BLILF - Maricunga Stage One Lithium Project Activity Update
(TheNewswire)
January 27, 2021 - TheNewswire - Vancouver, BritishColumbia - Bearing Lithium Corp. ( “Bearing” or the “Company” ) (TSX V :BRZ)(OTC:BLILF) is pleased to provide a significant update on the advancedprogress of the Maricunga Lithium Project in Chile as announced byMinera Salar Blanco (“MSB”) .
The company’s proposed Maricunga Stage One has anameplate capacity of 15,000 tonnes-per-year of lithium carbonateproduction, with significant future expansion potential fromsubsequent stages. The Maricunga project, the highest-grade,undeveloped lithium project in Chile, is managed by Minera SalarBlanco (MSB), which is owned by LPI (51%), Borda Group (31%) andBearing Lithium (18%).
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Maricunga Stage One Update
A new field program will be undertaken from February2021 to update detailed engineering work to re-size and optimise therevised Maricunga Stage One development. The program consists of2,400m of drilling, along with sampling and hydraulic testingactivities. This work is in line with the announcement made by theCompany on 9 December 2020 to advance the Maricunga project in anumber of stages and by fast-tracking a Stage One development basedon the tenements known as ‘Old Code’ concessions.
The target is to expand the current resource, which isfrom near surface to 200m depth, to include the interval between 200mand 400m. Drilling for the project’s DFS established that there wasa thick sequence of volcaniclastic material (established by MSB’shistorical S-19 exploration hole drilled to 362m, Figure 1) beneathgravel and near surface clay units in the ‘Old Code’ concessions.This zone has high drainable porosity and permeability that isconsiderably higher than near surface units. Expansion of the resourcewould result in expansion of the project brine reserve, potentiallysupporting a 20 year-plus mine life for the project.
Drilling contracts have been awarded to internationalcompanies Major Drilling and Andinor, and all drilling equipment hasbeen mobilised to site.
Additionally, conceptual and numerical hydro-geologicalmodels including LEAPFROG, SGeMS and FEFLOW will be updated by AtacamaWaters (formerly FloSolution) with the new exploration information andall existing information from the 2019 Definitive Feasibility Study.That would allow the existing resources and reserves within the “OldCode” concessions to be fully revised.
An updated Definitive Feasibility Study will then beprepared by Worley and GEA Messo in accordance with JORC and NI 43-101international standards.
In parallel with this Stage One work, MSBwill continue to evaluate and progress alternative development plansfor the subsequent stages with Codelco, potential other parties andthe Chilean authorities. The aim of these subsequent stages is tocontinue with the original strategy to consolidate the Maricunga Salarby developing the remainder of its mining concessions, known as “NewCode” concessions, to provide substantial organic growth for theproject.
Activities associated with engineering and financingwill continue, complementing the adjustments on the Stage One designof the project and to ensure continuity in fast-tracking thedevelopment timeline through 2021.
Figure 1 - West to East section,looking north, through historical drilling, with the target for the400 m holes the lower volcaniclastic. Historical MSB hole S19 drilledto 362 m
Stage One Working Plan
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- DrillingProgram
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- Five diamond core exploration holes to 400m depth.The boreholes once completed will be habilitated as monitoring wells,with 3-inch diameter slotted and blank PVC casing to selected depthintervals.
- Brine porosity samples will be collected during thecore drilling at 24m depth intervals in the 0m – 200m interval and12m intervals between 200m – 400m.
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Figure 2 - Proposed locations of theFive boreholes and the locations of the boreholes from the 2018-19drilling program
Figure 3 - Drilling of the S19borehole to 362 m in the 2018-19 drilling program
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- DrainablePorosity and Brine Chemistry Analysis
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- 140 core samples, including QA/QC samples, will beanalysed for drainable porosity and other hydraulic parameters byinternational laboratories, GeoSystem and Corelab .
- A Magnetic Resonance Register (BMR) will be also usedto confirm drainable porosity parameters.
- 150 brine samples, including QA/QC samples, from theexploration boreholes will be analysed by Universidad de Antofagastaand Alex Steward Assayers.
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- Production wellsand pumping test
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- One production well of 17-inch diameter will bedrilled using rotary methods at to a depth of 400m. It will becomplemented by a 12-inch 316 SS production casing for the 0m – 200minterval and a 8-inch 316 SS production casing for the 200m – 400minterval.
- One 30-day, 24/7 pumping test will be carried out onthe new production well to evaluate hydraulic parameters of the areaand monitor lithium concentrations during the test.
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Figure 4 - Production Well –P 10pump testing of the DFS released January 2019
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- Update of theConceptual and Numerical models
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- The conceptual hydro-geological model for the Salarwill be updated with the new information obtained from the fieldprogram. It will include the LEAPFROG geological model for the updatedresource estimate and the updated numerical modelconfiguration.
- The SGeMS 3D lithium concentrations distributionmodel will be updated with the new drainable porosity data and brinechemistry analyses, and will be used to prepare an update on theResource estimate from the 2019 DFS for the ‘Old Code’ concessionsto a depth of up to 400m. Reporting will be done according to JORC andNI 43-101 international standards.
- The FEFLOW hydro-geological model will be updatedwith the new LEAPFROG geological model and the updated 3D distributionof drainable porosity. The bottom of the FEFLOW model will be extendedto the bedrock contact, based on the exiting geophysical data form the2019 DFS (AMT and gravity). The model will be re-calibrated in SteadyState and in Transient State using the results of the P-5 pumpingtest. The updated 3D distribution of lithium concentrations from theSGeMS model will be used as the initial condition for the transportsimulations. The updated model will then be used to carry outpredictive simulations for brine production scenarios from the ‘OldCode’ concessions only, optimise wellfield configurations andproduction schedules and to evaluate potential effects from the brineproduction within the restrictions set out in the Project’s RCAenvironmental permit awarded in February 2020.
