VANCOUVER, Aug. 9, 2018 /CNW/ - NRG Metals Inc. ("NRG" or the "Company") (TSX-V: NGZ) (OTCQB: NRGMF) (Frankfurt: OGPN) the Company is pleased to report pumping test results for the first 10 inch large-diameter pumping well at the Hombre Muerto North Lithium Project, Argentina. The well is located on the Tramo Claim portion of the project group.
This pumping well was drilled immediately adjacent to the first exploration diamond core hole following the excellent results from the recent sampling that provided assay results of 401 meters of 900 mg/L lithium with very good chemistry as reported in the Company's press release dated June 28, 2018. Together with information from the diamond core drilling program, data from the pumping test will be used to calculate resources and reserves for the project. If warranted, this pumping well can be used for production as part of the fast-track development of the project.
NRG Metals completed a 72-hour pumping test that produced 26 liters per second of brine. The test was limited by the capacity of the pump causing our test to rapidly reach the limits of the pumping equipment and measurement devices at the site. The pumping test was designed and monitored by our independent technical consultants, Montgomery & Associates of Santiago, Chile.
Based on these positive initial pump test results, our technical team believes that the well could have significant additional pumping capability. The Company is planning to mobilize additional equipment to run a test with a higher capacity pumping system as soon as possible.
José de Castro, Chief Operating Officer of NRG Metals Inc., commented, "We are very pleased with the results of the pumping test at Hombre Muerto North. These results have removed a significant part of the risk associated with developing a lithium operation. We are seeing exceptionally high grades in clastic host rocks with good permeability, and the brine chemistry is very favorable. The Hombre Muerto North brine is unsaturated and has low sulfate and magnesium ratios. Brine with these characteristics has the potential to evaporate more quickly while using less pond area than would be the case for a typical saturated brine and will require lower consumption of chemical reagents potentially resulting in diminished capital and operating costs."
The project is located in the province of Salta, Argentina at the northern end of the prolific Hombre Muerto Salar, adjacent to FMC's producing Fenix mine and the Sal de Vida development stage project owned by Galaxy Resources Ltd. Galaxy recently drilled a brine pumping well on their property which is adjacent and contiguous to the south of the NRG Tramo claim. Galaxy has also announced it has entered into a letter agreement for the sale of their northern portion of the Sal de Vida project to the Korean lithium producer POSCO for US$280 million (subject to third quarter POSCO board approval). The sale includes that portion of the salar which surrounds the NRG Metals Tramo claim.
Full information and a pump test video is available at the company website at https://www.nrgmetalsinc.com/projects/hombre-muerto-north-project
About the Company
NRG Metals Inc. is an exploration stage company focused on the advancement of lithium brine projects in Argentina. In addition to the Hombre Muerto North project, the Company is evaluating its 29,000-hectare (72,000 acre) Salar Escondido project in Catamarca province where the company recently completed a 400-meter rotary hole, as described in the Company's press release dated June 27, 2018.
NRG Metals Inc. currently has approximately 132 million shares issued and outstanding, and trades on the TSX Venture Exchange under symbol NGZ, on the OTC QB Market under symbol NRGMF, and on the Frankfurt Stock Exchange under symbol OGPN.
The preparation of this press release was supervised by Mr. William Feyerabend, a Certified Professional Geologist and a Qualified Person under NI 43-101. Mr. Feyerabend approves of the technical and scientific disclosure contained in this press release.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This news release contains certain "forward-looking statements" within the meaning of Section 21E of the United States Securities and Exchange Act of 1934, as amended. Except for statements of historical fact relating to the Company, certain information contained herein constitutes forward-looking statements. Forward-looking statements are based upon opinions and estimates of management at the date the statements are made and are subject to a variety of risks and uncertainties and other factors which could cause actual results to differ materially from those projected in the forward-looking statements. The reader is cautioned not to place undue reliance on forward-looking statements. We seek safe harbor.
On behalf of the board of directors of NRG Metals Inc.:
Adrian F.C. Hobkirk
President and C.E.O.
SOURCE NRG Metals Inc
For further information: T: Investors / Shareholders Call 855-415-8100, Direct to Adrian Hobkirk 714.316.3272, E: [email protected], W: http://www.nrgmetalsinc.com