LSC Lithium Announces Pozuelos Maiden Mineral Resource Measured and Indicated 1,296,344 Tonnes LCE and Inferred 312,942 Tonnes LCE

Feb 2, 2018

HIGHLIGHTS

  • Measured and Indicated Mineral Resource of 1,296,344 tonnes LCE
  • Inferred Mineral Resource of 312,942 tonnes LCE
  • Measured and Indicated Mineral Resource average grade of 387mg/l Li
  • Inferred Mineral Resource average grade of 323mg/l Li
  • Upgraded NI 43-101 Mineral Resource estimate by end of Q3 2018
  • Pozuelos is 17 km away from the Pastos Grandes project, where LSC expects to report a NI 43-101 maiden Mineral Resource in Q3 2018. The portion of Pastos Grandes not controlled by LSC and approximately an equivalent surface area, has reported a Measured and Indicated Mineral Resource of over 2 million tonnes LCE1
  • LSC anticipates that its PFS will encompass resources from Pozuelos and Pastos Grandes

TORONTO, Feb. 02, 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 statement for its Pozuelos lithium project, located in the Argentina section of the Lithium Triangle. This NI 43-101 Mineral Resource estimate includes 1,296,344 tonnes of lithium carbonate (Li2CO3) equivalent (LCE) in the Measured and Indicated Mineral Resource category and 312,942 tonnes in the Inferred Mineral Resource category (See Table 1). Key chemical ratios illustrating the high quality of the brine at salar de Pozuelos are detailed in Table 2. The phreatic level of the brine is within 1m of the existing halite surface and there may be additional potential below the current limit of drilling for those holes which did not reach the basement.

The Company’s President & CEO Ian Stalker remarked, “we are extremely pleased with this NI 43-101 resource estimate of 1.3 million tonnes measured and indicated LCE and 312,942 tonnes inferred which forms part of LSC’s resource inventory development over five different projects in the near to medium term including, Pastos Grandes located just 17km away from Pozuelos, Rio Grande, Salinas Grandes and Jama, all of which are being advanced through various stages of exploration and resource development. Pozuelos is planned to go to Pre-feasibility study stage during the second half of 2018 and this robust resource estimate underpins this process.

Table 1 – Pozuelos Resource Statement as at January 31, 2018

Mineral ResourceBrine Vol Avg LiIn situ LiLCE2Avg CaAvg MgAvg KAvg SO4
Category1(1000m3)(mg/l)(tonnes)(tonnes)(mg/l)(mg/l)(mg/l)(mg/l)
Measured 544,496372202,3261,076,9791,6672,0533,1645,125
Indicated 84,74148641,211219,3641,3732,6214,3188,671
Measured & Indicated629,237387243,5361,296,3441,6272,1293,3195,602
Inferred 181,83332358,790312,9426441,2151,7193,549
Figures are rounded
   
1  Mineral resources are not mineral reserves and do not indicate economic viability.   
2  LCE (Li2CO3) equivalent.   
    

Table 2 – Key Chemical Ratios

Mineral Resource CategoryMg:LiCa:SO4K:LiSO4:LiCa:Li
Measured & Indicated5.50.298.5814.484.20
Inferred3.760.185.3210.991.99

Phase 1 Exploration Program

The Phase 1 exploration program included 13 resource delineation drill holes amounting to 1,789m and 2 pump test wells with associated piezometers. The resource delineation drill holes were spaced at approximately 1.0km to 1.5km east/west and approximately 2.0km north/south. Drill cores were recovered at HQ size via a triple tube core barrel wireline system. The depths of holes varied from between 58.1m in drill hole SP-2017-11 to 322.27m in drill hole DDH-400.

The Mineral Resource estimate includes assay data sourced from brine packer samples acquired from lithologically selected locations down hole, specific yield (Sy) data from Relative Brine Release Capacity (RBRC) analyses and assay data from pump test wells.

