More Resource Estimate CoverageCanada Lithium finds disparity in resource estimates, initiates outside review
By David Paddon, The Canadian Press
TORONTO - Canada Lithium Corp. (TSX:CLQ) has launched a review of a$202-million mining project it plans to develop in western Quebec,saying the lithium deposit may not be as big as previously reported.
The announcement comes less than four months after the Toronto-basedcompany confirmed that the project was among the top two- orthree-largest hard-rock lithium deposits in the world.
The company had also claimed that the lithium deposit could competefinancially with South American lithium brine operations and produce avery pure form of lithium and do so more quickly than most brine orhard-rock projects.
Canada Lithium sold about $126.5 million worth of its shares tofinance construction of an open pit mine and processing plant near ValD'Or, Que.
In late January, it announced an equity financing that closed inearly February, with a total of more than 84 million common shares soldat $1.50 each.
The shares were at $1.35 before a trading halt was initiated at theToronto Stock Exchange, about half an hour before the end of officialtrading Monday.
The company announced later that an internal review has determined a"material reduction" in its measured, indicated and inferred resourceestimates compared with information it published on Oct. 28.
The discredited resource estimate was used to develop a plan forbuilding a mining operation that would process one million tonnes of oreper year over an initial mine life of 14.8 years.
Canada Lithium sad Monday it will review the mine plan once apreliminary review is conducted by Roscoe Postle and Associates and adetailed audit is conducted.
It says the preliminary review will be done in about two weeks andthe detailed audit and new resource report could take a number of monthsto complete.
Lithium has a variety of uses including exchangeable batteries.Interest in the mineral has grown with the advent of electric andhybrid-electric vehicles.