ULI.V Price: 0.180 Change: +0.00 Volume: 25500 15-20 min delay view details
Vancouver, B.C., February 25, 2010 – Ultra Lithium Inc. (TSX-V: ULI) (“Ultra” or “the Company”) is pleased to announce that it has entered into a mineral property acquisition agreement, through its wholly-owned subsidiary, Ultra Lithium (USA) Inc., to acquire a 100% interest in up to 364 placer claims (7,280 acres) strategically located in the South Big Smokey Valley, Esmeralda County, Nevada (the “Property”).
South Big Smokey Valley shares a similar geology and weathering history to Clayton Valley, located 16 miles to the south. The north end of Clayton Valley hosts Chemetall Foote Corporation’s Silver Peak Mine, the only lithium brine producer in the United States. Mine production comes from a lithium enriched brine located below the surface. This plant has been in production since 1967 and is designed to produce up to 1.2 million kilograms of lithium hydroxide per annum.
Commencing in the 1970’s the United States Geological Survey (“USGS”) carried out a series of regional reconnaissance programs including sampling and drilling in Big Smokey Valley. Gravity surveys over the region also identified various structures that may have created topography favorable for evaporite accumulation and subsequent traps, which potentially could host commercially viable mineral rich brines. A study by Price, Lechler, Lear and Giles in 2000, suggests that lithium was released into the Clayton Valley basin by the weathering of high-lithium-bearing rocks. Similar lithologies and weathering history exist in the adjacent Big Smokey Valley.
The Company’s exploration of the South Big Smokey Valley claims will evaluate the potential for lithium enriched brines within this highly prospective basin.
Tony Ricci, CEO of Ultra Lithium, stated “We are pleased with this significant acquisition of a lithium brine project in the Big Smokey Valley in Nevada. The Company is also evaluating several other acquisitions and JV opportunities.”
The Property has been acquired from an arms length vendor. Acquisition costs are a total of US$150,000 and 1,500,000 shares. The Company agreed to issue an aggregate of 300,000 common shares to arm’s length parties as finders’ fees related to this acquisition.
This Agreement is subject to the approval of the TSX Venture Exchange.
Lithium is a component, or is used in, the production of a wide variety of products including glass, ceramics, aluminum, lubricants, pharmaceuticals, and batteries, especially those used in consumer and industrial electronics. Demand for the metal is projected to increase significantly as lithium-ion batteries are further applied to electric and hybrid-electric vehicles, particularly in light of the recent investment and significance the US government has placed on the domestic production of lithium.
Ultra Lithium Inc. is a Canadian junior mining exploration Company with a focus in lithium and rare earth metals. The Company is committed to evaluating, developing and acquiring projects with potential for high return-on-investment
The technical information in this news release has been prepared in accordance with the Canadian regulatory requirements set out in National Instrument 43-101 and reviewed on behalf of the Company by Mr. Ishiung J. Wu, Ph.D., a technical consultant to the Company and a qualified person.
We seek safe harbour.
ON BEHALF OF THE BOARD OF DIRECTORS,
Ultra Lithium Inc.
Per: “Tony M. Ricci”
CEO and Director
FOR FURTHER INFORMATION PLEASE CONTACT:
Suite 507 – 700 West Pender Street, Vancouver, BC, V6C 1G8, Telephone: (604) 669-9788