VANCOUVER, Jan. 23, 2018 /CNW/ - NRG Metals Inc. ("NRG" or the "Company") (TSX-V: NGZ) (OTCQB: NRGMF) (Frankfurt: OGPN), is pleased to provide an update on drilling and development at the Company's recent lithium discovery at the Salar Escondido Lithium Project ("Salar Escondido"), Argentina.
As previously reported, the first hole was drilled to a depth of 307 meters. Samples were reported from 172 to 198 meters and averaged 189 mg/l Li (lithium), 868 mg/l Mg (magnesium), and 3,170 mg/l K (potassium). A sample interval from 183 to 198 meters returned 229 mg/l Li, 1,033 mg/l Mg, and 3,990 mg/l K. Further samples were attempted, however, hole caving and fresh water contamination from drilling fluids prevented the collection of further representative samples.
The first hole at Salar Escondido has confirmed the presence of significant lithium mineralization and provided important information to guide the next phase of drilling and process development. Most importantly, the results have confirmed the target concept that Salar Escondido has the potential to host a significant lithium deposit. Given the history of lithium exploration at other salars in Argentina, the Company believes that the potential to encounter higher grades at greater depths is feasible.
In addition to discovering lithium in the first hole, another positive characteristic of the basin noted during drilling is the potential for high permeability. The material that hosts the brine zone is comprised of mainly loosely consolidated sand and conglomerates, which should be highly permeable and allow high pumping and recharge rates. High permeability is an important factor in evaluating the potential of lithium brine bearing salars. The first drill hole ended in sediments so the thickness of the basin remains open at depth along with the potential of these sediments to host lithium bearing brine. The project size at 29,000 hectares, which is believed to cover a large portion of the basin, allows for significant further exploration.
A request for quotation has been distributed to drill service providers. Key management will be reviewing proposals and conducting an on-site visit to both the Salar Escondido and Hombre Muerto North lithium projects during this week. The phase I drilling provided valuable information on the issues to be faced drilling at Salar Escondido that will be applied to the Phase II drilling.
The updated program will resume as soon as practicable utilizing tricone or rotary drilling with perforated casing that will facilitate sampling of the brine targets defined by the geophysical surveys and our first test drill hole. The Company intends to rapidly define the new lithium discovery at Salar Escondido.
Company President and C.E.O. Adrian F.C.Hobkirk is quoted "we are excited to have made an initial lithium discovery at Salar Escondido, and look forward to further drilling at this site in the coming weeks".
Mr. William Feyerabend, a Certified Professional Geologist and a Qualified Person under NI 43-101, supervised and approves the scientific and technical disclosure contained in this press release.
NRG Metals Inc. is an exploration stage company focused on the advancement of lithium brine projects in Argentina. In addition to the Salar Escondido lithium project, the Company is evaluating the 3,287 hectare Hombre Muerto North lithium project ("HMN") in the province of Salta. The HMN is located at the northern end of the prolific Hombre Muerto Salar, adjacent to FMC's producing Fenix mine and Galaxy Resources' Sal de Vida development stage project. The company has filed an environmental impact study with the mining authorities in Salta Province for permits to complete drilling, pump testing, and evaporation test pond construction. Approval is expected shortly.
The Company currently has working capital of $3.13 million dollars. The Company plans to use its working capital to fund the ongoing exploration drill programs at the Salar Escondido and HMN Projects.
NRG Metals Inc. currently has approximately 107 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 TSX Venture Exchange has not reviewed the content of this news release and therefore does not accept responsibility or liability for the adequacy or accuracy of the contents of this news 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. The transaction described in this news release is subject to a variety of conditions and risks which include but are not limited to: regulatory approval, shareholder approval, market conditions, legal due diligence for claim validity, financing, political risk, security risks at the property locations and other risks. As such, the reader is cautioned that there can be no guarantee that this transaction will complete as described in this news release. We seek safe harbour.
SOURCE NRG Metals Inc
For further information: Adrian F.C. Hobkirk, President and C.E.O., T: Investors / Shareholders, Call +855-415-8100, Direct to Adrian Hobkirk +714-316-3272, E: [email protected], W: http://www.nrgmetalsinc.com