LIT: Solid Early Stage Lithium Project

The Green Dollar Report (03/26/2010)
"[Salares'] project is huge. Of the 7 salars the company has, the 'Salar de La Isla' is the largest; 15 kilometers long and 10 kilometers wide at its widest point. The rest of the salars are a fair bit smaller, but still quite substantial. Historical data shows samples of lithium/potassium of 1,080 ppm. A recent transient electromagnetic survey of that the northern part of the Salar de La Isla, which is 10,750 hectares, shows that there is anywhere between 2.5 and 5.4 billion cubic meters of brine. This means that in the northern part of the salar, there could be anywhere from 1.4 to 2.8 million tons of lithium. This does not take into account the rest of the Salar de La Isla, which is another 5,000 hectares, or the rest of the salars controlled by Salares Lithium. Just to put this into perspective, total world reserves are around 19–20 million tons, which would give Salares Lithium a sizeable piece of the lithium pie.

. . .Based on the current situation, the company has yet to define a resource. With the current market lust for lithium, Salares Lithium should have no troubles with having a share price of $1.60 in the next 6– 12 months. The main catalyst for this would be a resource calculation, which is in the cards, as management has indicated to me.

The company is well financed and should not need to finance at low price levels. In fact, it is crucial that they keep all their financings at above $1, which should be no problem as long as the capital markets hold out. For a lithium project, this would be one of the better, early stage ones to get involved with as it presents excellent potential in the near and medium term."

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