Feb. 25, 2010 (Filing Services Canada) -- First Lithium Resources Inc. (MCI - TSX Venture, FLNTF - OTCBB), is pleased to announce that it has entered into an Option Agreement (the "Option") with Ashburton Ventures Inc., (the "Optionor") to earn an 80% interest in the Teels lithium prospect located at Teels Marsh, Mineral County, Nevada, approximately 54 miles northwest of Clayton Valley. The prospect comprises 120 placer claims (2,400 acres -- 3.7 square miles) which cover approximately the western two-thirds of the Teels Marsh, a closed, desert basin.
In the mid seventies, the U.S.G.S. performed extensive sampling to evaluate the potential for economically viable lithium sources in Nevada (Lithium in Sediments and Rocks in Nevada, 1976, U.S.G.S. O.F.R 76-828). Though 58 basins were sampled in all, particular attention was given to the Teels Marsh Basin, as evidenced by greater than 25% of the total number of the study's samples being collected there. Hydrofluoric acid dissolution of the crushed, dried samples followed by atomic absorption tests yielded the top "high samples" produced in the entire study. They are as follows:
850 ppm (high sample) - 47 samples near springs marginal to playa
580 ppm (high sample) - 50 samples from backhoe pits near springs
560 ppm (high sample) - 30 samples from playa surface
Subsequent water sampling along the northwest margin of the Teels Marsh playa (see news ABR.V, 2010-01-11) has confirmed lithium anomalies detected in the above referenced U.S.G.S. surveys. Three 2009 water samples containing 530 to >1000 ppb Li were collected from surface springs near the edge of the playa; the anomalously high lithium contents are interpreted to reflect Li input into the playa from the hills to the northwest. The hills are largely underlain by Tertiary volcanic rocks and Cretaceous granodiorite, either of which could be source rocks for lithium-bearing brines at depth in the playa.
The Teels prospect is a playa (dry lake) deposit containing chlorides, sulphates, carbonates, bicarbonates and borates of sodium and potassium. These occurences, and the existence of historical data suggesting lithium water flows into the marsh are the factors responsible for eliciting the Company's keen interest.
Teels Marsh was first worked in the 1860s for salt. Then in approximately 1872, borax was discovered and was produced steadily until 1892, by U.S. Borax, which still holds the private ground to the east. Operations ceased when other borax resources were found in Death Valley.
The Clayton Valley (which has been producing lithium brines since the 1960s and continues in production today) was also mined in the 1800s for salt and borax, denoting obvious similarities to Teels. As lithium-bearing brines tend to be the last product of evaporation, it appears (and from the Clayton Valley work) that the deeper portions of the playa, usually fault derived (as at Atacama, Chile) have been allowed the proper time for evaporation of these last stages of brines. A fault along the western margin of the Teels playa, within the claims' boundary, appears to have down-dropped (or tilted), potentially forming a deep basin.
In order to maintain the Option in good standing and to earn an 80% interest in the Property, the Company shall make cash payments, issue common shares to the Optionor and incur Exploration Expenditures by the following deadlines:
a. pay $40,000 and issue 250,000 common shares in the capital of the
Company ("common shares") within three business days of the Company
receiving Exchange approval of the transactions contemplated by this
b. pay $50,000 and issue 500,000 common shares by the first anniversary
of the date on which the Optionor gains legal and beneficial title to
the Property (the "Registration Date");
c. pay $85,000 and issue 500,000 common shares by the second anniversary
of the Registration Date; and
d. incur Exploration Expenditures of an aggregate of $450,000 on the
Property as follows:
i. $100,000 by the first anniversary of the Registration Date;
ii. $150,000 by the second anniversary of the Registration Date; and
iii. $200,000 by the third anniversary of the Registration Date.
President Craig Naughty states: "We are very pleased that our continued search for an additional lithium prospect to add to our already strong portfolio has culminated in such an exciting exploration opportunity. The Company intends to commence further exploration on the property immediately following the transfer of title."
ON BEHALF OF THE BOARD
President & CEO
For further information contact or Craig Naughty, or visit the website at
This news release has been prepared on behalf of the First Lithium Resources Inc. Board of Directors, which accepts full responsibility for its contents. The technical contents of this release have been reviewed and approved by David A. Hedderly-Smith, Ph.D., P.G., a qualified person as defined by National Instrument 43-101.
"Neither 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."
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Source: First Lithium Resources Inc. (MCI - TSX-V) www.firstlithiumresources.com
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