TORONTO, Aug. 25, 2011 /CNW/ - Canada Lithium Corp. (TSX: CLQ) (OTCQX: CLQMF) announced today preliminary results from the first 19 holes of a recently completed 56-hole drill program.  Highlights from the program include 15.6 metres grading 1.21% Li₂O, 25.2 metres grading 0.94%, 11.7 metres at 1.47%, 12.3 metres at 1.49% and 3.2 metres at 1.74% Li₂O. The program included both step-out and in-fill drilling at the Company's Québec Lithium Project near Val d'Or, Québec.

"We are very encouraged by these preliminary values in terms of both grades and widths.  The recent drilling continues to demonstrate the continuity of the Québec Lithium deposit," said CEO and President Peter Secker.

Mr. Secker also noted that detailed engineering design work for the mine and process plant is proceeding on schedule, and is about 80% completed. Additional long-lead-time items have been ordered and the current delivery and construction schedule indicates plant commissioning as planned in late 2012.

The project has received additional provincial government approvals for the location of the waste dump and the mill site, and the overall environmental approval process is proceeding as planned.

The 56-hole exploration drilling program was completed in July and assaying of the remaining drill hole samples is currently under way at the assay labs of ALS Canada Ltd. of Vancouver.  To view a site map showing the locations of the drill holes, please click the following link: http://www.canadalithium.com/i/pdf/2011-08-25_NRM.pdf

Once all of the assays and Quality Assurance/Quality Control (QA/QC) work are completed a new mineral resource model will be undertaken by AMC Mining Consultants. It is anticipated that this updated mineral resource model will be available in late October. The target of the program is to increase the resource and to lower the strip ratio in the open pit.

The preliminary assay results for the initial 19 holes are as follows:

* True widths have yet to be established.

Mitch Lavery, P.Geo., is the Qualified Person for the Québec Lithium Project in accordance with NI 43-101.  Mr. Lavery has read and approved the contents of this news release.

About Canada Lithium Corp.

The Company holds a 100% interest in the Québec Lithium Project near Val d'Or, the geographical heart of the Québec mining industry. The Company plans to build an open-pit mine and processing plant on-site with capacity to produce approximately 20,000 tonnes of battery-grade lithium carbonate. Metallurgical tests have produced battery-grade lithium carbonate samples. The Company trades under the symbol CLQ on the TSX and on the U.S. OTCQX under the symbol CLQMF.

Cautionary Statement Regarding Forward-Looking Information

This press release contains "forward-looking information" within the meaning of applicable Canadian securities legislation. Generally, forward-looking information can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved".

Forward-looking information is based on reasonable assumptions that have been made by the Corporation as at the date of such information and is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Corporation to be materially different from those expressed or implied by such forward-looking information.

Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such 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. The Corporation does not undertake to update any forward-looking information referenced herein, except in accordance with applicable securities laws.