Critical Elements Lithium Corp V.CRE

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Critical Elements Corporation
FRANKFURT : F12
TSX VENTURE : CRE
OTCQX : CRECF

July 27, 2011 12:38 ET
Critical Elements: The Rose Deposit is One of the Largest Resources of "Conflict Free" Tantalum, With a New Indicated Resource of 26,500,000 Tonnes at 1.30% Li2O Eq or 0.98% Li2O, 163 ppm Ta2O5

MONTREAL, QUEBEC--(Marketwire - July 27, 2011) -CRITICAL ELEMENTS CORPORATION (TSX VENTURE:CRE) (OTCQX:CRECF) (FRANKFURT:F12) is pleased to report an update to the independent resource estimate for its Rose deposit, James Bay, Quebec.
The Rose deposit now consists of 26,500,000 tonnes of indicated resources containing 1.30% Li2O Equivalent (Eq) or 0.98% Li2O(259,700 tonnes of Li2O or 642,238 tonnes of Li2CO3 Eq), 163 ppm of Ta2O5 (9,514,317 pounds of Ta2O5) and 10,700,000 tonnes of inferred resources containing 1.14% Li2O Equivalent (Eq) or 0.86% Li2O (92,020 tonnes of Li2O or 227,565 tonnes of Li2CO3 Eq), 145 ppm Ta2O5(3,417,400 pounds of Ta2O5). The resource was compiled using a cut-off grade of 41$/t for the open pit model and 66$/t for the underground model (taking Li and Ta recovery into consideration) based on the current estimation of the resource and market conditions. The NI-43-101 compliant technical report will be available on SEDAR within the next 45 calendar days.
This new indicated resource represents an increase of 131% in tonnage, 129% in Ta2O5 and 69% in Li2O. The new inferred resources represent an increase of 393% in tonnage, 418% in Ta2O5 and 234 % in Li2O.
The current resource estimate demonstrates that the Rose deposit is one of the more important resources of "ethical" tantalum. The resources are contained in twenty-three (23) subhorizontal pegmatites, at and near surface. The thickness of the zones varies from 2m to 21m.
"With an indicated resource of 642,238 tonnes of lithium carbonate and 9,514,317 pounds "Conflict Free" of Ta2O5, Critical Elements have now the potential to become a major player at the global scale of supply of strategic elements. There is an excellent potential to increase the size of the deposit at Rose itself and at the nearby additional showings on the Rose property, considerably and quickly", stated Jean- Sébastien Lavallée, President & CEO of Critical Elements Corporation.
Highlights of the 43-101 property report, prepared by InnovExplo Inc., independent consulting firm include the following:
MINERAL RESOURCE ESTIMATE – July 20th, 2011
Critical Elements Inc. – Rose Project
Rose Resource Estimate dated July 20th, 2011
Tonnes
Li2O equivalent
Li2O
Ta2O5
Rb
Cs
Be
Ga
(x 1,000)
(%)
(%)
(ppm)
(ppm)
(ppm)
(ppm)
(ppm)
Open-pit model
Lithium Zones
23,800
1.35%
1.05%
157
2,410
94
131
67
Tantalum Zones
1,900
0.78%
0.33%
233
1,592
80
93
54
Indicated
Underground model
Lithium Zones
700
0.95%
0.63%
171
2,098
85
137
72
Tantalum Zones
100
0.95%
0.60%
180
2,404
108
109
63
Total Indicated
26,500
1.30%
0.98%
163
2,343
92
128
66
Tonnes
Li2O equivalent
Li2O
Ta2O5
Rb
Cs
Be
Ga
(x 1,000)
(%)
(%)
(ppm)
(ppm)
(ppm)
(ppm)
(ppm)
Open-pit model
Lithium Zones
7,900
1.22%
0.95%
143
1,610
77
126
63
Tantalum Zones
1,100
0.73%
0.28%
232
1,079
78
93
54
Inferred
Underground model
Lithium Zones
1,600
1.05%
0.88%
90
752
55
116
55
Tantalum Zones
100
0.77%
0.09%
355
256
87
27
50
Total Inferred
10,700
1.14%
0.86%
145
1,418
74
121
61
The Qualified People for the Mineral Resource Estimates as defined by National Regulation 43-101 were Pierre-Luc Richard, B.Sc., P.Geo. and Carl Pelletier, B.Sc., P.Geo. (InnovExplo Inc.), and the effective date of the estimate is July 20, 2011. National Regulation 43-101 and CIM definitions were followed.
Mineral Resources are not Mineral Reserves having no demonstrated economic viability.
