LITH:CC - Lithium Chile Announces 300 mg/l Lithium on New Arizaro Exploration Well Commencement of Pre-Feasibility Study and Operational Update
(TheNewswire)
Calgary, Alberta - TheNewswire - October 17, 2023 - Lithium Chile Inc. ( TSXV:LITH ) ( OTC:LTMCF ) (“ LithiumChile ” or the “ Company ”) ispleased to provide an update on its operations in Argentina andChile.
HIGHLIGHTS
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Two diamond drill holes completed at the ArizaroProject (the “Project”), Argentina.
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Both holes encountered brine rich formations in areasnot previously drilled.
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Results from drilling provide for significant resourceupside on the Project.
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Prefeasibility Study on the Project to be completed inApril 2024.
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Three diamond drill holes completed on the Molle VerdeProject, Chile.
ARGENTINA OPERATIONS - ARIZARO PROJECT:
1) ARDDH-02-8 has been drilled to 538 metreswith a very brine-rich, sandy formation encountered at 487 metres.Onsite sampling with the field Turbospec analyzer on six samplescollected over 51 metres, returned lithium grades between 297 mg/l and319 mg/l. Samples sent to the laboratory reported the followinggrades:
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505-metres to 506.5-metres 282 mg/l Li
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524.7-metres to 526.2-metres 300mg/l Li
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More sample results from the lower section of the wellare pending
The results from ARDHH-02-8 represent a significantexploration upside for the northern part of the Project, see Figure 1,where the Company currently does not have any Mineral ResourceEstimate.
2) ARDDH-03-7 has been drilled to 600metres. A 120-metre brine bearing formation of sands and gravels wasencountered from 480 metres to end of hole at 600 metres. Prior totesting, a clay band at 170-metres swelled, restricting access of thesampling and logging tools intended to test the brine formation forlithium grades. The hole will be re-entered, opening the clay bottleneck to allow for casing to be installed, followed by sampling.
3) This week a newly contracted rotary rigwill begin drilling two additional water production wells on theCompany’s 100% owned, Chascha Sur freshwater concession whereLithium Chiles first water well was drilled. The intention of thesetwo additional water wells is to collect the necessary data to applyfor further water usage permits and secure water production for theCompany’s proposed Direct Lithium Extraction (“DLE”) productionfacility.
4) After completion of the two waterproduction wells, the rig will move back to the main Arizaro propertyand drill two new production wells, AR-04 and AR-05. The wells arebeing drilled to provide additional data for thePre-feasibility Study (PFS) as well as to provide future productionwells on the salar.
5) The two additional production wells,along with three new diamond drill holes will provide thesupplementary data analysis required to better understand the reasonbehind the significantly improved lithium grades from the resamplingprogram recently announced (Press Release July 10, 2023). Oncedrilled, data and test results from AR-04, AR-05 and three additionaldiamond drill holes will be used by Montgomery and Associates tointerpret the impact of these improved grades on the overall resourcecalculation of Arizaro. The 43-101 resource update is expected by lateNovember.
6) Ausenco Engineering was contracted inearly September and has commenced work on the Company’sPre-feasibility Study (“PFS”) further advancing the economics andengineering on the Arizaro project. It is anticipated that the PFSwill be completed by April 2024.
7) LithiumChile’s wholly owned Argentinian subsidiary, Argentum Lithium, hasbeen shortlisted on Block 4, one of five properties on the northernsection of the Salar de Arizaro, released for bid by the SaltaProvincial Mining Corporation, REMSA. It is anticipated the finalwinners of the bids for the REMSA properties will be announced afterthe Argentina Federal election on October 22nd ,2023.
Figure 1 - Salarde Arizaro, Project Locations
CHILE OPERATIONS:
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Drilling at Molle Verde(Llamara) has just finished with the completion of the third hole. Therig is now moving to the last pad to drill the fourth hole. The firstthree wells encountered brine, with holes one and three exhibitingexceptional porosity, with hole 3 flowing brine up the drill pipenaturally.
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Sampling is underway and once completed, samples fromall exploration holes will be batched and sent together for assay.Results will be announced when received.
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While sampling is being completed at Molle Verde,Lithium Chile will commence exploration work at its Aguilar property.This work will include sampling grid and TEM geophysics to define theposition of three exploratory holes. Drilling on Aguilar to commencebefore year end.
