Talison Lithium Limited
TSX : TLH

Talison Lithium Limited

May 25, 2011 09:24 ET

Talison Lithium Reports Positive Results From Initial Drill Program at Salares 7 Project

Results From Salar de la Isla Indicate up to 1,080 mg/l Lithium and up to 9,830 mg/l Potassium

PERTH, WESTERN AUSTRALIA--(Marketwire - May 25, 2011) - Talison Lithium Limited ("Talison" or the "Company") (TSX:TLH) is pleased to announce the results from the first drill program at two of the seven salars that comprise the Salares 7 Project ("Salares 7") in Chile.

Highlights

  • Initial shallow reconnaissance drill programs completed at Salar de la Islaand Salar de Las Parinas
  • Brine analyses at Salar de la Isla indicate:
    • up to 1,080 milligrams per liter ("mg/l") lithium, with an average of 863 mg/l lithium; and
    • up to 9,830 mg/l potassium, with an average of 7,979 mg/l potassium
  • Brine analyses at Salar de Las Parinas indicate:
    • up to 480 mg/l lithium, with an average of 331 mg/l lithium; and
    • up to 8,210 mg/l potassium, with an average of 5,650 mg/l potassium

Peter Oliver, Chief Executive Officer, commented, "We are excited about the results from our initial reconnaissance drill program. The results are very encouraging for the further development of Salares 7 to meet the expected future growth in demand for lithium-ion batteries in the years ahead, and support the confidence that Talison has in the potential of Salares 7. With lithium values of up to 1,080 mg/l, we believe Salares 7 has the potential to be amongst the world's best new lithium brine prospects."

Salares 7 Overview

Salares 7 consists of seven salars (salt lakes) and playas located in the Atacama Region of Northern Chile. Five of the seven salars are 100% owned by Talison and its Chilean partners, and these five are clustered within a radius of approximately 30 kms. The salars are largely underlain and surrounded by volcanic rocks of andesitic to basaltic affinity that make up some of the 800 volcanoes located in the Andes Mountains of northern Chile.

Talison's exploration program at Salares 7 to date has included Transient Electromagnetic (TEM) geophysical surveys, regional surface water geochemical sampling programs, site access preparation and an initial shallow reconnaissance drill program on two of the salars. The location of Salares 7 is set out in Figure 1.

Note: To view "Figure 1: Location Map Salares 7", please click the following link: http://media3.marketwire.com/docs/tlh0525a.pdf

Initial Drill Program

a) Objectives

Talison established and achieved the following specific objectives for the initial drill program:

  • Shallow reconnaissance drilling in selected areas of the two salars;
  • Formation of a well-qualified and experienced team to oversee the drilling program; and
  • Establishment of very stringent sampling and analytical quality control procedures to ensure integrity of the drill samples and to meet the requirements of NI 43-101 reporting.

b) Drill Program

The initial drill program consisted of shallow reconnaissance drilling utilizing a sonic drill rig at Salar de la Isla and Salar de Las Parinas. A total of 33 holes were completed for a total of 557 metres at sites generally located between one and three kilometres apart. The maximum depth drilled was 43.5 metres and the average depth of the holes was approximately 17 metres.

c) Drill Results

A total of 91 drill hole brine samples were collected at varying depths of up to 42 metres from 26 holes located in Salar de la Isla and 7 holes located in Salar de Las Parinas. Each sample was analysed to measure relevant chemical and physical characteristics. In addition, a comprehensive protocol of standard, blank and duplicate samples formed the Quality Control/Quality Assurance program.

Continuous drill cores have been collected and geologically logged. Selected drill core samples have been submitted for laboratory determination of physical characteristics including porosity and permeability. Results are not yet available.

Samples from Salar de la Isla demonstrate lithium values ranging from 220 mg/l to 1,080 mg/l with an average of 863 mg/l, and potassium values ranging from 1,960 mg/l to 9,830 mg/l with an average of 7,979 mg/l. The drill holes and corresponding lithium values on Salar de la Isla are shown in Figure 2, and further information is contained in Table 1.

Note: To view "Figure 2: Salar de la Isla Drill Hole Collar Plan and Lithium Results Summary", please click the following link: http://media3.marketwire.com/docs/tlh0525b.pdf

Samples from Salar de Las Parinas demonstrated lithium values ranging from 260 mg/l to 480 mg/l with an average of 331 mg/l, and potassium values ranging from 4,440 mg/l to 8,210 mg/l with an average of 5,650 mg/l. The drill holes and corresponding lithium values on Salar de Las Parinas are shown in Figure 3, and further information is contained in Table 2.

Note: To view "Figure 3: Salar de Las Parinas Drill Hole Collar Plan and Lithium Results Summary", please click the following link: http://media3.marketwire.com/docs/tlh0525c.pdf

Further Exploration at Salares 7

The drilling completed to date at Salares 7 is considered preliminary. Wider coverage and follow-up drilling to greater depths will be required to support the definition of a potential mineral resource.

Interpretation of the shallow reconnaissance drilling results in relation to geological profiles and TEM surveys is continuing and is expected to provide input to further drill programs currently being planned for Salar de la Isla, Salar de Las Parinas and the other salars.

