Keep your eyes on MMTE. More news out this morning. Had a great open this morning.
Mammoth Energy Group Comments on Lithium Regulatory Changes in Chile
NEW YORK, NY, Aug 16, 2010 (MARKETWIRE via COMTEX) — Mammoth Energy Group Inc. (PINKSHEETS: MMTE) announced today that it agrees that Chile must change its lithium-related regulations in order to guarantee long-term access to lithium and emerge as a global leader in the rapidly growing industry.
These comments were echoed by panelists focusing on Chiles Mining laws sponsored by the industry group Sonami (Sociedad Nacional de Mineria de Chile) last week in Santiago.
Currently, Chile's government classifies lithium as a strategic resource, allowing the state to regulate production of the metal.
“Most manufacturers, especially auto companies, are seeking long-term agreements, something that most Chilean firms, cannot provide due to the regulations,” said William Lieberman, President of Mammoth Energy Group. “The auto markets of Latin America including the large markets of Brazil and Mexico, will move quickly to electric powered cars with the close proximity of Chilean resources,” he added.
Lithium is a key component in rechargeable batteries that power laptop computers, digital cameras and cell phones and electric powered cars.
Mining Minister Laurence Golborne said he would like the lithium industry to grow in coming years, signaling reforms to current legislation that could open the industry to other players.
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.
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.
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