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Interest continues to build amongst the major miningcompanies in Chile’s lithium potential. The National LithiumStrategy introduced by the Chilean Government earlier this year hasstimulated new interest in Chilean partnerships. Lithium Chilecontinues to explore various opportunities and potential jointventures.
Steve Cochrane, President & CEO comments, “We are very pleased withthe speed of the advancement of our Arizaro project to thepre-feasibility stage. The results from the two new diamond drillholes drilled in previously unexplored areas of our Arizaro propertypoint to the potentiality of a significantly larger resource. We arealso extremely encouraged with the increased interest seen recently inour Chilean properties by major mining companies. The latest proposedchanges to the lithium mining regulations in Chile provide a stableregulatory environment and are encouraging new investment.”
The Company is also pleased to announce that it intendsto extend the expiry date of an aggregate of 6,922,817 outstandingcommon share purchase warrants ("Warrants") issued by theCompany as part of a unit of the Company in connection with anon-brokered private placement announced on October 25, 2021, andfurther amended on October 26, 2021, and October 29, 2021. The Companyproposes to extend the expiry date of the Warrants to June 30, 2024(the "Extension").
The Extension is subject to approval by the TSX VentureExchange (the "TSXV"). The Company intends to issue anupdated news release upon receipt, if any, of the Warrant ExtensionApproval.
The securities being offered have not been, nor willthey be, registered under the United States Securities Act of 1933, asamended, and may not be offered or sold in the United States or to, orfor the account or benefit of, U.S. persons absent registration or anapplicable exemption from the registration requirements. This newsrelease will not constitute an offer to sell or the solicitation of anoffer to buy nor will there be any sale of the securities in any statein which such offer, solicitation or sale would be unlawful.
Lithium Chile also announces, subject to regulatoryapproval, it has granted 300,000 stock options to consultants of theCompany. The stock options are issued with an exercise price of $0.65and will expire October 16, 2024.
ABOUT LITHIUM CHILE:
Lithium Chile is an exploration and lithium resourcecompany with a property portfolio consisting of 111,978 hectares inChile and 20,800 hectares in Argentina. The Company has filed its NI43-101 Report and Preliminary Economic Assessment, which can be viewedon the Company’s profile at SedarPlus.ca
Lithium Chile also owns 4 properties, totaling 21,329hectares, that are prospective for gold, silver and copper.Exploration efforts are continuing on Lithium Chile’s Carmonagold/silver/copper property which lies in the heart of the Chileanmega porphyry gold/ silver/copper belt.
Lithium Chile’s common shares are listed on the TSX-Vunder the symbol “LITH” and on the OTC-QB under the symbol“LTMCF”.
To find out more about Lithium Chile, please contactSteven Cochrane, President and CEO via email: steve@lithiumchile.ca orMichelle DeCecco, Vice President and COO, via emailmichelle@lithiumchile.ca.
NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATIONSERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSXVENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACYOF THIS RELEASE.
FORWARD LOOKING STATEMENTS:
This news release may contain certain forward-lookinginformation and forward-looking statements within the meaning ofapplicable securities legislation (collectively "forward-lookingstatements"). Generally, forward-looking statements can beidentified by the use of forward-looking terminology such as"expected", "anticipated", "aims to","plans to" or "intends to" or variations of suchwords and phrases or statements that certain actions, events orresults "will" occur. Such forward-looking statements arebased on various assumptions and factors that may prove to beincorrect, including, but not limited to, factors and assumptions withrespect to: the general stability of the economic and politicalenvironment in which the Company operates and the timely receipt ofrequired regulatory approvals. You are cautioned that the foregoinglist of material factors and assumptions is not exhaustive. AlthoughLithium Chile believes that the assumptions and factors on which suchforward-looking statements are based upon reasonable assumptions,undue reliance should not be placed on the forward-looking statementsbecause Lithium Chile can give no assurance that they will prove to becorrect or that any of the events anticipated by such forward-lookingstatements will transpire or occur, or if any of them do, whatbenefits Lithium Chile will derive therefrom. Lithium Chile does notundertake to update any forward-looking statements herein, except asrequired by applicable securities laws. All forward-looking statementscontained in this news release are expressly qualified by thiscautionary statement.
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