HIGHLIGHTS
LSC Lithium Corporation (“
LSC” or
together with its subsidiaries, the “
Company”)
(TSXV:LSC) is pleased to announce an updated resource estimate
(“
Resource Estimate”) for its Pozuelos Project in
Salta Province, Argentina. The updated NI 43-101 Mineral Resource
Estimate has increased the Measured and Indicated Resource to
1,678,000 tonnes of lithium carbonate (Li2CO3) equivalent
(“
LCE”) and the Inferred Resource to 631,000
tonnes of LCE. This is an increase of 29% in the Measured and
Indicated Resource category and 27% in the Inferred Resource
category compared to the previous Resource Estimate dated February
28, 20182. The average grades from the salar have also
increased by 30% in the Measured and Indicated category from
387mg/l to 505mg/l and by 52% in the Inferred category from 340mg/l
to 518mg/l.
Ian Stalker, President and CEO of the Company,
noted, “We are extremely pleased with the updated Mineral Resource
Estimate on the Pozuelos Project. This is a huge milestone for LSC
and is a great announcement ahead of our anticipated PEA. The
updated Resource Estimate emphasises the potential of the jointly
developed Pozuelos-Pastos Grandes Project with the impressive size
of the Resource. The PPG Project now has a combined Resource of
2,617,000 tonnes LCE in the Measured and Indicated category and
938,500 tonnes LCE3 in the Inferred category which will be used in
the anticipated PEA based on a target production rate of 20,000tpa
lithium carbonate. Our targeted 20,000tpa of lithium carbonate
production in 2021 may indeed be only the beginning for this
impressive inventory when we combine both salars.”
Hains Engineering Company Limited and Hains
Technology Associates located in Toronto, Ontario, Canada were
engaged to prepare the pdated Mineral Resource Estimate for LSC’s
Pozuelos Project and also to prepare the Technical Report in
accordance with National Instrument 43-101 - Standards and
Disclosures for Mineral Projects.
The previously announced Resource Estimate for
Pozuelos included 1,296,000 tonnes of LCE in the Measured and
Indicated Mineral Resource category with average grade of 387mg/l
Li and 497,000 tonnes in the Inferred Mineral Resource category
with average grade of 340mg/l Li2.
Updated Pozuelos Resource
The updated Mineral Resource Estimate for
Pozuelos is detailed in Table 1.
Table 1: Resource Estimate Summary, Salar
de PozuelosNovember 22, 2018
Classification |
Brine Vol1(‘000
m3) |
RBRC2(%) |
Brine Assay
Values3(mg/L) |
Contained
Li(tonnes) |
LCE9(tonnes) |
Li |
Ca |
Mg |
K |
SO42- |
Measured |
4,713,466.09 |
8.41 |
470 |
1757 |
2652 |
4143 |
6570 |
180,000 |
958,000 |
Indicated |
4,259,737.29 |
5.84 |
544 |
1054 |
3216 |
2761 |
11359 |
135,155 |
719,500 |
|
Measured & Indicated |
8,973,203.38 |
7.19 |
505 |
1423 |
2920 |
3487 |
8843 |
315,155 |
1,678,000 |
KEY RATIOS |
Measured and
Indicated |
Mg/Li |
Ca/SO4 |
K/Li |
SO4/Li |
Li/Ca |
K/Mg |
5.78 |
0.16 |
6.91 |
17.52 |
0.35 |
1.19 |
Classification |
Brine Vol1(‘000
m3) |
RBRC2(%) |
Brine Assay
Values3(mg/L) |
Contained
Li(tonnes) |
LCE9(tonnes) |
Li |
Ca |
Mg |
K |
SO42- |
Inferred |
4,936,541.30 |
4.64 |
518 |
1170 |
2948 |
2240 |
8771 |
118,603 |
631,000 |
KEY RATIOS |
|
Mg/Li |
Ca/SO4 |
K/Li |
SO4/Li |
Li/Ca |
K/Mg |
4.82 |
0.13 |
4.32 |
16.82 |
0.44 |
0.76 |
Notes:
- Brine volumes are before application of Relative Brine Release
Capacity (“RBRC”) factor.
