(Corrects first paragraph to show shares rose 21 pct, not 22 pct)

* Shares jump as much as 21 pct to C$0.34

* Lithium values average 713 mg/l with potash byproduct

* Analysts see Rodinia as takeover or offtake target

TORONTO, Sept 17 (Reuters) - Shares in Rodinia Lithium RM.V were up as much as 21 percent on Friday as the exploration company said it had found high grade lithium reserves at its Salar de Diablillos mine in Argentina.

Results from the discovery drill hole at the salar, or salt lake, found average values of 713 milligrams per litre of lithium. Salars with brine levels above 600 mg/l are generally seen as good quality deposits.

"The numbers indicate that you've got world class levels of lithium at Diablillos," said Byron Capital Markets analyst Jon Hykawy. "Frankly, it's good chemistry all around at Diablillos."

Shares in the Toronto-based company were up 16 percent at 32.5 Canadian cents on Friday morning, after climbing as high as 34 Canadian cents on the TSX Venture Exchange.

Lithium is a key component in rechargeable batteries used in everything from cellphones to electric vehicles.

Rodinia said that it will issue a resource estimate for Diablillos to Canadian regulators by the end of the year.

The explorer said it would also produce some potash and boron as byproducts of its lithium production.

"This is looking very, very positive for them," said Hykawy, adding that Rodinia is seen as a good target for takeover, or for substantial offtake agreements.

"We definitely have Rodinia on the list of five or six lithium juniors that matter," he said. (Reporting by Julie Gordon; editing by Rob Wilson)