Saturday, October 10, 2009

Barron's: Hybrids Drive Lithium Miners TNR.v, CZX.v, SQM, FMC, ROC, ORE, LAT, F, RNO, DAI, NSANY, TTM, TM, WLC.v, CLQ.v, RM.v, LI.v,

GEOS Mining was involved in recent resource calculation of Orocobre Limited in Argentina covered by Barron's in this article:
"Orocobre Limited Announces Maiden Resource Estimate at its Olaroz Lithium Potash Project in Northwest Argentina 04/29/2009 Orocobre Limited announced a maiden resource estimate at its Olaroz lithium-potash project in Jujuy province, northwest Argentina. Geos Mining of Sydney declared an inferred mineral resource of 350m kL of brine at 800g/kL lithium and 6,600g/kL potassium. This is equivalent to 1.5m tones of lithium carbonate and 4.4m tones of potash (potassium chloride) based on 5.32 tones of lithium carbonate being equivalent to 1 tone of lithium and 1.91 tones of potash being equivalent to one tone of potassium. The resource estimate extends to an average depth of 55m and is based on data collected from a 22-hole core drilling program (including six hydro geological test work monitoring bores) and brine sampling program completed between September and December 2008."

TNR Gold/International Lithium Retain Advisors on Lithium-Brine Project in Argentina
Press Release Source: TNR Gold Corp.On Friday August 21, 2009, 9:58 am EDT VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 21, 2009) - TNR Gold Corp. ("TNR" or the "Company") (TSX VENTURE:TNR - News) and wholly-owned International Lithium Corp. ("ILC") are pleased to announce GEOS Mining Mineral Consultants of Sydney, Australia have been contracted as advisors for the exploration and development program on TNR's 100% optioned Mariana project in Argentina. The first phase exploration and development program will commence at the end of August with planned completion in late October 2009. Upon completion of this phase of the program, a 43-101 report will be prepared enabling TNR to initiate the previously announced spin-off of International Lithium Corp.GEOS Mining is an Australian geological consultancy company specializing in the preparation of commodity resource estimations, which are recognized by stock exchanges around the world. GEOS Mining is one of the few geological consulting companies in the world with experience in lithium resource calculations from brines.

"Located 120km from nearest town Tolar Grade, Mariana is accessible year round by paved and dirt roads. The Mariana project consists of several contiguous claims over 120 km2 covering the entire salar. Historical sampling reported significant lithium, boron, and potash levels in brines and sediments within the main body of the salar. Salares, or salt lakes, contain minerals dissolved in brines and some include buried layers of evaporate minerals. Four of seven water samples collected in the shallow subsurface over approximately 3 km returned values from 188 to 283 mg/L lithium, and 423 to 698 mg/L boron. This confirms that there are some brines present with concentrations similar to those found at producing salares in North and South America."

Lithium, the next big thing for car batteries, spurs mining plays.

THE PUSH TOWARD ELECTRIC-CAR development in the U.S., Europe and Japan is fueling a mad dash to lock in lithium-mining rights high in the Argentine, Bolivian and Chilean Andes. Lithium is a key ingredient in the batteries that fuel electric and hybrid cars, and nowhere is there so much of the light, charge-holding metal as in the South American mountain range. What's more, as much as 90% of the world's known lithium brine -- in which the metal is in a relatively accessible dissolved state, rather than locked in stone -- is said to be in the region's salars, or salt lakes, in Argentina's Puna Plateau.
Already, well over half of the world's lithium output comes from mines in Chile and Argentina run by SociƩdad Quimica y Minera de Chile (ticker: SQM); Chemetall Foote, a subsidiary of Rockwood Holdings (ROC); and FMC (FMC).
While the U.S. has pledged $2.4 billion in stimulus spending on advanced battery technology, companies from Japan, Korea and China have been busy courting Bolivia's President Evo Morales to lock in supply deals from the Salar de Uyuni salt flats. In June, a consortium of Japanese companies, including Mitsubishi (MSBHY), Sumitomo (8053.Japan) and Japan Oil (9074.Japan) made a preliminary proposal to begin mining lithium, but Bolivia says it wants to see more domestic processing on-site before it will consider granting concessions. And in August, South Korea's state-run Korea Resources Corp., or Kores, said it had signed a memorandum of understanding with Bolivia's state-run miner, Comibol, to jointly study lithium-mine development.
THE RACE IS HOTTEST IN ARGENTINA. Dozens of junior exploration companies and speculative investors are betting big on the lithium-brine deposits there. New York-based research firm Hallgarten & Company analyst Christopher Ecclestone recommends taking a long, speculative position in two lithium leaders in the region, Orocobre (ORE.Australia) and Latin American Minerals (LAT.Canada). "They're pure-play," he says. Farthest along is Orocobre, which hopes to start construction on its Olaroz project in 2011. Latin American Minerals has locked in the rights to 93,000 hectares and is currently analyzing the results from a sampling program. Australia's Admiralty Resources prepped the massive Rincon project, but a Cayman Island-based entity controlled by the Sentient hedge-fund group snapped it up last year for the fire-sale price of around $27 million.
With expectations for booming demand, lithium users are banking on the South American miners. "While demand for refined lithium should continue to increase as electric-vehicle penetration improves, we expect supply to easily keep up," says Aimee Gordon, a spokeswoman for rechargeable-battery maker Ener1 (HEV). But some worry that a flood of new suppliers rushing to get lithium to market may pressure prices. (Lithium is not yet traded on a commodities exchange.)
In fact, Chile's SQM on Sept. 30 announced it was cutting prices for lithium carbonate and lithium hydroxide by 20% for new supply contracts to "accelerate demand recovery." That doesn't faze Orocobre's chief executive, Richard Seville, who says: "I don't think there is any risk of oversupply, as most of the projects [being talked about now] won't end up going into production."
OCTOBER CONTRACT GOLD ON NYMEX'S Comex touched record highs on dollar weakness, rising by 4.45% on the week, to end at $1,047.80 an ounce."
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