Lithium Ionic Corp. (TSXV: LTH; OTCQB: LTHCF; FRA: H3N)
(“
Lithium Ionic” or the
“
Company”) provides an overview of the Company’s
accomplishments in 2022, and an outline of its priorities and
objectives for 2023. Lithium Ionic began trading on the TSX Venture
Exchange (“TSXV”) in May of 2022 and has been aggressively
exploring and delineating lithium mineralization at its wholly
owned Itinga Project, covering approximately 3,600 hectares in
Minas Gerais, the most prolific mining state in Brazil.
Blake Hylands, P.Geo., Chief Executive Officer
of Lithium Ionic, commented, “2022 was an exciting year of growth
for our Company. We have an excellent team in place who hit the
ground running from the moment Lithium Ionic was formed. The
progress we have made on the exploration front is very exciting,
evidenced by consistent high-grade drill results that have defined
several shallow and high-grade lithium-bearing pegmatites. We enter
2023 in a strong financial position with approximately $30 million
in our treasury, enabling us to continue aggressively expanding our
mineralized targets. Concurrently we are advancing technical
studies and engineering work, as well as setting the foundation for
the permitting process with ESIA baseline studies. We look forward
to building on last year’s momentum as we advance and unlock the
value potential of our Itinga Project.”
Corporate launch in May
2022
In the nine months since Lithium Ionic began
trading on the TSXV, the Company’s primary focus has been on
exploration activities and discovery, as it aimed to delineate
lithium mineralization on its properties, some of which are located
in close proximity to Companhia Brasileira de Lítio’s (CBL)
Cachoeira mine (producing lithium since 1993), and Sigma Lithium
Corp.’s construction-stage Grota do Cirilo project, the largest
lithium hard rock deposit in the Americas.
Successful exploration leading to
upcoming maiden mineral resource estimate
Initial exploration activities, including
mapping, geochemical and geophysical surveys, returned significant
soil anomalies, which led to the discovery of lithium-bearing
pegmatites confirmed by trenching and drilling. Over the course of
2022, the Company collected ~1,700 soil and rock samples, and
completed ~1,200 metres of trenching.
The Company began drilling select targets in
April of 2022, and by the end of the year had completed over 11,000
metres of drilling, yielding excellent results which were in line
with nearby projects and established deposits. Highlights from
drilling conducted at the Galvani target include 1.98% Li2O
over 25.63m, 1.94% Li2O over 19.78m and 1.71% Li2O over
21.91m, while the Bandeira target returned highlights of
1.99% Li2O over 6.75m, 1.93% Li2O over 5.7m and 1.55% Li2O
over 5.2m (see press releases dated May 31, July 26,
August 9th and 30th, September 14th and 26th, November 10 and
December 15th and 21st, 2022).
Positive initial metallurgical test
results
Last month, the Company reported promising
initial results from metallurgical tests carried out on two-20 kgs
samples from its two main targets, Galvani and Bandeira. Excellent
lithium recoveries of 77.99% at Bandeira and 82.52% at Galvani,
producing a high-quality lithium concentrate of 6%, with low iron
content (see press release dated December 15, 2022), demonstrated
that these main mineralized bodies could generate high-quality
spodumene concentrates. The Company will complete additional
metallurgical test work, including a pilot plant circuit, this year
in preparation for future economic studies.
Project expansion with strategic
property acquisitions
Over the course of the year, Lithium Ionic
increased its land holdings nearly threefold from 1,300 hectares to
3,600 hectares with the acquisition of the nearby Galvani claims in
September and the Borges claims in December (see press releases
dated September 12 and December 7, 2022). These new claims, along
with its other 100%-owned properties are located in the Araçuaí
Pegmatite District, an under-explored region which hosts 100% of
Brazil’s official lithium reserves, and the Company believes there
is strong potential these claims could yield new discoveries with
further exploration work.
Corporate developments and financial
strength
Lithium Ionic launched on the TSXV last May at a
$0.70 per share valuation, hitting a peak of $2.02 per share last
month. In August, its shares began trading on the OTCQB Venture
Market in the United States under stock symbol “LTHCF”, and last
week began trading on several German exchanges under the symbol
H3N, giving the Company exposure to broader pools of investors. As
a new company, Lithium Ionic’s marketing objective is to continue
increasing its visibility across various global investment
communities. 2023 promises to be a busy year of conferences,
events, and road shows, virtual and in-person, to bring awareness
and educate the public about the Lithium Ionic opportunity.
Lithium Ionic entered 2023 with a strong balance
sheet of approximately $30 million, having closed a $25 million
private placement financing in early October.
2023 Outlook
The Company’s objective in 2023 is to continue
unlocking value for its shareholders and further demonstrating the
potential at Itinga. A maiden NI 43-101 compliant mineral resource
estimate is expected in early 2023, which will represent a major
milestone and provide a foundation for future growth. Exploration
activities are planned to continue throughout the year to build
upon existing targets and identify new discoveries. Baseline
studies for inclusion in the Project’s Environmental and Social
Impact Assessment are underway, and the Company continues to
explore prospective strategic acquisitions.
About Lithium Ionic Corp.
Lithium Ionic is a Canadian-based
lithium-focused mining company with properties covering ~3,600
hectares located in the prolific Aracuai lithium province in Minas
Gerais State, Brazil, which boasts excellent infrastructure,
including highways, access to hydroelectrical grid power, water,
and nearby commercial ports. Its flagship Itinga Project is located
in the same district as the lithium-producing CBL mine and
construction-stage Sigma Lithium Corp.’s large Barreiro and Xuxa
lithium deposits.
Qualified Persons
The technical information in this news release
has been prepared by Carlos Costa, Vice President Exploration of
Lithium Ionic and Blake Hylands, CEO and 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 Company’s mineral properties, the
Company’s ability to produce a NI 43-101 compliant mineral resource
estimate, metallurgical results, the mineralization and development
of the Company’s mineral properties and other mining projects and
prospects thereof. 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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