Default Status Report Pursuant to National Policy 12-203
TSX: CLQ; U.S. OTC: CLQMF
TORONTO, May 30, 2011 /CNW/ - Canada Lithium Corp. (TSX: CLQ; OTCQX:
CLQMF) (the "Company") announced today that it has received a
construction permit from the Municipality of La Corne, Que., for
construction of surface service infrastructure at its Québec Lithium
The Company has proposed construction of an open pit mine and processing
plant at the site, 60 km. north of Val d'Or, Que., to produce lithium
carbonate, a key component in lithium-based batteries that power
electric and hybrid vehicles; hand-held tools, such as cordless drills;
yard landscaping tools; and a full range of consumer electronics. The
construction permit is the first of a number of permits required before
the project can go ahead.
Default Status Update
In a press release dated May 2, 2011, Canada Lithium Corp. announced
that the Ontario Securities Commission ("OSC") had 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 its Québec
Lithium Project (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 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 mineral resource estimate for the Project and
expeditiously prepare a new technical report compliant with National
Instrument 43-101 Standards of Disclosure for Mineral Projects ("NI 43-101") .
In a press release dated May 16, 2011, the Company announced that AMC
had completed its mineral resource estimate for the Project. The press
release disclosed that the AMC mineral resource estimate, together with
the previous October 28, 2010 estimate, is as follows:
Mineral Resources Reported by Class (0.8% Li2O cut-off)
Grade (% Li2O)
Grade (% Li2O)
Total M + I
Notes: Mineral resources that are not mineral reserves do not have
demonstrated economic viability.
Tonnes rounded to the nearest thousand.
The AMC resource figures are constrained by a pit shell, whereas the
October 2010 resource model was not.
The press release of May 16, 2011 also disclosed that BBA Inc. is
currently completing a mineral reserve estimate and mine planning based
on the AMC block model and mineral resource estimate. The results of
this work will comprise part of an updated NI 43-101-compliant
Feasibility Study Technical Report to be filed within 45 days of the
announcement of the new mineral reserve estimate. (The 43-101-compliant
report that accompanies the AMC mineral resource estimate announced May
16, 2011 will be filed on or before June 30, 2011.)
The OSC has noted that the Company will remain in default until it files
the updated NI 43-101- compliant Feasibility Study Technical Report.
The updated NI 43-101-compliant Feasibility Study Technical Report will
replace the existing Feasibility Study Technical Report filed by the
Company on January 11, 2011, which contains the October 28, 2010
mineral resource estimate.
As previously announced in its press releases of May 2, 2011 and May 16,
2011, the Company applied 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 ("CEO") and the Chief Financial
Officer ("CFO") of the Company in lieu of a general cease trade order
in respect of the Company's continuous disclosure default. On May 10,
2011, the OSC imposed a temporary management cease trade order on the
CEO and CFO. On May 20, 2011, the temporary management cease trade
order was replaced by a permanent management cease trade order that
will remain in effect until two business days following receipt by the
OSC of all filings the Company is required to make under Ontario
securities law, or further order of the OSC. A copy of the permanent
management cease trade order has been posted on the Company's website.
The Company intends to continue satisfying 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 requirements.
Drill Program Update
The Company has now completed approximately 20 holes of the planned
50-hole, in-fill drilling program announced on May 16 and under way at
the Quebec Lithium Project. The program is scheduled to be completed by
late June 2011.
The AMC mineral resource estimate was prepared by Dinara Nussipakynova,
P.Geo, Senior Geologist, AMC, under the supervision of Mr. J Morton
Shannon, P.Geo., Geology Group Manager and Principal Geologist, AMC.
Ms. Nussipakynova and Mr. Shannon are independent Qualified Persons as
defined by NI 43-101. Mr Shannon has read and approved the contents of
Mitch Lavery, P.Geo., is the Qualified Person for the Québec Lithium
Project in accordance with NI 43-101. Mr. Lavery has read and approved
the contents of this news release.
*The mineral resource estimates in this press release were prepared in
accordance with the CIM "Definition Standards on Mineral Resources and
Mineral Reserves" adopted by the CIM Council on December 11, 2005, and
the CIM "Estimation of Mineral Resources and Mineral Reserves Best
Practice Guidelines," adopted by CIM Council on November 23, 2003, in
compliance with NI 43-101 guidelines.
About Canada Lithium Corp.
Canada Lithium Corp. holds a 100% interest in the Québec Lithium Project
near Val d'Or, the geographical heart of the Quebec mining industry.
The Company plans to build an open-pit mine and processing plant
on-site. Metallurgical tests have produced battery-grade lithium
carbonate samples. The Company trades under the symbol CLQ on the TSX
and on the U.S. OTCQX under the symbol CLQMF.
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.
Forward-looking information in this press release includes, among other
things, disclosure regarding the anticipated timing for completion of
the independent review and audit and the review of the existing mine
plan of the Company.
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:
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