Pan American Lithium Corp.
TSX VENTURE : PL

Pan American Lithium Corp.

January 28, 2010 08:30 ET

Pan American Lithium Corp. Announces the Commencement of Chilean Resource Estimate Study

TUCSON, ARIZONA--(Marketwire - Jan. 28, 2010) - Pan American Lithium Corp. ("Pan American" or the "Company") (TSX VENTURE:PL) is pleased to announce that it has commenced a study at its 100% owned Laguna Verde salar in Atacama Region III, Chile, in order to develop an inferred resource estimate for lithium content compliant with National Instrument 43-101.

The Laguna Verde salar features a surface brine lake of approximately 15 square kilometres in size. Pan American intends to run depth and bathymetric surveys of the lake in order to determine an estimate of the volume of brines contained therein. The Company also intends to take representative samples from various traverses run across the lake, and have these samples analyzed by a certified laboratory, in order to enable a professional geologist to render an estimate of lithium or lithium carbonate equivalent contained therein. The Company expects to deliver the results of this study sometime during the first calendar quarter of 2010. Pan American believes the surface brines offer the potential to be of the lowest cost and quickest to production of all of its Chilean assets.

Pan American has engaged John Hiner, L.P.G., for this exercise. Mr. Hiner visited the Laguna Verde and other salars of Pan American in late 2009 and authored the NI 43-101 Technical Report on the Company's Chilean salar projects which was filed on SEDAR on November 13, 2009.

Pan American has an existing portfolio of rights in nine salars in Chile, covering a cumulative area in excess of 11,500 hectares, all accessible via serviceable roads. In addition, the Company recently announced a transaction whereby it has the option to acquire 76% of the issued and outstanding shares of Escondidas Internacional S.A. de C.V., a private Mexican company which is a party to a joint venture regarding the development of lithium products from the brine concessions at the Cierro Prieto geothermal power plant in Baja California Norte, Mexico. The Laguna Verde salar, similar to its other Chilean property interests, is subject to a 2% NSR to a maximum of US$6 million. The Company may repurchase 1% of the NSR for US$2 million prior to the commencement of commercial production.

On Behalf of the Board,

PAN AMERICAN LITHIUM CORP.

Andrew A. Brodkey, President and CEO

This press release contains projections and forward-looking information that involve various risks and uncertainties regarding future events. Such forward-looking information can include without limitation statements based on current expectations involving a number of risks and uncertainties and are not guarantees of future performance of the Company such as the statement that the Company: (i) intends to run depth and bathymetric surveys and take representative samples from various traverses run across the lake and have such samples analyzed by a certified laboratory; (ii) expects to deliver the results during the first calendar quarter of 2010; and (iii) believes the surface brines offer the potential to be of the lowest cost and quickest to production. There are numerous risks and uncertainties that could cause actual results and the Company's plans and objectives to differ materially from those expressed in the forward-looking information, including: (i) the decision or inability to close the Escondidas transaction for any reason; (ii) adverse market conditions; (iii) a decrease in demand for and price of lithium; (iv) general uncertainties with respect to mineral exploration in general; (v) changes in the political or regulatory environment in Chile; (vi) inability to raise required financing or execute the Company's business plan. Actual results and future events could differ materially from those anticipated in such information. These and all subsequent written and oral forward-looking information are based on estimates and opinions of management on the dates they are made and are expressly qualified in their entirety by this notice.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • Pan American Lithium Corp.
    Andrew A. Brodkey
    President and CEO
    604-683-8610