HIGHLIGHTS
LSC Lithium Corporation (“
LSC” or
together with its subsidiaries, the “
Company”)
(TSXV:LSC) is pleased to announce the issue of its maiden Mineral
Resource on its Rio Grande lithium project. This is the second in a
series of resource estimates planned for release by the Company
this year on its multiple properties. This initial NI 43-101
Mineral Resource estimate includes a total of 2,190,000 tonnes of
lithium carbonate (Li2CO3) equivalent (LCE) in the Inferred Mineral
Resource category with the top 50m of the deposit amounting to
1,375,435 tonnes grading at 338mg/l Li and the lower 50m to 100m
amounting to 814,582 tonnes grading at 410mg/l Li (See Table 1).
Lithium grades tend to improve between 50m to 100m below
surface and this trend indicates potentially improved grades at
depth.
The Company’s President & CEO Ian Stalker
stated, “The delivery of this large resource down to just 100m
depth, which includes over 2M tonnes in the Inferred Resource
category, is a significant step forward for the Company in a short
period of time. Although large, this resource has the potential to
increase in size based on geophysical results indicating greater
potential to a depth of 500m+ and will be tested in the next phase
of drilling. The Company has made excellent progress in the last
six months culminating with the issue of both this resource and
also that for Pozuelos in the last two weeks which amounted to
1.29m tonnes LCE in the Measured and Indicated Resource category at
an average grade of 387mg/l Li and 312,942 tonnes LCE in the
Inferred Resource category at an average grade of 323mg/l Li.1 The
Rio Grande resource is planned to be upgraded to a Measured and
Indicated Mineral Resource as soon as possible as LSC will conduct
further drilling to test the depth extensions and porosity levels.
We look forward to the additional resource estimates for Salinas
Grandes and Pastos Grandes in the near and medium term
respectively.”
Table 1 – Rio Grande Resource Statement
as at February 15, 2018
Classificationand Zone |
Assay Value (mg/l) |
Total BrineVol (MM m3) |
RBRC1(%) |
AvailableBrine
Vol(m3) |
LiTonnes(as
metal) |
LCE2(tonnes) |
Inferred |
Li |
Ca |
K |
Mg |
SO4 |
Top 50m, 5kmradius of pumpwell |
338 |
3570 |
6170 |
1,320 |
29,100 |
4,170.73 |
13.5 |
563,049,212 |
190,311 |
1,013,024 |
Remainingarea, top 50m |
338 |
3,570 |
6,170 |
1,320 |
29,100 |
2,898.31 |
6.95 |
201,432,357 |
68,084 |
362,412 |
Sub-total |
338 |
3,570 |
6,170 |
1,320 |
29,100 |
|
|
764,481,569 |
258,395 |
1,375,435 |
Lower 50m –100m |
410 |
710 |
7,520 |
4,920 |
34,130 |
7069.042 |
5.28 |
373,245,428 |
153,031 |
814,582 |
Total Inferred |
374 |
2,149 |
6,845 |
3,129 |
31,615 |
14,138.08 |
|
1,137,726,997 |
411,426 |
2,190,000 |
Notes: 1 Relative Brine Release Capacity.2 Li metal converted to
Lithium Carbonate Equivalent (LCE) using a factor of 5.323.3
Rounded down to nearest ‘000.4 Resources estimated using CIM 2014
resource classification definitions.5 A cut-off grade of 100mg/l of
Li was applied. The hydraulic parameters of the resource area
suggest that it is reasonable to expect brine extraction by a
conventional production wellfield at a commercially viable rate,
while the geochemical characteristics of the brine suggest that
conventional processing techniques may be employed to produce
saleable lithium products in an economically profitable manner.
These processing techniques are employed in lithium brine
operations in Chile, the USA and China.6 Resources estimated by D.
Hains, P. Geo.7 Resources which are not Reserves do not have
demonstrated economic value. There is no guarantee that resources
can be converted to reserves with additional work.
Phase 1 Exploration Program
An eight hole drill program was completed by the
Company to verify the historical results reported for 33 holes
drilled across the salar by ADY Resources Ltd.2
(“ADY”) by twinning selected holes. The historical
drill hole spacing was on a grid of approximately 1.5km east/west
by 2km north/south with the eight hole verification program
twinning historical holes within 5m of the original collars. The
historical drill results and the subsequent verification drill
results reported by LSC1 have been used for this mineral resource
estimate. The ADY drill holes were all terminated at approximately
50m below surface. A decision to extend the LSC drill holes to 100m
was made to test potential higher grade lithium mineralization at
depth. This has proved successful as lithium mineralization down
hole tends to increase in grade with depth.
Verification drilling was carried out utilizing
a wireline triple tube core barrel system recovering HQ size core
for geological logging and Relative Brine Release Capacity
(“RBRC”) analysis. While drilling in the center of
the salar in proximity to drill holes SRG-2017-22T and
SRG-2017-18T, unconsolidated volcanic derived sands were
encountered which prevented both holes drilling to the planned
depth of 100m below surface, reaching 60m and 84.5m respectively.
