Li3 Energy secures $18 million funding for development plan

Lithium and minerals exploration company Li3 Energy Inc (OTCBB:LIEG) Tuesday secured $18 million in funding from POSCO Canada Ltd, a subsidiary of South Korea-based industrial company POSCO (NYSE:PKX) to develop an exploration and development plan for its Maricunga project in northern Chile.

The first, $8.0 million tranche will see the end of several exploration programs, including the completion of a measure and indicated mineral resource on the property.
Maricunga covers an area of approximately 1,438 hectares, comprising six concessions, and is located in the northeast section of the Salar de Maricunga in Region III of Atacama.

Projects estimated for completion in the fourth quarter of fiscal 2011 include the seismic survey and modeling, and core sample drilling.

Li3 Energy also intends to complete a well drilling program, which will utilize a reverse circulation (RC) drill to develop wells for the uptake of water in all types of terrain on the property, and a pump test program which will evaluate the hydraulic guidelines on the property and measure their response, and will supply brine for future testing.

Slated for completion in the first quarter of fiscal 2012, Li3 Energy said it will have finished a laboratory process simulation, which will examine two potential process routes to the labs, as well as generate scale-quantities of the lithium carbonate product.

The company has also selected Peter Ehren to prepare a plan development program for the Maricunga property, which will also be completed in the first quarter.

Li3 Energy will also construct a test facility near the property to collect data for the development plan.

The company also hopes to complete its evaluation of a technology patented by R3 Fusion Inc, which is designed to separate and recover pure water from highly concentrate brine solutions.

Also with a first quarter expected completion date, is the resource evaluation on the property. Li3 Energy said it expects to upgrade the resources at Maricunga to the measured and indicated category.

Historical work over the property has calculated a non compliant mineral resource of 224,300 tonnes of lithium and 3.27 million tonnes of potash. However, a report, released in May 2011, estimates that it is possible to develop an NI 43-101 compliant resource similar to the historical one.

Initial drilling at Maricunga estimated assay values of 1.1 grammes per litre (g/L)lithium, 7.93 g/L potassium, 1.81 q/L boron and 6.6 g/L magnesium.

The company also expects to complete an environmental impact study (EIS) by the fourth quarter of fiscal 2012, which is required for the permitting of a commercial production facility that can use brine from the project.

"Li3 looks forward to further advancing our Maricunga Project," said COO Thomas Currin.

"We have announced several initiatives including our strategic partnership with POSCO and the development and demonstration program with R3 Fusion.

Together with our partners and contractors, utilizing their respective technical expertise, skills sets and proprietary intellectual property, our objective is to advance Maricunga to an advanced stage of commercialization in an accelerated manner.

"The timelines we have detailed should provide our stakeholders a basis to measure our progress."

Li3 Energy's stock on the OTC Bulletin Board rose up to 3.33% today, but, as of 2:37 pm EDT, was trading flat at $0.15 per share.