Neo Lithium Discovers High Grade Lithium at Greater Depth
TSX VENTURE: NLC
- PB1-R-25 yielded an average of 1,117 mg/L Lithium, 11,319 mg/L K, Mg/Li=1.59 and SO4/Li=0.1 over 178 m from 87 to 265m depth
- This drill result validates additional high-grade lithium brine below the area where the resource and reserve was defined in the PFS to only 10 metres in depth
TORONTO, June 6, 2019 /CNW/ - Neo Lithium Corp. ("Neo Lithium" or the "Company") (TSXV:NLC; OTCQX:NTTHF; FSE:NE2) is pleased to report new drilling results from its wholly-owned Tres Quebradas lithium brine project ("3Q Project") in Catamarca Province, Argentina.
The Company filed a reserve estimation on May 7, 2019 within prefeasibility study ("PFS") which defined proven and probable reserves of 1,294,000 tones of lithium carbonate with an average grade of 790 mg/L Lithium with a cut off at 800 mg/L Lithium out of a measured and indicated resource of 4,005,000, with a cut off at 400 mg/L Lithium. The PFS also provided a mine plan strategy at the 3Q Project which focused extracting the high-grade lithium brine first.
The reserve estimation contains a high-grade core of 368,000 tonne of lithium carbonate to be exploited in the first 10 years with an average grade of above 1,000 mg/L Lithium. This high-grade core is critical given it enables the Company to build less ponds at the beginning of the project, therefore lowering initial capital expenditures, while achieving the target production of 20,000 tonnes of lithium carbonate, as stated in the PFS.
This high-grade core was only drilled down to 100 metres depth in the previous drilling campaigns used to estimate the resource and reserve. The objective of the 2019 drilling season was to extend at depth the high-grade zone in the northern portion of the 3Q Project.
The Company received geochemical results from 10 samples of the last hole of the season, PB1-R-25 that yielded an average over 178 metres, from 87 metres to 265 metres deep, of 1,117 mg/L Lithium, 11,319 mg/L K, Mg/Li=1.59 and SO4/Li=0.1. The hole is located on the eastern border of the 3Q lake, an area where the reserve estimation assumed brine to be present to only 10 meters depth, however the hole encountered brine all the way from surface to 265 metres depth.
The rocks found in the hole are porous halite, sands, silt, clays and gravels from the surface to the bottom of the hole. Drilling stop at 280 metres depth due to technical difficulties.
The well was finished with blind casing with cement and clay pallets from surface to 87 metres to isolate the upper known aquifers from the bottom of the well, and 8 inches metal screen from 87 metres to 265 metres. The well was pumped over 72 hours to collect 10 brine samples (one sample every 7 hours approximately). This hole effectively expands the zone of high-grade brine down from 100 m to 265 m, providing significant upside for future resource and reserves expansions.
The Company had also drilled hole PB1-R-24, which was reported on April 8, 2019, and yielded from surface to 160 meters 1,128 mg/l Lithium, confirming the expansion potential at depth.
"We were able to validate this season that our high-grade resource and reserve statement have significant potential to increase," stated Waldo Perez, President and CEO of Neo Lithium. "the 3Q Project is today the highest-grade project in Argentina and will continue to grow as drilling demonstrate the importance of the northern high-grade zone"
See location of the drill holes in the company web site: Click Here
The brine samples collected in the field were delivered by Company personnel to Andesmar Transport Company ("Andesmar") in La Rioja, in the province of Rioja. Andesmar delivered the samples by truck to ASL, an ISO 9001-2008-certified laboratory in Mendoza, Argentina. ASL used the following analytical methodologies: ICP-OES (inductively-coupled plasma-optical (atomic) emission spectrometry) to quantify boron, barium, calcium, lithium, magnesium, manganese, and potassium; an argentometric method to assay for chloride; a gravimetric method to analyze for sulfate; a volumetric analysis (acid/base titration) for the evaluation of alkalinity (as CaCO3); a gravimetric method to determine density and total dissolved solids; and, a laboratory pH meter to determine pH. All analytical work is subject to a systematic and rigorous Quality Assurance-Quality Control. A reference ("standard") sample was inserted into the sample stream at a frequency of approximately 1 in 15 samples; a field blank was inserted at a frequency of approximately 1 in 15 samples; and a field duplicate sample was inserted at a frequency of approximately 1 in 15 samples.
Waldo Perez, Ph.D, P.Geo., the CEO and President of Neo Lithium Corp. is the Qualified Person who approved the scientific and technical disclosure in the news release.
About Neo Lithium Corp.
Neo Lithium Corp. has quickly become a prominent new name in lithium brine exploration by virtue of its high quality 3Q Project and experienced team. Already well capitalized, Neo Lithium is rapidly advancing its recently discovered 3Q Project - a unique high-grade lithium brine lake and salar complex in Latin America's "Lithium Triangle".
The 3Q Project is in Catamarca Province, the largest lithium producing area in Argentina. The project covers approximately 35,000 ha and the salar complex within this area is approximately 16,000 ha.
The technical team that has discovered the 3Q Project characterized this unique salar complex as one of the most experienced in lithium salars. For example, this team discovered and led the technical work, including resource definition and full feasibility study, that established the Cauchari lithium salar as one of the largest lithium brine resources in the world.
Additional information regarding Neo Lithium Corp. is available on SEDAR at www.sedar.com under the Company's profile and at its website at www.neolithium.ca, including various pictures of ongoing work at the project.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. The TSX Venture Exchange Inc. has in no way approved nor disapproved the contents of this press release.
Cautionary Note Regarding Forward Looking Statements - Certain information set forth in this news release may contain forward-looking statements. Such statements include but are not limited to, statements as to lithium brine grades at depth being consistent with surface results, the potential for resource expansion at depth, the potential of the northern salar sediments, and deeper sediments, for hosting brine, the ability to proceed to scoping studies quickly, proceeding with continued work for additional economic studies the potential for production expansion in the Company's assessment of the economic potential of the 3Q Project, that test results are indicative of future results, and the additional of additional independent directors. Generally, forward-looking statements can be identified by the use of words such as "plans", "expects" or "is expected", "scheduled", "estimates" "intends", "anticipates", "believes", or variations of such words and phrases, or statements that certain actions, events or results "can", "may", "could", "would", "should", "might" or "will", occur or be achieved, or the negative connotations thereof. These forward-looking statements are subject to numerous risks and uncertainties, certain of which are beyond the control of the Company, which could cause the actual results, performance or achievements of the Company to be materially different from the future results, performance or achievements expressed or implied by such statements. These risks include, without limitation, risks related to failure to obtain adequate financing on a timely basis and on acceptable terms, political and regulatory risks associated with mining and exploration activities, including environmental regulation, risks and uncertainties relating to the interpretation of drill and sample results, risks related to the uncertainty of cost and time estimation and the potential for unexpected delays, costs and expenses, risks related to metal price fluctuations, the market for lithium products, competition for experienced directors in the junior mineral exploration and development sector, and other risks and uncertainties related to the Company's prospects, properties and business detailed elsewhere in the Company's disclosure record. Although the Company believes its expectations are based upon reasonable assumptions and has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended and undue reliance should not be placed on forward-looking statements.