Lithium Ionic Corp. (TSXV: LTH) (“
Lithium Ionic”
or the “
Company”) reports excellent initial
drilling results from the Galvani claims, on which it is currently
conducting a due diligence review following the recently announced
binding asset purchase agreement (see press release dated June 14
and June 28, 2022). The Company also reports new drill results from
Area 1 of its Itinga Project. The Galvani claims, as well as its
neighbouring 100%-owned Itinga Lithium Project (Areas 1-5) are
located in the state of Minas Gerais, Brazil, in the same district
as the lithium producing CBL mine and Sigma Lithium’s Barreiro
deposit (20.4Mt grading 1.4% Li2O) (see Figure 1, location map).
Galvani Drill Results
Highlights (See Figures 2 and 3)
- Drill intercept
of 1.57% Li2O over 24.93m, incl. 2.10% Li2O over 7.45m
(ARDD-22-001)
Itinga Project, Area 1 Drill Results
Highlight (See Figure 4)
- Drill intercept
of 2.23% Li2O over 2.70m (ITDD-22-006)
- Drill intercept
of 1.33% Li2O over 5.96m (ITDD-22-007)
Blake Hylands, Chief Executive Officer of
Lithium Ionic, comments, “The Outro Lado showing at the Galvani
Project Area has shown extremely interesting surface results from
historic channels and drilling, and we have now been able to step
back from known drill holes and show even better grades and widths
than what had initially drawn us to potentially acquire the area.
The team is doing excellent work to better understand this
structurally complex area and we look forward to continued success
as we add exploration resolution through drilling and mapping.”
Galvani Claims Due Diligence Update –
Excellent Initial Exploration Results
The Company is currently undertaking a 900 metre
(7 hole) drill program as well as an extensive trenching program on
and in proximity to a ~0.7km strike pegmatite on the Galvani
claims, as part of its 90-day due diligence review following the
purchase agreement announced on June 14, 2022 (see Figures 2 and
3). The exploration program was designed to confirm historic
drilling and determine the structural controls of the mineralized
pegmatites, including its orientation with up and down dip
testing.
Excellent initial drill results reported today
of 1.57% Li2O over 24.93m, incl. 2.10% Li2O over
7.45m, are consistent with some of the significant
historic drill results which cover a roughly one-kilometre
including 1.62% Li2O over 20.25m and 1.78% Li2O
over 12m.
Historic trench results have recently been compiled, and
highlights are listed below (see trench locations on Figure 3 and
complete table of results in Table 2).
- 1.53% Li2O over
12.75m (LINHA 01)
- 1.80% Li2O over
12m (LINHA 03)
- 1.97% Li2O over
5m (LINHA 04)
- 1.54% Li2O over
10m (LINHA 06)
- 1.32% Li2O over
11m (LINHA 07)
- 1.46% Li2O over
8 (LINHA 08)
- 1.86% Li2O over
5m (LINHA 09)
The Galvani Property is located less than 4
kilometres from Sigma Lithium’s Xuxa deposit (over 17Mt grading
1.55% Li2O M+I). The high grade and large widths of the intercepts
to date demonstrate excellent potential to outline a significant
resource very quickly. Mineralization is hosted in spodumene
bearing pegmatites sourced from the same granitic intrusive, which
characterizes Lithium Ionic’s Project Area 1, CBL’s lithium mining
operation, and Sigma Lithium’s resources (Figure 2).
