Lithium South Development Corporation, 175% Increase in Lithium Resource

Lithium South Development Corporation reports:

With the completion of a 10-hole resource expansion drill program, and evaluation of the results by Groundwater Insight Inc. (GWI) of Halifax, Nova Scotia, Canada, the Company announce a 175% increase in the total lithium brine resources at the Hombre Muerto North Lithium Project (HMN Li Project), located in Salta Province, Argentina.

The resource is a combination of the in situ contained lithium at the Alba Sabrina, Natalia Maria, and Tramo claim blocks. The total resource has increased from 571,000 tonnes to 1,583,100 tonnes LCE at an average grade of 736 mg/L lithium with a low average magnesium (a brine contaminant) to lithium ratio of 3.27. The updated lithium resource estimate is summarized by each claim block in the following table, relative to a 500 mg/L cut-off:

Table 1: Lithium South’s updated lithium resource estimate summarized by claim block.

Fernando Villarroel, Company C.O.O. and Project Manager, is quoted: “We are very pleased with our new updated lithium resource at the HMN Li Project. The quality of the brine has exceeded our expectations.”

Next Steps

A Technical Report is now being completed by GWI and is anticipated to be published within the 45-day requirement. The report will provide details on the resource and project overall.

A pumping well and hydraulic testing program is in progress, to support production wellfield design. In addition, permitting and evaporation test work is in progress.

Adrian F. C. Hobkirk, Company President and C.E.O. is quoted: “We are very excited to be able to increase our total LCE resource by such a wide value. With the increase in overall resource, we look forward to developing a larger mining plan.”

Resource Estimate Methodology

The resource estimate was prepared in accordance with the guidelines of National Instrument 43-101 and uses best practice methods specific to brine resources. This approach relies on drilling and sampling methods, utilized during two drilling programs, that yield depth-specific chemistry and Specific Yield measurements of the brine host rock. Dr. Mark King, PhD, FGC, PGeo, of GWI provided technical oversight of the resource estimate.

Data collected during the two drilling programs and used in the mineral resource development included the following:

  • Completion of 3695 m of drilling (2849 m of diamond drilling, 45 m of tricone drilling, and 801 m of rotary drilling) in 14 boreholes, which includes:
    • Alba Sabrina: 1842 m of diamond drilling in 10 coreholes.
    • Natalia Maria: 326 m of diamond drilling in one corehole and 45 m of drilling in one tricone borehole.
    • Tramo: 681 m of diamond drilling in two coreholes and 801 m of rotary drilling in two boreholes, completed during the 2018 drilling program.
  • The diamond holes were cored with HQ. Samples were collected by packer method, from discrete intervals. Samples were also collected from observation wells constructed after borehole completion, using PVC screen and casing.
  • The rotary wells were completed as pumping wells with PVC piping. These wells were pumped for 24-hours to clean and develop prior to sampling.
  • A total of 79 core samples were collected from the diamond drillholes and analyzed for Specific Yield.
  • A total of 118 brine samples and 46 QAQC samples were collected from the drill holes; and, of these, a total of 88 unique brine samples were used to calculate the resource estimate, including:
    • Eighty-six (86) depth-discrete samples were collected from the diamond drill holes during drilling using conventional packer techniques (both single and double packer). One sample was excluded from the resource estimate data set due to suspected contamination.
    • 32 composite samples were collected from the wells upon completion of development and/or during pumping tests. Repeat sample locations were averaged, and composite samples from locations with discrete-level samples were excluded from the resource estimation data set, resulting in three unique composite sample locations, representing three long screen wells.

Measured, Indicated, and Inferred Mineral Resource Zones in the current Mineral Resource Estimate were classified based on a borehole spacing method, with semi-variogram analysis used to support minimum borehole spacing. The borehole spacing method is a widely used and industry-accepted approach for resource zone classification.

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