Rodinia Diablillos at 932,000 t Li at 556 mg/l inferred

2011-03-02 07:51 ET - News Release

Mr. William Randall reports

RODINIA LITHIUM INC. DEFINES 4,959,000 TONNE LITHIUM CARBONATE EQUIVALENT RESOURCE AT SALAR DE DIABLILLOS; DIABLILLOS INFERRED MINERAL RESOURCE: 4,959,000 TONNES OF LITHIUM CARBONATE EQUIVALENT AND 19,837,000 TONNES OF POTASSIUM CHLORIDE EQUIVALENT; 4,959,000 TONNES LITHIUM CARBONATE EQUIVALENT IS BELIEVED TO BE THE SECOND LARGEST LITHIUM BRINE RESOURCE TO DATE PREPARED UNDER NI 43-101 STANDARDS; PROJECT MAINTAINS ITS FAVOURABLE GEOCHEMISTRY WITH LOW MAGNESIUM AND SULPHATE LEVELS; DEPOSIT REMAINS OPEN AT DEPTH WITH CONSIDERABLE POTENTIAL FOR INCREASED RESOURCE GRADE AND SIZE WITH FURTHER DRILLING

Rodinia Lithium Inc. has received an independent brine resource estimate for its Salar de Diablillos lithium-brine project, located in Salta, Argentina, conducted by AMEC Internacional Ingenieria y Construccion Ltda. The resource estimate reports an inferred brine resource of 932,000 tonnes of lithium metal, 10,404,000 tonnes of potassium and 1,083,000 tonnes of boron, which is equivalent to 4,959,000 tonnes of lithium carbonate equivalent, 19,837,000 tonnes of potassium chloride and 6,194,000 tonnes of B203. The project has an average magnesium-to-lithium ratio of 3.68 and an average sulphate-to-lithium ratio of 14.48.

William Randall, president and chief executive officer of Rodinia, commented: "this resource estimate positions Diablillos amongst the premiere lithium- and potash-bearing salars in the world. This represents one of the largest estimated brine resources in the world. In addition to its size, the brine geochemistry is favourable with low magnesium-to-lithium and sulphate-to-lithium ratios. Based on the above, the company believes the project has the potential to become a producer of lithium, potassium and boron products in the near future."

AMEC developed a geological model based on the data provided by Rodinia management that was subsequently independently validated. The geological model subdivided the salar into three aquifers with distinct geological and geochemical characteristics:

• Aquifer I: comprises a near-surface zone, composed of ulexite, coarse clastic sediments and clay predominantly in the centre of the salar to an average depth of 4.5 metres;
• Aquifer II: occupies a middle zone, composed of an interbedded sequence of sands, silts and clays to a maximum depth of 90 metres and an average vertical thickness of 58 metres;
• Aquifer III: represents the basal unit, open at depth, of interbedded layers of sand, silt, gravel and minor clay. This layer was assumed to be the base of the resource and is open at depth.

     INFERRED BRINE RESOURCE ESTIMATE, DIABLILLOS LITHIUM-POTASH  
            PROJECT, SALTA, ARGENTINA, AS OF FEB. 22, 2011            

                     Total                                                
Aquifer    Volume porosity S. G.        Concentration        Tonnage      
                                                          Li      K      B
                                     Li      K      B    (Mt)   (Mt)   (Mt)
         (000s m3)      (%)       (mg/l) (mg/l) (mg/l) (000s) (000s) (000s)

I         276,465   27.50%  1.10    592  6,298    647     45    479     49
II      1,463,920   32.50%  1.07    471  5,269    540    224  2,507    257
III     3,460,855   32.50%  1.10    589  6,595    691    663  7,418    777
        ---------   ------  ----    ---  -----    ---    --- ------  -----
Total   5,201,240   32.23%  1.09    556  6,206    646    932 10,404  1,083
        ---------   ------  ----    ---  -----    ---    --- ------  -----

