TORONTO, ONTARIO -- (Marketwire) -- 04/28/09 -- Canada Lithium Corp. (TSX VENTURE: CLQ) (the "Company") is pleased to announce that it has entered into a marketing agreement with a large Japanese trading house. The agreement gives the trading house the exclusive marketing rights for Japan, Korea and China for one year, until April 2010, for the lithium products from the Company's Quebec Lithium Project. After one year, the trading house has the option to renew the marketing right annually for up to six subsequent years. Canada Lithium Corp. will commence shipping lithium carbonate samples to the trading house in the second quarter of 2009.
The marketing agreement is instrumental in the advancement of the Company's Quebec Lithium Project through feasibility. The trading house is experienced in marketing and sales in these countries and will exert its efforts to solicit and obtain orders for Canada Lithium Corp.
Canada Lithium Corp. recently announced that it has materially advanced its lithium carbonate metallurgical process and has produced lithium carbonate that is comparable to the battery market specifications that are widely accepted by the industry. Canada Lithium's product significantly exceeds specifications with respect to aluminum and iron which are considered deleterious.
Canada Lithium Corp. is the 100% owner of the Quebec Lithium Project located 60 km northwest of Val d'Or, Quebec. The project is a large lithium spodumene deposit with excellent infrastructure and favourable metallurgy.
Quebec Lithium was an underground mine, surface concentration plant and a refinery from 1955 to 1965 which produced 272,000 tonnes of ceramic grade and chemical grade spodumene concentrates, lithium carbonate, lithium hydroxide monohydrate as well as a small quantity of lithium chloride and feldspar. At the time of the suspension of mining operations the ore reserve was 15 million tonnes at a grade of 1.14 % Li2O calculated down to the 150m level. The actual recovered grade during the ten years of production was 1.25% Li2O.
Canada Lithium Corp. is working in conjunction with SGS Lakefield Research to complete metallurgical test-work for the production of spodumene concentrate, lithium carbonate as well as high grades and purities of lithium carbonate. Metallurgical processing test-work has resulted in the production of a spodumene concentrate grading 7.17% Li2O with an 80% recovery and production of lithium carbonate that is comparable to the battery market specifications that are widely accepted by the industry. The Company will continue to optimize its lithium carbonate processing methodology and will start continuous process for metallurgical purposes in the third quarter of 2009.
In conjunction with optimizing the metallurgical processing activity, the Company is evaluating project economics including capital and operating costs, as well as downstream market off-take and pricing. The most recent industry forecast for lithium demand is a four-fold increase over ten years from the 2007 market demand of 100,000 tonnes of lithium carbonate equivalent (Li2CO3).
The previous reserve is being treated as a historical resource and is not National Instrument 43-101 compliant as it was completed prior to the implementation of these requirements. However, given the quality of the work completed, and the fact that the operation was a going concern over a decade, the Company believes the historical resource to be relevant and reliable. In addition, a qualified person has not done sufficient work to classify the historical resource as a current mineral resource and the issuer is not treating the historical resource as current. Hence, the historical resource should not be relied upon. Mitch Lavery (P.Geo), is the Company's qualified person as required under NI 43-101 and has reviewed the technical information contained in this press release.
Canada Lithium Corp. would also like to thank board member Kerry Knoll for his contribution to the Company. Kerry Knoll has stepped down from the board of directors to pursue other interests.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
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