Dec 15 2015
Glen Eagle Resources Inc. ("Glen Eagle" or the "Company") wishes to give an update of its ongoing activities related to developing the Authier Lithium property which has a measured and indicated resource of 7.7 million tonnes grading 0.96% Lithium Oxide at 0.50% cut off.
The project has a ten year mine life based on processing 2,200 tonnes per day. The data was retrieved from Glen Eagle's Preliminary Economic Assessment Study done by SGS Canada. The Authier Property Technical Report shows a core resource with 3.7 million tonnes grading 0.94% at a strip ratio of 2:1. Canada Lithium, located near Authier, has a Feasibility Study showing proven and probable reserves of 17.1 million tonnes grading 0.94% Lithium Oxide at 0.60% cut off with a strip ratio of 5.4:1 in addition of having a Lithium Carbonate plant recently built at a cost of $291.3 million. The plant is currently on care and maintenance due to bankruptcy filings.
In order to maximize regional resource development and the potential of the Authier Lithium property, Glen Eagle has proposed a consolidation through a Joint Venture of its Authier Lithium asset with that of Canada Lithium to achieve a potential restart of Canada Lithium operations. Glen Eagle has commissioned a detailed business plan from experienced operators, engineers and managers to support its proposal which has been presented to potential European product Off Takers, strategic funding partners and current parties involved in the liquidation of Canada Lithium including Investissement Quebec. Should the Company be successful in its endeavor, Glen Eagle would have no funding responsibility other than transferring its asset into the Newco and play an active role in the financial engineering and structuring of the Newco. The proposal also made clear to all participants that a restart of Canada Lithium operations in the area has a better chance to succeed with the contribution of Authier by bringing to the Canada Lithium project a more favorable strip ratio and a longer mine life.
This News Release does not imply that a Transaction will take place under the current proposal but was rather issued to disclose ongoing information under the TSX Venture regulations regarding continuous disclosure.
Gilles Laverdiere, P.Geo., a qualified person under NI 43-101 has approved the technical content presented herein.
Source: http://www.gleneagleresources.com/