good report but beware, page-3

#*#*any thoughts on this one ?#*#* Admiralty brine project proves up


Rebecca Keenan


Wednesday, January 05, 2005
DIVERSIFIED mining outfit Admiralty Resources has said the first phase chemistry study at its poly metallic brine deposit in Argentina produced pure lithium and highlighted magnesium sulphate as a possible by-product.

The simulated solar evaporation study at Rincon Salar was conducted over a period of four months by Hazen Research. Hazen said the results were similar to lithium levels at the Silver Peak deposit in the US and the Salar de Hombre Muerto also in Argentina.

The study also produced bromine and Admiralty said as there was no known bromine producers in South America this could represent a market opportunity for the company.

Further work will now be done to estimate the extent of lithium recovery obtainable using the lithium precipitate, which Admiralty said looked promising.

Rincon Salar is the company's main focus and Admiralty said it hopes to capitalise on a strong lithium market.

Late in December Admiralty received confirmation that the resource at Rincon Salar was big enough to support Admiralty's planned operation. Admiralty is proposing to recover a total of 2.7 million tonnes of salt over 20 years, which is equivalent to 0.7% of resources at the project.

Shares in Admiralty jumped close to 20%, closing at 8.3c.