Mineral Resource Estimation Methodology

Resources were estimated using a polygonal method. Polygons were created in ARCGis by centering the polygon on each drill hole and clipping to the salar perimeter or the adjoining polygon. The base of each polygon was cut at the limit of the drill hole data for the respective polygon or the interpreted base of productive lithology based on the available seismic data. Polygons volumes were calculated in ARCGis. The volume in each polygon was further calculated based on the thickness of the respective lithological units within each polygon.

Lithologies were determined based on analysis of drill logs and drill core photos and extended across each polygon. Five major lithologies were defined:

FHLHighly Fractured Halite
MFHModerately Fractured Halite
MCHModerately Compact Halite
PCHPorous Compact Halite
CSCClay Supported Clastics

RBRC data, a proxy for Sy was determined from core samples for each lithology. The Sy value for the FHL lithology was determined from pumping tests for two 15m deep wells located within polygons representing holes SP-2017-02 and SP-DDH400. Pump test data was analyzed using Infinite Extent software and the Neuman type curves to derive an average value of 31.25% for the upper 15m in the salar.

Brine resources were calculated by lithology for each polygon by multiplying the volume of each lithological unit in the respective polygon by the average RBRC value for the respective lithological unit in the polygon. Estimated grades by polygon and lithological unit were calculated by applying the drill hole assay data for the respective polygon and lithological unit to the calculated brine volumes. Contained lithium metal in each polygon and lithological unit was converted to LCE using a conversion factor of 5.323.

Resources were classified as Measured, Indicated or Inferred based on the number of sample points within the respective polygons and lithological units. In general, resources within the upper 15m of the salar were classified as Measured, and those resources between 15m and 50m classified as Indicated. Resources found below approximately 50m depth were classified as either Indicated or Inferred, based on the density of sample data. Resources in polygons where only surface sample data were available were classified as Inferred to a depth of 50 m and assigned a Sy value of 2.57 for the full interval. Those resources within polygonal lithological units lying below the lower limit of the assay data but containing RBRC data were also classified as Inferred. Where RBRC data was available but no assay data was available for the respective interval and lithology, assay data was assigned based on the average for similar lithology and interval from adjacent holes. In such cases, the estimated resources were classified as either Indicated or Inferred, based on the number of sample points.

Estimated resources were summed by classification and lithology to derive totals and average grades.

Previous Exploration

Prior to LSC acquiring the project, exploration work included surface sampling, geophysics, diamond core drilling and well drilling/pumping tests. The geophysical program included Vertical Electrical Sounding (VES) and Magnetotelluric (MT) methods to determine the presence and distribution of aquifer zones and the shape of the salar basin. The MT data were used to complement the VES data to provide a 2D interpretation of the salar structure.  Drilling activity by LitheA Inc. included two RC wells, 12.75” outside diameter, SPZ001 (90.8 m), SPZ002, (79.8 m). One piezometer hole SPZ001P (20 m) and the drilling of diamond drill hole SPZDD001 (183.5 m) were also completed. Pumping tests on the salar based on pumping from holes SPZ001 and SPZ002.2

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 which were sealed with packaging tape. The samples were labelled and the labels wrapped in clear tape. Samples remained in the custody of the site geologist until shipped. Brine (20-litre) from each of the holes 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.

A Technical Report prepared under the guidelines of NI 43-101 standards describing the resource estimation will be filed on SEDAR within 45 days of this 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 timing and completion of its pre-feasibility study for Pozuelos and Pastos Grandes, additional potential below the current limit of drilling at Pozuelos, ability and timing of advancing LSC’s properties through various stages of exploration and resource development, 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.

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1
See “Measured, Indicated and Inferred Lithium and Potassium Resource Estimate Pastos Grandes Project Salta Province, Argentina” dated January 2, 2018 with effective date December 22, 2017 prepared for Millennial Lithium Corp. and filed under Millennial Lithium Corp’s SEDAR profile. The mineralization on the Millennial tenements may not be representative of the potential mineralization on the LSC tenements. 

2 See "Technical Report on the Salar de Pozuelos Project, Salta Province, Argentina" dated June 29, 2017 with an effective date of December 31, 2016 prepared for the Company and filed on the Company’s SEDAR profile.

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Source: LSC Lithium Corporation