- Finally, a new lithium reserve estimate will beprepared according to JORC and NI 43-101 international standards forthe ‘Old Code’ concessions to support the 15,000 tonnes per annumproduction of lithium carbonate for 20 years.
- DefinitiveFeasibility Study (DFS) update
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- GEA Messo will update the Basic Engineering (BE) fora 15,000 tonnes per annum capacity plant and reconfirm the processplant equipment flowsheet.
- Worley will update for all the other disciplines ofthe plant, evaporation ponds, utilities and facilities incorporatingGEA’s BE information.
- Economics for the Stage One will include an update ofthe lithium price estimates and will complete the DFS Report expectedto be released by October 1, 2021.
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Stage One Timeline
Figure 3- Stage OneTimeline for the updated Exploration and DFS Report
Camp Operation
To support drilling and other future site activitiesthe existing MSB camp has been expanded, to accommodate contractor personnel. The temporary camp willcontinue to operate until project construction activitiesbegin.
Figure 5- Existing Campto be expanded for the commencing of the Exploration program.
Additional water exploration
A new water supply exploration well will be drilled inthe area to potentially have an alternative supply to the existingCAN-6 well for the project. Despite fresh water supply have beensecured with the existing CAN-6 well, it’s deemed strategicallyimportant to explore for further water sources as alternative/backup.The well will be drilled as a large diameter production well, with aninstalled surface casing diameter of 24 inches. The water well will bedrilled to a depth of up to 200m. Following installation and cleaning,the well will be subject to a 30-day pumping test to confirm theaquifer characteristics and the size of pump which is optimum foroperation of this new well.
Lithium Power International’s ChiefExecutive Officer, Cristobal Garcia-Huidobro, commented:
“We are pleased to announce that work program isalready underway for the Maricunga Stage One strategy. Building on thealready extensive technical work will not only let us significantlyexpand the current resource, but also strengthening the profile of theproject. Our world class group of technical partners have mobilizedalready and we look forward to providing regular updates on theprogress. In addition, and in line with the current market interest,we continue evaluating strategic and financing alternatives tomaximize the value of the Project for its shareholders.”
Bearing Lithium Corp’s Chairman,Gil Playford, remarked:
“ Given Covid-19 has slowed progress in 2020, I amvery pleased MSB is advancing our low cost Maricunga Lithium Projectin a number of stages by fast-tracking a first stage development of15,000 mtpa from its “Old Code “grandfathered properties. By adding additional mining resources fromthis year’s exploration program will extend the mining life andexpansion potential for MSB. Codelco’s joint venture discussions forStage 2 “New Code” concessions adds further growth prospects"
About Bearing Lithium Corp.
Bearing Lithium Corp. is a lithium-focused mineralexploration and development company. Its primary asset is a 17.35%interest in the Maricunga Lithium Brine Project in Chile. TheMaricunga Project represents one of the highest-grade lithium brinesalars globally and the only pre-production project in Chile. Over million has been invested in the Maricunga Project. All ProjectExpenditures through to the delivery of a Definitive Feasibility Studyin January 2019 have been fully funded by the 51% earn-injoint-venture partner , Lithium PowerInternational. Subsequently, the Company hassubscribed for shares in MSB amounting to 1,261,421 for FiscalYear 2019 and 782,081 for Fiscal Year 2020.
ON BEHALF OF THE BOARD
Signed "GilPlayford”
Gil Playford, Chairman
gplayford@bearinglithium.com
Neither the TSX VentureExchange nor its Regulation Services Provider (as that term is definedin the policies of the TSX Venture Exchange) accepts responsibilityfor the adequacy or accuracy of this release.
Cautionary StatementsRegarding Forward Looking Information
This press release includes certain"forward-looking information” and "forward-lookingstatements” (collectively "forward-looking statements”)within the meaning of applicable Canadian and United States securitieslegislation including the United States Private Securities LitigationReform Act of 1995. All statements, other than statements ofhistorical fact, included herein, without limitation, statementsrelating the future operating or financial performance of the Company,are forward-looking statements.
Forward-looking statements arefrequently, but not always, identified by words such as"expects”, "anticipates”, "believes”,"intends”, "estimates”, "potential”,"possible”, and similar expressions, or statements that events,conditions, or results "will”, "may”, "could”, or"should” occur or be achieved.. Actual future results maydiffer materially. There can be no assurance that such statements willprove to be accurate, and actual results and future events coulddiffer materially from those anticipated in such statements.Forward-looking statements reflect the beliefs, opinions andprojections on the date the statements are made and are based upon anumber of assumptions and estimates that, while considered reasonableby the Company, are inherently subject to significant business,economic, competitive, political and social uncertainties andcontingencies. Many factors, both known and unknown, could causeactual results, performance or achievements to be materially differentfrom the results, performance or achievements that are or may beexpressed or implied by such forward-looking statements and theparties have made assumptions and estimates based on or related tomany of these factors. Readers should not place undue reliance on theforward-looking statements and information contained in this newsrelease concerning these times. Except as required by law, the Companydoes not assume any obligation to update the forward-lookingstatements of beliefs, opinions, projections, or other factors, shouldthey change, except as required by law.
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