The next stage of exploration on site will include environmental base line studies, regional geochemical sampling programs and drill testing on a number of the salars, and is planned to commence during the summer season in Chile.

Quality Control

The brine liquid samples from the Salares 7 drill program, including randomly inserted quality control samples comprising blind standards, replicates and duplicates, were analyzed by Talison's laboratory at the Greenbushes Lithium Operations. Talison's laboratory at the Greenbushes Lithium Operations is certified ISO9002 for the preparation and analysis of various sample types, included waters.

Furthermore, the laboratory at the Greenbushes Lithium Operation has internal quality systems, which include replicate laboratory analyses, and analysis of known standards. Known solution standards and blanks are embedded in each batch and the accuracy of the calibration is monitored during the analysis of each batch.

In addition, blind standard samples from Salares 7 were submitted to several independent check laboratories in South America and North America, as a round robin test. Results for these round robin samples are being finalised at this time. However, available quality control results (discussed above) indicate that the Salares 7 dataset is valid and acceptable for the purposes of this initial reconnaissance program.

Table 1: Drill Hole Brine Sample Results – Salar de la Isla

Salar de la Isla
Sample
HoleDepth (m)SGLiNaBCaKMgSO4Cl
g/cm3mg/lmg/lmg/lmg/lmg/lmg/lmg/lmg/l
SLI-018.01.18720872001804206550484010700159335
SLI-0117.01.218601040001965207860561012300196888
SLI-0216.81.218401020001985207700548011900190987
SLI-036.51.218801040002004808260580012500198498
SLI-0312.51.229001060002004808360587012500194206
SLI-0318.51.219001060002004808310584012400194742
SLI-0324.51.218801050002005008130572012300185086
SLI-0330.51.29001050002204808280583012400188305
SLI-0336.51.219001050002004608250581012500192060
SLI-0339.51.218601060002004808210583012500191524
SLI-046.51.218201090001945207830542011800193670
SLI-04A6.01.27801050001825007230504010700194079
SLI-056.01.218801080002204808320587012400197425
SLI-076.01.06220261005422019601460275046710.5
SLI-0712.01.1558070600140420523040208730119408
SLI-0718.01.218401020001914607870557011900182940
SLI-0724.01.218601070002004808170575012300189378
SLI-0730.01.218601060002004608150577012400190987
SLI-0736.01.218601060002004608140574012200190451
SLI-0742.01.198601050002004608090569011900189914
SLI-086.01.219001100002005408500592012600187232
SLI-0812.01.28401020001994807780555011900188048
SLI-0815.51.218401040002005207690550011200194079
SLI-096.01.1146056000114680396032007520104795
SLI-0912.01.28201010001914607540539011600194079
SLI-106.01.135607020014210405140388010200118062
SLI-1012.01.2820985001905007470537011600183017
SLI-1018.01.218801040002005008130588012300190241
SLI-1024.01.218801060002205208300594012500194079
SLI-116.01.218801060002005008320593012700194627
SLI-1112.01.219001060002005008500605012600193966
SLI-1118.01.218801030001974808240588012200193531
SLI-1124.01.19820976001806007620549011900174342
SLI-1130.01.28401030001954607800557011700177632
SLI-1136.01.219601180002205009020633013300197917
SLI-126.01.218401030001945007860554011600198312
SLI-136.01.28601050001875208090558011800185307
SLI-156.01.211060996002403809630690014400194627
SLI-1512.01.210801000002403809820699014300191886
SLI-1518.01.219801060002204409020636013400196272
SLI-1524.01.219001070002204608380592012500195175
SLI-1530.01.219201050002004408460597012400196272
SLI-166.01.228601060002204808180583012000197176
SLI-1612.01.218801060002204808300592012300184100
SLI-176.01.28201000002205807740566011800184623
SLI-1712.01.218601040002205008160584012000196653
SLI-186.01.228801050002205608230584010800198222
SLI-196.01.218601010001964607570550011800187261
SLI-1912.01.219201040002005208050580012200193487
SLI-206.01.18760892001793606770495011600170019
SLI-2012.01.28601020002004207690559013100185345
SLI-2018.01.29401070002804408640613013600190217
SLI-2024.01.29601090002804208690619014700192529
SLI-2030.01.29001020002004007850568013500192529
SLI-216.01.29201060002004208110582013400196360
SLI-2112.01.219001080002204608540615014300191092
SLI-2118.01.219201070002204408710628014100193676
SLI-226.01.2110601070003004409830679015600192529
SLI-2212.01.2110401050003004409770675015200193966
SLI-236.01.218601040002004408070587012800196839
SLI-2312.01.218801090002204808300599013300193487
SLI-2318.01.219001100002204808330600013300194923
SLI-246.01.219601100002144608750616013500194444
SLI-256.01.29401080002144608550603013000196429
SLI-2512.01.219001040001944808250584012400195437
SLI-266.01.219601090002144808780617013000196429
SLI-276.01.29401100002144608530597012800204365

