LSC Lithium provides an update to the recently announced acquisition of strategic tenements from Orocobre
Apr 04, 2017, 09:45 ET
TORONTO, April 4, 2017 /CNW/ - LSC Lithium Corporation (the "Company" or "LSC") (TSXV: LSC) is pleased to provide further details sourrounding the strategic tenements acquired from Orocobre Limited ("Orocobre").
LSC's property portfolio will increase to approximately 295,000 hectares of lithium bearing tenements located in the "lithium triangle".
Salinas Grandes tenements will total approximately 79,031 hectares and cover 87% in the centre of the Salinas Grandes Salar in the Salta province and 45% in the Jujuy province, pending completion of the transactions.
On March 29th, LSC announced it had entered into an agreement made on March 28, 2017 among LSC, its Argentine subsidiary, Orocobre, South American Salars SA ("SAS") and Borax Argentina SA ("BA") pursuant to which LSC will acquire all tenements and other mineral rights held by Orocobre, SAS and BA located in the Salinas Grandes Salar, in Salta and Jujuy provinces, Argentina, covering approximately 32,727 hectares.
HISTORICAL RESOURCE ESTIMATE
Orocobre completed a NI 43-101 technical report with an inferred mineral resource estimate on its Salinas Grandes tenements in 2013 (see Technical Report on the Salinas Grandes Lithium Project – April 16, 2012, amended August 12, 2013). The resource estimate was based on an assumed extraction depth to 13.3 m and an average specific yield of 4.1%. The resource estimate was restricted to that area of the Orocobre tenements within a boundary cut-off grade of 1,000 mg/L lithium, limiting the resource area for the estimate to only 11,620 ha. The reported Inferred Resource estimated by Orocobre was 44,960 tonnes contained lithium, equivalent to 239,200 tonnes lithium carbonate. The potassium resource was estimated at 539,000 tonnes potassium (1.03 million tonnes KCl). The resource estimate was based on an average lithium grade of 795 mg/L, and 9,547 mg/L potassium.
A total of 12 vertical diamond holes with depths of up to 180 m and an average depth of 71.4 m were drilled in the Salinas Grandes Salar, with an average spacing of 3.26 km. The diamond drilling was followed up by a program of 47 shallow auger drill holes to depths between 4 and 20 m, but typically reaching 12 m. These holes were drilled with a 1.65 km spacing, with hole locations planned on a 2 km grid, modified due to tenements not held by Orocobre within the Salar.
The reported brine chemistry for Salinas Grandes as detailed in the Orocobre report is highly favourable for lithium and potash production, being low in both sulphates and magnesium and unsaturated in potassium. The Orocobre report also noted that there was potential for productive sand layers in the northern and western part of the Salar on the Salta side extending into the alluvial fan.
LSC considers the Orocobre resource estimate to be illustrative of the prospectivity of the Salar Salinas Grandes tenements. However, LSC is not considering the historical Orocobre resource estimate as a current resource estimate and is not relying on the historical resource estimate as a current resource estimate. No Qualified Person has done sufficient work to classify the historical estimate as a current mineral reosurce estimate.
LSC plans to undertake a program of due diligence data review and confirmatory exploration to enable LSC to classify the Orocobre resource estimate as a current resource estimate. Until such time as such work is completed by a Qualified Person, LSC is not considering the historical Orocobre mineral resource estimate as a current mineral resource estimate.
As a result of the acquisition, LSC plans to conduct two separate exploration and development programmes both in Salta and Jujuy provinces as each province has its own regulatory framework.
Qualified Person/Data Verification
The scientific and technical information included in this press release related to LSC tenements is based upon information prepared and approved by Donald H. Hains, P.Geo. Donald H. Hains is a qualified person, as defined in NI 43-101 and is independent of LSC, Orocobre and Advantage. No Qualified Person has has reviewed or verified any information in this press release related to the Orocobre tenements to be acquired by LSC.
ABOUT LSC LITHIUM CORPORATION:
LSC Lithium is an emerging lithium producer that has amassed a large portfolio of prospective lithium rich salars. LSC is focused on developing its tenements located in five salars: Pozuelos (subject to completion of previously announced transaction), 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. Pending the completion of announced transactions, LSC Lithium will have a land package portfolio totaling over 295,000 hectares, which represents extensive lithium prospective salar holdings in Argentina.
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 following: the future closing and timing of acquisition of the Orocobre and Advantage Lithium tenements, the future consideration payable to acquire the tenements, the amount of hectares and expected control by LSC of the tenements on Salinas Grande after closing of the acquisitions, the ability to become the sole operator on Salinas Grande, the ability to secure necessary community approvals and support for exploration and development, the timing and ability to advance the Salinas Grandes tenements to feasibility study level, the timing for testing brines at Enirgi Group's Salar del Rincón demonstration plant, the definition of any mineral resources or mineral reserve estimates pursuant to NI 43-101 on our properties, the timing for potential future production at our properties, the use and application of Enirgi Group's Direct Xtraction Process Technology at our properties, completion of work programs on our properties, and the ongoing strategic relationship with Enirgi Group. The use of any of the words "could", "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: title of the Orocobre and Advantage Lithium tenements and their ability to be transferred on closing; exploration and the establishment of resources and reserves on the Salinas Grande tenements or other LSC properties; the application and future licensing of new technologies; successful commissioning of the Salar del Rincón demonstration plant; timing, permitting, funding and construction of a regional processing facility at the Salar del Rincón by Enirgi Group and the ability of LSC to fast-track production from its own properties by supplying brine to such a facility; securing necessary community group support and approval; 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.
SOURCE LSC Lithium Corporation
For further information: LSC Lithium Corporation, Jessica Helm, VP, Corporate Communications and Investor Relations, Suite 3001, 1 Adelaide Street East, Toronto, Ontario M5C 2V9, (416) 867 9298, Email: [email protected], Web: lsclithium.com
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