DJIFF - HeliosX Lithium & Technologies Corp. Corporate Update
(TheNewswire)
Vancouver, British Columbia – TheNewswire - February 9, 2022 – HeliosX Lithium& Technologies Corp. (“ HeliosX ”) (TSXV: HX ) (FSE: C2U0 ) is please to provide an update to investors on plans for 2022and 2023. HeliosX technical management team is focused on delineatingand commercializing its lithium assets in Alberta (Canada), Nevada(USA) and Jujuy (Argentina). The Company has focused on evaluating anddetermining the optimal direct lithium extraction (“ DLE ”) technologiesto apply to each jurisdiction. The evaluation results to date havedetermined that no DLE process an be applied universally, and thateach brine reservoir complex requires a unique solution to optimizelithium recovery.
HeliosX currently holds over 560,000 acres of lithiumbrine rights located in Canada, USA and Argentina. The focus of theCompany in the coming years will be to drill its existing asset base,develop detailed lithium brine geological and reservoir dynamic fluidflow characterization models, and to take the next steps towardscommercialization of its asset base.
The “Myth” versus “Reality”of Direct Lithium Extraction (“DLE”)
There is no singular DLE technology that will be a“one size fits all” for lithium extraction. There are numerouscompanies globally that are continuingly evolving proprietary patentpending lithium extraction techniques, but none will be universallyutilized. Every technology has its positives and negatives, but theHeliosX management team has determined that its unique reservoirs inthree distinct global jurisdictions require unique solutions to eachlithium brine reservoir. One of HeliosX partners has reviewed over tendifferent DLE processes from United States, Canada, Germany, andChina, without success to date. The most consistent challenge faced byDLE systems has been dealing with competing ions for each of theirproprietary exchange processes and majority are challenged to dealwith changing lithium concentrations that will occur from long termlithium brine production from reservoirs. HeliosX approach to theproblem, has been to engage DLE technologies that are most suitable tolithium brine reservoirs in each of its jurisdictions, as outlinedbelow.
Regional Specific Direct Lithium Extraction (“DLE”)Technologies
HeliosX is in contact with multiple DLE providers tooptimize the right design to the applicable field. Management is ofthe opinion that globally most countries are going to reduce the useof evaporation ponds, for increasing lithium concentrations, andmigrate to an environmental requirement to utilize DLE systems.
In Argentina, HeliosX is in partnership with asubsidiary of PlusPetrol Resources Corporation B.V., Litica ResourcesS.A. (“ Litica ”), and is currently working with Koch Separation Solutions(“ Koch ”) along side Craig Brown of Chemionex Inc. who is thescientific advisor to Standard Lithium Ltd. (“ Standard” ). Mr. Brown is a professional engineer and ahydrometallurgical expert with over 45 years’ of experience indeveloping processes for separating a wide range of chemical fromaqueous solutions . Mr. Brown was a key developerof the LiSTR lithium extraction process currently in use by Standardon its Arkansas Smackover lithium project. He is currently workingwith HeliosX on the next generation LIONEX lithium extraction process.Pending successfully prefeasibility results, HeliosX intends tomobilize a pilot facility to utilize the LIONEX process in Argentinaon its Guayatoyoc concessions in 2023.
In Canada, due to the unique brine reservoircharacterization, HeliosX has partnered with a private lithiumextraction entity, Litus Energy & Environmental Solutions(“ Litus ”). Litus, through ongoing research work completed at theUniversity of Calgary, have developed a nano-composite material forenvironmental direct lithium extraction. The nano-material is composedof practical composition materials that are readily accessible, has ahigh selectively for lithium with a high absorption rate. Theextraction is optimally designed for concentrations below 150 mg/llithium brines, with the ability to efficiently work in high magnesiumto lithium environments. HeliosX is currently working on theprefeasibility design for a pilot facility in Alberta in 2023.
