Vancouver, British Columbia,
Oct. 2, 2018 /CNW/ -- NRG
Metals Inc. ("NRG" or the "Company") (TSX-V: NGZ)
(OTCQB: NRGMF) (Frankfurt: OGPN) is pleased to report a maiden
lithium (Li) and potassium (K) resource statement for its Hombre
Muerto Norte lithium brine project in the Salta province of
Argentina. The NI 43-101 resource statement, detailed in Table
1 below, includes 509,000 tonnes (metric tons) of lithium carbonate
(Li2CO3) equivalent (LCE) and 1,609,000
tonnes of potash (KCl) equivalent in the Measured and Indicated
Resource categories, with an additional 62,000 tonnes of LCE and
231,000 tonnes KCl in the Indicated Resource category.
Adrian Hobkirk, President and CEO
of NRG, commented, "We are very excited to see a robust and
high-grade 43-101 resource estimate from our hydrogeological
consultants. The Company now has a high-quality defined
resource estimate with positive chemical characteristics that will
hopefully allow us to advance the project through feasibility
studies to production should the economic viability and technical
feasibility of the project be established."
Table 1. Hombre Muerto North Lithium Brine Resource
Statement
Resource
Category
|
In situ Li
(tonnes)
|
Li2CO3 Equivalent
(tonnes)
|
In situ K
(tonnes)
|
KCl Equivalent
(tonnes)
|
Measured
|
96,000
|
509,000
|
844,000
|
1,609,000
|
Indicated
|
12,000
|
62,000
|
121,000
|
231,000
|
M+I
|
108,000
|
571,000
|
965,000
|
1,840,000
|
Tonnages are rounded off to the nearest 1,000. Cutoff grade:
500 mg/L lithium, but no laboratory results were less than the
cutoff grade.
The conversion used to calculate the equivalents from their
metal ions is based on the molar weight for the elements added to
generate the equivalent. The equations are Li x 5.3228 =
lithium carbonate equivalent and K x 1.907 = potassium chloride
equivalent.
The reader is cautioned that mineral resources are not
mineral reserves and do not have demonstrated economic
viability.
The resource estimate was prepared in accordance with the
requirements of National Instrument 43-101 and uses best practice
methods specific to brine resources, including a reliance on core
drilling and sampling methods that yield depth-specific chemistry
and effective (drainable) porosity measurements. The resource
estimation was completed by independent qualified person Mr.
Michael Rosko, M.Sc., C.P.G. of the
international hydrogeology firm E.L. Montgomery &
Associates (M&A).
The resource is defined over a 3.9 square kilometer footprint
using results from core drilling and depth-specific packer
sampling. In addition, the brine was also sampled during
short-term pumping tests. The new Measured and Indicated Resource
was derived from two polygons surrounding core holes drilled to
depths of 401 and 281 meters (m). Large-diameter rotary holes
were drilled to adjacent to both core holes, each to a depth of
about 400 m. The spacing
between the two pairs of core/rotary holes is approximately 2.1
kilometers.
The chemistry of the Hombre Muerto North brine is judged to be
very favorable. Brine density and the ratios of magnesium and
sulfate to lithium for the combined measured and indicated resource
are given below:
- Density of the brine from depth-specific samples at the core
holes ranged from 1.19 to 1.23 grams per cubic centimeter
(g/cm3)
- Average Magnesium/Lithium ratio is 2.6 to 1
- Average Sulfate/Lithium ratio is 11.7 to 1
Based on the geologic model, approximately 33% of the resource
is hosted by sand and silty sand units, 28% by interbedded halite,
sand and silty sand, and 39% sandy conglomerate.
The total contained lithium and potassium values are based on
measurements of effective (drainable) porosity distributed
throughout the aquifer volume that defines this resource. This
method of porosity determination is designed to estimate the
portion of the total porosity that can theoretically be drained by
pumping; however, these estimates may differ from total extractable
quantities. The drainable porosity is different for each
hydrogeologic unit, but the average ranges from about 8 to 11%
based on laboratory results.
