Tuesday, June 09, 2009

Lithium: James West Midas Letter - TNR Gold to Spin Out Lithium Projects. TNR.v, CDNX, FXI, ABX, CGH.to, NG.to, LAT.v, LMA.to, BYD, F, NSANY, DAI, TTM

Recently TNR Gold was featured among other Lithium plays in Resource World magazine. Now James West has pick up on this story in Lithium and REE. TNR Gold becomes a recognised part of our Next Big Thing and we hope that management will be able to capitalise on this momentum going further.

"TNR Gold to Spin Out Lithium Projects

By James West
Tuesday, June 9, 2009

TNR Gold Corp (TSX.V:TNR), a project generation company active in precious and base metals exploration, is gearing up to spin out its lithium properties into a new company to be called International Lithium Corp. (http://www.internationallithium.com/).
Shareholders of TNR will receive one new share of International Lithium for every 4 shares owned of TNR, and will also receive one warrant to be priced when the new company begins to trade. The official record date has not been set but the spinoff is planned for Q4 2009.
TNR CEO Gary Schellenberg said, “ International Lithium will bring a great deal of additional value to existing and potential TNR shareholders because they get to participate in a company poised to capitalize on the growing demand for lithium and rare metals, while still retaining their exposure to our high quality portfolio of precious and base metal assets through TNR.”
Lighter, more compact, and more powerful than NiMH (nickel-metal-hydride) batteries, lithium-ion batteries also are high in energy density and power. Because the cells weigh less and don't take up as much space as those used in other hybrid systems, incorporating lithium-ion batteries into cars can help boost fuel efficiency. The end goal - although technology has a ways to go - is to produce highly efficient hybrid and electric cars with speedy acceleration, stamina, and an affordable price point.
Demand for lithium is increasing from the current market of ~ 100,000 tonnes LiCO2 equivalent. Lithium ion batteries have become the rechargeable battery of choice and are now almost used exclusively in cell phone and computer batteries with items such as shavers, power tools, and hybrid and electric cars switching over from the nickel varieties. The benefits of lithium ion batteries include; higher energy density to weight ratio, longer life, and no memory effect.
Automotive companies have recently been announcing that lithium ion batteries will be in their hybrid cars in 2009 and 2010. Toyota is targeting 1 million hybrid cars for 2010. Hybrid car numbers continue to increase as a result of increasing fuel prices and emission issues with conventional vehicles. For every one unit of lithium in a cell phone battery there are 7 in a computer battery, 3,000 in a hybrid car and 7,000 in an electric car; this is 9 to 30 kilograms of Li2O per battery.
Currently, Australia, Chile, and Argentina account for more than 80% of the world lithium production. The main sources of lithium and rare earth metals are pegmatites and brines. Conventional hard-rock mining of lithium is economical thanks to other rare earth metals such as tantalum, niobium, and other rare metal content. Some of the largest lithium producers rely on evaporation from brine ponds as this is the most efficient process for concentrating lithium. TNR believes that current production levels will have to be increased in order to meet rising demand for lithium due to recent introduction of stricter standards of fuel efficiency in the USA, increasing prevalence of electric vehicles, and an overall need for more efficient alternative energy solutions.
The properties that will be spun out into International Lithium include its four properties in Canada, the 292 square kilometer Irish property along the Leinster Pegmatite Belt in southeast Ireland, and the Fish Lake Valley property, approximately 25 miles from Clayton Valley, host of the only lithium brine producer in North America.
Also included in the spin-out will be the recently acquired Mariana property, located 120 km west of Tolar Grande, in Salta province, Argentina. The Mariana property, a lithium-boron salar, is accessible year round by paved and dirt roads. Historical and recent sampling has reported significant lithium, boron, and potash levels in brines and sediments within the main body of the salar similar to those found at producing salars in North and South America. Salares, or salt lakes, contain minerals dissolved in brines and some include buried layers of evaporite minerals. Salares host some of the largest known lithium and boron resources in the world. Lithium with economical grade can be produced directly from Salars without need for costly and time consuming process of mine construction.
The Mariana project consists of several contiguous mineral claims over 120 km2 covering the entire salar, which extends over 12 km north-south and 10.5 km east-west.
According to Schellenberg, “We’ve been doing quite a lot of research on rare earths and lithium in particular, and have developed a diverse rare metals project portfolio. We didn’t feel we needed to be restricted geographically or deposit type so our first acquisitions were primarily pegmatites in Canada followed by application for a large pegmatite belt that was available from the Irish government. Our real goal was to have a diversified portfolio of world-class lithium and rare metals properties off both brines and pegmatites which will allow us to become a serious rare earth and lithium explorer.
After the spin-out, TNR Gold will remain committed to advancing its portfolio of gold and copper projects in Argentina, generate new projects in all commodities, and seeking strategic joint venture partners for further development.
“We have a large portfolio of hard rock mineral properties in Argentina, so we already have the team and infrastructure. Having a physical presence in the country has given us a distinct advantage in identifying and securing quality projects within the region.”
Through its wholly owned subsidiary, Bristol Exploration, the company is also exploring two properties in Alaska, the Shotgun/Winchester project and the Iliamna project, both of which are prospective for gold and copper.
The Shotgun property has a million ounces of gold (historic estimate) and is located 175 kilometres south of Donlin Creek within the Kuskokwim Gold Belt in Southwestern Alaska, an area emerging as a world-class gold district hosting more than 40 million ounces of aggregated gold resources.
The Iliamna project is a copper-gold porphyry target with significant size potential located in the Kuskokwim Gold district of western Alaska. In 2003, two discovery holes that intersected highly anomalous gold and copper in intrusive and metamorphic rocks. The geologic environment encountered and style of mineralization are indicative of a gold-enriched porphyry copper deposit, similar to the Pebble deposit, presently undergoing development fifty miles to the east of Iliamna.
Learn more at the company's web site at http://www.tnrgoldcorp.com/.
SOURCE: http://www.midasletter.com/news/09060906_TNR-gold-to-spin-out-lithium-projects.php"
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