Lithium Brine Update

RNS Number : 1026W

Obtala Resources Limited

12 November 2010

 



Obtala Resources Limited

 ("Obtala" or "the Company") (AIM:OBT)

Lithium Brine Update, Argentina

Highlights

·    Field work underway in Argentina

·   Phase I pitting and sampling expected to be completed before year end

·   Projects located in world renowned Lithium producing district

·   Two of the world's largest producing lithium operations lie within 30km and 130km, 

      respectively, of Renholn projects.

The Board of Obtala Resources Limited, the resources investment, development and production company, today announces that it has initiated field operations on its recently acquired lithium exploration projects in Argentina. Obtala has a controlling 80% shareholding in two projects through its subsidiary, Renholn Holdings Inc ("Renholn"). 

Renholn has retained the services of Mining Solutions Ltda (MSL), of Salta, Argentina to conduct the Phase 1 exploration on their Arizaro group of claims in North Western Argentina. The Phase 1 programme is aimed at defining the grade and extent of lithium and potassium mineralisation within the claims on the Arizaro Salar. The planned work will include the surveying of all beacons and delineation of 'cataeo' (claims) boundaries with  pitting and sampling on a grid pattern with an initial 2km x 2km sample spacing interval with follow-up infill planned in areas of anomalous lithium values. Pits will be mechanically excavated to access the brines where samples will be collected of both brine and salt material. A programme of sample QA/QC will be instigated and all samples are to be sent to Acme Analytical Laboratory, Mendoza; an internationally accredited laboratory. Follow up of anomalous values will be conducted next year and will include further sampling, geophysical surveys and drilling.

The Company's strategy is to rapidly develop a surface lithium recovery operation from prospective lithium and potassium-rich mineralisation hosted in brines. Renholn currently holds the Arizaro and Catamarca lithium exploration projects, covering a combined area of 33,917 hectares, in the Puna Region of northwest Argentina. Two of the world's largest producing lithium operations lie within 30km and 130km, respectively, of Renholn projects.

Frank Scolaro, Chairman of Obtala, commented: "I am delighted to report that field work is underway in Argentina. Our projects are favourably located in one of the major lithium producing regions of the world and our intention is to rapidly define a resource over the next 12 to 18 months. The development of these new lithium assets is part of Obtala's strategy to generate near term shareholder value from deliverable resources projects."

Contact:

Obtala Resources Limited
Simon Rollason - Managing Director Frank Scolaro - Chairman www.obtalaresources.com	[phone]
ZAI Corporate Finance Ltd
Richard Morrison/ Sarang Shah	[phone]
Threadneedle Communications
Laurence Read	[phone]

 

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