- Rodinia's Two Flagship Properties Are in Salta Province, Argentina and Nevada, USA
- Neither Diablillos nor Clayton Valley Are Exposed to Political Developments in Jujuy Province
- Salta Province Has a Long Mining-Friendly History With No Record of Government Interference
TORONTO, ONTARIO--(Marketwire - March 7, 2011) - Rodinia Lithium Inc. ("Rodinia" or the "Company") (TSX VENTURE:RM)(OTCQX:RDNAF). In light of recent press releases and media comments issued with respect to recently ratified Decree 7592/11 in Jujuy Province, Argentina, Rodinia would like to remind all investors and stakeholders that the Company's flagship assets are not located within Jujuy Province and are therefore unaffected by the decree. The Company has a portfolio of three lithium-brine projects in Salta Province, Argentina, including its flagship Salar de Diablillos Project ("Diablillos"), and one potentially equally significant lithium-brine project in Clayton Valley, Nevada, USA ("Clayton Valley").
William Randall, President and CEO of Rodinia, commented "Mining legislation and government activity within the mining sector varies dramatically from province to province in Argentina, and the evolution of legislation in one province does not directly impact neighbouring provinces. In our experience, and looking back at the history, Salta has always been a mining-friendly province and has been encouraging an environment where projects can be actively explored, developed and put into production. Salta Province has almost a century of mining history. This history includes significant work and involvement by both junior explorers and senior producers like Rio Tinto Minerals, and these private companies have never encountered any interference from the government. This pro-business and supportive environment is unique to select areas in Argentina and is a specific reason why we selected the Diablillos Project."
Rodinia is still working to fully understand all the developments in Jujuy and their potential impact on lithium exploration and exploitation. As the Company understands it, Decree 7592/11 seeks to preserve natural resources in Jujuy that the governing provincial group believes should become an integral part of the economy and a source of local added value and labour participation. Media coverage on the topic has suggested that, in addition to an Environmental Impact Statement approval, exploration and exploitation level projects will now require approval by a Committee of Experts and by the joint resolution of the Minister of Production and the Secretary General of the Provincial Government. The Committee of Experts is to be comprised of seven seats from academic and political provincial institutions and two politicians from the Jujuy Legislative Assembly. Rodinia has been actively following the developments in Jujuy for over six months now and will continue to do so.
Two Flagship Assets Outside Jujuy – Diablillos & Clayton Valley
Rodinia is actively advancing its two flagship assets: Diablillos, located in Salta Province, Argentina and Clayton Valley, located in Nevada, USA.
In less than one year's time, Rodinia has raised the necessary capital and completed the required drilling and exploration work to define a 4.95 million tonne lithium carbonate equivalent resource estimate at its Diablillos Project. This resource estimate, completed by independent engineering and consulting firm AMEC Internacional Ingenieria y Construccion Limitada ("AMEC"), is believed to be the second largest defined lithium resource in the world prepared under the guidelines set out in National Instrument 43-101. Work to date also suggests that the brine geochemistry from Diablillos contains favourable magnesium and sulphate ratios, which are important when analyzing the future production potential of the Project. (Please see Press Release dated March 2, 2011, for additional information on the resource estimate.) Additional exploration and evaluation work is ongoing at Diablillos and the Company believes it has the required capital to progress the project through scoping study in 2011 and views the developments in Jujuy Province as neutral to the advancement of Diablillos.
Rodinia is also preparing for its next phase of exploration work at its Clayton Valley lithium-brine project in Nevada, where in 2010 the Company had exploration success intersecting lithium-rich brines on its claim blocks enveloping Chemetall's Silver Peak operation. The Silver Peak operation has been in production for several decades and is currently the only domestic source of lithium carbonate for the United States. Significant end-market opportunities exist for Rodinia should exploration work be successful and the Company is able to put the Clayton Valley Project into production.
Rodinia's only property holding in the Province of Jujuy is its 4,500 hectare claim covering parts of Salinas Grandes. Salinas Grandes remains a development opportunity within the Company's portfolio of lithium-brine assets. Minimal exploration work or expenditures have occurred on Rodinia's Salinas Grandes claims.
About Rodinia Lithium Inc.:
Rodinia Lithium Inc. is a Canadian mineral exploration company with a primary focus on lithium exploration and development in North and South America. The Company is positioned to capitalize on the expected increase in demand for lithium carbonate that is projected to result from the anticipated paradigm shift to mass adoption and use of key lithium applications like lithium-ion batteries as well as glass ceramics, greases, pharmaceuticals etc.
Rodinia is currently exploring its Clayton Valley project in Nevada, USA, which surrounds the only lithium-brine producer in North America, and its Salar de Diablillos project in Salta, Argentina.
Please visit the Company's web site at www.rodinialithium.com or write us at firstname.lastname@example.org.
Except for statements of historical fact contained herein, the information in this press release constitutes "forward-looking information" within the meaning of Canadian securities law. Such forward-looking information may be identified by words such as "plans", "proposes", "estimates", "intends", "expects", "believes", "may", "will" and include without limitation, statements regarding the Diablillos resource estimate, the impact of Decree 7592/11, particularly regarding Rodinia's properties in the Province; future regulations and the enforcement thereof; the drill program at the Diablillos property and results of such drill program; the potential of the Company's properties; the potential results and timetable for further exploration with respect to the Company's properties; title disputes or claims; and governmental approvals and regulation. There can be no assurance that such statements will prove to be accurate; actual results and future events could differ materially from such statements. Factors that could cause actual results to differ materially include, among others, metal prices, competition, financing risks, acquisition risks, risks inherent in the mining industry, and regulatory risks. Most of these factors are outside the control of the Company. Investors are cautioned not to put undue reliance on forward-looking information. Except as otherwise required by applicable securities statutes or regulation, the Company expressly disclaims any intent or obligation to update publicly forward-looking information, whether as a result of new information, future events or otherwise.
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.
For more information, please contact
Investor Cubed Inc.
+1 (647) 258-3311
Rodinia Lithium Inc.
Vice-President, Corporate Development
+1 (416) 309-2696