Rodinia Lithium restarts work on lithium-potash project

2011-02-10 08:38 ET - News Release

Mr. Aaron Wolfe reports

RODINIA LITHIUM INC. COMMENCES ADVANCED DEVELOPMENT OF ITS SALAR DE DIABLILLOS LITHIUM-POTASH PROJECT

Rodinia Lithium Inc. has recommenced and augmented its work program on the Salar de Diablillos lithium brine project in Salta, Argentina. The company plans to advance the project to the next stage and determine the potential productivity of the Salar. The company plans to drill further exploration holes to assess the lithium, potash and boron mineralization within the Salar and intends to establish the basement depths. In addition, production and monitoring wells are being designed from which pump tests and basin hydrological monitoring can be performed. These wells will serve to optimize pumping rates and well distribution, as the company moves through development and toward production. All drilling equipment and permits required for the work have been secured.

Highlights:

• Initial resource estimate work continuing and on track;
• Anticipate initial resource estimate data within four weeks;
• Drilling to recommence at Diablillos targeting deeper aquifer depths within the basin;
• Production wells and pump tests being designed to determine production capacity of the Salar.

William Randall, president and chief executive officer of Rodinia, commented: "We are extremely encouraged by recent events and results, which management believes are indicative of what a preliminary initial resource estimate may look like for the Salar de Diablillos. With this information and funds from a recently completed equity financing, we believe it is the right time to step up the development program. We believe Diablillos can be developed into a world-class lithium-potash asset, and we now have the required funds to make significant advancements and delineate the production potential."

The project is supervised by Ray Spanjers, Rodinia's manager of exploration. Mr. Spanjers is considered a qualified person, as defined by National Instrument 43-101, and has reviewed and approved the scientific and technical information in this release. According to the company's sampling protocol, sample size is to exceed 500 millilitres and be stored in clean, secure containers for transportation. The prepared samples are then forwarded to the ALS Laboratory Group, environmental division, in Fort Collins, Colo., United States, for analysis. A rigorous quality assurance/quality control program is implemented consisting of regular insertion of standards and blanks to ensure laboratory integrity.

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