BLILF - MSB Announces Staged Development of the Maricunga Lithium Project In Chile
(TheNewswire)
Vancouver ,British Columbia – TheNewswire – December 9,2020 - Bearing Lithium Corp. ( “Bearing” or the “Company” ) (TSXV:BRZ) (OTC:BLILF) is pleased to provide a significantupdate on the advanced progress of the Maricunga Lithium Project inChile as announced by MSB today. The Maricunga project, thehighest-grade, undeveloped lithium project in Chile, is managed byMinera Salar Blanco (MSB) which is owned by Lithium PowerInternational Limited (LPI) (51%), Borda Group (31%) and BearingLithium (BRZ) (18%).
Maricunga Project Update
MSB and its three owners (LPI, Borda Group, andBearing) has decided to advance the low cost Maricunga Lithium BrineProject in a number of stages by fast-tracking a first stagedevelopment. This development strategy will be undertaken as MSB alsocontinues to pursue the original and larger project.
The initial development stage will be based on theproperties known as ‘Old Code’ concessions. These licenses aregrandfathered from the current lithium legislation and do not requireany further significant permitting for lithium production.
The decision to advance this development plan is basedpartly on the positive global outlook for the lithium industry, andthe Maricunga project’s exceptional position as a potentialworld-class operation. It is also being taken after considering theimpact that COVID-19 has had on discussions with Chile’s state-ownedmining company, Codelco, under MSB’s Memorandum of Understanding.Codelco is reviewing the Maricunga project with a view on how best todevelop the entire Maricunga salar under joint ownership.
The first stage of the project (Figure 1) will have aname plate capacity of 15,000 tonnes per year of high-quality lithiumcarbonate over a 20-year mine life. It will also provide significantfuture expansion potential from subsequent stages.
Brine from the exploration target below 200m couldpotentially convert to reserves after additional confirmationdrilling, as could existing brine resources within MSB’s New Codeconcessions on the salar. Stage One will also provide a strongfoundation for substantial consolidation opportunities for MSB andother parties on the Maricunga Salar.
MSB’s four Old Code concessions, the Cocina, SanFrancisco, Despreciada and Salamina, comprise 1,150 hectares of thehighest-grade brine in the Maricunga Salar as defined by MSB’scomprehensive exploration program.
The resource contained in these properties is includedin the previously released NI43-101 and JORC resource statements( Definitive Feasibility Studyof MSB Blanco Lithium Carbonate Project; 17 January 2019 ) that are part of the Definitive Feasibility Study. Theexploitation of the lithium brine within the Old Code concessions isalso included in the approved project EIA along with the existingChilean Nuclear Commission (CCHEN) permits.
Most importantly, having received all of the requiredChilean Government development and environmental approvals necessaryfor the start of construction, the key decisions for the developmentof Stage One now lie solely with MSB and its owners. Stage Onerepresents a lower capital expenditure, fully permitted project thatcan take advantage of future developments in the global lithiumindustry.
MSB remains committed to evaluating and progressingalternative development plans for the subsequent stages with Codelcoand the Chilean authorities. This will advance the original strategyto consolidate the Maricunga Salar by developingthe remainder of the mining concessions, known as the New Codeconcessions, to provide substantial future growth for the project.
Next Steps
Work is already underway with MSB’s highlycredentialed technical team and partners Worley Parsons, GEA, Stantec(formally MKH) and Atacama Water (formerly Flosolutions), among othersto update the detailed engineering work to re-size and optimize theproject to its revised output and specifications.
This involves a comprehensive internal review of theproject’s technical and economic design. It will include furtherdrilling to increase resources to a depth of 400m on the Old Codeproperties, adding to the 380m hole completed during the 2018 drillingprogram. Reported results will be in in accordance with JORC and NI43-101 international standards.
Special focus will be on the optionality provided bythe Stage One as a starter project that would allow future rapidexpansion incorporating exploitation of the New Codeconcessions.
Recent work on the Engineering, Procurement andConstruction (EPC) bidding processes is advancing with two majorinternational engineering companies, as are several alternatives forproject financing. They will be adjusted to take into account theupdated Stage One design.
Engineering and financing activities will ensurecontinuity in the fast tracking of the development during the firsthalf of 2021. A construction decision is expected to be made shortlythereafter.
Codelco MOU
In August 2019, in parallel with the approval processfor the EIA of the project, MSB announced the execution of anon-binding Memorandum of Understanding (MOU) to jointly develop itsMaricunga properties with those on the Maricunga Salar owned byCodelco.
After signing the MOU, Codelco began its due diligenceof MSB’s extensive development program for the project. However,that process was substantially impacted by socio-political unrest inChile during 2019 and 2020 and was further impacted by the COVID-19pandemic. This resulted in significant delays, discussions andtechnical due diligence were likely to continue longer than expectedby both parties.
As such, the parties have been unable to advancetowards a definitive agreement in a timely manner. Therefore, thedecision was made by MSB and its shareholders to progress with thestaged development approach by initially developing the ‘Old Code’concessions.
MSB continues to engage and collaborate with Codelco.It will also continue to engage with other parties regarding theconsolidation of the Maricunga Salar lithium concessions for apossible development of a larger future lithium project.
Government
MSB continues to enjoy the strong support of theChilean government for its development of the Maricunga project. Tostimulate economic development and support the economy following theimpacts of COVID-19, the Chilean Government is promoting severalregional economic programs that could assist MSB in its new stageddevelopment approach.
Discussions have been held with several governmentauthorities in recent weeks about alternatives to advance the projectwithin the context of the economic programs.
Minera Salar Blanco SA’s ChiefExecutive Officer, Cristobal Garcia-Huidobro, commented:
“The Maricunga project has gone through manychallenges. Today is no different, as the global pandemic continuesto unfold. We initially envisioned a larger project that could, in theshort term, have partly consolidated the Maricunga Salar. We nowbelieve that a staged approach will provide a better outcome for the shareholders while minimizing furtherdelays. The acceleration of the EV production in Europe and Asiaconfirms that high-quality projects like Maricunga are required tosupply the many battery factories already under construction.
The revised project is smaller than the previousannounced development, but the decision to advance with Stage Onereflects the world class nature of the project. It will providemaximum shareholder value as soon as possible “
Figure 1 - The‘Stage One’ project
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 to dateincluding 3 million in November 2020. All Project Expendituresthrough to the delivery of a Definitive Feasibility Study in January2019 have been fully funded by the 51% earn-in joint-venturepartner , Lithium Power International. Subsequently, the Company has subscribed forshares in MSB amounting to 1,261,421 for Fiscal Year 2019 and ,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.
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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.
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