Results are presented undiluted and in situ, and some resource blocks may be locked in pillars. The whole resource is included in a pit shell established by InnovExplo. The estimate includes twenty-three (23) zones (10 zones are categorized as lithium dominant and 13 are categorized as tantalum dominant). The resource estimate covers the drilled area of the Rose as well as the JR and the Hydro showings Totals may not sum correctly due to rounding.
The resource modeling used data from surface NQ core drilling samples collected by First Gold Exploration (now Critical Elements) in 2009 (10 DDH), in 2010 (148 DDH) and in 2011 (44 DDH) totalling 202 DDH including a total of 4,406 sampled assays from 25,201 metres of drilling. A fixed density of 2.71 g/cm3 was used based on the average density measured in mineralized lithologies. A minimum width of 2.0m was applied, using the grade of the adjacent material when assayed or value of zero when not assayed. Based on appropriate statistics, a capping of 15,000 was fixed for lithium, 650 for tantalum, 10,000 for rubidium, 600 for cesium, 900 for beryllium, and 150 for gallium, with all values in ppm. Raw assays were composited (after being capped) using 1.00 m drill hole intervals.
The Resources were compiled using a cut-off grade established on a "tonne value" of 41$ (open-pit model) and 66$ (underground model) based on the current estimation of the resource and market conditions. The "tonne value" considers a 64% recovery for lithium and a 70% recovery for tantalum. A price of 6,000$/t lithium
carbonate (Li2CO3) and a price of 317$/kg Ta was considered (prices and opex produced by Genivar (internal study for Critical Elements; June 2011). No valuation was included for any of the other elements. The cut-off used must be re-evaluated in light of the present market pricing for lithium and tantalum as well as exchange
rates, recovery and mining cost. Possible recovery of other elements should also be considered. Li2O equivalent was determined based on lithium and tantalum prices and their respective recovery ratio.
No Measured Resources were estimated. Indicated and Inferred Resources were evaluated from drill holes results using a block model approach (inverse distance squared interpolation) with 5m blocks within GEMS software (version 6.2.4). The interpolation was constrained within twenty-four (24) individual 3D solids (one solid did not produce any tonnes at the established cut-off).
Calculations used metric units (meters, tonnes and ppm). Results were rounded to reflect their estimated nature. Tonnes are rounded to 100,000. Grades reported in percent were rounded to two decimals while grades reported in part per million (ppm) were rounded to the closest integer.
EXTRACTS FROM THE NI 43-101 COMPLIANT REPORT:
"The mineralized pegmatitic dykes are oriented N296 and show a shallow dip to the northeast averaging 15 degrees (locally from 5 to 20 degrees). The deposit was identified over a strike of 1,800 metres and remains open along strike and at depth."
"Based on lithium and tantalum grades, the deposit is, so far, only limited by topography. It is open along strike to the southeast and to the northwest as well as at depth."
"The block model indicates that the entire reported resource extends to a depth of 300 metres, which is limited by the existing drilling."
"There is considerable potential to increase tonnage with additional drilling of the known pegmatitic dykes at depth and along strike. In addition, the current geological setting suggests that there is a reasonable potential to identify new zones in the immediate environment. The authors believe that the gap between the "LR" drill holes and the "JR" drill holes exists because of the absence of drilling and that it should be drilled in order to link the two areas."
"Different cut-offs were calculated. While the 41$/tonne cut-off is the official cut-off of this resource estimate for the open pit model and 66$/tonne is the official cut-off of this resource estimate for the underground model, other cut-offs are presented athttps://media3.marketwire.com/docs/CRE_ROSE_NI43-101_ENG_2.pdf.