Table 1. Initial Drill Results from
Galvani
|
From |
To |
Metres |
Li2O (%) |
Nb (ppm) |
Sn (ppm) |
Ta (ppm) |
ARDD-22-001 |
|
4.70 |
29.63 |
24.93 |
1.57 |
45 |
99 |
43 |
incl. |
21.11 |
28.56 |
7.45 |
2.10 |
44 |
74 |
37 |
Table 2. Historic Trench
Results
Sample |
Width (m) |
Li2O (%) |
LINHA 01 |
12.75 |
1.53 |
LINHA 02 |
9.00 |
1.26 |
LINHA 03 |
12.00 |
1.80 |
LINHA 04 |
5.00 |
1.97 |
LINHA 05 |
10.00 |
1.36 |
LINHA 06 |
10.00 |
1.54 |
LINHA 07 |
11.00 |
1.32 |
LINHA 08 |
8.00 |
1.46 |
LINHA 09 |
5.00 |
1.86 |
LINHA 10 |
3.00 |
1.44 |
LINHA 11 |
2.00 |
1.35 |
LINHA 12 |
4.00 |
1.35 |
LINHA 13 |
2.00 |
0.97 |
LINHA 14 |
6.00 |
1.38 |
Figure 1: Itinga Project (Areas 1-5) and
Galvani Claims location and geology map. Note the surface
expression of the CBL lithium mine in the northeast corner of
Project Area 1 and Sigma Lithium’s Barreiro deposit to the
southeast.https://www.globenewswire.com/NewsRoom/AttachmentNg/fb3f048c-55aa-4e2f-9fac-256ffa243ce4
Figure 2: Galvani Pegmatite and Drill
Hole
Locationshttps://www.globenewswire.com/NewsRoom/AttachmentNg/758e6f2c-44df-4b7b-9d67-3e83f4a51e49
Figure 3: Galvani Channel Samples and
New Drill Result
Locationhttps://www.globenewswire.com/NewsRoom/AttachmentNg/88782043-3e6c-4997-a330-fbcd8b38fea3
100%-owned Itinga Lithium Project –
Drill Program Update
A 30,000-metre drilling program is currently
underway with the objective of outlining a significant lithium
mineral resource estimate on the Company’s 100%-owned ground. The
first phase of drilling is targeting near-surface mineralization in
Area 1, associated with a 1.3 km lithium soil anomaly located 800m
south of the producing CBL Lithium mine and north of Sigma
Lithium’s Barreiro deposit (20.4Mt grading 1.4% Li2O) (see Figure
1).
On May 31, 2022, the Company reported the first
two drill intercepts from this program, which included
1.93% Li2O over 5.66m and 1.55% Li2O over 5.2m,
successfully proving the down-dip extension of the mineralized
domain identified at surface with a trench result of 1.46%
Li2O over 8.8m, incl. 1.82% Li2O over 5.8m (see press
release dated May 24th, 2022).
New results reported today, including
2.23% Li2O over 2.70m further confirms down dip
extensions of surface soil anomalies. The mineralized domain remain
open at depth and along strike. Three drill rigs are currently
operating in Area 1, as the Company continues to test the
significant soil anomalies identified earlier this year.
Lithium-bearing pegmatite / spodumene showings
in this prolific mining jurisdiction are characterized by
high-grade and high-quality battery-grade lithium as demonstrated
by the lithium production at the CBL Mine and published
metallurgical work on adjacent properties.
Figure 4: Itinga Project - Area 1, Drill
Hole
Locationshttps://www.globenewswire.com/NewsRoom/AttachmentNg/edb63068-21f7-4dc9-a3cb-06bce259e24e
Table 3. Itinga Project – Area 1 Drill
Results
|
From |
To |
Metres |
Li2O (%) |
Nb (ppm) |
Sn (ppm) |
Ta (ppm) |
ITDD-22-006 |
|
54.90 |
57.60 |
2.70 |
2.23 |
98 |
172 |
31 |
ITDD-22-007 |
|
21.26 |
27.58 |
5.96 |
1.33 |
132 |
261 |
68 |
ITDD-22-003 |
|
21.95 |
23.01 |
1.06 |
0.87 |
35 |
160 |
<10 |
About Lithium Ionic Corp.
Lithium Ionic is a publicly-traded company which
owns a 100% ownership interest in the Itinga lithium project in
Brazil (the “Itinga Project” or the
“Project”).
The Itinga Project is located in Minas Gerais
State (MG), Brazil. The Project comprises five mineral licenses
covering more than 1,300 hectares in the prolific Aracuai lithium
province. A portion of the Project occurs immediately south of the
CBL lithium mine and plant, Brazil’s only lithium producer, and
immediately north of the large Barreiro and Xuxa lithium deposits
of Sigma Lithium Corp (TSXV: SGML) (NASDAQ: SGML).
The Project area has excellent infrastructure,
including access to hydroelectrical grid power, water, a commercial
port, highways and communities. Lithium mineralization (spodumene,
lepidolite, petalite) occurs within a halo of pegmatite dikes and
apophyses that occur within the rocks surrounding Neoproterozoic
granitic intrusions. Mineralization within the mineralized province
and the distribution of the mineralized pegmatites is controlled by
a complex and crosscutting system of northeast and northwest
oriented faults that were exploited by the dikes. Mineralized
structures have been identified in two areas within the Project and
the remainder of the Project area remains to be explored.
