Pozuelos

On March 15, 2017, LSC announced that it had delivered notice of exercise of its option (the "Option") to acquire 100% of the issued and outstanding share capital of LitheA Inc. from BMC Global Limited.1 LitheA's principal asset is its salar de Pozuelos tenements (the "Pozuelos Property") located in the Province of Salta, Argentina. Based on available historical sampling and exploration data, management considers the Pozuelos Property to be one of the most important undeveloped lithium brine projects in  Argentina with the potential to be a significant lithium producer should the project successfully advance to a feasibility study level.

The key benefits of the acquisition are:

  • The Pozuelos Property covers approximately 99% of the surface area of the Salar.
  • The Pozuelos Property has been subject to extensive exploration by LitheA since 2008.
  • Mature halite salar with good porosity.
  • Grades found to be consistently 500 to 600 mg/L Li down to 180m.*
  • LSC intends to pursue an expedited exploration program to advance the Pozuelos Property to feasibility study level as quickly as possible.
  • LitheA's portfolio will add another 30,000 hectares to LSC's Argentina Exploration Portfolio.

The Pozuelos Property is located in the Puna region of northwest Argentina, 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 10,500 hectares and centered in salar de Pozuelos.

LitheA Inc. has undertaken a number of exploration programs on salar de Pozuelos since acquiring the property. These have included surface sampling, geophysics, diamond core drilling and well drilling/pumping tests.

LSC has commenced and is undertaking a program of geophysical, diamond drilling and pump tests to confirm the prior exploration work by LitheA and to develop sufficient exploration data for an initial NI 43-101 compliant resource report. Work is currently underway with initial results expected in the second quarter of this year but no assurance can be made that there will be any category of mineral resource estimated pursuant to NI 43-101.

 

1Option agreement dated November 23, 2016 between, among others, BMC Global Limited and LSC, LSC has been granted an option to purchase from BMC all of the issued shares of LitheA Inc., a British Virgin Islands company which holds the properties listed under option on this page. On March 15, 2017, LSC announced that it had delivered notice of exercise of its option. For further information regarding the LitheA Option, please refer to Part II – Information Concerning LSC – Material Contracts – LitheA Option Agreement of the Technical Report.

*Based on exploration work undertaken by LSC in 2017.