The Pozuelos Project

The Pozuelos property is located in the Puna region of northwest Argentina, in the western Salta province. On February 2, 2018, LSC issues its Mineral Resource statement for its Pozuelos lithium project, located in the Argentina section of the Lithium Triangle. The 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. 

The 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.

An updated NI 43-101 Resource Estimate is planned for Q3, 2018.

For further information, please see LSC press release dated February 2, 2018. 

 

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

Mineral Resource Brine Vol Avg Li In situ Li LCE2 Avg Ca Avg Mg Avg K Avg SO4
Category1 (1000m3) (mg/l) (tonnes) (tonnes) (mg/l) (mg/l) (mg/l) (mg/l)
Measured 544,496 372 202,326 1,076,979 1,667 2,053 3,164 5,125
Indicated 84,741 486 41,211 219,364 1,373 2,621 4,318 8,671
Measured & Indicated 629,237 387 243,536 1,296,344 1,627 2,129 3,319 5,602
Inferred 181,833 323 58,790 312,942 644 1,215 1,719 3,549

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 Category Mg:Li Ca:SO4 K:Li SO4:Li Ca:Li
Measured & Indicated 5.5 0.29 8.58 14.48 4.20
Inferred 3.76 0.18 5.32 10.99 1.99

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

 

Overview of the Salar

The Pozuelos property is located approximately 230 km west of the city of Salta and 150 km east of the Chilean border. The Pozuelos property is comprised of two main mining groups, Lithea Norte and Lithea Sur, covering 10,787 hectares and centered in Salar de Pozuelos. In addition to the above mining groups, LSC holds several other mining tenements on Salar de Pozuelos which are prospective for fresh water.

Access to the Pozuelos area from the city of Salta is via high quality paved and secondary gravel roads. The total driving distance between Salta and the Pozuelos property is approximately 220 km, and the driving time is approximately 4.5 hours.

Local infrastructure is good and close. There is a gas pipeline located ~15 km west of the Salar.  Approximately 30 km to the east of the project site, a railway crosses from northern Argentina to Chile, providing potential access to a number of ports in northern Chile.

History of the Salar

 The mining concessions, which make up the Pozuelos property, are currently registered under the name LitheA Inc., S.A., a branch of LitheA Inc., a wholly owned subsidiary that LSC acquired in June 2017.

Salar de Pozuelos had been subject to extensive exploration by LitheA since 2008. This work included surface sampling, geophysics, diamond core and reverse circulation (RC) drilling, development of pumping wells to 90m depth for both short and long-term porosity testing, brine sampling and pumping tests. 

 

Qualified Person/Data Verification

The scientific and technical information 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.