- RBRC value is the weighted average for the Resource
classification category.
- Resources have been classified in accordance with CIM Mineral
Resource definitions, May 25, 2014. Assay values have been rounded
to nearest whole number.
- Resources have been estimated by Louis Fourie, P. Geo., Pr.Nat.
Sci., under the direction of D. Hains, P. Geo.
- The effective date of this Mineral Resource Estimate is
November 22, 2018.
- Resources have been estimated using a cut-off grade of 330mg/l
lithium.
- Mineral Resources which are not Mineral Reserves do not have
demonstrated economic value. There is no assurance that additional
exploration will result in the conversion of Mineral Resources to
Mineral Reserves.
- Inferred Mineral Resources are considered as too speculative to
have economic criteria applied to them. There is no assurance
that additional exploration will result in the conversion of
Inferred Mineral Resources to Indicated or Measured Mineral
Resources.
- A conversion factor of 5.323 has been used to convert Li metal
to Lithium Carbonate Equivalent (LCE). Totals for M&I and
Inferred Resources have been rounded.
The Resource Estimate is sensitive to the
cut-off grade used. See: Figure 1: Grade-Tonnage Curve by Resource
Classification, Salar de Pozuelos Resource Estimate November 22,
2018.
Mineral Resource Estimation
Methodology
Resources were estimated using a polygonal
method. Polygons were defined by the 2017 exploration drill
program2 and boundaries were not adjusted for the current Resource
Estimate. Polygons were created in ArcGIS by centering the
polygon on each drill hole and clipping to the salar perimeter or
the adjoining polygon. The base of each polygon was cut at the
limit of the drill hole data for the respective polygon or the
interpreted base of productive lithology based on the available
seismic data. Polygon volumes were calculated in ArcGIS. The volume
in each polygon was further calculated based on the thickness of
the respective lithological units within each polygon.
Lithologies were determined based on analysis of
drill logs and drill core photos and extended across each polygon.
Five major lithologies were defined:
|
FHL |
Highly Fractured
Halite |
|
MFH |
Moderately Fractured Halite |
|
MCH |
Moderately Compact Halite |
|
PCH |
Porous Compact Halite |
|
CSC |
Clay
Supported Clastics |
RBRC data, a proxy for Sy (Specific yield), was
determined from core samples for each lithology. The Sy value for
the FHL lithology was determined from pumping tests for two 15m
deep wells located within polygons representing holes SP-2017-02
and SP-DDH400 and two trenches. Pump test data was analyzed using
Infinite Extent software and the Neuman type curves to derive an
average value of 31.25% for the upper 15m in the salar.
Brine Resources were calculated for each polygon
by multiplying the volume of each lithological unit in the
respective polygon by the average RBRC value for the respective
lithological unit in the polygon. Estimated grades by polygon and
lithological unit were calculated by applying the drill hole assay
or pumping assay data for the respective polygon and lithological
unit to the calculated brine volumes. In those cases where both
specific packer sample assay data and pumping sample assay data
were available for adjacent holes, the data was averaged for the
samples within the screen interval of the pump. Contained lithium
metal in each polygon and lithological unit was converted to LCE
using a conversion factor of 5.323.
Resources were classified as Measured, Indicated
or Inferred based on the number of sample points within the
respective polygons and lithological units. In general, Resources
within the upper 15m of the salar were classified as Measured, and
those Resources between 15m and 50m classified as Indicated.
Resources found below approximately 50m depth were classified as
either Indicated or Inferred, based on the density of sample data.
