Friday, April 29, 2011

Lithium in Nevada: Positive Brine Sampling Results from the Fish Lake Valley tnr.v, czx.v, lmr.v, rm.v,, sqm, cgp.v, abn.v, ura.v,,,, fmc, roc, lit, li.v, wlc.v, clq.v, res.v, ree,, nsany, f, gm,, dai, byddf, hev, aone, vlnc

  We have quite a moment in Lithium space on the OTC market these days in U.S. - Lithium Exploration Corp. NRs about the CEO trips and his ideas are flying all over the Internet and its stock was defying all laws of gravity for a couple of weeks and closed yesterday at 10.57. Before you tear all your hairs on missed opportunity, please, make some DD and at least google the recent articles on this company.

  We will be a very bad guide for you on these kind of companies - we do not cover them.  

  Instead, we would like to make only one observation here - there can not be any Hype without the Interest in any market - we hope that this interest is the sign of the changing investment landscape in Lithium space. Rising Gas prices and headlines about Peak Oil make people think and study the real situation. Electric Cars on our streets are turning the heads and provide the glimpse into the future, which is just around the corner. We will leave the judgement about particular investments in this area, as usual, to the investors themselves. Major players in the Auto, Lithium batteries and Lithium Materials industries can provide some guidance here.

  In this light yesterday news from another OTC company - Lithium Corporation - are interesting for us and the companies we are following here.

Lithium Corporation Announces Positive Brine Sampling Results 

RENO, NV -- April 12, 2011 – Lithium Corporation (the "Company", or Lithco) LTUM - OTCBB), is pleased to announce it has received results from the first phase of sampling of its spring program at Fish Lake Valley, Nevada.

Near surface brine sampling on its Fish Lake Valley prospect has discovered lithium-enriched brines with results of up to 140mg/L.In addition to these strongly anomalous lithium values, boron is also enriched with values up to 2500 mg/L., and Potassium is also elevated, with results up to 7200 mg/L. The highest values appear to be confined to an area approximately one-half mile square that is within a larger zone of moderate to highly anomalous lithium and boron, which is 1 1/2 miles long by 1 mile wide.

Lithium Corporation's president Tom Lewis recently remarked, "I am tremendously pleased by these results, and I am eagerly looking forward to drilling in this area when access conditions improve later this year."

Lithium Corporation is currently conducting another round of geochemical surveys on its playa properties in Nevada, and has tentatively scheduled drill mobilization for June 01st to test its Cortez Lithium property in Lander County Nevada.In addition to drilling Fish Lake Valley and Cortez, Lithco also intends to drill its Salt Well's property this year.

For further information please contact Tom Lewis, Lithium Corporation at (888) 299-3989 or via email at

About Lithium Corporation

Lithium Corporation is an exploration company based in Nevada devoted to the exploration for new lithium resources primarily within the state of Nevada.  The Company explores and eventually hopes to develop potentially economic lithium-enriched brine fields, with an eye to becoming a long-term producer of this increasingly strategic and economically important commodity."

 We do not know this company, but reaction to the news was very interesting: stock went up from 20 cents to over 1 dollar on a volume of 14 mil shares yesterday. Whether it is the general "investors' optimism" spilled out from other OTC lithium stories or something more tangible remain to be seen in the nearest future.

  Canadian Lithium developers will be the very good indication - they operate in the very strict regulation requirements, in sharp contrast to the U.S. OTC market, and if we have the serious money coming into the lithium story now - we will see it there. We are covering here few of them - Western Lithium is involved in Nevada as well, but in lithium bearing clay deposit. Rodinia Lithium and International Lithium are our top picks in the sector, both involved in Nevada lithium exploration and Rodinia yesterday has shown some life in the market.

  International Lithium will be interesting to watch now - company will be spin out in IPO from TNR Gold with its new Chinese strategic partner on board. International Lithium has three projects in Nevada:  Sarcobatus Flats, RunWay and Fish Lake. Fish Lake project is  in the same area as Lithium Corporation's one.

"The Fish Lake Project is located 75 kilometres southwest of Tonopah in the Fish Lake Valley, Nevada covering 1,295 hectares in Esmeralda County. International Lithium believes Fish Lake Valley has similar geological features that have acted as a trap for lithium brines in Clayton Valley 35 kilometres to the east. The United States Geological Survey (USGS) sampling at Fish Lake Valley in 1976 found lithium brines on surface. One of these samples, located on TNR claims, contained 200 parts per million (ppm) lithium. This shows that modern Fish Lake Valley has geological and climatic conditions where lithium brine can form. At Clayton Valley drilling has shown that as climatic conditions went through cycles, successive layers of lithium bearing evaporates were deposited."

Area is famous for hosting the only Lithium Brine producing asset in the entire North America, Chemetall Silver Peakproperty.

    NEVADA, United States of America

    Located in Fish Lake Valley, approximately 25 miles from Clayton Valley, which contains the only lithium producer in the United States and the only lithium brine producer in North America. Clayton Valley has been in production since 1967. 

    Lithium brine has been known in Fish Lake Valley since the middle of the last century and received attention from the US Geological Survey during the 1970's during a lithium reconnaissance program to identify exploration targets similar to Clayton Valley. Fish Lake Valley is one of the two most prospective areas identified in that study. In spite of this recommendation, the valley does not appear to have received much serious attention.

    We believe that there are significant geological similarities between Clayton Valley and Fish Lake Valley and that these contribute to a trap in which lithium brine may have accumulated. The cross section below illustrates how gently dipping sediments cut by faults create traps where brines can. (Example from Clayton Valley.) 

    In addition to the potential for lithium bearing brine, lithium is found in the playa sediments. Extraction of this lithium using solution mining technology will be investigated. Brine is the preferred source of lithium due to its lower cost of extraction compared with pegmatite mining. Brine operations are the only lithium mines that can cover the cost of producing lithium without credits from additional commodities.

    Forty-eight placer claims have been staked (960 acres) covering key prospective areas. Exploration can utilize seismic surveys, drilling and geochemical methods to prospective lithium areas. Exploration can effectively be conducted year round. Sites are road accessible.

    Drilling and surface brine sampling was conducted by the USGS during the 1970s.

    Lithium in sediments is important in evaluating the potential of Fish Lake Valley. At Clayton Valley, modern brines are believed to be developing by dissolving lithium deposited in ancient playas. Lithium in surface brines were measured in 30 samples. Of these samples, 6 were ≥160 ppm Li and 2 more were ≥ 100 ppm Li. At Clayton Valley, brine concentrations used to feed the production system are believed to average 160 ppm Li.

    About International Lithium Corp.

    Established in a time when lithium demand around the world is increasing from China and other developing nations, International Lithium Corp. aims to acquire lithium and rare metals properties of merit in an effor to assemble an attractive package for major companies to joint venture and develop further.
    Efficient energy is no longer a luxury, it has become a necessity in a world where energy sources are dwindling while environments are taking a toll."
      Please, do not forget, that we own stocks we are writing about and have position in these companies. We are not providing any investment advise on this blog and there is no solicitation to buy or sell any particular company here. Always consult with your qualified financial adviser before making any investment decisions.
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