In Nevada, HeliosX is partnered with a subsidiary ofLilac Solutions Inc. (“ Lilac ”) on its Alkali Lake property that isimmediately adjacent to the Albemarle Corp. 5,000 tpa Silver Peaklithium carbonate facility. Lilac has developed and patented a new ionexchange technology to extract lithium from brines without the needfor evaporation ponds. Lilac’s technology protects the environmentwhile accelerating project development, increasing recovery, andyielding a high-purity product. Lilac’s new ion exchange beads andmodules unlock this powerful technology for the lithiumindustry.
Argentina – Update
Jujuy Province, Argentina - 230,000 acres (93,000 hectares) located in Guayatoyoc andSalinas Grandes salars with a basin depth of 2.5 kilometers. Theproperties are located 60 kilometers east of the commercial Orocobreand Lithium Americas lithium production facilities. HeliosX ispartnered with PlusPetrol Resources Corporation B.V. who, through anEarn-in Agreement, have earned a 51% interest in the project.PlusPetrol has created the company Litica Resources S.A. to enter the“battery metals” business.
Detailed Models – HeliosX and Litica are working towards a detailed lithium sourcemodel to determine the extent of the lithium brine opportunity on itscombined assets. Currently utilizing FEFLOW, the technical teamcombines the impact of surface (or near sub-surface) fresh waterinteractions with brine reservoirs to model potential regions ofhigher or lower lithium concentrations for potential future commercialregions. Combining, sampling information, 3D geological models andcombining fluid flow simulations, the technical team could optimize adevelopment strategy.
Smaller EnvironmentalFootprint – HeliosX has introduced the latestin Canadian technologies for horizontal pad drilling strategiescombined with integrated 4D real time drilling technology that couldutilize 3D geological models to optimize the developmentwith the lowest environmental footprint.
3D Computer Model of LithiumConcentration Distribution in the Salinas Grandes
Lithium assay results obtained from the northwestportion of the San Jose-Navidad minas on the Salinas Grandes salarfrom 25 shallow pits indicated 60% of Lithium brine samples returnedassay grades more than 500 mg/l Lithium and 16% in excess of 800 mg/lLithium. Lithium brineassays ranged from 281 mg/l to 1,353 mg/l, averaging 591 mg/l.
Comprehensive data gathering has begun for the assetsin 2022 with a focus on surface sampling and lithium sourcedetermination, throughout the region. Once the information from 2022is incorporated into the geological models, tentatively, there is aplan to initiate a deep well drill program in 2023. The sedimentarybasin is up to 2.5 kilometers deep, potentially providing significantrecoverable lithium resource exposure to investors.
Argentina Recent Elections and Impacton HeliosX
Legislative elections were held in Argentina November14, 2021 where the center-right group “Together for Change”(“ TC ”) made significant gains. The most important impact, as itrelates to HeliosX, was the positive directional indication in theJujuy province where HeliosX holds assets. The province elected the TCgroup which is center-right and oriented towards positive change for amarket-friendly government. HeliosX focus on exploration anddevelopment is solely based in the Jujuy province. This was not anisolated event, as the general election results indicated a movementin political support for a change towards a market-friendly Congress.
Nevada – Update
Teels Marsh valley – 7,914 acres (3,202 hectares), 403 placer mining claims,100% owned, 2.5 kilometer deep basin, located 80 kilometers northwestof Albemarle’s Silver Peak Lithium brine mine in Clayton Valley. Surface exploration is complete; road building and construction oftwo large drill pads for drilling of four production diameterexploration wells is completed. Near surface Lithium brine analysisreceived of 79 mg/l. Waterrights have been granted for 3 years and permits for drilling are inplace. A two to four well drill program isbeing discussed for late 2022.
Alkali Lake valley – HeliosX has been put on notice for a well location in2022, pursuit to an earn-in agreement with Lone Mountain Resources(“ LMR ”), an affiliate of Lilac Solutions Inc. LMR has recentlyfiled, with the Nevada Bureau of Land Management, an applicationpermit for drilling the initial well on the property for mid-2022. LMR will earn a 75% interest in Alkali Lake lithium project, andwill likely review the drill results for application of Lilac’sproprietary DLE process. The project is located 11 kilometers east ofAlbemarle’s Silver Peak mine in Clayton Valley, the only producingLithium brine operation in the USA.
