LSC Lithium Announces Jama Seismic Survey Indicates Size of Jama Potentially ~5,400ha and Pre-Engineering Work on Pozuelos-Pastos Grandes Project Commences

Mar 28, 2018

HIGHLIGHTS

  • 39.27 line km seismic survey completed on Jama salar
  • Salar surface area extended under adjacent alluvial fan from 2,900ha to 5,400ha
  • Seismic data indicates the Jama Salar is developed up to 300m below surface

OPERATIONS UPDATE

  • Mobilisation of drill rigs to Pozuelos and Pastos Grandes ongoing
  • Seismic survey on Rio Grande started
  • Mobilisation and building of a Camp at Pozuelos started
  • Testing of lithium bearing brines from Pozuelos in process
  • Selection of engineers for the Pozuelos-Pastos Grandes Project ongoing
  • Local presence established in San Antonio de los Cobres for community engagement

TORONTO, March 28, 2018 (GLOBE NEWSWIRE) -- LSC Lithium Corporation (“LSC” or together with its subsidiaries, the “Company”) (TSXV:LSC) is pleased to announce that the results for the recently completed high resolution seismic refraction tomography survey carried out on its Jama lithium project indicate that there could be significant depth to the brine bearing formations on the project. The Jama Salar is one of LSC’s five major development projects and forms part of a joint venture in which LSC holds a 51% ownership and is the operator. Although LSC’s focus is on developing its Pozuelos-Pastos Grandes Project, LSC plans to drill exploration holes in the second half of 2018 to investigate the potential of Jama to host lithium bearing brines at depth.

The Company’s President and CEO, Ian Stalker, commented, “It is very pleasing to note that Jama could host brine bearing formations at 300m below surface. The originally interpreted surface area of the salar of ~2,900ha is clearly significantly larger than first thought.

It's equally positive to note that our drive towards production from the Pozuelos-Pastos Grandes Project currently expected in 2021 is demonstrated by the commencement of membrane pilot plant test work on brines from this project - a vital and important first step for LSC.”

This high resolution 39.27 line km seismic refraction tomography survey was conducted over the Jama Salar area and surrounding alluvial deposits located in the Jujuy province, northern Argentina. The main survey objective was the identification and detailed definition of brine bearing formations. The survey was also intended to map stratigraphy indicated by previously acquired CS-AMT data to be brine hosting which could also contain lithium.

Interpretation of the results indicates the potential for lithium bearing formations (See Map 1 and Figure 1). Secondly, the results also indicate the presence of salar lithologies extending below the alluvial fan on the eastern side of the salar. The seismic lines which traverse the alluvials indicate the development of salar type lithologies extend east of the current end of lines. Mapping of the surface expression of the alluvial fan and interpretation of the eastern edge of the salar in this area suggests that a possible additional 2,500ha of salar could be present below the alluvials. LSC plans to drill exploration holes to collect and evaluate data from the brine and the hosts.

LSC, as the operator of the JV company Cuper S.A., maintains a good relationship and continues to work with the surrounding communities to ensure a complete information process and participation of the community throughout the development program, in coordination with the relevant authorities in the province of Jujuy.

Data Acquisition Parameters

The seismic field data was stored on hard disk of the central recording station during the daily production. A backup of the seismic field data was made on a Pendrive in SEG-2 format daily. The main recording parameters of the p-wave refraction tomography survey are listed as follows:

  • Geophone spacing: 6m
  • Source spacing: 36m inline
  • Outline Offsets: 90m, 180m, 360m, 648m (both ends)
  • Geophone type: 14 Hz Geospace (single) geophones with spike
  • Spread layout: 96 active channels
  • Seismic source: 150kg trailer mounted accelerated dropweight
  • Recording length: 250 – 1,000ms
  • Sample rate: 0.25ms

MAP 1 – SEISMIC SURVEY LINES

FIGURE 1 – SEISMIC LINE 7

UPDATE ON OPERATIONS

The Company continues to advance its main projects, the Pozuelos-Pastos Grandes Project and Rio Grande with the mobilization of personnel and equipment. The Company has also commenced the planned seismic survey on Rio Grande. The mobilization and construction of a new 40 person camp has started for the Pozuelos-Pastos Grandes Project which will be built on site at Pozuelos and is targeted for completion by the end of May, 2018.

Furthermore, testing of brines from Pozuelos and Rio Grande is ongoing in order to understand the evolution of the brines' chemistry and assess the suitability of various extraction options. This will provide key input for an effective design and implementation of the necessary field test works that LSC plans to deploy this year.

LSC has also confirmed the employment of Paul Kluge as Vice President, Projects and is assembling a strong engineering team for the completion of a Preliminary Economic Assessment (“PEA”) in its Pozuelos-Pastos Grandes Project this year leading into a full Pre-Feasibility Study (“PFS”) in early 2019. An Expression of Interest request has been circulated to a selection of engineering companies that will be followed by a Scope of Services for the PEA and PFS.

LSC has recently confirmed the appointment of Pacha, an experienced Salta based company, for the generation of the Environmental Base Line study on the Pozuelos-Pastos Grandes and Rio Grande Projects. The work has commenced under the supervision of LSC's Environmental Coordinator and with the support of LSC's CSR team.

LSC has also opened an office in San Antonio de los Cobres, located at the core of the Puna region and located in close proximity to the local communities with whom LSC is intensely working. This emphasizes the commitment of LSC to the development of the communities and improves the required process of information dissemination to and participation by these communities.

LSC has also engaged Bay Street Communications (“BSC”) to provide strategic investor relations and capital markets communications services at a cost of CAD$3,500 per month. BSC is a private firm specializing in investor and public relations and strategic communications, assisting companies in achieving a full and fair valuation of their publicly traded securities. Either party may terminate or amend the terms of the engagement after six months upon 30 days written notice. To the knowledge of LSC, BSC does not have any interest, directly or indirectly, in the Company or its securities, or any right or intent to acquire such an interest. The appointment of BSC is subject to TSX Venture Exchange approval.

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 data underlying the information contained in this press release.

ABOUT LSC LITHIUM CORPORATION:

LSC Lithium has amassed a large portfolio of prospective lithium rich salars and is focused on developing its tenements located in five salars: Pozuelos, Pastos Grandes, Rio Grande, Salinas Grandes, and Jama. 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
151 Yonge Street, 11th floor
Toronto ON, Canada M5C 2W7
(416) 304 9384
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 interpretation of the seismic results, results of brine testing, the likelihood of brine bearing formations existing at significant depth, the overall size of the Jama Salar, timing and ability to drill exploration holes in the future, timing and ability to complete the camps at Pozuelos, timing of completing the PEA, PFS and scope of services, and ongoing support from the communities. 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: 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.

It is important to note that the information provided in this news release is preliminary in nature. There is no certainty that a potential mine will be realized. A mine production decision that is not based on a feasibility study demonstrating economic and technical viability does not provide adequate disclosure of the increased uncertainty and specific risks of failure associated with such a production decision. While no production decision has been made, there are inherent risks in proceeding with the development of the project and the company’s planning for the project and these include, gold price forecasts, capital cost overruns, availability of skilled labor, environmental compliance and restrictions, community matters, potential operating cost estimates, mining costs, development costs, underground mining and geotechnical risks, metal recoverability, milling costs, and related matters.

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.

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Source: LSC Lithium Corporation