Lithium Ionic Corp. (TSXV: LTH; OTCQB: LTHCF; FSE: H3N) (“Lithium
Ionic” or the “Company”) reports additional assay results from the
Galvani target as part of a near-complete 30,000 metre delineation
drill program that is expected to culminate in an initial NI 43-101
compliant mineral resource estimate for the Bandeira and Galvani
targets, expected in Q2 2023.
The Company has to date completed 28,400 metres
of drilling at the Bandeira and Galvani properties and is currently
drilling the last few holes before the cut-off of data for
inclusion in the mineral resource estimate.
The Galvani claims are located approximately 5
kilometres northwest of its Bandeira property and Companhia
Brasileira de Lítio’s (CBL) Cachoeira lithium mine, and
approximately 4 kilometres West of Sigma Lithium’s large Xuxa
lithium deposit (see Figure 1).
Lithium Ionic is currently the second largest
mineral rights holder in the region, controlling 14,182 hectares in
this emerging hard rock lithium-producing district. The Galvani and
Bandeira properties, which will be the subject of the initial
mineral resource estimate, covers only 872 hectares of its large
land package.
Galvani Drill Intercept
Highlights (See complete results in Table 1)
- 1.45% Li2O over 45.9m
intersected at surface, 28 to 74 metres down-hole, represents one
of the best holes drilled at Galvani (hole ARDD-23-56)
- Confirms 50 metre down-dip
extension from previously reported hole ARDD-23-45, which
intersected 1.23% Li2O over 17m
- Interpreted to form part of
a large pegmatite dyke, which was also intersected in hole
ARDD-23-048 with 1.87% Li2O over 45m, 100 metres away, and only 20m
from surface
Blake Hylands, P.Geo., CEO of Lithium Ionic,
commented, “These latest results further confirm the scale and
continuity of the large spodumene-bearing pegmatite dykes at this
target. The results from the initial drilling program at Galvani
and Bandeira have been tremendously successful, and our team is
confident that the upcoming mineral resource estimate will deliver
scale and high-grade, that will form the basis for significant
future growth.”
The Company has engaged SGS Canada (“SGS”),
internationally recognized for the estimation and modelling of
mineral deposits, to complete the initial NI 43-101 mineral
resource estimate. SGS has direct experience with lithium deposits
in the region, including Sigma Lithium Corp’s nearby deposits.
Figure 1: Galvani Property, Forming Part of the Itinga
Project
View Figure 1
here: https://www.globenewswire.com/NewsRoom/AttachmentNg/1f574260-d592-4db7-b348-9debf98f4ec1
Figure 2: Galvani Plan Map with Latest
Drill Results
View Figure 2
here: https://www.globenewswire.com/NewsRoom/AttachmentNg/0555dce0-8742-43e8-b930-241999bbe8b3
Figure 3: Core photo of holes
ARDD-23-056
View Figure 3
here: https://www.globenewswire.com/NewsRoom/AttachmentNg/4053c110-cc5c-4a36-8666-61d8dd546d07
Table 1. Galvani Drill
Results
Hole ID |
Az |
Dip |
From |
To |
Metres |
Li2O (%) |
ARDD-23-52 |
210 |
-45 |
54.14 |
66.14 |
12.00 |
1.15 |
ARDD-23-54 |
210 |
-60 |
113.10 |
115.10 |
2.00 |
1.57 |
ARDD-23-55 |
210 |
-65 |
97.18 |
100.18 |
3.00 |
1.06 |
ARDD-23-56 |
210 |
-60 |
28.07 |
74.00 |
45.93 |
1.45 |
ARDD-23-61 |
205 |
-55 |
99.88 |
103.49 |
3.61 |
1.72 |
*Assays pending for ARDD-23-58 to ARDD-23-60;No significant
values in holes ARDD-23-53 and ARDD-23-57
Lithium Ionic Forms SPV to Acquire Surface
Rights
The Company also reports that it has formed
Valitar Participacoes S.A. (“Valitar”), a special purpose vehicle
(“SPV”). Through Valitar, Lithium Ionic proposes to acquire surface
rights over its mining claims it believes have the potential to be
mined. Under Brazilian law, the owner of surface rights on a mining
claim is entitled to 1% of the mineral net revenue from the mining
of lithium on such mining claim.
Valitar is a Brazilian company and Lithium
Ionic, through its wholly-owned subsidiary, MGLIT Empreendimentos
Ltda. (“MGLIT”), owns 100% of the preferred shares of Valitar (the
“Preferred Shares”). The Preferred Shares entitle MGLIT to the
economic benefits derived by Valitar.
MGLIT has entered into a loan agreement with
Valitar to provide Valitar with up to a R$10 million (approximately
USD$2 million) (the “Loan”) to acquire the requisite surface rights
over Lithium Ionic’s mining claims. The Loan has a three-year term,
is unsecured and accrues interest at 1% per annum. Under Brazilian
law, rural land in Brazil must be owned by a Brazilian resident
and, therefore, the common shares of Valitar are beneficially owned
by an officer of Lithium Ionic who is a resident in Brazil. As a
result, the Loan is a "related party transaction” within the
meaning of Multilateral Instrument 61-101 – Protection of Minority
Security Holders in Special Transactions (“MI 61-101”). The Company
is relying on exemptions from the formal valuation requirements of
MI 61-101 pursuant to section 5.5(a) and the minority shareholder
approval requirements of MI 61-101 pursuant to section 5.7(1)(a) in
respect of the Loan as the fair market value of the Loan does not
exceed 25% of the Company’s market capitalization.
About Lithium Ionic Corp.
Lithium Ionic is a Canadian mining company
exploring and developing its lithium properties in Brazil. Its
flagship Itinga and Salinas projects cover 14,182 hectares in the
northeastern part of Minas Gerais state, a mining-friendly
jurisdiction that is quickly emerging as a world-class hard-rock
lithium district. The Itinga Project is situated in the same region
as CBL’s Cachoeira lithium mine, which has produced lithium for +30
years, as well as Sigma Lithium Corp.’s Grota do Cirilo project,
which hosts the largest hard-rock lithium deposit in the
Americas.
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.
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.
Investor and Media
Inquiries:
+1 647.316.2500info@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, the mineralization and development of the Company’s
mineral properties, the Company’s ability to acquire an interest in
the surface rights over its properties, the Loan, the Company’s
exploration program 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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