Junior miner surges on lithium PEA

While some speculators took a shine to gold drill results Tuesday

Stockhouse Canadian Small and Micro-cap Stock Report for Tuesday, November 8, 2011

TORONTO (SHfn) – Rodinia Lithium (TSX: V.RM, Stock Forum) shares jumped 21% to 26 cents on Tuesday after the micro cap miner reported results of the Preliminary Economic Assessment (PEA) completed on its 100% owned Salar de Diablillos lithium brine project in Argentina. The PEA outlines an operation producing 15,000 tonnes lithium carbonate per year and approximately 51,000 tonnes of KCl (potash) per year, projecting a 34% internal rate of return pre-tax and a US$561 million pre-tax net present value at an 8% discount rate.

As well, shares of Lithium Americas (TSX: T.LAC, Stock Forum) moved up 16% to $1.65 as the lithium junior said its lithium carbonate pilot plant for its Cauchari-Olaroz project in Argentina has been completed and pilot production is now underway. The pilot plant is designed to produce approximately 30 kilograms of battery grade lithium carbonate (99.5% purity) per day.

GoGold Resources (TSX: V.GGD, Stock Forum), meanwhile, reported that confirmation sampling from previous drilling at the Main Mine deposit located at its Rambler Property in Newfoundland is now complete, with results including 11.0 grams per tonne (g/t) gold over 14.78 metres. GoGold stock popped 16% to $1.54.

And, Scorpio Gold (TSX: V.SGN, Stock Forum) Tuesday announced initial drill results from the Wedge B Zone at its 70% owned Mineral Ridge project in Nevada.

"Our initial drilling on the Wedge B Zone, located 225 metres west of the Drinkwater pit where the company is currently mining, has intersected mineralization of interest. Given the shallow depth of the mineralization and its close proximity to the crushing unit and haul roads, the company is examining the viability of adding the extraction of this zone into the 2012 mine planning. This addition has the potential to increase the overall gold production scheduled for the coming year," said Scorpio Gold President and CEO Peter J. Hawley. Scorpio Gold shares added 8% at 95 cents.