VANCOUVER, BC, Jan. 6, 2022 /CNW/ -- Lithium South Development Corporation (the "Company") (TSX-V: LIS) (OTCQB: LISMF) (Frankfurt: OGPQ) is pleased to provide its shareholders a comprehensive Corporate Plan for 2022.  

Lithium South is focused on the further development of the Hombre Muerto North Lithium Project located in Salta Province, Argentina, on one of the world's premium salars.  Work to date has defined a high-quality lithium resource that is the subject of a prior positive Preliminary Economic Assessment filed on August 12, 2019.  

To increase shareholder value, management intends to significantly expand the known resource with a drill program and further pumping wells.  In addition, the Company will undertake a Feasibility Study using industry proven conventional evaporation and if warranted, Direct Lithium Extraction technology.  Lithium South has approximately CDN$ 18 million in working capital and has an extensive advertising program planned to raise investor awareness by showcasing Lithium South's exploration/development results.

Resource Expansion

The HMN Li Project is comprised of 3,287 hectares of which only the 383-hectare Tramo claim block has been drill tested.  A recent TEM study has identified significant expansion potential over the balance of the claim blocks and in particular at the 2,089-hectare Alba Sabrina claim block.  Drill permissions are expected in January 2022 and road as well as drill pad construction have already been initiated. A camp located near the project, has been contracted to house personnel and a drill contract is expected to be awarded this month.

Process Development

The current HMN Li Project resource located at the Tramo claim block is defined as 571,000 measured and indicated tonnes Lithium Carbonate Equivalent at 756 ppm Li, with a low Li to Mg ratio of 2.6:1 as reported on October 3, 2018, in a NI 43-101 report titled Initial Measured Lithium and Potassium Resource Estimate Homre Muerto Project, Salta and Catamarca Provinces, Argentina, by Montgomery and Associates of Santiago Chile, with the author Qualified person Mr. Mike Rosko, M.Sc., C.P.G.

Eon Minerals of Salta, Argentina is currently performing conventional evaporation test work to produce battery grade lithium carbonate and confirm this industry standard lithium extraction process.   In addition, three 2,000-liter bulk samples of this high-quality brine is awaiting laboratory test work by three DLE developers; Chemphys Chengdu located in Sichuan Province, China, Lilac Solutions of Oakland, California, and Eon Minerals of Salta Province, Argentina.  Results from both conventional and DLE test work are expected over the coming weeks and will potentially define the optimal process for lithium production at the HMN Li Project.

Environmental Permitting

The environmental baseline study being conducted by EC & Asociados of Salta, Argentina, has moved into Phase II.  The dry season study has been completed and the wet season study is nearing completion.  The environmental base line study will fulfill requirements under the General Environmental Law, Mining Code No. 24.585.  In addition, the Company is completing a social study of the area. Management is taking a pro-active approach to permitting in anticipation of future project exploration success.

Company President Adrian F.C. Hobkirk is quoted, "Our Company is approaching 2022 with the goal of increasing our high-quality lithium resource and completing a project Feasibility Study.  Lithium South is well financed to complete these objectives at a time of record high lithium carbonate prices. "

About Lithium South

Lithium South is focused on developing the Hombre Muerto North Lithium Project (HMN Li Project), located on the Hombre Muerto Salar, a major lithium-producing salar in Argentina. The property is adjacent to land under development by the Korean multinational corporation POSCO, which acquired the ground from Galaxy Resources Ltd. for US $280 million.  The Company completed a Preliminary Economic Assessment of the HMN Li Project in 2019, utilizing conventional evaporation extraction. 

The Company is evaluating conventional evaporation as a process method, and Direct Lithium Extraction (DLE) as an alternative method.   In addition, the Company is planning to potentially expand the known resource by drilling various areas of interest identified in a recent TEM survey.  The Company is awaiting approval of drill permits currently under review by the Mining Secretariat in Salta, Argentina.

This news release has been reviewed and approved by Marcela Casini, advisor to the Company and a Qualified Person as that term is defined in National Instrument 43-101.

On behalf of the Board of Directors

Adrian F. C. Hobkirk
President and Chief Executive Officer
Investors / Shareholders call 855-415-8100 / website: www.lithiumsouth.com

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. 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.

 

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SOURCE Lithium South Development

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