Canada – Update
Fox Creek, Alberta – 311,900 acres (126,220 hectares) Alberta mineral rights inclose proximity to existing lithium brine occurrences. A workprogram will be on going in 2022 with a feasibility study fromprevious regional results to determine a drill program for either late2022 or 2023. The company is targeting large lithium brine chargedcarbonate reef complexes located at depths below 1.9 kilometers.HeliosX plans to complete a feasibility study for the application ofLitus proprietary lithium extraction technology, developed at theUniversity of Calgary, to economically extract lithium from lowerconcentration lithium brine reservoirs. Pilot lithium extractionfacility is undergoing pre-feasibility review with tentative plans foran installation in 2023.
Lithium Brine Concentrations –Alberta –
AER Report 2011-10 (Fox Creek Region Highlighted)
British Columbia - the prefeasibility of the first gold concentration processingfacility in North America is currently ongoing. This facility willinitially process up to 10 tonnes per day of gold concentrate andprovide producers with an environmentally positive, Iodine option- ratherthan exporting concentrate to China for Cyanide extraction. A letterof intent has recently been signed with one of the largest global goldconcentrate marketing companies to provide both feedstock and offtakearrangements for the facility.
Prefeasibility Design of Iodinebased Gold Concentrate Extraction Facility
HeliosX Assets in GoodStanding
All of HeliosX leases and permits are in good standingwith all regulatory agencies and partnerships, and no near-termmaterial financial obligations. The Company plans to apply itssub-surface reservoir characterization expertise to technically refineits inventory of opportunities. HeliosX has a strong outlook onlithium prices, and will continuously seek opportunities to developpartnerships to accelerate the commercialization of its asset base.
This news release does not constitutean offer to sell or a solicitation of an offer to buy any of thesecurities in the United States. The securities have not been and willnot be registered under the United States Securities Act of 1933, asamended (the “U.S. Securities Act”) or any state securities lawsand may not be offered or sold within the United States or to U.S.persons unless registered under the U.S. Securities Act and applicablestate securities laws or an exemption from such registration isavailable.
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| Brian Findlay- President |
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Neither the TSXVnor its Regulation Services Provider (as that term is defined in thepolicies of the TSXV) accepts responsibility for the adequacy oraccuracy of this release.
Notice on Forward Looking Information
Certain statements and informationherein, including all statements that are not historical facts,contain forward-looking statements and forward-looking informationwithin the meaning of applicable securities laws. Such forward-lookingstatements or information include but are not limited to statements orinformation with respect to the integration of the businesses ofHeliosX and ongoing performance. Often, but not always,forward-looking statements or information can be identified by the useof words such as “estimate”, “project”, “belief”,“anticipate”, “intend”, “expect”, “plan”,“predict”, “may” or “should” and the negative of thesewords or such variations thereon or comparable terminology areintended to identify forward-looking statements and information.
With respect to forward-lookingstatements and information contained herein, HeliosX has made numerousassumptions including among other things, assumptions about generalbusiness and economic conditions of the Company and the market inwhich it operates. The foregoing list of assumptions is notexhaustive.
Although management of HeliosXbelieve that the assumptions made and the expectations represented bysuch statements or information are reasonable, there can be noassurance that forward-looking statements or information herein willprove to be accurate. Forward-looking statements and information bytheir nature are based on assumptions and involve known and unknownrisks, uncertainties and other factors which may cause actual results,performance or achievements, or industry results, to be materiallydifferent from any future results, performance or achievementsexpressed or implied by such forward-looking statements orinformation. These factors include, but are not limited to: risksassociated with the business of HeliosX; business and economicconditions in the lithium industry generally; changes in commodityprices; changes in interest and currency exchange rates; governmentaction or delays in the receipt of government approvals, industrialdisturbances or other job action, and unanticipated events related tohealth, safety and environmental matters); changes in general economicconditions or conditions in the financial markets; changes in laws;risks related to the direct and indirect impact of COVID-19 including,but not limited to, its impact on general economic conditions, theability to obtain financing as required; and other risk factors asdetailed from time to time. HeliosX does not undertake to update anyforward-looking information, except in accordance with applicablesecurities laws.
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