3D model results used to support the development of a Reserve Estimate and to evaluate & identify optimal production well field design and pumping strategy - Results support 50% fewer production wells - Independent audit of the Resource Estimate confirms no significant changes to previously reported Resource Estimate - Model predicts a mine life of greater than 40 years
TORONTO, ONTARIO, Feb 27, 2012 (MARKETWIRE via COMTEX) --
Lithium Americas Corp.
/quotes/zigman/50931 CA:LAC
-4.92%
(otcqx:LHMAF) ("Lithium Americas"
or the "Company"), announces the completion of a 3D brine numerical
model (the "Model") used to simulate brine extraction from its
Cauchari-Olaroz lithium/potash project. The Model enables prediction
of brine flow within the salar (i.e. salt lake), mine life, lithium
grade depletion over time and reserves. The modeling is supported by
geological, hydrogeological and geochemical data collected through
field programs at the site.
"A 3D brine numerical model is the ultimate tool to fine tune the
mine plan in a brine development resource. The Model has also
supported many of the critical assumptions in our Preliminary
Economic Assessment ("PEA") including the size, quality and estimated
productive life of the Cauchari-Olaroz resource estimate - one of the
largest lithium brine resource in the world. We are very pleased that
the Model also indicates that due to the exceptional geological
characteristics of our salar, we are expected to require
approximately 50% of the production wells originally estimated in the
PEA to put phase 1 of the project into production", said Dr. Waldo A.
Perez, President and CEO of Lithium Americas. "We continue to add
value to our project and to demonstrate the technical capability of
our team. We expect to deliver the definitive Feasibility Study with
reserves and a mine plan in Q2 2012".
Results of the Model will be displayed at the Company's booth (#
2523), at the Prospectors and Developers Association of Canada
Convention (PDAC) in Toronto, Ontario and at the Corporate
Presentation Forum for investors on Tuesday March 6th at 10:40am in
room 801b.
The 3D Brine Numerical Model
The Model was developed in FEFLOW hydrogeology modeling software by
AquaResource Inc., a division of Matrix Solutions Inc., (a Canadian
company that provides expertise in numerical modeling and data
management of groundwater and surface water systems) with the
involvement of Dr. Mark King, Independent Qualified Person for
Lithium Americas. The Model incorporates additional data collected
since the previous Resource Estimate filed on December 6, 2010,
including geology, hydraulic testing and brine results from five
pumping well arrays and four sets of salt lake boundary tests as well
as a water balance analysis, completed in 2011.
The upcoming Reserve Estimate will be derived from simulation of a
conceptual production well system that is designed to meet
engineering, hydrogeological and property constraints which control
the recoverable portion of the Resource, the Reserve. The Model
predicts that the grade of the pumped brine will remain above 600
milligrams per litre lithium for a period of at least 50 years.
The Model also shows that an annual production rate of 40,000 tonnes
of lithium carbonate can be achieved over a period of 40 years
without extracting brine from outside of the property boundary. The
predicted duration for which the Company can maintain a production
rate of 40,000 tonnes of lithium carbonate per year within the Model
exceeds 50 years.
Near Term Milestones
The near term milestones of the Company include:
-- Completion of the certification and qualification process for the
Company's battery grade lithium carbonate with multiple customers
-- Re-assembling the Pilot Plant, built by SGS Minerals Services in Canada,
at the Company's project in order to start continuous production at
pilot scale at the project site
-- Completing the definitive Feasibility Study and starting Detailed
Engineering
-- Completing financing and off-take agreements with strategic parties
http://www.marketwatch.com/story/independent-3d-model-confirms-size-and-productive-capacity-of-lithium-americas-cauchari-olaroz-resource-2012-02-27?reflink=MW_news_stmp
About the Company
Lithium Americas is developing one of the world's largest and lowest
cost lithium operations. The Company has defined the world's third
largest lithium brine resource, and a completed Preliminary Economic
Assessment identified that Lithium Americas' operating cost per tonne
of lithium carbonate is expected to be one of the lowest in the
industry. The Company is currently working on completing a definitive
Feasibility Study, expected to be delivered in the second quarter of
2012. Mitsubishi Corporation and Magna International are shareholders
in the Company, in addition to both companies having off-take
arrangements with Lithium Americas.
Mark King, Ph.D. (P.Geo.), independent QP of the Company has reviewed
and approved this press release.
Daron Abbey, M.Sc. (P.Geo.), senior hydrogeologist with AquaResource,
a division of Matrix Solutions Inc., has reviewed and approved this
press release.
This press release contains forward-looking statements, which can be
identified by the use of statements that include words such as
"could", "potential", "believe", "expect", "anticipate", "intend",
"plan", "likely", "will" or other similar words or phrases. The
Company does not intend, and does not assume any obligations, to
update forward-looking statements, whether as a result of new
information, future events or otherwise, unless otherwise required by
applicable securities laws. Readers should not place undue reliance
on forward-looking statements. Readers should review the Company's
annual information form dated May 30, 2011 for a list of risks
associated with the Company, and its business.