In some cases, it was deemed necessary to repeat drill holes in the
top 20m to 50m below surface where either the packer equipment was
inoperable or brine recoveries were negative with corresponding
historical ADY data indicating positive brine samples at the
particular down hole elevation. The packer sampling in the eight
LSC twin holes was designed to replicate the intervals within the
ADY drill holes and this was achieved to an acceptable level.
As reported previously3, interpretation of
CS-AMT survey results indicate that the potential for lithium
bearing formations extends to depths in excess of 500m below
surface. Secondly, these interpreted results also indicate the
presence of two deep seated depositional centers. The first is well
developed in the northern section of the salar and is open ended
both at depth below 500m and laterally to the north. The second
depositional center is more centrally located. The 2018 drill
program will investigate both these deep targets and is designed to
deliver an upgraded NI 43-101 Mineral Resource.
Mineral Resource Estimation Methodology
Resources for salar Rio Grande were estimated
using an inverse distance squared interpolation
(“ID2”) method. The resource model area was
clipped to the perimeter of the salar or the LSC tenement
boundaries, as applicable. Assay data for the model was based on
the historical and/or twin hole assay results down to 50m depth and
the twin hole confirmatory assay data for the interval between 50m
and 100m depth. An effective porosity value of 13.5% was applied to
that area within a 5km radius of the historic pumping wells. The
effective porosity value for this area was obtained from the 2012
SRK report on Rio Grande (see LSC NI 43-101 technical report dated
December 31, 2016 for details). RBRC data from the twin hole
drilling program was interpolated using the ID2 methodology for the
balance of the upper 50m zone and for the lower 50m interval across
the salar. The total area of the salar subject to the resource
estimate is 14,800 ha, with 41% of the upper 50m area residing
within the 5km radius of influence of the historic pumping
wells.
The results of the resource estimate are
summarized in Table 1. Resources have been classified as Inferred
for both the upper 50m and lower 50m intervals across the salar due
to uncertainties associated with values for Specific Yield and the
limited assay data for the lower 50m interval.
Previous Exploration4
The property was previously operated for sodium
sulphate production initially between 1952 and 1975 with
approximately 60,000 tonnes being produced. A second phase of
production occurred between 1976 and 1991 with 49,700 tonnes from
brines and 34,000 tonnes from surface material. The property
currently has three 15” production wells installed, each with a
capacity of 150m3/hour rate to 25m depth.
The successful production of sodium sulphate
indicates the possibility of reducing the sulphate content in the
brine prior to lithium production along with the production of a
significant sodium sulphate by-product for the Company, with
potential to supply as a reagent to other lithium producing
projects in Argentina. LSC is actively researching both traditional
and alternative process routes for recovery of sodium sulphate and
recovery of the lithium from the brine to maximize the value of the
Rio Grande resource.
Prior exploration on the Rio Grande tenements by
ADY Resources, and previous tenement holders, included:
- Geological mapping and shallow surface sampling (142 samples to
1m) in 2011; and
- 33 HQ diamond drill holes for 1653m, 2 reverse circulation
holes for piezometers, 8 pumping wells to maximum depth of 100m (31
at 50m, 1 at 75m, 1 at 100m) in 2011.
Surface sampling results for Li averaged 380
mg/l Li and the range for packer samples was 220mg/l Li to 420mg/l
Li. Estimated porosity for the tenements down to 50m depth was
13.5%, based on analysis of drill core.3 As noted above, LSC has
completed a program under the direction of its Qualified Person to
verify the historical data and is satisfied that the historical
data is reliable and can be used in a current resource
estimate.
Sampling and QA/QC
Brine sampling for packer tests involved
collection of brine from the sample interval in a 20-litre
container, which was flushed with fresh brine several times prior
to collection of the sample. Brine was poured into 1-litre sample
bottles which had been previously flushed with fresh brine from the
20-litre container several times. Sample bottles were filled to the
top to eliminate the inclusion of air and sealed with a leak proof
lid. Samples were labelled and labels covered in clear tape to
prevent erasure of sample information. All samples remained in the
possession of the site geologist until delivery to Alex Stewart
Laboratory in Jujuy, Argentina. The samples were sealed with a leak
proof lid, labelled and the label covered by clear tape. Samples
remained in the possession of the site until delivery to the assay
laboratory.
RBRC samples were cut to length using a hack
saw, bubble wrapped for protection and then placed in PVC tubes
which were sealed with packaging tape. The samples were labelled
and the labels wrapped in clear tape. Samples remained in the
custody of the site geologist until shipped. Brine (20-litre) from
each of the holes from which the samples were collected was also
shipped to Daniel B. Stephens & Associates Inc.
("DBSA") as part of the sample test protocol. DBSA
is independent of LSC.
