Rodinia – Lithium For a Greener Future
Overview
Rodinia Lithium Inc. (TSXV:RM; OTCQX:RDNAF) is a Canadian mineral exploration company focused on lithium exploration and development in North and South America. The Company is also actively exploring the commercialization of a significant potash co-product that is recoverable through the lithium harvesting process.
Rodinia is currently exploring its Salar de Diablillos project in Salta, Argentina and its Clayton Valley project in Nevada, USA, which surrounds the only lithium-brine producer in North America.. Rodinia expects to develop both its Diablillos and Clayton Valley lithium projects into two of the world’s largest strategic, scalable and reliable sources of battery grade lithium carbonate.
In February 2011, Rodinia closed a bought-deal financing sold by a syndicate of underwriters led by Dundee Securities Ltd. of 19,837,500 units for gross proceeds of $11,505,750.
Investment Highlights
- Rodinia Lithium is focused on production of lithium brine which offers superior economics (50% of cost from hard rock).
- Salar de Diablillos Project, Salta Argentina
- 2.8Mt inferred NI 43-101 recoverable lithium carbonate resource from an announced in-situ inferred lithium carbonate resource of 4.9Mt (11.2Mt inferred recoverable potash resource from an in-situ inferred potash resource of 19.8Mt). This represents one of the largest recoverable lithium brine resources in the world.
- High grade – near surface zone averages 845 mg/L lithium and almost 1% potassium – with favourable geochemistry.
- At a mining rate of 10,000 t/year, mine life is 112 years or 56 years with doubled production.
- Clayton Valley Project– only known lithium brine source in North America.
- Both properties are in mining-friendly jurisdictions.
- Strategic Investment from Shanshan – China’s largest lithium-ion battery materials provider.
Chief Properties
Salar de Diablillos Property – Salta Province, Northwestern Argentina
The Diablillos property is located approximately 145km southwest of the city of Salta, in the Salta province, covering 5,786ha in the Puna region of northwestern Argentina. Rodinia’s property covers the entire Salar de Diablillos prospective producing area. Diablillos is well-served by infrastructure with access to trucking routes, high tension power, and water.
Rodinia owns the right to explore and harvest the lithium-bearing brines within the mining leases currently owned by Borax Argentina, as well as the rights to an additional three mining leases and two exploration leases on Salar.
Rodinia began work on Diablillos in 2010 and by January 2011 had completed an extensive auger sampling program and successfully completed 16 reverse circulation drill holes to depths of up to 264 metres. The exploration program included a property-wide gravity and topographical survey.
An updated estimate reported in April 2011 indicates a National Instrument 43-101 compliant inferred recoverable brine resource of 530,000 tonnes of lithium metal, 5,911,000 tonnes of potassium and 615,000 tonnes of boron, which is equivalent to 2,817,000 tonnes of lithium carbonate equivalent, 11,270,000 tonnes of potash and 3,519,000 tonnes of boric acid. The inferred in-situ brine resource consists of 4,959,000 tonnes of lithium carbonate equivalent, 19,837,000 tonnes of potash and 6,194,000 tonnes of boric acid. Consequently, Rodinia initiated a Preliminary Economic Assessment for Diablillos following the announcement of the recoverable inferred brine resource.
Drilling resumed at Diablillos in late February 2011 with plans to drill exploration holes to assess the lithium, potash, and boron mineralization and to establish basement depths.
In June 2011, Rodinia announced results from its reverse circulation drill program revealing further intersections of high grade lithium brine, which are expected to expand the resource at depth and laterally, while confirming the continuity of the aquifers and the contained lithium brines.
Clayton Valley Project - Esmeralda County, Nevada
Clayton Valley is located in the central portion of Esmeralda County, Nevada, in the United States, 55km southwest of Tonopah and approximately halfway between Reno and Las Vegas, and is well-served by infrastructure with a power line and main road already in place. The property consists of 1,012 claims on 72,340 acres of Bureau Land Management administered land. 470 of those claims were recently staked in the south eastern portion of the property for purposes of ensuring sole ownership in the valley.
It is the only known lithium brine source in North America and known to contain at least 5 lithium-rich aquifers, with grades ranging from 180 to 420 ppm lithium and magnesium levels at approximately 1:1 Mg:Li.
Rodinia began exploration in 2009 and by summer 2010, the company had completed a detailed gravity survey over its entire land holding and drilled 6 reverse circulation drill holes strategically across the deposit, collecting data that included lithology, specific gravity, reverse circulation return flow rates, temperature and other field measurements. Additionally, downhole geophysical logging, sediment and brine sampling was conducted at regular intervals where possible. In February 2011, Rodinia announced that further analysis of drill results revealed an extended mineralized horizon immediately adjacent to the intersection reported for drill hole SPD-09. While the targeted aquifer, believed to be a past and current producer, averaged 370 mg/L lithium over 30 metres, the significantly mineralized brine continued to a total depth of approximately 317 metres. The full intersection averages 285 mg/L Li over 146.3 metres and this intersection is thought to coincide with the aquifer that Chemetall is currently producing from on the neighboring property.
Rodinia is currently in the process of permitting its third exploration drill program for Clayton Valley. The program calls for up to seventy-two reverse circulation drill holes targeting extensions of the known Silver Peak aquifers.
Management
William Randall, MSc. Geology, P.Geo – President & Chief Executive Officer
Mr. Randall is a Professional Geologist with extensive experience in mineral exploration and production, including lithium projects in South America. Mr. Randall has run and supervised numerous discoveries and has taken deposits from the resource stage through to feasibility and production.
Aaron Wolfe, HBA – Vice President, Corporate Development
Mr. Wolfe is a corporate finance and advisory professional with experience in advising, structuring and financing junior resource, technology and renewable energy companies. He works as a corporate and business development consultant to several publicly traded companies in the resource industries. Previously, Mr. Wolfe was an Investment Banker with Macquarie Capital Markets Canada Ltd., the Canadian division of a global investment bank, and its predecessor Orion Securities Inc.
Ryan Ptolemy, CGA, CFA – Chief Financial Officer
Mr. Ptolemy is a Certified General Accountant and CFA Charter holder. Mr. Ptolemy currently serves as CFO to a number of public companies in the mining sector. From August 2005 to September 2009, Mr. Ptolemy was at an independent investment dealer in Toronto, most recently serving as CFO, where he was responsible for financial reporting, auditing, budgeting and internal controls.
Jennifer Wagner, LL.B, BBA – Corporate Secretary
Ms. Wagner is a corporate securities lawyer who works as a legal consultant to several publicly traded companies in the mining industry. Ms. Wagner previously practiced securities law at a large Toronto law firm. Ms. Wagner obtained her Bachelor of Laws from the University of Windsor and received a Bachelor of Arts from McGill University.
Raymond Spanjers, MSc. Geology – Manager Exploration
Mr. Spanjers has twenty-nine years experience in industrial exploration, plant and mine management. Mr. Spanjers joined Rodinia from FMC Lithium division, where he explored for lithium brine deposits in Nevada and the Andean Puna of Argentina.
Bob Cinq-Mars, BSc, MBA – Processing Consultant
Mr. Cinq-Mars is a specialist in chemical process development, process design and management. During his career, Mr. Cinq-Mars previously spent twenty years with FMC Lithium division as Manager, New Resources and Process Development.
