Salares Lithium Inc.

TSX VENTURE : LIT


Salares Lithium Inc.

March 08, 2010 06:00 ET

Salares Lithium's Geophysical Survey Delineates Brine Bearing Horizon

TEM Survey Calculates Volume of 2.5 to 5.4 Billion Kilolitres For Northern Salar de La Isla

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 8, 2010) - Salares Lithium Inc. (TSX VENTURE:LIT) (the "Company") is pleased to report the results of the first phase of a transient electromagnetic survey ("TEM") completed on the northern portion of the Salar de la Isla. This salar is part of the Company's Salares 7 project in Region III, Chile (the "Project"). The TEM survey was carried out by Geodatos SAIC ("Geodatos") of Santiago, Chile, and was designed to define the size and extent of the brine pool within the salar. The majority of the world's lithium production comes from salars, or salt lakes, where prospective lithium mineralization is generally hosted in brine horizons.

Salar de la Isla, which encompasses a total of 16,500 hectares, is approximately 15 kilometres ("km") long and 6 km wide on average. The northern area surveyed and studied comprises approximately 10,750 hectares, which is approximately 65% of the areal extent of the salar. Using the results obtained from the 38.5 line km survey, Geodatos has constructed a three dimensional model of the distribution of the interpreted brine bearing horizon. Using a resistivity cut-off of 1 ohm/metre (interpreted by Geodatos as definite brine), Geodatos has calculated the brine bearing horizon within the northern portion of the salar to have a volume of 2.459 billion kilolitres (kilolitres are equivalent to cubic metres). Using a resistivity cut-off of 2 ohm/metres (interpreted by Geodatos as possible brines) the calculated volume of this horizon increases to 5.393 billion kilolitres.

A gravity survey is being initiated on Salar de la Isla as the TEM survey was unable to penetrate to the base of the salar which indicates that the salar has a depth in excess of 200 metres. There is potential for additional brine bearing horizons beyond where the TEM was able to penetrate to.

"We are excited about the volume calculation identified by Geodatos and the fact that it only accounts for the northern portion of one of the Company's seven salars. The experience Geodatos represents regarding the TEM survey and the relationship of the correlation of 1 ohm/metre as definite brine with potential of brine up to 2 ohm/metre, is encouraging. The Company will now be required to drill/sample the extensive interpreted brine horizons before a porosity value and a resource calculation can be established," commented Todd Hilditch, CEO of the Company.

The Company intends to complete an additional 13 kms of TEM survey lines on the southern portion of the salar to enable the entire salar to be modelled in a similar fashion. Further, some of the existing lines will be extended to completely investigate the lateral extent of the interpreted brine bearing horizon. In order to fast track the exploration program on the remaining six salars, the Company has instructed Geodatos to double the size of the geophysical crew.

Management is very encouraged by these initial geophysical results and intends to commence the brine sampling program as soon as the relevant equipment can be secured and moved on-site. Results from additional TEM and gravity surveys will be released as interpreted and received from Geodatos.

About Geodatos

The TEM geophysics programs are being carried out by Geodatos, a well known Chilean geophysics company with broad international experience. Pertinent to the Company's needs is that Geodatos has experience and has conducted surveys at the lithium rich Salar de Atacama, located approximately 200 kms north of the Company's Project.

About TEM

TEM uses electromagnetic impulse excitation to investigate the subsurface. It is a variation of the electromagnetic method in which electric and magnetic fields are induced by transient pulses of electrical current in coils or antennas instead of by continuous current. TEM surveys have become the most popular surface EM technique used in exploration for minerals and groundwater and for environmental mapping. Ohm is the unit of measurement of electrical resistance in a material. One ohm is the resistance in a circuit when one volt maintains a current of one amp.

Corporate

The Company would like to report that its management team in Chile has advised that none of its management, employees or their family members were injured as a result of last week's earthquake and subsequent aftershocks. We are deeply saddened by the effect that this event has had on the Chilean people as well as those others affected by this earthquake. The Salares 7 Project is located over 1,000 kms north of the epicenter of Saturday's earthquake and, although the Project itself is not affected by the earthquake, our biggest concern is for the Chilean people themselves.

The Company would also like to announce a change in chief financial officer ("CFO"). Mr. Bryan McKenzie, CA, will assume the role of CFO effective immediately, replacing Mr. Rajwant Kang. We sincerely thank Mr. Kang for his efforts in the CFO position over the past 10 months of the Company's transition into a lithium explorer in Chile. The Company has granted a total of 100,000 incentive stock options to Mr. McKenzie pursuant to its Stock Option Plan. The Company has also granted 35,000 incentive stock options to a consultant of the Company pursuant to its Stock Option Plan. These options will be exercisable at a price of $0.66 per share and will expire on March 7, 2015. An 18-month vesting provision will be included. The grant of the stock options is subject to regulatory approval.

The technical information in this release has been reviewed and approved by Luis Ignacio Silva P. (Ph.D and CEng.), Exploration and General Manager for Chile, as a 'qualified person', as defined by NI 43-101, Standards for Disclosure of Mineral Projects.

Salares Lithium Inc.

Salares Lithium Inc. is a lithium explorer in Chile that controls the 'Salares 7' lithium project made up of seven salares (brine lakes that are prospective for sub-surface lithium and potassium) and the surrounding concessions in Region III, Chile. Five of the seven salares are clustered within 155 kilometres and are 100% owned by the Company and its Chilean partner.

Certain of the statements made and information contained herein are "forward-looking statements" within the meaning of Canadian securities legislation or "forward-looking information" within the meaning of the Ontario Securities Act and the Alberta Securities Act. This includes statements concerning the Company's plans at its mineral properties, which involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements or forward-looking information. Forward-looking statements and forward-looking information are subject to a variety of risks and uncertainties which could cause actual events or results to differ from those reflected in the forward-looking statements or forward-looking information, including, without limitation, the availability of financing for activities, risks and uncertainties relating to the interpretation of drill results and the estimation of mineral resources and reserves, the geology, grade and continuity of mineral deposits, the possibility that future exploration, development or mining results will not be consistent with the Company's expectations, metal price fluctuations, environmental and regulatory requirements, availability of permits, escalating costs of remediation and mitigation, risk of title loss, the effects of accidents, equipment breakdowns, labour disputes or other unanticipated difficulties with or interruptions in exploration or development, the potential for delays in exploration or development activities, the inherent uncertainty of production and cost estimates and the potential for unexpected costs and expenses, commodity price fluctuations, currency fluctuations, expectations and beliefs of management and other risks and uncertainties. In addition, forward-looking statements and forward-looking information is based on various assumptions. Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in forward-looking information or forward-looking statements. Accordingly, readers are advised not to place undue reliance on forward-looking statements or forward-looking information. Except as required under applicable securities legislation, the Company undertakes no obligation to publicly update or revise forward-looking statements or forward-looking information, whether as a result of new information, future events or otherwise.

Neither the 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.

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