LSC has a well-developed QA/QC program. Brine
assays are undertaken at Alex Stewart Argentina
(“ASA”) S.A. in Jujuy, Argentina. ASA is
independent of LSC and has significant experience in assaying
lithium brines and is certified to ISO17025 standards. Brine assays
are undertaken using ICP, gravimetric, potentiometric and
volumetric methods as detailed in a press release from LSC dated
April 10, 2017. ASA runs internal duplicates at a rate of 1 in 20.
LSC inserts blanks and standards in sample batches at a rate of 1
in 20. Standards are internal standards developed by LSC that have
been independently certified by round robin testing. LSC uses
distilled water as blanks.
Qualified Person/Data
Verification
The scientific and technical information
included in this press release is based upon information prepared
and approved by Donald H. Hains, P.Geo. Mr. Hains is a
qualified person, as defined in NI 43-101 and is independent of LSC
and ADY. Mr. Hains has verified all sampling, analytical and test
data underlying the information contained in this press release by
on-site inspection during drilling, brine sampling, and selection
of RBRC samples; review of drill core photographs to verify
lithology; review of certified assay certificates against the assay
data base; review of pump test data; and review of RBRC results
received from DBSA. There are no drilling, sampling, recovery or
other factors that could materially affect the accuracy and
reliability of the data.
A Technical Report prepared under the guidelines
of NI 43-101 standards describing the resource estimation will be
filed on SEDAR within 45 days of this release.
ABOUT LSC LITHIUM
CORPORATION:
LSC Lithium has amassed a large portfolio of
prospective lithium rich salars and is focused on developing its
tenements located in five salars: Pozuelos, Pastos Grandes, Rio
Grande, Salinas Grandes, and Jama. All LSC tenements are located in
the “Lithium Triangle,” an area at the intersection of Argentina,
Bolivia, and Chile where the world’s most abundant lithium brine
deposits are found. LSC Lithium has a land package portfolio
totaling approximately 300,000 hectares, which represents extensive
lithium prospective salar holdings in Argentina.
For further information please
contact:
LSC Lithium Corporation Ian StalkerPresident
& Chief Executive Officer151 Yonge Street, 11th floorToronto
ON, Canada M5C 2W7(416) 304 9384Email: info@lsclithium.comWeb:
lsclithium.com
Forward-Looking Statements
Certain statements contained in this news
release constitute forward-looking information. These statements
relate to future events or future performance, including statements
as to timing of drilling to test deeper zones, likelihood of grades
improving with depth, timing and ability to upgrade the mineral
resource for Rio Grande, ability and timing to conduct further
drilling, interpretation of the CSAMT and drill results, ability to
complete the 2018 drill program, the possibility of reducing the
sulphate content in brine and supplying sodium sulphate to lithium
producers and anticipated timing to complete a NI 43-101 report on
the Salar de Rio Grande and LSC’s other properties. The use of any
of the words “could”, “anticipate”, “intend”, “expect”, “believe”,
“will”, “projected”, “estimated” and similar expressions and
statements relating to matters that are not historical facts are
intended to identify forward-looking information and are based on
LSC's current belief or assumptions as to the outcome and timing of
such future events. Whether actual results and developments will
conform with LSC's expectations is subject to a number of risks and
uncertainties including factors underlying management's
assumptions, such as risks related to: drill program results;
title, permitting and regulatory risks; exploration and the
establishment of any resources or reserves on the Salar de Rio
Grande or other LSC properties; volatility in lithium prices and
the market for lithium; exchange rate fluctuations; volatility in
LSC’s share price; the requirement for significant additional funds
for development that may not be available; changes in national and
local government legislation, including permitting and licensing
regimes and taxation policies and the enforcement thereof;
regulatory, political or economic developments in Argentina or
elsewhere; litigation; title, permit or license disputes related to
interests on any of the properties in which the Company holds an
interest; excessive cost escalation as well as development,
permitting, infrastructure, operating or technical difficulties on
any of the Company's properties; risks and hazards associated with
the business of development and mining on any of the Company's
properties. Actual future results may differ materially. The
forward-looking information contained in this release is made as of
the date hereof and LSC is not obligated to update or revise any
forward-looking information, whether as a result of new
information, future events or otherwise, except as required by
applicable securities laws. Because of the risks, uncertainties and
assumptions contained herein, investors should not place undue
reliance on forward-looking information. The foregoing statements
expressly qualify any forward-looking information contained herein.
For more information, see the Company's filing statement on SEDAR
at www.sedar.com.
Neither the TSX Venture Exchange Inc. 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 neither
approved nor disapproved the contents of this press release.
__________________________________
1 See LSC News Release dated February 2, 2018.2 See LSC news
release dated January 24, 2018.3 See LSC news release dated January
22, 2018.4 See technical report titled “Review of Four Lithium
Exploration Properties in Argentina” dated January 27, 2017 with an
effective date of December 31, 2016 and filed on LSC’s SEDAR
profile.
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