March 1 (Reuters) - Shares of Canada Lithium Corp fell as much as 38 percent on Tuesday, a day after the junior miner said the resource estimate at its Quebec Lithium project may not be as much as projected earlier.
Canada Lithium, which was expecting limited production by 2012 of the metal used in hi-tech electronics, has appointed Roscoe Postle and Associates Inc to undertake a preliminary review of the mineral resources. It expects the review to be completed within two weeks.
The independent evaluation has been initiated after an internal review indicated a material reduction in the measured, indicated and inferred mineral resources.
In October, the company had reported measured and indicated mineral resources of 46 million tonnes grading 1.19 percent lithium, plus an inferred mineral resource of 57 million tonnes grading 1.18 percent lithium.
This resource was used to develop a mine plan with a schedule to process one million tonnes of ore per year over an initial mine life of 14.8 years. The plan will now be reviewed following the review of resources.
Lithium carbonate, which is used in electric and hybrid vehicles, as well as computer batteries and smartphones, is in high demand, with analysts predicting even bigger gains in years to come.
Shares of Canada Lithium were down at 87 Canadian cents on Tuesday morning on the Toronto Stock Exchange. They touched a low of 84 Canadian cents earlier in the session. (Reporting by Arnika Thakur in Bangalore; Editing by Don Sebastian)