Tebishogeshik Lens 3 exceeded 80 weight % Ta2O5 and were amongst the highest documented in lithium-rich pegmatite of Ontario.

Dempster East

  • Six channel samples were cut across the deposit by Dempster Explorations Limited. These samples indicated an average grade of 1.88 percent Li2O (Hoiles 1958).*
  • Three samples, cut near the southeast end of the occurrence averaged 1.78% Li20 across a width of 4.1 m.*

Dempster L28

  • Similar mineralogy as Tebishogeshik, contains prismatic spodumene crystals up to 10 cm in length*

Ketchican Road Beryl Occurance

  • muscovite bulk sample revealed anomalous levels of most rare metals; Lithium, Cesium, Tin, Niobium and Tantalum.**
  • this beryl occurrence could be part of a larger, zoned, rare-element pegmatite dike swarm.**

Bird River Potential No. 1

  • Dr. Anderson (1975) stated that geochemical sampling of the host rocks adjacent to the lithium rich pegmatite zones showed a dramatic increase in the trace lithium content.

*(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).

**(historical in nature and not 43-101 compliant and therefore should not be relied upon- the information was taken from Open File Report 6195, Fertile and Peraluminous Granites and Related Rare-Element Mineralization in Pegmatites, North-Central and Northeastern Superior Province, Ontario by F.W. Breaks, J.B. Selway and A.G. Tindle 2006)

In order to earn its interest in the Property, Orebodies is required to:

  1. Pay to Ultra $100,000 over a 4 year period.
  2. Issue to Ultra an aggregate amount of 650,000 common shares of Orebodies over a 4 year period and issue to the Owners an aggregate amount of 150,000 common shares of Orebodies on TSXV approval.
  3. Fund $350,000 of exploration expenditures on the property over a 4 year period.

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.

Forward Looking Information:

Some of the statements and information contained herein may be forward-looking information which involve known and unknown risks and uncertainties, including statements respecting the proposed acquisition of the claim units pursuant to the option. Without limitation, statements regarding the potential option 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 option will be fulfilled and a definitive joint venture 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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