LITH:CC - Lithium Chile Commenses Drilling the Third Production Well on Salar de Arizaro Salta Argentina and Increases Interest in the Project to 62.2%
(TheNewswire)
CALGARY, ALBERTA, January 18, 2023– Lithium Chile Inc. (“Lithium Chile” or the “Company”) (TSXV:LITH) (OTC:LTMCF) is pleased to announcethat drilling has commenced on the third production well, Argento-3,on the Salar de Arizaro. The location of the third production well is10 kms North of Argento-2 and is designed to expand the size andextent of the brine aquifer and to increase the existing lithiumresource. The well is currenting drilling through 55 meters with a13.5-inch bit and is expected to take between 45 and 90 days tocomplete.
ADDITIONAL HIGHLIGHTS:
1) Lithium Chile has increased its interestin the Salar de Arizaro joint venture from 60% to 62.2% while reducingthe cash payments due to SMG S.R.L (“ SMG ”), by $145,000US, for a total cost of $1,855,000 US. The increased interest is aresult of SMG returning the 2500-hectare, non-resource claims onChascha Sur where the Company’s water well was drilled. Thereduction in total claims resulted in Lithium Chile acquiring theadditional interest in the claims where the lithium resource is beingdeveloped. Lithium Chile owns the water well and has filed a permit touse 70m3/hr for future lithium production. The first meeting with theMinistry of the Environment in relation to the water permit has beenheld and the permitting process is moving forward.
2) The Company is also pleased to announcethat its new diamond drill rig arrived over Christmas and has begundrilling the fourth exploration hole on the Salar de Arizaro property.The diamond drill holes are designed to provide the Company withadditional geological data on the structure of formations as well assupply brine samples for testing. This is the fourth of eightexploration holes planned that will help determine the best locationfor the fourth production well.
3) The Company continues to production testit’s Argento-2 well. Pump tests are ongoing while various tools suchas a hydrasleeve and packers plus are employed to isolate and identifyhigher lithium grade zones. The overall porosity of this well ishigher than what was encountered in the first well, Argento-1. Overallresults will be announced once testing is completed.
4) A downhole pump has been purchased andinstalled on the Argento-1 production well. The installation of thispump will allow for continuous production of brine to facilitateongoing evaporation studies, advanced metallurgical studies, and thedevelopment of a hydrological model of the basin. All the informationgathered in Arizaro will be used to complete a Preliminary EconomicAssessment (PEA), Prefeasibility Study (PFS) as well as the finalEnvironmental Impact Study (EIS); all expected to be completed bymid-2023.
5) The Company is also pleased to announceit has retained Leandro Sastre as Senior Geological Consultant tooversee the geological development at the Salar de Arizaro. Mr. Sastreis a geology professional with over 20 years ofexperience in the international mining sector. He has workedextensively throughout Latin America with a focus on Argentina, Chileand Peru. Most recently Mr. Sastre served as Vice President ofExploration for Latin America and Asia-Pacific region at Barrick GoldCorporation. Mr. Sastre’s experience will be a valuable addition tothe team.
6) On December 29 th , Lithium Chilesubmitted its proposal for a joint venture with RecursosEnergeticos Y Mineros De Salta S.A. (“ REMSA ”), the state-owned mining company of the Province ofSalta, Argentina, to develop an additional5000-hectares on the Salar de Arizaro. The proposal with REMSA is aresult of the MOU signed in June 2022 at the PDAC conference inToronto. Completion of the joint venture is expected by the end of thefirst quarter of 2023, providing the Company a second prospectivelithium project on the Salar de Arizaro.
Steve Cochrane, President & CEOcomments , “We are extremelypleased with the results obtained from our Arizaro project to date andthe speed at which the project is advancing. The credit goes to Josede Castro and the amazing team we have on the ground at Salta - I amproud of all of them and their accomplishments to date. Their hardwork is proving up a world class, lithium brine project that will notonly reward their efforts but our shareholders as well.”
Lithium Chile:Project and Location Map, Salar de Arizaro, Argentina
ABOUT LITHIUM CHILE:
Lithium Chile is advancing a lithium property portfolioconsisting of 111,978 hectares covering sections of 11 salars and 1laguna complex in Chile and 20,800 hectares in Argentina.
The Company has a NI 43-101 report with an indicatedand inferred resource of 2,587,000 tonnes of lithium carbonateequivalent (LCE) from its Salar de Arizaro, Argentina project. ThePhase 2 development program on the Salar de Arizaro is underway withresults to be included in an updated NI 43-101 report which isexpected to be completed during the first quarter of 2023.
Lithium Chile also owns 5 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 Inc., pleasecontact Steven Cochrane, President and CEO via email:steve@lithiumchile.ca or Michelle DeCecco, Vice President and COO, viaemail michelle@lithiumchile.ca or at 403-390-9095.
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 so, 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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