Aug 6 2010
Mammoth Energy Group Inc. (PINKSHEETS: MMTE) announced today that the Chilean government recently took the decision to open the business of lithium to private companies.
"The measure is motivated by the need to see what the strategy is to exploit the large reserves that Chile has of this non-metallic mineral, which every day becomes more valuable in the international markets. Even the Chilean National Mining Society (Sonami) has expressed the needs for open markets," said William Lieberman, President of Mammoth Energy Group.
Mammoth Energy Group Inc. has signed a Letter of Intent to acquire forty-nine percent (49%) of the outstanding stake of Salt Gold Inter Chile Limitada's concessions in the Salar de Maricunga located in the Atacama Desert near Copiapo, Chile.
The Chilean government is preparing a series of meetings and workshops to openly discuss the next steps in terms of lithium, and support the idea of entry to an open market. This is coupled with the explicit support to reform public-law to remove the character "strategic reserve" of lithium. The decision to open the private business of lithium is a measure that has been applauded by miners and experts.
Chile provides approximately 50% of the world production of lithium carbonate, locating it as the most important world producer. This industrial mineral is the third most important product, positioned after iodine and potassium nitrate, with exports of more than 42,586 tons, which was valued at US$ 222 million in 2008. The large lithium reserves in the Atacama Salar, in the Region of Antofagasta, are estimated to hold 3 million tons of lithium, placing Chile among the countries with major reserves.
"We believe that the long term prospects for developing the Salar de Maricunga and other strategic locations within Chile with our Chilean partners Salt Gold Inter Chile Limitada will have considerable government support," Mr. Lieberman added.
Salt Gold Inter Chile Limitada lithium concessions consist of 1008 acres in the Salar de Maricunga. Preliminary results of drilling and chemical analysis from its project under development has returned results and confirmed the presence of lithium -- potassium brine bearing aquifers. Brine Concentrations averaged grades of 650 ppm (parts per million) for lithium and 9500 ppm for potassium. These results confirm a significant third dimension to surface brines sampled on the project. The brine chemistry in the first test wells compares favorably to other Lithium companies in the region including the large multi-national Lithium producers whose estimates in the Atacama and throughout the region average 500 to 750 ppm Lithium and 9000-10000 ppm for potassium. Depths at the Salar de Maricunga average 100 Meters or 300 feet and currently acres are valued around $30,000 USD.