AmeriLithium Completes First Phase of Exploration Drilling on Nevada Based Paymaster Lithium Project
HENDERSON, NV, April 11, 2011 /PRNewswire/ — AmeriLithium Corp. (OTC Bulletin Board: AMEL; “AmeriLithium” or “the Company”) is pleased to announce it has successfully completed the initial 3 holes of its 8-hole drill program on the Company’s Paymaster Canyon Lithium brine project in Nevada, USA. Despite encountering adverse weather conditions including cold temperatures, snow and ice, the initial 3 holes were completed within the program’s time frame.
Preliminary results of the reconnaissance drilling are highly encouraging, and ongoing laboratory analysis will determine metal concentrations and water quality parameters. Once the results have been received and evaluated, the next step in the exploration and development of the Paymaster project will be planned.
“We feel really positive about what we have accomplished here already,” said Matthew Worrall, AmeriLithium’s CEO. “We were particularly fortunate that the initial drill hole enabled us to pinpoint the target location, which, in turn, enabled us to change the initial drill plan by optimizing the locations for holes 2 and 3. And based on the initial results, I definitely share the optimism of Robert Allender, our VP of Exploration & Chief Geologist, when it comes to finding Lithium in this area of our claims.”
See the ‘FIRST PHASE DETAILS & HIGHLIGHTS’ section further below for more information on the drill program’s initial 3 holes. Photos of the drill program, and all information from the previous exploration phases, are also available on the Company’s corporate website at http://amerilithium.com/.
PAYMASTER PROJECT BACKGROUND
AmeriLithium’s domestic Paymaster Project represents a 5,880-acre claim block adjacent to the Clayton Valley playa, where Lithium-rich brines and evaporates have been accumulating for more than 30,000 years, resulting in the highest Lithium content found in any brines tested by the US Geological Survey (USGS) in southwestern US playas and basins.(1)
Clayton Valley is home to the only US-based Lithium producing plant, operated by neighboring Chemetall Foote Corporation, a subsidiary of Rockwood Holdings, Inc. The plant has been in production since 1967, producing an estimated 50 million kg (55,000+ tons) of Lithium to date from the region’s rich brines.(2)
In early October 2010, rough preliminary volume estimates for AmeriLithium’s Paymaster Project pointed to the potential for 7,500 to 26,000 tons of Lithium resource underlying the property. With Lithium carbonate trading in the range of $5,500-$6,000 per metric tonne based on a Q3 2010 report by Resource Capital Research,(3) AmeriLithium’s potential Lithium resource on this single Nevada property could represent a market valuation from $132.8 to $144.9 million. The Company’s Lithium holdings also include two other Nevada-based projects nearby, as well as claims in Canada and Australia.
FIRST PHASE DETAILS & HIGHLIGHTS
Three reconnaissance bore holes were drilled into 3 separate potential Lithium resource targets, identified as a result of previously reported geophysical surveys. The Company is permitted to drill 8 bore holes in this first phase drilling program. The initial 3 holes further tested highly prospective Lithium-bearing zones in Paymaster Canyon and Clayton Valley. The next round of drilling will be designed based on the results of analytical testing of water samples currently underway.
Field results were encouraging as all 3 borings produced water in considerable quantities and indicated the presence of brine resources. Highlights of the reconnaissance drilling include 1,400 feet of air and mud rotary drilling. Original estimates were for 3,000 feet of drilling, but field conditions dictated shallower borehole depths. Drill hole depth and perforated screen placement were dictated by the depth at which water was first encountered. Since water level was generally shallower than expected, drill hole depths were somewhat less than expected.
Water was found, field tested, and sampled for laboratory analysis at the permitted DH-2, DH-6, and DH-8 locations. Each of these locations was positioned, as dictated by physical conditions in the field, to optimize data acquisition and to accommodate drilling equipment and support vehicles.
DH-2 was completed at a depth of 600 feet and penetrated alluvium, sedimentary formations, and volcanic sediments found on the surface on the nearby Paymaster Ridge and the Weepah Hills including volcanic tuffs that are known to contain Lithium-rich brine in Clayton Valley. Field measurements of water temperature gradient, conductivity, and salinity were indicative of brine waters at depth intervals anticipated by the previous geophysical studies.
