Pan American Lithium Corp.
TSX VENTURE : PL

Pan American Lithium Corp.

February 09, 2010 11:59 ET

Pan American Lithium Corp. Announces the Beginning of the Cierro Prieto Scoping Study

TUCSON, ARIZONA--(Marketwire - Feb. 9, 2010) - Pan American Lithium Corp. ("Pan American" or the "Company") (TSX VENTURE:PL) is pleased to announce that it has initiated a detailed sampling program as part of a comprehensive scoping study to determine the content of lithium and other light metals at the Cierro Prieto geothermal brine project in the State of Baja California Norte, Mexico.

The Cierro Prieto Project will exploit geothermal brines produced from deep wells which feed an evaporation lagoon with a surface area of 14.3 square kilometres. Pan American intends to systematically sample the concentrated brines in the lagoon and submit samples for analysis by a certified laboratory. Concurrently, Pan American intends to conduct depth measurements of the lagoon in order to determine an estimate of the volume of the lagoon and its contained brines. The Company expects to deliver the results of this phase of the scoping study sometime during the first calendar quarter of 2010. Pan American believes that, globally, these geothermal brines are potentially among the lowest cost sources of lithium and may offer the quickest route to production.

The Company 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 Cierro Prieto. Pan American is conducting this initial sampling as part of its technical and legal due diligence on the project.

Pan American also has an existing portfolio of rights in nine salars in Chile, covering a cumulative area in excess of 11,500 hectares.

On Behalf of the Board,

PAN AMERICAN LITHIUM CORP.

/s/ Andrew Brodkey
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 sample the brines and submit samples for analysis; (ii) intends to conduct depth measurements of the lagoon to determine an estimate of the lagoon and its brines; (iii) expects to deliver the results of this phase of the scoping study sometime after the first calendar quarter of 2010; and (iv) believes that the brines are potentially among the lowest cost sources of lithium and may offer the quickest route 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) adverse market conditions; (ii) a decrease in demand for and price of lithium; (iii) general uncertainties with respect to mineral exploration in general; (iv) changes in the political or regulatory environment in Chile; and (v) 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. Except as required by law, the Company does not intend to update these forward-looking statements.

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.
    Damien Lowry
    866-669-9377 (toll free)