Canada Lithium initiates environmental impact study

Canada Lithium Corp. (TSXV: CLQ) announced that it has awarded a contract to Genivar Inc. of Amos, Quebec, to complete an Environmental Impact Study (EIS) for the Company’s Quebec Lithium Project. The EIS is anticipated to take approximately one year to complete and will outline all environmental concerns and constraints for the Company’s proposed development of a 3,500-tonne-per-day lithium mining operation. The environmental study will be conducted in conjunction with the pre-feasibility study recently initiated by BBA Inc. of Montreal.

"The EIS is another key component in the list of pre-development projects that we anticipate will allow us to commence mine construction in 2011," said Canada Lithium President and CEO Peter Secker. The Company recently launched several initiatives, including the pre-feasibility study and a resource drilling program, to ensure that pilot plant metallurgical testwork, mine engineering and flow sheet design will commence in the first quarter of 2010. A final feasibility study is anticipated to be completed by late 2010.

The Quebec Lithium Project, with its 150-m-deep shaft and lateral workings on three levels, was a producer that manufactured and shipped lithium carbonate, lithium hydroxide and other lithium chemicals for the U.S. Government strategic stockpiles. The Company also produced lithium-bearing spodumene concentrates and feldspar for the glass and ceramics industries. Spodumene is an intermediate stage product in the processing chain. Alternatively, it can be further refined to battery-grade lithium carbonate for use in electric and hybrid/electric cars, consumer electronic products, rechargeable hand tools and so on. Recent metallurgical tests by SGS Lakefield of samples from the Company’s Quebec Lithium Project produced battery-grade 99.6% lithium carbonate (see press release dated Sept. 29).

Canada Lithium is also integrating historical geological and metallurgical data with current studies and is engaged in mine-site infrastructure assessments.

Canada Lithium Corp. is a Canadian-based resource and exploration company trading under the symbol CLQ on the TSX-V. The Company plans to develop a former lithium mine near Val d’Or, Que., which operated from 1955 to 1965. It hosts an NI 43-101 non-compliant historical resource of 15 million tonnes grading 1.14% Li2O. Please note, a Qualified Person has not done sufficient work to classify the historical estimate as current mineral resources; Canada Lithium Corp. is not treating the historical estimate as current mineral resources; and the historical estimate should not be relied upon. Canada Lithium is also exploring the potential of several lithium brine deposits in Nevada.

Lithium was first discovered and defined by by J.A. Arfvedson in 1817 when he did an analysis of a mineral he had found. This mineral, petalite (LiAl(Si2O5)2), was first found by Brazilian scientist José Bonifácio in 1800. Arfvedson was never able to fully isolate lithium, and it wasn’t until 1855 that it was isolated, by W.T. Brande. Lithium was first produced commercially in 1923, by Metallgesellschaft

Demand for lithium is increasing from the current market of ~ 100,000 tonnes LiCO2 equivalent. Lithium ion batteries have become the rechargeable battery of choice and are now almost used exclusively in cell phone and computer batteries with items such as shavers, power tools, and hybrid and electric cars switching over from the nickel varieties. The benefits of lithium ion batteries include; higher energy density to weight ratio, longer life, and no memory effect.

Automotive companies have recently been announcing that lithium ion batteries will be in their hybrid cars and electric vehicles in 2009 and 2010. Toyota is targeting 1 million hybrid cars for 2010. Hybrid car numbers continue to increase as a result of increasing fuel prices and emission issues with conventional vehicles. For every one unit of lithium in a cell phone battery there are 7 in a computer battery, 3,000 in a hybrid car and 7,000 in an electric car; this is 9 to 30 kilograms of Li2O per battery.