Lithium One Commences Pumping Tests at Sal de Vida Lithium-Potash�
Brine Project
Vancouver, Canada� � June 15, 2011� � � � � � � � � � � � � � � � � � � � � � � � NEWS RELEASE: 11-06
Lithium One Inc. (the "Company") (TSX-V: LI),� is pleased to announce the commencement of a pumping test program at the Sal de Vida Lithium-Potash brine project in Argentina.
Pumping tests provide critical information on the behaviour of the aquifer and brines during the extraction process. � Multi-stage pumping tests, data processing, and groundwater modeling will continue over the next several months to project the flow rates for future production wells and the ultimate well field design for extraction of the Sal de Vida brines.�
Drilling has commenced on an 8-10 well construction and testing program, which will provide detailed data on the brine aquifer, including aquifer response to pumping. � As the water table is drawn down in the pumping well and the monitoring wells, hydrologists will collect the data used to calculate the rate at which brine moves through the aquifer. � Short and long term pumping tests will be conducted in several areas of the resource to help build a large-scale hydrologic model, which will be used to model the brine resource over a long-term production scenario. �
Lithium One CEO, Paul Matysek commented, “The Sal de Vida project continues to exceed our expectations in all aspects, including chemistry, porosity testing, resource size and pilot plant operations. � As we progress towards feasibility, pumping test data is an important constituent of our economic evaluation. � We continue to see extensive near-surface brine, good porosity values and some of the highest grade lithium and potash values in the sector, so confirmation of the pumping characteristics of the Sal de Vida resource will further demonstrate the project’s economic potential.”�
The first phase of pumping test program will consist of construction of 6- and 8-inch diameter pumping wells, which will be located in close proximity to existing exploration core holes. � The core holes have already been prepared as observation wells for the testing. � During the short-term tests, each well will be pumped over a 24-hour period while hydrologists monitor brine production, brine physical and chemical properties and water levels in both the pumped well and adjacent observation wells. � After cessation of pumping, monitoring will continue as aquifer water levels recover.�
A second phase of long-term (30 day) pumping tests will follow, based on the results of this program. The long-term tests will provide additional key aquifer hydraulic information required for confident hydrologic modeling. � Test results will comprise a critical component of the overall project feasibility and will assist in design of the brine production well field.
Project Development Update
Resource [1] Expansion/Upgrading: � The 18th hole of a planned 30-hole Diamond drill program is underway. � Drilling includes both step-out holes to test new areas and infill drilling to upgrade the resource category. � The last four holes have constituted the first drill test of the North Basin, an isolated sub-basin that was not included in the initial resource and is known from surface sampling to contain high grade lithium and potash brine.�
Pilot Plant Process Refinement: The pilot-scale evaporation circuit and processing plant continues its 12-month testing program, including regular harvests of lithium carbonate and potash. � The products are being refined and purified. � Hazen Research Inc. has developed a boron removal protocol on the final stage lithium brine. � In addition, Salta University has been selected to complete bench-scale flotation tests to upgrade the potash recovered from the pilot ponds.�
Qualified Person:�
Content of this news release has been read and approved by Mr. Michael Rosko of E.L. Montgomery and Associates. � Mr.. Rosko is a Registered Geologist in Arizona, California, and Texas and a qualified person (QP) as defined in NI 43-101. �
About Lithium One:
Lithium One Inc. is positioned to be a next-generation low cost producer of lithium and potash. � The Company has two major projects funded through feasibility by earn-in partners: the Sal de Vida lithium and potash brine project in Argentina, and the James Bay bulk tonnage spodumene project in Quebec. � The Sal de Vida project is one of the largest and the highest-grade lithium and potash brine projects in the world, with an NI 43-101 inferred resource [1] of 5.4 Mt Lithium Carbonate equivalent and 21 Mt potassium chloride equivalent. � KORES, LG International and GS Caltex are earning a maximum 30% project equity in Sal de Vida by funding the definitive feasibility study expected in less than twelve months, and providing an off-take agreement for up to 50% of the lithium production. � Galaxy Resources is earning a maximum 70% project equity in the James Bay Project through an earn-in agreement that includes delivery of a definitive feasibility study by early 2013. � The Company’s strategy is to draw upon its quality team and employ best practice to develop its projects into leading suppliers of low-cost, high quality lithium products to the global market.�
ON BEHALF OF THE BOARD OF DIRECTORS,
Paul Matysek,
Chief Executive Officer
Lithium One Inc.
1010-130 Adelaide Street West,
Toronto, ON M5H 3P5 Canada
Email: info@lithium1.com
FOR FURTHER INFORMATION, PLEASE CONTACT
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Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.�
The reader is cautioned that mineral resources are not mineral reserves and do not have demonstrated economic viability.
Forward-Looking Statements
This document may contain “forward-looking information” within the meaning of Canadian securities legislation (hereinafter referred to as "forward-looking statements"). All statements, other than statements of historical fact, included herein including, without limitation statements relating to; the completion of a Feasibility Study, securing of debt for future project construction, purchase of future mine production, the timing for completion of an NI 43-101 compliant resource and other matters related to the exploration and development of the Project, are forward-looking statements.� These forward-looking statements are made as of the date of this document and the Company does not intend, and does not assume any obligation, to update these forward-looking statements. Forward-looking statements relate to future events or future performance and reflect management’s expectations or beliefs regarding future events.� By their very nature forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements.� Factors that could cause actual results to differ materially from those in forward-looking statements include unsuccessful exploration results, changes in metals prices, changes in the availability of funding for mineral exploration, unanticipated changes in key management personnel and general economic conditions, title disputes as well as those factors detailed from time to time in the Company’s interim and annual financial statements and management’s discussion and analysis of those statements, all of which are filed and available for review on SEDAR at www.sedar.com.� In certain cases, forward-looking statements can be identified by the use of words 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” or the negative of these terms or comparable terminology.� Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements.� Accordingly, readers should not place undue reliance on forward looking statements.
[1] For details please see the NI 43-101 Inferred Resource Estimate report dated April 25, 2011, filed on SEDAR. � � �
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