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Li3 Energy, Inc., (OTCBB:LIEG) has signed a Letter of Intent to acquire the rights to the lithium assets of New World Resource Corp. (TSX VENTURE: NW), which has the Pastos Grandes lithium project under development, located in the Sud Lipez province within the Department of Potosi, Bolivia.
As quoted in the press release:
The Pastos Grandes salar is part of the Bolivian Altiplano which is host to many alkaline and saline lakes and salars. According to a USGS 2011 report, Bolivia and Chile are known to host the world’s largest undeveloped lithium brine resource; in excess of 9 million tons and 7.5 million tons respectively. The rights currently held by New World, represent long-term options granted by three separate land owners at the Pastos Grandes Salar which collectively consists of 7,512 hectares representing approximately 62% of the entire Salar. Based upon our preliminary due diligence the project has the following characteristics and possible benefits:
- Long-term JV option agreements in place to support the exploration and development of salar;
- Initial drilling and surface sampling results completed by New World in August 2011 include:
- High level of lithium content in drill holes;
- 1,395ppm Li and 7,495 K at 42m depth;
- Mg/Li ratios ranging from 2.0 – 3.3;
- Li3 potentially gains a second salar, which we believe holds brine of relatively high quality for lithium and potassium recovery;
- Pastos Grandes Salar would allow Li3 to geographically diversify its political risk exposure across two countries;
- Li3 could gain existing New World institutional shareholder base familiar and interested in lithium mining projects in South America;
- Li3 plans to establish a similar development program for Pastos Grandes applying new intensified evaporative and advanced processing technologies currently being evaluated and tested at Maricunga;
Li3 Energy CEO, Luis Saenz, said:
“We are very pleased to have signed this letter of intent with respect to the Pastos Grandes lithium project and New World’s interest in Perfect Lithium. This project is part of Li3′s overall strategy and if successful, upon closing, development and commercialization, when combined with our flagship Maricunga Project, could bring us one step closer to our goal of becoming a leading low cost industrial minerals producer. We look forward to working together with New World, as we explore the potential benefits and synergies that possibly exist between our two companies.”
Click here to read theLi3 Energy, Inc. (OTCBB:LIEG) press release
Click here to see the Li3 Energy, Inc. (OTCBB:LIEG) profile.