DH-8 penetrated 400 feet of alluvial gravels at the northeastern edge of Clayton Valley. Relatively high-salinity water was initially encountered at a depth of 200 feet. Water temperatures increased steadily until reaching nearly 130 degrees F at a depth of 400 feet. Once cased, screened, and developed, this well produced an estimated 300 to 400 gallons per minute. Further testing will be required to determine the production capacity of the brine aquifer in the area. Conductivity, salinity, and total dissolved solids were very high as measured by field instrument.
DH-6 was drilled to a depth of 440 feet. Judging from the content of the cuttings, the hole was very close to the fault zone identified in this area from the geophysical surveys. Geologic material penetrated was predominantly fault breccia, silicified sedimentary rocks of the Weepah Hills, and intrusive quartz breccias associated with the fault. The well started producing water at about 280 feet. During sample collection the well produced an estimated 100 gallons per minute. Elevated water temperature was not encountered, and the water had no brine taste. Static water level was 257 feet indicating that there is some head pressure in this area. This fault structure appears to extend into the Alkali Flats area to the east of Paymaster Canyon, and is being examined as a possible conduit for Lithium-rich water draining from Alkali Flats into Paymaster Canyon.
The preliminary results of the reconnaissance drilling are highly encouraging. Ongoing laboratory analysis will determine metal concentrations and water quality parameters. Once those results have been received and evaluated, the next step in the exploration and development of the Paymaster project will be planned.
FOR MORE INFORMATION
More information on the Paymaster Project drill program, and additional information regarding the Company, can be found at AmeriLithium’s corporate website www.amerilithium.com along with the facility to sign up for regular news updates.
ABOUT LITHIUM: Lithium is a lightweight metal used in a wide range of consumer products the world over: the medical industry uses Lithium as an anti-depressant; industrial uses include glass, ceramic and porcelain enamel manufacture; the aviation industry uses Lithium in alloys. Of particular interest is the use of Lithium for battery production, which has expanded significantly in recent years due to rechargeable Lithium batteries being used increasingly in electrical tools and in the rapidly expanding portable electronics market. Furthermore, the next generation of hybrid and electric vehicles are being designed to use high-capacity Lithium-ion batteries as environmentally-friendly fuel alternatives while the Obama administration has introduced $5 billion in funding and incentives for the development of a secure, domestic battery industry with special focus on Lithium-ion batteries.
ABOUT AMERILITHIUM: AmeriLithium is a publicly traded (NASD OTC BB: AMEL) mining company committed to progressively developing into one of the leading American players in the global Lithium industry. The Company is headquartered in Henderson, NV. AmeriLithium has amassed a Lithium portfolio consisting of ~724,000 acres, including three Nevada-based projects nearby the only Lithium producing plant in the US, a large project in Alberta, Canada, and a project in Western Australia.
ON BEHALF OF THE BOARD OF DIRECTORS, AmeriLithium Corp. Matthew Worrall, Chief Executive Officer Contact: AmeriLithium Corp. 871 Coronado Center Dr. Ste. 200 Henderson Nevada 89052 Phone: (702) 583-7790 Fax: (702) 583-7791 Email: firstname.lastname@example.org INVESTOR RELATIONS: Toll Free: 1-888-982-6374 Email: email@example.com
Certain statements in this press release are forward-looking and involve a number of risks and uncertainties. Such forward-looking statements are within the meaning of that term in Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. AmeriLithium Corp. bases these forward-looking statements on current expectations and projections about future events, based on information currently available. The forward-looking statements contained in this press release may also include statements relating to AmeriLithium Corp.’s anticipated financial performance, business prospects, new developments, strategies and similar matters. AmeriLithium Corp. disclaims any obligation to update any of its forward-looking statements, except as may be required by law.
(1) NI 43-101 Technical Report by Coast Mountain Geological Ltd for Rodinia Minerals Inc, Mar. 12, 2009
(2) Rodinia Minerals Inc website, Feb. 25, 2009
(3) Resource Capital Research – Rare & Minor Minerals Review 3Q10 Abridged (http://www.rcresearch.com.au/documents/rare-and-minor-metals/reports/0/australia/)
SOURCE AmeriLithium Corp.