LSC Lithium Announces Pastos Grandes Maiden Mineral Resource Measured and Indicated 939,080 Tonnes LCE and Inferred 307,500 Tonnes LCE and Filing of Technical Report

Nov 6, 2018

HIGHLIGHTS

  • Measured and Indicated Mineral Resource of 939,080 tonnes LCE with average grade of 464mg/l Li
  • Inferred Mineral Resource of 307,500 tonnes LCE with average grade of 467mg/l Li
  • Filing of technical report on Pastos Grandes
  • Resource remains open at depth. Potential brine resource exists below the 600m level of the current resource and the salar basement
  • LSC anticipates announcement of PEA on the Pozuelos-Pastos Grandes (“PPG”) Project before the end of November 2018
  • LSC now has a total inventory from three salars, Pastos Grandes, Pozuelos and Rio Grande, totalling 2,235,080 tonnes of LCE in the Measured and Indicated category and 2,994,500 tonnes of LCE in the Inferred Category 1

TORONTO, Nov. 06, 2018 (GLOBE NEWSWIRE) -- LSC Lithium Corporation (“LSC” or together with its subsidiaries, the “Company”) (TSXV:LSC) is pleased to announce the issue of its maiden Mineral Resource on its Pastos Grandes Salar and the filing today of the Technical Report titled “Technical Report on Pastos Grandes Lithium Project” dated October 25, 2018 with an effective date of October 19, 2018 (the “Technical Report”). This NI 43-101 Mineral Resource estimate includes 939,080 tonnes of lithium carbonate (Li2C03) equivalent (“LCE”) in the Measured and Indicated category and 307,500 tonnes of LCE in the Inferred category (see Table 1).  

The Company’s President and CEO Ian Stalker stated, “We are extremely pleased with this robust resource from our Pastos Grandes project which marks another milestone in the development of the PPG Project. With an updated resource on Pozuelos expected to be released this month, we anticipate that the larger combined lithium carbonate equivalent inventory and the blend of the chemistry from both the Pozuelos and Pastos Grandes salars will add to the upside of the PPG Project. It is also worth noting that the Pastos Grande resource remains open at depth.

LSC paid significant attention to the RBRC measurements in Pastos Grandes, recognizing the importance of this value to the ongoing PEA work and to the variability of this measurement seen across the Salar and is comfortable in the conservative approach to this number and the resulting resource estimate.”

LSC is currently completing an updated resource report for its Salar de Pozuelos property and is undertaking a PEA for the PPG Project based on a target production rate of 20,000 tpa lithium carbonate. The resource on Pastos Grandes and the updated resource on Pozuelos will be used to feed the lithium production system for the PPG Project. The current resource estimate on Pozuelos includes 1,296,000 tonnes of LCE in the Measured and Indicated Mineral Resource category and 497,000 tonnes in the Inferred Mineral Resource category2.

The brine chemistry results for Pastos Grandes show a complimentary nature with the brine from the Pozuelos salar2, which supports these projects being developed jointly (See Table 2).

Table 1 – Pastos Grandes Mineral Resource Estimate as at October 19, 2018

Classification Brine Vol. 1
million m3
RBRC 2
%
Brine Assay Values (mg/L) Contained Li tonnes LCE 9
tonnes
Li Ca Mg K SO4
Measured 354.94 4.83 465 682 3,093 4,783 9,847 168,090 894,720
Indicated 17.85 3.51 452 727 2,909 4,479 9,533 8,335 44,360
Measured & Indicated 372.79 4.74 464 685 3,081 4,763 9,827 176 , 425 939,080
Inferred 120.97 4.81 467 681 3,084 4,775 9,879 57 , 760 307,500

Notes:

  1. Brine volumes are before application of Relative Brine Release Capacity (RBRC) factor.
  2. RBRC value is the weighted average for the lithological unit within each resource category.
  3. Resources have been classified in accordance with CIM mineral resource definitions, May 25, 2014 and the CIM Best Practice Guidelines for Estimation of Lithium Brine Resources and Reserves.
  4. Resources have been estimated by Louis Fourie, P. Geo., Pr.Nat. Sci., under the direction of D. Hains, P. Geo.
  5. The effective date of this mineral resource estimate is October 19, 2018.
  6. Resources have been estimated using a cut-off grade of 100 mg/L lithium.
  7. 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.
  8. 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.
  9. A conversion factor of 5.323 has been used to convert Li metal to LCE and does not include any other chemical elements.  
  10. Totals for Measured and Indicated and Inferred Resources have been rounded.

Table 2 – Key Chemical Ratios

Mineral Resource Category Mg:Li K/Li SO4:Li SO4/Ca
Measured & Indicated 6.65 10.28 21.20 14.35
Inferred 6.61 10.23 21.16 14.50

The brine chemistry is amenable to lithium carbonate production using conventional lithium brine processing technologies for brine concentration such as solar evaporation. A cut-off value of 100mg/l Li has been applied. The cut-off value is reasonable based on current and projected lithium prices, reasonably assumed lithium recovery factors and comparisons to other lithium exploration projects for which Measured and Indicated Resources have been estimated.

For further information regarding the key assumptions, parameters, and methods used to estimate the mineral resources and the exploration program conducted at Pastos Grandes, please see the Technical Report which has been filed today on SEDAR (www.sedar.com) and is also available on the Company website (www.lsclithium.com). Hains Engineering Company Limited and Hains Technology Associates, located in Toronto, Ontario, Canada, were engaged to prepare an independent Mineral Resource estimate for LSC’s Pastos Grandes salar and also to prepare the Technical Report in accordance with National Instrument 43-101 - Standards and Disclosures for Mineral Projects.

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.

RBRC samples were cut to length using a hack saw, bubble wrapped for protection and then placed in PVC tubes sealed with packaging tape. The samples were labelled and the labels were wrapped in clear tape. Samples remained in the custody of the site geologist until shipped. Brine (20-litre) from each hole 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.

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 or Information

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 for the PPG Project and updated mineral resource for the Pozuelos Salar, ability and timing of advancing LSC’s properties through various stages of exploration and resource development, potential of brine resources existing at depth, likelihood of larger LCE inventory and blend of brine to add to the upside of the PPG project, 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 Based on Measured and Indicated resources of 939,080 tonnes of LCE with average grade of 464mg/l Li from Pastos Grandes and 1,296,000 tonnes of LCE with average grade of 387mg/l Li from Pozuelos.Based on Inferred resources of 307,500 tonnes LCE with average grade of 467mg/l Li from Pastos Grandes, 497,000 tonnes LCE with average grade of 340mg/l Li from Pozuelos and 2,190,000 tonnes LCE from Rio Grande with average values of 338mg/l Li for the top 50m of Rio Grande and 410mg/l Li for the lower 50m to 100m of Rio Grande. See “Mineral Resource Estimate & Technical Report on the Salar de Pozuelos Project, Salta Province, Argentina” dated February 28, 2018 and “Technical Report on the Salar de Rio Grande Project, Salta Province, Argentina” dated March 28, 2018.
2See the LSC Press Release dated March 5, 2018 and 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.

Source: LSC Lithium Corporation