   INFERRED BRINE RESOURCE ESTIMATE, DIABLILLOS LITHIUM-
   POTASH PROJECT, SALTA, ARGENTINA, AS OF FEB. 22, 2011   

                     Total                                      
Aquifer    Volume porosity S. G.       LCE         PE        BAE
                                                           Boric
                                    Li2CO3        KCl       acid
                                    Mt eq.     Mt eq.     Mt eq.
         (000s m3)      (%)          (000s)     (000s)     (000s)

I         276,465   27.50%  1.10       240        913        281
II      1,463,920   32.50%  1.07     1,193      4,780      1,469
III     3,460,855   32.50%  1.10     3,526     14,144      4,444
        ---------   ------  ----     -----     ------      -----
TOTAL   5,201,240   32.23%  1.09     4,959     19,837      6,194
        ---------   ------  ----     -----     ------      -----

Equivalent tonnages are reported as in situ in metric tonnes and were
calculated using standard conversion rates as determined by the chemical    
composition of the final product, and are independent of price and mining   
processes. A 230-milligram-per-litre-lithium cut-off was used for all 
resource estimations.     
                                                                            
Notes:
(1) The brine resource estimate is reported consistent with the principles  
of the disclosure standards under National Instrument 43-101.                                
(2) The economic cut-off applied was based on analogous deposits.            
(3) Certain assumptions regarding porosity, permeability and boundary       
conditions are based on analogous salar-hosted brines and may change when   
detailed data from the Diablillos deposit are collected.                    
(4) Assumptions regarding thicknesses of aquifer II and III may change 
with more detailed drilling and geophysical data.                                
(5) Total porosity was used to estimate the in situ lithium, potassium, 
and boron. Recoverable resources are determined by the "specific yield," 
which is the unit volume of fluid that will drain under gravity. The 
specific yield could ranges between 1 and 22 per cent, depending on 
lithology.                     
(6) The effective date of the estimate is March 1, 2011.

Rodinia began work on Diablillos in 2010. By the end of the same year management had completed an extensive auger sampling program and had drilled 16 reverse circulation drill holes covering the entire basin, collecting data that included lithology, specific gravity, flow rates, temperature and other field measurements. Additionally, downhole geophysical logging (porosity and density), and sediment and brine sampling were conducted at regular intervals where possible. The exploration program included a propertywide gravity and topographical survey. The results were indicative of relatively high grade of lithium contained within the brines and were deemed adequate for an initial resource estimate.

Lithium mineralization is confined within the enclosed basin. Vulcan software wireframe solids were generated by AMEC for the different domains, as well as the basement and topography surfaces. The Diablillos block model was created using Vulcan using a 250-by-250-by-six-metre block size with subblocks down to 50 by 50 by two metres for aquifers II and III. For aquifer I, where auger sampling was done on a 300-by-300-metre spacing, and the parent block size was 50 by 50 by six metres with subblocks down to 25 by 25 by two metres. Block grades were calculated using squared inverse distance grade estimation methodologies. All blocks were assigned an inferred mineral resource classification. At-depth resources within the third aquifer were limited by an interpolated surface representing 30 metres below the total depth of drill holes.

The independent brine resource estimate prepared by AMEC is consistent with the standards set out in Canadian Securities Administrators' National Instrument 43-101. A complete National Instrument 43-101 technical report, which will incorporate the brine resource estimation, will be filed on SEDAR within 45 days of release of this press release.

The resource model and brine resource estimation were completed and/or supervised by Paolo Bevacqua, PGeo, senior hydrogeologist, of AMEC, Santiago, Chile. By virtue of his background and professional experience Mr. Bevacqua is a qualified person as defined by National Instrument 43-101. The project was supervised by Ray Spanjers, Rodinia's manager of exploration. Mr. Spanjers is considered a qualified person, as defined by National Instrument 43-101.

We seek Safe Harbor.