The Rio Grande Project

On February 15, 2018, LSC announced the issue of its maiden Mineral Resource on its Rio Grande lithium project. This initial NI 43-101 Mineral Resource estimate includes a total of 2,190,000 tonnes of lithium carbonate (Li2CO3) equivalent in the Inferred Mineral Resource category with the top 50m of the deposit amounting to 1,375,435 tonnes grading at 338mg/l Li and the lower 50m to 100m amounting to 814,582 tonnes grading at 410mg/l Li (See Table 1). A previously completed CS-AMT subsurface conductivity survey carried out on the Rio Grande Salar indicates the potential for lithium bearing formations to extend to depths in excess of 500m below surface. Lithium grades tend to improve between 50m to 100m below surface and this trend indicates potentially improved grades at depth.

An eight hole drill program was completed by the Company to verify the historical results reported for 33 holes drilled across the salar by ADY Resources Ltd. by twinning selected holes. The historical drill hole spacing was on a grid of approximately 1.5km east/west by 2km north/south with the eight hole verification program twinning historical holes within 5m of the original collars. The historical drill results and the subsequent verification drill results reported by LSC have been used for this mineral resource estimate.

The Rio Grande resource is planned to be upgraded to a Measured and Indicated Mineral Resource as soon as possible as LSC will conduct further drilling to test the depth extensions and porosity levels. For further information, please see LSC press releases dated February 15 and April 2, 2018.

 
The Rio Grande resource is planned to be upgraded to a Measured and Indicated Mineral Resource as soon as possible as LSC will conduct further drilling to test the depth extensions and porosity levels. For further information, please see LSC press release dated February 15, 2018.

Table 1 - Rio Grande Resource Statement as at February 15, 2018

Classification
and Zone
Assay Value (mg/l) Total Brine
Vol (B m3)
RBRC1
(%)
Available
Brine Vol

(MM m3)
Li
Tonnes
(as metal)
LCE2
(tonnes)
Inferred Li Ca K Mg SO4
Top 50m, 5km
radius of pump
well
338 3,570 6,170 1,320 29,100 4.170 13.5 563.049 190.3 1,013.0
Remaining
area, top 50m
338 3,570 6,170 1,320 29,100 2.898 6.95 201.432 68.1 362.4
Sub-total 338 3,570 6,170 1,320 29,100 7.069 10.81 748.482 258.4 1,375.4
Lower 50m –
100m
410 710 7,520 4,920 34,130 7.069 5.28 373.245 153.0 814.6
Total Inferred 374 2,149 6,845 3,129 31,615 14.138 8.05 1,137.727 411.4 2,190.0

Notes:
1 Relative Brine Release Capacity.
2 Li metal converted to Lithium Carbonate Equivalent (LCE) using a factor of 5.323.
3 Rounded down to nearest ‘000. Numbers may not add due to rounding.
4 Resources estimated using CIM 2014 resource classification definitions.
5 A cut-off grade of 100mg/l of Li was applied. The hydraulic parameters of the resource area suggest that it is reasonable to expect brine extraction by a conventional production wellfield at a commercially viable rate, while the geochemical characteristics of the brine suggest that conventional processing techniques may be employed to produce saleable lithium products in an economically profitable manner. These processing techniques are employed in lithium brine operations in Chile, the USA and China.
6 Resources estimated by  L. Fourie, P.Geo, Pr.Nat. Sci under the direction of D. Hains, P. Geo.
7 Resources which are not Reserves do not have demonstrated economic value. There is no guarantee that resources can be converted to reserves with additional work.
8 Calculated after application of RBRC factor.

Overview

Located in the southwestern province of Salta, Argentina in an area known as the Puna region, Salar de Rio Grande lies at an elevation of 3,630 metres above sea level and has a surface area of approximately 180 square kilometres.

Rio Grande is approximately 500 km from the city of Salta and close to key infrastructure such as roads and rail lines.

LSC has a 100% interest in 26,865 hectares of tenements and applications for tenements in Salar de Rio Grande, which cover approximately 90% of the Salar nucleus.

History of the Salar

Approximately 21,000 hectares of the Rio Grande property were previously owned by Enirgi Group and operated by ADY Resources Limited (a wholly-owned subsidiary of Enirgi Group). These tenements were previously utilized to produce sodium sulphate, which was used as a reagent to produce lithium carbonate. The salar has 6 production wells and an established camp on site.  LSC acquired the tenements from ADY Resources in 2016.

In 2017, LSC acquired approximately 6,000 hectares when it acquired LitheA Inc.

Prior exploration and development work on Salar de Rio Grande by previous owners/operators has included surface sampling, geological mapping, diamond drill holes to 1,653 metres, pumping wells, and a 2015 Environmental Impact Statement report.

Exploration Program

The exploration program at Salar de Rio Grande includes CS-AMT geophysical exploration, twin drilling and pumping tests. The purpose of the program is to better define the basin structure and aquifer system and to confirm historic drilling, assay and pumping data for the Rio Grande property. LSC intends to twin selected drill holes to conform the historical assay and porosity data and to rehabilitate one of the existing pumping wells and run pumping tests to confirm the historic data. Once the historic data is confirmed, LSC anticipates releasing an initial NI 43-101 lithium resource report on the Salar de Rio Grande property. 

 

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.