Lithic Files Technical Report on Crypto Zinc-Copper-Indium Project
Lithic Resources Ltd. 912-510 West Hastings Street Vancouver, B.C. Canada V6B 1L8
Telephone: 1-604-687-7211 Fax: 1-604-648-9578 E mail: [email protected]
News Release 2010-3 Listed on the TSX Venture Exchange: LTH January 18, 2010
LITHIC FILES TECHNICAL REPORT ON CRYPTO ZINC-COPPER-INDIUM PROJECT
Lithic Resources Ltd. (LTH-TSX Venture) (the “Company”) is pleased to announce that the final technical report on the Crypto project by Mine Development Associates (“MDA”), dated December 23, 2009, is now available on the Company’s website and at www.sedar.com. The independent resource estimate detailed in this report was initially published in a news release dated November 19, 2009.
Highlights
• the definition of a large, overall resource of zinc, copper and indium at a cutoff of 3% zinc equivalent:
| Category | Tonnes | % ZnEq | % Zn | % Cu | g/t In | Lbs Zn | Lbs Cu | Kg In |
|---|---|---|---|---|---|---|---|---|
| Indicated | 6,298,000 | 6.87 | 4.75 | 0.322 | 46.2 | 659,482,000 | 44,752,000 | 291,000 |
| Inferred | 15,832,000 | 6.95 | 5.08 | 0.359 | 34.9 | 1,774,360,000 | 125,446,000 | 551,900 |
- a significant volume with higher grades, potentially amenable to early mining, at a cutoff of 6% zinc equivalent:
| Category | Tonnes | % ZnEq | % Zn | % Cu | g/t In | Lbs Zn | Lbs Cu | Kg In |
|---|---|---|---|---|---|---|---|---|
| Indicated | 2,659,000 | 10.48 | 8.01 | 0.369 | 54.5 | 469,349,000 | 21,621,000 | 144,900 |
| Inferred | 7,184,000 | 10.22 | 8.04 | 0.441 | 38.4 | 1,273,108,000 | 69,892,000 | 275,900 |
- since a large proportion of mineralization was classified as Inferred simply on the basis that indium assay data was not available for historical drilling, there is excellent potential to upgrade a significant portion of the Inferred resource to a higher classification simply by adding indium sample assays, the net effect of which would also likely increase its indium grade
- mineralization is open for expansion in three directions and there is very good potential for additional zones away from existing resources
- preliminary metallurgical testwork shows that:
a zinc concentrate grading 52.5% zinc together with a separate copper concentrate grading o 32% copper can be produced from sulphide mineralization using a conventional differential flotation process
- indium, gold and silver will be recovered to the concentrates
- the concentrates do not contain deleterious elements at penalty levels
- potentially profitable amounts of magnetite may be recovered from flotation tailings
- initial acid leach testing of oxide mineralization shows significant extraction of zinc, copper and indium to solution
MDA’s report recommends that a Preliminary Economic Assessment (PEA) be completed together with a US$7 million Phase One program of drilling, metallurgical optimization studies and other work aimed at resource expansion and definition. Included in this program would be exploration drilling to follow up on numerous drill intercepts of significant molybdenum and high-grade silver-zinc-lead elsewhere on the property. Contingent on positive results from Phase One, a Phase Two work program could include underground bulk sampling, metallurgical optimization and advanced engineering studies as well as baseline environmental work at an approximate cost of US$20 million.
The technical information in this news release has been prepared in accordance with Canadian regulatory requirements as set out in NI 43-101 and was reviewed by Chris Staargaard, P.Geo, President and Chief Executive Officer of Lithic, a Qualified Person as defined in NI 43-101.
Investors are cautioned that mineral resources that are not mineral reserves do not have demonstrated economic viability. US investors are further cautioned that existing SEC terminology and rules regarding mineral resources do not conform with Canadian and other internationally accepted standards.
LITHIC RESOURCES LTD.
“C.F. Staargaard”
_____________________________ C.F. Staargaard President and CEO
FURTHER INFORMATION:
Deborah Thiel Chris Staargaard Corporate Development President/CEO Cell: (604) 512-9691 Phone: (604) 687-7211 Email: [email protected] Email: [email protected] Website: www.lithicresources.com
“Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.”
Page 2 – LTH News Release 2010-3