Resources in polygons where only surface sample data was available
were classified as Inferred. Surface sample assay values were
applied to a depth of 50m, and in the case of Polygons 3 and 4 in
the northeast of the salar, assigned assay values from Polygon 1
for the interval below 50m and assigned a Sy value of 2.57 for the
full interval and classified as Inferred. Those Resources within
polygonal lithological units lying below the lower limit of the
assay data but containing RBRC data were also classified as
Inferred. Where RBRC data was available but no assay data was
available for the respective interval and lithology, assay data was
assigned based on the average for similar lithology and interval
from adjacent holes. In such cases, the estimated Resources were
classified as either Indicated or Inferred, based on the number of
sample points. Resources for Polygon 1 in the northeast of the
salar were classified as Indicated regardless of level in the
salar. Estimated Resources were summed by classification and
polygon to derive totals and average grades.
The Resource Estimate is based on the results of
previous exploration as detailed in prior NI 43-101 Technical
Reports filed by LSC on SEDAR2 and the 2018 exploration program.
The 2018 exploration program included a program of deep exploration
drilling, development of pumping wells with step tests and
continuous tests to develop data on the hydraulic properties of the
salar, hydrogeological studies of the salar, including geophysics
and construction of perimeter monitoring wells, additional seismic
studies to enhance understanding of the lithology of the salar, and
extensive brine sampling and RBRC core analysis. Table 2 summarizes
the 2018 drill program undertaken at Salar de Pozuelos.
The 2018 exploration program identified
significant zones of higher grade lithium bearing brines. The
available data indicate a central, high grade zone extending in a
northeasterly direction over a distance exceeding 6km and a width
of approximately 3.5km to depths in excess of 350m. This is
complemented by a smaller high grade zone in the southwest centered
in Polygon 10.
The brine chemistry at Salar de Pozuelos is
highly amenable to conventional solar evaporation processing and is
complementary to the brine chemistry found at Salar Pastos
Grandes.
Table
2: 2018 Drill Program, LSC Lithium Salar
de Pozuelos Project
Hole |
Gauss-Kruger POSGAR 94Zone 3 datum, AR-16
geoid |
Elevation(m) |
Depth (m) |
Azimuth |
Dip |
Type |
Size |
Type |
Northing |
Easting |
SP-2017-02W |
7270791.66 |
3416483.05 |
3755.622 |
128.0 |
0 |
90 |
Tricone |
8” |
Pumpinig |
SP-2017-pz5-2W |
7270787.32 |
3416479.16 |
3755.705 |
128.0 |
0 |
90 |
Tricone |
4” |
Piezo |
SP-2017-pz10-2W |
7270799.02 |
3416473.75 |
3755.698 |
128.0 |
0 |
90 |
Tricone |
4” |
Piezo |
SP-2017-10W |
7265930.67 |
3413190.89 |
3756.186 |
141.5 |
0 |
90 |
Tricone |
8” |
Pumping |
SP-2017-pz10-10W |
7265927.59 |
3413200.62 |
3756.26 |
141.5 |
0 |
90 |
Tricone |
4” |
Piezo |
SP-2017-pz5-10W |
7265935.35 |
3413192.75 |
3756.22 |
141.5 |
0 |
90 |
Tricone |
4” |
Piezo |
SP-2017-14W |
7264929.00 |
3417966.00 |
3756.15 |
123.5 |
0 |
90 |
Tricone |
8” |
Pumping |
SP-2017-pz5-14W |
7264928.73 |
3417966.20 |
3756.133 |
123.5 |
0 |
90 |
Tricone |
4” |
Piezo |
SP-2017-pz10-14W |
7264923.18 |
3417976.60 |
3756.217 |
123.5 |
0 |
90 |
Tricone |
4” |
Piezo |
WPZ-18-01 |
7269675.67 |
3416824.78 |
3756.163 |
103.0 |
0 |
90 |
Rotary |
8” |
Pumping |
Pzm20-WPZ18-01 |
7269655.41 |
3416825.78 |
3756.02 |
100.0 |
0 |
90 |
Rotary |
4” |
Piezo |
WPZ-18-04 |
7264938.43 |
3415953.20 |
3755.937 |
183.0 |
0 |
90 |
Rotary |
8” |
Pumping |
PZ-18-01 |
7267900.13 |
3417787.38 |
3755.865 |
380.3 |
0 |
90 |
DDH |
HQ |
Exploration |
PZ-18-02 |
7272770.83 |
3419744.2 |
3758.407 |
358.0 |
0 |
90 |
DDH |
HQ |
Exploration |
Total Drilled |
2,303.3 |
|
Table 3 provides a summary of the brine assay
results from the pumping tests completed in the 2018 exploration
program.
