Vancouver, British Columbia–(Newsfile Corp. – November 27, 2017) – Millennial Lithium Corp. (TSXV: ML) (the “Company”), is pleased to report a maiden lithium (“Li”) and potassium (“K”) resource statement for its Pastos Grandes brine project in the Salta province of Argentina. The NI 43-101 resource statement, detailed in Table 1 below, includes 2,131,000 tonnes of lithium carbonate (“Li2CO3“) equivalent (LCE) and 8,141,000 tonnes of potash (“KCl”) equivalent in the Measured and Indicated Resource categories, with an additional 878,000 tonnes of Li2CO3 and 3,263,000 tonnes KCl in the Inferred Resource category.
Farhad Abasov the President and CEO of Millennial Lithium, commented on the maiden resource for the Pastos Grandes Project, “We are very excited to see a robust 43-101 resource estimate from our hydrogeological consultants. The Company has now a strong defined resource estimate in place that will allow us to proceed with our planned Preliminary Economic Assessment. With the new REMSA mining concessions and recent strategic funding, we will confidently continue to advance Pastos Grandes to the next level”.
Table 1. Pastos Grandes Brine Resource Statement
|Phase II Resource
|In situ Li (tonnes)*||Li2CO3
|In situ K(tonnes)*||KCl
|Measured||5.2 x 108||465||240,000||1,277,000||5,009||2,582,000||4,924,000|
|Indicated||3.8 x 108||418||160,000||854,000||4,395||1,687,000||3,216,000|
|M+I||9.0 x 108||445||400,000||2,131,000||4,747||4,269,000||8,140,000|
|Inferred||3.5 x 108||469||165,000||878,000||4,871||1,711,000||3,263,000|
*Tonnages are rounded to the nearest thousand The reader is cautioned that mineral resources are not mineral reserves and do not have demonstrated economic viability.
The resource estimate was prepared in accordance with the guidelines of National Instrument 43-101 and uses best practice methods specific to brine resources, including a reliance on core drilling and sampling methods that yield depth-specific chemistry and effective (drainable) porosity measurements. The resource estimation was completed by independent qualified person Mr. Michael Rosko, M.Sc., C.P.G. of the international hydrogeology firm E.L. Montgomery & Associates (M&A).
The resource is defined over a 22.1 square kilometer footprint using results from core drilling and depth-specific packer sampling. In addition the brine was also sampled during short-term pumping tests and from naturally-flowing wells. The new measured, indicated, and inferred resource was derived from seven polygons surrounding deep holes, totaling 4,010 metres of core drilling. This does not include shallower core holes and wells drilled inside of the polygons. The average spacing between core holes is less than 2 km. Geophysical surveys were used to assist with location and anticipated depths for the core holes, but also to identify potential fresh water and to extend the inferred resource, to be drilled and included in future resource estimates. Over most of the basin, the brine resource occurs to within 1 metre of surface and its thickness is defined by the extent of drilling. Maximum depth drilled was 601 metres near the center of the mining concessions and bottomed in a sandy aquifer; the deepest brine sample was obtained at a depth of 593 metres and had a Li concentration of 539 milligrams per litre.
The chemistry of the Pastos Grandes brine is judged to be very favourable. Brine density and the ratios of magnesium and sulfate to lithium are given below:
- Density of the brine ranges between 1.20 and 1.22 g/cm3
- Average Magnesium/Lithium ratio: 6.3
- Average Sulphate/Lithium ratio: 18.2
Based on the geologic model, approximately 89% of the brine volume in this resource is hosted by predominantly silty and sandy units and 7% by mixed halite. The balance is hosted in gravel or clay dominated units.
The total contained lithium and potassium values are based on measurements of effective (drainable) porosity distributed throughout the aquifer volume that defines this resource. This method of porosity determination is designed to estimate the portion of the total porosity that can theoretically be drained by pumping; however, these in situ estimates may differ from total extractable quantities. The porosity of the resource volume varies with geology but to date effective porosity has been predictable within distinct hydrostratigraphic units; the average for the entire saturated aquifer considered in the resource is approximately 9.5%.
Portions of the resource located in the clastic sediments at the margins of the salar have been demonstrated to have fresh and brackish water overlying brine. In these areas, fresh water inflow from the surface mixes with salt water in the basin; the resulting lower density fresh water and brackish fluid float on top of the more dense brine before entering the salar margins.
