Overview

The Smiley Lithium Property consists of 5 miningclaims comprising 1,902 hectares located 55 km north of Thunder Bay, Ontario. Theproperty has excellent highway and secondary road access and is close to rail,port facilities, personnel and mining supplies.

Geology

A muscovite-bearing granite, is host to theProperty, an S-type peraluminous fertile parental granite (Breaks et al., 2003)that is in contact with metasediments. The Property straddles a subprovinceterrane boundary, an integral relationship between lithium deposits and structure(Breaks et al., 2003). Several mapped muscovite-tourmaline granite pegmatiteshave been mapped by the OGS within the peraluminous granite with one mapped inthe metasediments which is an excellent exo-contact for fractionatingpegmatites.

Northwestern Ontario

The Smiley Lake Lithium property is located innorthwestern Ontario where numerous lithium deposits have been delineated tohost significant reserves of Li2O. Of significance is that theLi-deposits/projects of northwestern Ontario are located within 20km of aterrane boundary. These terrane boundaries are deep seated sutures that divideaccreted Archean terranes and act as conduits for fertile peraluminous granites.The Property straddles the Marmion-East Wabigoon Terrane boundary.

Significant lithium deposits of northwestern Ontario include:

The Seymour Lake Lithium Project hosts 4.8Mt grading 1.24% Li2O and 186ppm Ta2O5.

The Georgia Lake pegmatite field with resources of 16+Mt grading 1.15% Li2O.

Separation Rapids Lithium deposit with resources of 9.4Mt grading 1.35% Li2O.

HTX Diamond Drilling 2011

Up to 3.4 m wide quartz-feldspar mica pegmatitesintersected commonly described with green alteration of feldspar (potentiallyspodumene as it can have a greenish tint and look like feldspar and notrecognized by the logger). Other highlights include:

- Blue transparentangular crystals (most likely beryl but not known to the core logger).

- Coarse grainedmuscovite.

- Possible tourmalineor columbite-tantalite.

- A inexpensive traceelement package was used that did not include Li or Be analysis.

Sample results show highly elevated Cs, Ta and Rbvalues indicative of the LCT-pegmatite (Li, Cs, Ta) type commonly found innorthwestern Ontario lithium deposits and occurrences.

HTX Diamond Drilling 2011 Drill Logs and Results

The average crustal levels for the following rare-elements were Be (3ppm), Cs (4ppm), Ga (17 ppm), Li (20 ppm), Nb (25 ppm), Rb (112 ppm), Sn (6 ppm) and Ta (2 ppm)(Breaks et al., 2003). The levels from the HTX pegmatite samples are well above these levels and are excellent fractionation indicators along host rock fractures as these rare-elements are incompatible with rock-forming minerals and will wait to the last possible moment to crystallize. HTX Diamond Drilling 2011 Drill Logs and Results Cited in Breaks et al., 2003. This schematic fractionation trend can be applied to the pegmatites intersected in the HTX drill holes.  

Greenish Spodumene

Greenish spodumene crystal in a quartz feldspar pegmatite that could be easily interpreted as greenish feldspar by the untrained eye.