Quality Assurance and
Control
During the drill program, assay samples were
taken from NQ core and sawed in half. One-half was sent for
assaying at SGS Laboratory, a certified independent commercial
laboratory, and the other half was retained for results, cross
checks, and future reference. A strict QA/QC program was applied to
all samples. Every sample was processed with Drying, crushing from
75% to 3 mm, homogenization, quartering in Jones, spraying 250 to
300 g of sample in steel mill 95% to 150. SGS laboratory carried
out multi-element analysis for ICP90A analysis.
OTC Ticker Symbol and Clearance from
FINRA
Lithium Ionic is also pleased to announce that
its submission of the Form 211 to FINRA has been cleared and the
Company's common shares now qualify for trading in the United
States on the OTC Pink Market under the symbol “LTHCF”. Lithium
Ionic has applied for DTC eligibility by the Depository Trust
Company ("DTC") for its shares traded on the OTC Pink Market and it
expects to receive DTC’s approval in the coming weeks.
The DTC is a subsidiary of the Depository Trust
& Clearing Corporation and manages the electronic clearing and
settlement of publicly traded companies. Securities that are
eligible to be electronically cleared and settled through DTC are
considered “DTC eligible.” This electronic method of clearing
securities speeds up the receipt of stock and cash, and thus
accelerates the settlement process for investors and brokers,
enabling the stock to be traded over a much wider selection of
brokerage firms by coming into compliance with their requirements.
Being DTC eligible is expected to greatly simplify the process of
trading and transferring the Company’s common shares on the OTC
Pink Market.
Qualified Persons
The technical information in this news release
has been prepared by Carlos Costa, Vice President Exploration of
Lithium Ionic and David Gower, a director of Lithium Ionic, and
both are “qualified persons” as defined in NI 43-101.
For more information please
contact:
Lithium Ionic Corp. Blake
Hylands, P.Geo.Chief Executive OfficerEmail:
bhylands@lithiumionic.com
Cautionary Note Regarding
Forward-Looking Statements
This press release contains statements that
constitute “forward-statements.” Such forward looking statements
involve known and unknown risks, uncertainties and other factors
that may cause the Company’s actual results, performance or
achievements, or developments to differ materially from the
anticipated results, performance or achievements expressed or
implied by such forward-looking statements. Although the Company
believes, in light of the experience of its officers and directors,
current conditions and expected future developments and other
factors that have been considered appropriate that the expectations
reflected in this forward-looking information are reasonable, undue
reliance should not be placed on them because the Company can give
no assurance that they will prove to be correct. When used in this
press release, the words “estimate”, “project”, “belief”,
“anticipate”, “intend”, “expect”, “plan”, “predict”, “may” or
“should” and the negative of these words or such variations thereon
or comparable terminology are intended to identify forward-looking
statements and information. The forward-looking statements and
information in this press release include information relating to
the prospectivity of the Project and the Galvani claims, the
Company’s ability to complete the acquisition of the Galvani
claims, the mineralization and development of the Itinga Project
and other mining projects and prospects thereof, the Company’s OTC
listing and ability to obtain DTC eligibility and the Company’s
future plans. Such statements and information reflect the current
view of the Company. Risks and uncertainties that may cause actual
results to differ materially from those contemplated in those
forward-looking statements and information. By their nature,
forward-looking statements involve known and unknown risks,
uncertainties and other factors which may cause our actual results,
performance or achievements, or other future events, to be
materially different from any future results, performance or
achievements expressed or implied by such forward-looking
statements. The forward-looking information contained in this news
release represents the expectations of the Company as of the date
of this news release and, accordingly, is subject to change after
such date. Readers should not place undue importance on
forward-looking information and should not rely upon this
information as of any other date. The Company undertakes no
obligation to update these forward-looking statements in the event
that management’s beliefs, estimates or opinions, or other factors,
should change.
Neither the TSXV nor its Regulation
Services Provider (as that term is defined in the policies of the
TSXV) accepts responsibility for the adequacy or accuracy of this
press release.
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