Resource Estimation Méthodologie
A total of 4,010 metres of drilling from 7 holes was evaluated for this resource estimate calculation; other core holes and wells were drilled but were shallower. A total 78 drainable porosity results and 163 depth-specific brine sample analyses were used in the computations, not including QA/QC samples or composite samples obtained during pumping tests. The average spacing of vertical samples for both drainable porosity and chemistry was variable with an average of approximately 50 metres for drainable porosity samples and 25 metres for depth-specific brine samples. Of the seven holes used for the resource analysis, all were terminated due to drill limitations; hydrogeologic basement was not encountered. The total thickness of the basin, and the total thickness of saturated sediments, is unknown. Based on drilling and geophysical measurements, additional brine-bearing aquifer material is believed to exist below 600 metres in most of the concession area.
The consultants chose to estimate the resource using a drill-hole centered polygonal technique. Hydrostratigraphic units have variable thickness and were determined by the consultants based on observed lithology and anticipated similar hydraulic properties. The values for drainable porosity and grade (lithium and potassium values) for each hydrostratigraphic unit were derived from direct measured values from the well. The unit thicknesses combined with the areas yield a volume. The volumes combined with the drainable porosity values, representing the amount of fluid available from the formation yield the tonnage of brine. Applying the grade, represented as lithium carbonate and potassium chloride equivalents then provides the estimated resource for each block, which are then summed.
The primary analytical laboratories for the data used in this resource are NORLAB in Jujuy, Argentina and SGS Laboratory in Buenos Aires, Argentina. Both laboratories are accredited to ISO 9001:2008 and ISO14001:2004 for their geochemical and environmental labs for the preparation and analysis of numerous sample types, including brines.
The porosity determinations were made by Core Laboratories of Houston, Texas and Geosystems Analysis (GSA) of Tucson, Arizona. Core Laboratories is a leading provider of proprietary and patented reservoir description, production enhancement and reservoir management services. Core Laboratories has demonstrated that its Quality Management System is in compliance with certification to ISO 9000:2008. The scope of this registration is: providing state of the art petrophysical and geological analysis and interpretation of core samples from rock. GSA has gained abundant experience since 1994 in methods used by Core Laboratories and has provided services to various other lithium projects located in Argentina and globally.
The resource evaluation work was completed by Mr. Michael Rosko, M.Sc., C.P.G. of Montgomery and Associates Consultores Limitada (“M&A”). Mr. Rosko is a Registered Geologist (C.P.G.) in Arizona, California, and Texas, a Registered Member of the Society for Mining, Metallurgy and Exploration, and is a qualified person (QP) as defined by NI 43-101. Mr. Rosko and hydrogeologists from M&A have been on site multiple times during the various phases of drilling and sampling operations; Mr. Rosko has extensive experience in salar environments and has been a QP on many lithium brine projects. Mr. Rosko and M&A are completely independent of Millennial Lithium. Mr. Rosko has reviewed and approved the content of this news release.
Program design and exploration support was provided by Mr. Iain Scarr, (B.Sc. – Geology, MBA, CPG) of Millennial Lithium. Mr. Scarr is a Certified Professional Geologist (CPG) with the American Association of Professional Geologists (AIPG) and a QP as defined in NI 43-101. Mr. Scarr has spent significant time on site at Pastos Grandes during all drilling and sampling operations; and has extensive experience with lithium projects at other lithium bearing salars.
A Technical Report prepared under the guidelines of NI 43-101 standards describing the resource estimation will be filed on SEDAR within 45 days of this release.
ON BEHALF OF THE BOARD OF DIRECTORS,
Graham Harris, Chairman of the Board
Farhad Abasov, President and CEO
MILLENNIAL LITHIUM CORP.
1177 West Hastings Street
Vancouver, BC Canada V6E 2K3
Tel: (604) 662-8184
Fax: (604) 602-1606
E-Mail: [email protected]
Neither the TSX Venture Exchange 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.
This document may contain “forward-looking information” within the meaning of Canadian securities legislation (hereinafter referred to as “forward-looking statements”). All statements, other than statements of historical fact, included herein including, without limitation statements relating to the Preliminary Economic Assessment, estimated capital and operating costs, productions rates, cash flows, rates of return, mine life or mineral resources, securing of debt for future project construction, purchase of future mine production, the timing for completion of an Feasibility Study and other matters related to the exploration and development of the Project, are forward-looking statements. These forward-looking statements are made as of the date of this document and the Company does not intend, and does not assume any obligation, to update these forward-looking statements. Forward-looking statements relate to future events or future performance and reflect management’s expectations or beliefs regarding future events. By their very nature forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include unsuccessful exploration results, changes in metals prices, changes in the availability of funding for mineral exploration, unanticipated changes in key management personnel and general economic conditions, title disputes as well as those factors detailed from time to time in the Company’s interim and annual financial statements and management’s discussion and analysis of those statements, all of which are filed and available for review on SEDAR at www.sedar.com. In certain cases, forward-looking statements can be identified by the use of words such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or statements that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “occur” or “be achieved” or the negative of these terms or comparable terminology. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward looking statements.