Table 2: Drill Hole Brine Sample Results – Salar de Las Parinas

Salar de Las Parinas
Sample
HoleDepth (m)SGLiNaBCaKMgSO4Cl
g/cm3mg/lmg/lmg/lmg/lmg/lmg/lmg/lmg/l
SLP-016.01.22601080003005804440261011000189854
SLP-0112.01.22601080003005804550274011400189854
SLP-0118.01.212801100003205804580283011600185824
SLP-0124.01.23201110003605405220329012400188808
SLP-0130.01.213001090003604805110313013800186192
SLP-026.01.213001130003804805120325013900191946
SLP-0212.01.213001080003805005020319013000188697
SLP-0218.01.213201150004205205320332013800191423
SLP-0224.01.213201140004005205380344013700189854
SLP-036.01.213401130005003605810372017400186715
SLP-0312.01.213001120004005005270335013800189854
SLP-0318.01.213401100004404405620362015300186715
SLP-0324.01.213401090004404605670362014600186715
SLP-046.01.212801140003204804870316012700191946
SLP-0412.01.212801150003205004950320012900192469
SLP-056.01.213201140004204005560337015100196653
SLP-0512.01.213601130004804006210387018100187762
SLP-066.01.224801110003804208210508016100197318
SLP-0612.01.213801180004004606770404016500191571
SLP-0618.01.213801110004204206560403015700194444
SLP-0624.01.214001110004204206920426016300189655
SLP-0630.01.223801140004404406690408015900192050
SLP-076.01.213401090003405005750385013000188218
SLP-0712.01.213601130003405405990398013500190134

Scientific and technical information in this press release was reviewed and approved by Andrew Purvis (BSc (Hons), MSc, MAusIMM), General Manager Geology, and a full time employee of Talison; Dr. Ian Hutcheon (PhD., P. Geo.);and Dr. Mark King (Ph.D., P. Geo.), of Groundwater Insight Inc. Dr. Hutcheon and Dr. King are independent of Talison and each is a "Qualified Person" in accordance with National Instrument 43-101.

About Talison

Talison is a leading global producer of lithium. Talison mines and processes the lithium bearing mineral spodumene at the Greenbushes Lithium Operations in Western Australia. In addition, Talison explores for lithium at the Salares 7 lithium project made up of seven salars (brine lakes and surrounding concessions) located in Region III, Chile. Talison has an extensive, well established global customer network and a leading position in the growing Chinese market.

Cautionary Note Regarding Forward-Looking Statements

Certain information contained in this press release, including any information as to Talison's mineral reserve and mineral resource estimates, strategy, projects, plans, prospects, future outlook, anticipated events or results or future financial or operating performance, may constitute "forward-looking information" within the meaning of Canadian securities laws. All statements, other than statements of historical fact, constitute forward-looking information. Forward-looking information can often, but not always, be identified by the use of words such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", "predicts", "potential", "continue" or "believes", or variations (including negative variations) of such words, or statements that certain actions, events or results "may", "could", "would", "should", "might", "potential to", or "will" be taken, occur or be achieved or other similar expressions concerning matters that are not historical facts. The purpose of forward-looking information is to provide the reader with information about management's expectations and plans. Readers are cautioned that forward-looking statements are not guarantees of future performance. All forward-looking statements made or incorporated in this press release are qualified by these cautionary statements.

Forward-looking statements are necessarily based on a number of factors, estimates and assumptions that, while considered reasonable by Talison, are inherently subject to significant business, economic and competitive uncertainties and contingencies. Such factors, estimates and assumptions include, but are not limited to: anticipated financial and operating performance of Talison, its subsidiaries and their respective projects; Talison's market position; future prices of lithium or lithium concentrates; estimation of mineral reserves and mineral resources; realization of mineral reserve and mineral resource estimates; timing, amount and costs of estimated future production; grade, quality and content of concentrate produced; sale of production; capital, operating and exploration expenditures; costs and timing of the expansion of the Greenbushes Lithium Operations; exploration and development of the Salares 7 lithium project; costs and timing of future exploration; requirements for additional capital; government regulation of exploration, development and mining operations; environmental risks; reclamation and rehabilitation expenses; title disputes or claims; absence of significant risks relating to Talison's mining operations; the costs of Talison's hedging policy; sales risks related to China; currency; interest rates, and limitations of insurance coverage. While Talison considers these factors, estimates and assumptions to be reasonable based on information currently available to it, they may prove to be incorrect and actual results may vary.

Readers are cautioned that forward-looking information involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Talison and/or its subsidiaries to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information. Such risk factors include, amount others, those described in the Financial Statements and under the heading "Risk Factors" in the annual information form of Talison for the year ended June 30, 2010 dated January 12, 2011, each of which can be found on Talison's SEDAR profile at www.sedar.com. While Talison considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect and actual results may vary.

Although Talison has attempted to identify statements containing important factors that could cause actual actions, event or results to differ materially from those described in forward-looking information, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended. Forward-looking information contained herein is made as of the date of this press release based on the opinions and estimates of management on the date statements containing such forward-looking information are made. Except as required by law, Talison disclaims any obligation to update any forward-looking information, whether as a result of new information, estimates or opinions, future events or results or otherwise. There can be no assurance that forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information.

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