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- Sebastien Lavallee, 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
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Li2O
equival
Tonnes ent 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
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Total
Indicated 26,500 1.30% 0.98% 163 2,343 92 128 66
------------------------------------------------------------------
Li2O
equival
Tonnes ent 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
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Total Inferred 10,700 1.14% 0.86% 145 1,418 74 121 61
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1. 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.
2. Mineral Resources are not Mineral Reserves having no demonstrated
economic viability.
3. 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.
4. 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/cm(3) 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.
5. 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.
6. 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).
7. 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 athttp://media3.marketwire.com/docs/CRE_ROSE_NI43-101_ENG_2.pdf.
ABOUT CRITICAL ELEMENTS CORPORATION
Critical Elements is actively developing its 100%-owned Rose lithium-tantalum flagship project located in Quebec. The project hosts a current new NI 43-101 compliant Indicated resource of 26.5 million tonnes of 1.30% Li2O Eq. or 0.98% Li2O and 163 ppm Ta2O5 and Inferred resource of 10.7 million tonnes of 1.14% Li2O Eq. or 0.86% Li2O and 145 ppm Ta2O5 announced in this press release.
Critical Elements has commissioned a prefeasibility study for the project from Genivar, one of the largest independent engineering firms in Canada. Genivar is also doing an environmental study, and Acme Metallurgical Ltd. of Vancouver is carrying out project metallurgy.
Critical Elements' portfolio also includes rare-earth and tantalum-niobium projects in the Rocky Mountains of British Columbia and in Quebec, as well as a 50% interest in the Croinor project, which is located in Quebec and hosts a current NI 43-101 compliant measured and indicated resource of 814,228 tonnes at 9.11 g/t Au, for 238,414 ounces of gold at a 5 g/t cut-off.
Jean-Sebastien Lavallee (OGQ #773), geologist, shareholder and president and chief executive officer by interim of the Company and a Qualified Person under NI 43-101, has reviewed and approved the technical content of this release.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. |
