Pan American Lithium starts sampling program for lithium from geothermal brine

In a release by the company, “Pan American Lithium Corp. (TSX VENTURE: PL) announces that it has initiated a detailed sampling program as part of a comprehensive scoping study to determine the content of lithium and other light metals at the Cierro Prieto geothermal brine project in the State of Baja California Norte, Mexico.

The Cierro Prieto Project will exploit geothermal brines produced from deep wells which feed an evaporation lagoon with a surface area of 14.3 square kilometres. Pan American intends to systematically sample the concentrated brines in the lagoon and submit samples for analysis by a certified laboratory. Concurrently, Pan American intends to conduct depth measurements of the lagoon in order to determine an estimate of the volume of the lagoon and its contained brines. The Company expects to deliver the results of this phase of the scoping study sometime during the first calendar quarter of 2010. Pan American believes that, globally, these geothermal brines are potentially among the lowest cost sources of lithium and may offer the quickest route to production.

The Company has the option to acquire 76% of the issued and outstanding shares of Escondidas Internacional S.A. de C.V., a private Mexican company which is a party to a joint venture regarding the development of lithium products from the brine concessions at Cierro Prieto. Pan American is conducting this initial sampling as part of its technical and legal due diligence on the project.”

Source: Company release via Marketwatch