Lithic Resources Ltd. announced that the final technical report on the Crypto project by Mine Development Associates ("MDA").

Highlights

* the definition of a large, overall resource of zinc, copper and indium at a cutoff of 3% zinc equivalent
* a significant volume with higher grades, potentially amenable to early mining, at a cutoff of 6% zinc equivalent
* since a large proportion of mineralization was classified as Inferred simply on the basis that indium assay data was not available for historical drilling, there is excellent potential to upgrade a significant portion of the Inferred resource to a higher classification simply by adding indium sample assays, the net effect of which would also likely increase its indium grade
* mineralization is open for expansion in three directions and there is very good potential for additional zones away from existing resources
* preliminary metallurgical testwork shows that:
– a zinc concentrate grading 52.5% zinc together with a separate copper concentrate grading 32% copper can be produced from sulphide mineralization using a conventional differential flotation process
– indium, gold and silver will be recovered to the concentrates
– the concentrates do not contain deleterious elements at penalty levels
– potentially profitable amounts of magnetite may be recovered from flotation tailings
– initial acid leach testing of oxide mineralization shows significant extraction of zinc, copper and indium to solution

MDA's report recommends that a Preliminary Economic Assessment (PEA) be completed together with a US$7 million Phase One program of drilling, metallurgical optimization studies and other work aimed at resource expansion and definition. Included in this program would be exploration drilling to follow up on numerous drill intercepts of significant molybdenum and high-grade silver-zinc-lead elsewhere on the property. Contingent on positive results from Phase One, a Phase Two work program could include underground bulk sampling, metallurgical optimization and advanced engineering studies as well as baseline environmental work at an approximate cost of US$20 million.