Resource Estimation Methodology
A total of 627.5 m of drilling
from two holes were evaluated for this resource estimate
calculation. A total 20 drainable porosity results and 35
depth-specific brine sample analyses were used in the computations,
not including QA/QC samples or composite samples obtained during
pumping tests. The average spacing of vertical samples for
both drainable porosity and chemistry was variable with an average
of approximately 31 m for drainable
porosity samples and 18 m for
depth-specific brine samples. The first core hole was terminated at
a depth of 401 m due to drill
limitations and the second hole was terminated at a depth of
281 m due to difficult drilling
conditions; the hydrogeologic basement was not encountered.
The total thickness of the basin, and the total thickness of
saturated sediments, is unknown. Based on well drilling and
geophysical measurements, additional brine-bearing aquifer material
is believed to exist below 400 m in
most of the concession area.
The consultants chose to estimate the resource using a
drill-hole centered polygonal technique. Hydro-stratigraphic
units have variable thickness and were determined by the
consultants based on observed lithology and anticipated similar
hydraulic properties. The values for drainable porosity and
grade (lithium and potassium values) for each hydro-stratigraphic
unit were derived from direct measured values from the well. The
unit thicknesses combined with the areas yield a volume of total
saturated aquifer. The saturated volume combined with the drainable
porosity values, represent the amount of fluid theoretically
available from the formation, and subsequently yield the drainable
volume of brine. Applying the average lithium and potassium
grades for each unit provides the estimated resource for each
block, which are then summed for each hydro-stratigraphic polygon
unit. Total lithium and potassium volumes are then represented as
lithium carbonate and potassium chloride equivalents.
The primary analytical laboratories for the data used in this
resource are Alex Stewart (NORLAB)
in Jujuy, Argentina. The
laboratory is accredited to ISO 9001:2008 and ISO14001:2004 for
their geochemical and environmental labs for the preparation and
analysis of numerous sample types, including brines.
The porosity determinations were made by Geosystems Analysis
(GSA) of Tucson, Arizona. GSA has
abundant experience since 1994 in reservoir description, production
enhancement and reservoir management services and has provided
services to various other lithium projects located in Argentina and globally.
Qualified Person
The resource evaluation work was completed by Mr. Michael Rosko, M.Sc., C.P.G. of E.
L. Montgomery and Associates of
Santiago, Chile ("M&A"). Mr.
Rosko is a Registered Geologist (C.P.G.) in Arizona, California, and Texas, a Registered Member of the Society for
Mining, Metallurgy and Exploration, and is a qualified person (QP)
as defined by NI 43-101. Mr. Rosko and hydrogeologists from M&A
have been on site multiple times during the various phases of
drilling and sampling operations; Mr. Rosko has extensive
experience in salar environments and has been a QP on many lithium
brine projects. Mr. Rosko and M&A are completely independent of
NRG. Mr. Rosko has reviewed and approved the content of this news
release.
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.
On behalf of the board of directors of NRG Metals
Inc.:
Adrian F.C Hobkirk
President and
C.E.O.
The TSX Venture Exchange has not reviewed the content of this
news release and therefore does not accept responsibility or
liability for the adequacy or accuracy of the contents of this news
release.
This news release contains certain "forward-looking statements"
within the meaning of Section 21E of the United States Securities
and Exchange Act of 1934, as amended. Except for statements of
historical fact relating to the Company, certain information
contained herein constitutes forward- looking statements.
Forward-looking statements are based upon opinions and estimates of
management at the date the statements are made and are subject to a
variety of risks and uncertainties and other factors which could
cause actual results to differ materially from those projected in
the forward-looking statements. The reader is cautioned not to
place undue reliance on forward- looking statements. We seek safe
harbor.
Media Contacts:
Investors / Shareholders
T: 855-415-8100
Adrian F.C Hobkirk
President and C.E.O.
Direct to Adrian Hobkirk
714-316-3272
E: ahobkirk@nrgmetalsinc.com
W: www.nrgmetalsinc.com
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SOURCE NRG Metals Inc.