Table 3: Assay Comparisons for Pump
Tests
Well |
Average Assay Values (mg/L) |
Step Test |
Constant Rate Test |
2 Day |
7 Day |
Li |
Ca |
Mg |
K |
SO4 |
Li |
Ca |
Mg |
K |
SO4 |
Li |
Ca |
Mg |
K |
SO4 |
SP-2017-10W |
704 |
706 |
4194 |
5707 |
14712 |
731 |
584 |
4459 |
5832 |
15764 |
750 |
536 |
4522 |
6160 |
16500 |
WPZ-18-04 |
534 |
1325 |
2732 |
4546 |
5857 |
|
|
|
|
|
|
|
|
|
|
SP-2017-2W |
381 |
1282 |
2992 |
3304 |
6099 |
388 |
1269 |
2958 |
3309 |
6542 |
|
|
|
|
|
WPZ-18-01 |
396 |
931 |
2948 |
3229 |
10053 |
|
|
|
|
|
415 |
624 |
2995 |
3385 |
12763 |
SP-2017-14W |
365 |
2141 |
1826 |
2673 |
2946 |
358 |
2086 |
1791 |
2656 |
3103 |
|
|
|
|
|
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. Brine sampling for the pump stress
test involved collection of samples from a valve attached to the
pump outlet. Brine was allowed to flush and then fresh brine was
used to wash the sample bottle several times before collecting the
sample. Sample bottles were 1-litre in size and were filled to the
top to prevent entrance of air. 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.
Brine sampling for the pumping tests used the
same sample collection and handling procedures. Depending on the
nature and duration of the test, samples were collected every 15
minutes (step tests) or on a 1 hour, 3 hour and 8 hour schedule (2
day and 7 day continuous pumping tests).
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. 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 material projects: Pozuelos and Pastos Grandes
Project, Rio Grande Project and Salinas Grandes Project. 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 Stalker, President & Chief
Executive Officer 40 University Avenue, Suite 605 Toronto, ON
Canada M5J 1T1 +416 306 8380 Email: info@lsclithium.com
Web: 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 the timing and completion of its PEA study for the
Pozuelos-Pastos Grandes Project, ability and likelihood of using
combined resource of PPG in the PEA, timing of production and
likelihood of producing in 2021, likelihood of meeting target
production rate at PPG, ability and results of combining inventory
from PPG, ability and timing of advancing LSC’s properties through
various stages of exploration and resource development, and any
other matters relating to the exploration and development of
Pozuelos 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 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 Technical Report
titled “Mineral Resource Estimate and Technical Report on the Salar
de Pastos Grandes Project, Salta Province, Argentina” with an
effective date of October 28, 2018 filed on the Company’s SEDAR
profile.2 See the Technical Report titled “Mineral Resource
Estimate & Technical Report on the Salar de Pozuelos Project,
Salta Province, Argentina” with an effective date of February 28,
2018 filed on the Company’s SEDAR profile.3 This Measured and
Indicated figure is comprised of 1,678,000 tonnes LCE from Pozuelos
with average grade of 505mg/l Li and 939,080 tonnes LCE from Pastos
Grandes with average grade of 464mg/l Li. This Inferred figure is
comprised of 631,000 tonnes LCE from Pozuelos with average grade of
518 mg/l Li and 307,500 tonnes from Pastos Grandes with average
grade of 467mg/l Li. Numbers have been rounded and may not add.
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