TORONTO, May 2 /CNW/ - Canada Lithium Corp. (TSX: CLQ) (OTCQX: CLQMF)
(the "Company") announced today that the Ontario Securities Commission
(OSC) has noted the Company in default of its continuous disclosure
obligations under Ontario securities law due to the Company's
announcement on February 28, 2011 that an internal review had indicated
a material reduction in the measured, indicated and inferred mineral
resource for the Project announced on October 28, 2010.
The February 28th announcement stated that the Company had appointed Roscoe, Postle &
Associates ("RPA") to undertake a preliminary independent review of the
October 28, 2010 mineral resource estimate. On March 16, 2011, the
Company announced that RPA had confirmed that there were significant
issues with the geological modelling that had produced the mineral
resource estimate announced on October 28, 2010. The Company also
confirmed that it had appointed AMC Mining Consultants (Canada) Ltd.
("AMC") to independently conduct a resource estimate of the Project and
expeditiously prepare a new NI 43-101 compliant technical report.
The Company anticipates that AMC will complete the independent resource
estimate on or before May 13, 2011 and that the Company will be in a
position to file a new NI 43-101 compliant technical report within 45
days of such date.
As previously announced, the Company believes that there will be a
material reduction in the measured, indicated and inferred mineral
resource announced on October 28, 2010, however it will not be possible
to accurately quantify the magnitude of such reduction until AMC
completes its independent mineral resource estimate.
The OSC has noted that the Company will remain in default until it files
a new National Instrument 43-101 ("NI 43-101") compliant technical
report on the updated feasibility study for the Quebec Lithium Project
(the "Project") which will include the independent resource estimate
for the Project that is currently being prepared by AMC. The new NI
43-101 compliant technical report on the feasibility study would
replace the existing technical report on the feasibility study filed by
the Company on January 11, 2011 which contains the mineral resource
estimate announced by the Company on October 28, 2010.
In the meantime, the Company is in the process of making an application
to the Canadian securities regulatory authorities pursuant to National
Policy 12-203 Cease Trade Orders for Continuous Disclosure Defaults ("NP 12-203") requesting that a management cease trade order be imposed
upon the Chief Executive Officer and the Chief Financial Officer of the
Company in lieu of a general cease trade order in respect of the
Company's continuous disclosure default. Subsequently, the Company
intends to satisfy the alternative information guidelines prescribed by
NP 12-203 by issuing bi-weekly default status reports in the form of
news releases so long as it remains in default of continuous disclosure
The Quebec Lithium Mine originally operated from 1955 to 1965 as an
underground mine and processing plant that produced spodumene, lithium
carbonate and lithium hydroxide monohydrate. In 1974, Surveyer,
Nenninger et Chenevert Inc. ("SNC") was contracted by Sullivan Mining
Group to write a feasibility report on the rehabilitation of the former
Quebec Lithium Mine. SNC calculated a historical reserve estimate of
15,736,938 tonnes grading 1.14% Li2O. This estimate is not compliant with NI 43-101 standards.
The Company believes that the historical estimates are relevant;
however, the estimates should not be relied upon. The historical
estimates have not been verified by a qualified person. The historical
estimates were prepared under CIM standards in 1974; however, they do
not meet the current CIM Definition Standards on Mineral Resources and
Mineral Reserves adopted in 2005. The Company is not treating the
historical estimates as a current mineral resource estimate under
National Instrument 43-101.
About Canada Lithium Corp.
The Company holds a 100% interest in the Quebec Lithium Project near Val
d'Or, the geographical heart of the Quebec mining industry. The
project, as noted above, is currently the subject of an independent
resource audit. Metallurgical tests have produced battery-grade
lithium carbonate from project samples.
Cautionary Statement Regarding Forward-Looking Information
This press release contains "forward-looking information" within the
meaning of applicable Canadian securities legislation. Generally,
forward-looking information can be identified by the use of
forward-looking terminology 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".
Forward-looking information is based on reasonable assumptions that have
been made by the Corporation as at the date of such information and is
subject to known and unknown risks, uncertainties and other factors
that may cause the actual results, level of activity, performance or
achievements of the Corporation to be materially different from those
expressed or implied by such forward-looking information, including the
fact that an independent review is being conducted by a third party
that will work independently of the Company and, for reasons outside
the control of the Company, may cause the expected completion time
identified herein by management to be materially different.
Forward-looking information in this press release includes, among other
things, disclosure regarding the anticipated timing for completion of
the independent resource estimate of the Project.
Although the Company has attempted to identify important factors that
could cause actual results to differ materially from those contained in
forward-looking information, there may be other factors that cause
results not to be as anticipated, estimated or intended. There can be
no assurance that such information will prove to be accurate, as actual
results and future events could differ materially from those
anticipated in such information. Accordingly, readers should not place
undue reliance on forward-looking information. The Corporation does not
undertake to update any forward-looking information referenced herein,
except in accordance with applicable securities laws.
SOURCE CANADA LITHIUM CORP.
For further information:
For further information please contact:
Peter Secker, President and CEO (416) 361-2821
Olav Svela, Director, Investor Relations (416) 361-2821 or (416) 479-4355 or email firstname.lastname@example.org
Christine Stewart, Renmark Financial Communications Inc. (416) 644-2020 or email email@example.com
Please visit the Canada Lithium website at www.canadalithium.com.
Corporate Office: 401 Bay Street, Suite 2010, P.O. Box 118, Toronto, ON, M5H 2Y4