Lakes of Lithium

Michael Berry, Morning Notes (03/08/2010)
"We last wrote on Salares Lithium January 11th. The shares had soared at the time. But since then there had been significant selling, we think, from the investors in the old shell company. On Friday the stock regained its January 11th price based. A research report was released Friday at the close.

This AM Salares Lithium reported a potential, promising brine volume from the northern section (about 65% of the area) on 1 of its 7 salars or brine lakes (Salar de la Isla) in Chile. The company completed the first phase of its tests using a technique called transient electromagnetic survey ("TEM").

. . .Salar de la Isla, encompasses a total of 16,500 hectares. It is 15 kilometers long and 6 km wide on average. Using the results obtained from the 38.5 line km survey Geodatos, the geophysical company, constructed a 3 dimensional model of the distribution of the brine horizon. The company reported a possible volume of 5.393 billion kiloliters using a resistivity cut-off of 2 ohm/meters (interpreted as possible brines) and 2.459 billion kiloliters using a cutoff of 1 ohm/meter. Be aware that these volume estimates are based on 65% of only 1 of 5 possible salars.

This lower volume is significant. It puts the company in good shape from a volume perspective compared to the leaders in the lithium exploration space."

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