Advantage Lithium Corp. (the “Company” or “Advantage Lithium”) (TSX Venture: AAL) (OTCQX: AVLIF) is pleased to announce that the updated resource estimate for the Company’s flagship Cauchari Project in Jujuy, Argentina has more than doubled from the previous resource announced in May 2018, making the project the second largest development project in Argentina (based on NI 43-101 compliant M&I resources only).
Figure 1: Location of Cauchari properties, drill holes and the resource area – dashed line shows the cross section in Figure 2 (CNW Group/Advantage Lithium Corp)
Figure 2: Resource model looking west-southwest through the SE Sector and the Archibarca area (the serrated pattern represents resource blocks along the property boundary) (CNW Group/Advantage Lithium Corp)
The updated resource is based on the results of the Phase II and Phase III drilling programs. The update, prepared by FloSolutions SpA, has increased the resource to a volume of approximately 1,800 million cubic metres of brine at an average concentration of 476 mg/l lithium, for 4.8 Mt of Lithium Carbonate Equivalent (LCE) in the Measured and Indicated Categories and approximately 600 million cubic metres of brine at an average grade of 473 mg/l lithium for 1.5 Mt of LCE in the Inferred category.
David Sidoo, the Founder and CEO of Advantage Lithium, commented on the significant resource expansion at the Cauchari Project: “We were delighted when the Phase II drilling program delivered the 3Mt resource in May 2018 but the subsequent Phase III drilling has delivered significant additional resources to the project, doubling the resource size. It positions the Cauchari JV as the second largest undeveloped lithium project in Argentina, based on the project M+I Resources (without considering the Inferred resources). This is a fantastic result for the Company and allows us to reassess the future production capacity for the project in order to maximise value for our shareholders.”
Project Highlights
- LCE Resources more than doubled, with 4.8 Mt of Measured and Indicated and 1.5 Mt Inferred
- The Archibarca Area (NW Sector) contains just above one 1 Mt Measured Resources at an average lithium concentration of 564 mg/l; the Clay and Halite units (in the SE Sector) contain 3 Mt of Measured and Indicated Resources with an average Li concentration of 481 mg/l and the Deep Sand (SE Sector) with 0.4 Mt of Indicated resources at 500 mg/l lithium
- The result of the extended pumping tests on CAU07 in the Archibarca area and CAU11 in the SE Sector demonstrate favourable brine extractability characteristics
- The Phase III program has confirmed that Salar de Cauchari is a major brine basin with the resource open at depth below 600 m and to the south
- Excellent chemistry for brine processing with the Mg/Li ratio averaging ~2.5, very similar to Orocobre’s Olaroz project
The Company intends to submit a full technical report within 45 days of this filing, in accordance with the requirements of National Instrument 43-101 (NI 43-101) to support the conclusions presented here.
Updated Cauchari Resource
The drilling program has expanded the resource at the Cauchari Project to 4.8 Mt of LCE of Measured+Indicated Resources contained in 1.8 km3 of brine and 1.5 Mt of Inferred Resources contained in 0.6 km3 of brine. The resources have been broken into six different geological units which are classified between Measured, Indicated and Inferred resources, with the classification reflecting differences in the level of available sample information. The resource estimate is presented in Table 1 below.
The key areas of the resource for future brine production are the Archibarca Fan and the SE Sector of the Project. The Archibarca Fan resource consists of 1.0 Mt of LCE as Measured Resources at 564 mg/l lithium. The Measured and Indicated Resources in the SE Sector, mostly contained in the Clay and Halite units, amount to approximately 3 Mt of LCE at 481 mg/l lithium. The extraction characteristics of the Archibarca Fan and SE Sector have been confirmed by the 30 day pumping tests in each area during the Phase III Program in 2018.
Andy Robb, VP Project Development commented: “The resource expansion is an outstanding result for the Company, providing the opportunity to assess the possibility of expanding the future production rate for the project to 25 ktpa. The resource remains open at depth with extensive Deep Sand encountered in phase III drilling.”
The brine resource is calculated over the western and eastern properties of the Cauchari project and covers an area of 117.7 km2. The brine resource in the west extends from the brine level below the surficial gravels to a depth of over 400 m and is classified as Measured in the north in the Archibarca area and Indicated further south in the West Fan, with small volumes of Inferred resources in these areas. The Measured and Indicated Resources in the east extend from the phreatic brine level to a constant depth of 400 m in the Halite and Clay units. Indicated Resources in the Deep Sand unit extend to 500 m depth. Below these depths the resource is classified as Inferred, reaching a depth of up to 619 m. The Deep Sand unit remains open at depth. None of the drill holes completed to date have intercepted bedrock (basement) and the resource remains open at depth.
Table 1: Cauchari Project Lithium Resource Estimate; March 3, 2019
Measured (M) | Indicated (I) | M+I | Inferred | |
Aquifer volume (km3) | 9.7 | 20.9 | 30.7 | 10.7 |
Mean specific yield | 6% | 6% | 6% | 6% |
Brine volume (km3) | 0.6 | 1.2 | 1.9 | 0.6 |
Li mean grade (g/m3) | 35 | 26 | 29 | 27 |
Li mean concentration (mg/l) | 527 | 452 | 476 | 473 |
Resource (tonnes) | 345,000 | 550,000 | 900,000 | 290,000 |
Lithium Carbonate Equivalent | 1,850,000 | 2,950,000 | 4,800,000 | 1,500,000 |
Notes: | |
1. | CIM definitions were followed for mineral resources. |
2. | The Qualified Person for this Mineral Resource estimate is Frits Reidel, CPG. |
3. | Lithium is converted to lithium carbonate (Li2CO3) with a conversion factor of 5.32. |
4. | Numbers may not add due to rounding. |
Results of the brine chemistry analysis carried out confirm the Cauchari brine is similar in composition to the brine in the adjacent Olaroz Salar from which Orocobre is successfully producing lithium carbonate using conventional lithium processing technology. Table 2 provides a summary of the Cauchari brine characteristics. There is a reasonable prospect that the Cauchari brine could be successfully processed using technology similar to the Olaroz plant.
Table 2: Cauchari brine chemistry characteristics
Samples Ratio | Archibarca | Clay | East Fan | Halite | Deep Sand | West Fan |
Mg/Li | 2.3 | 2.5 | 1.6 | 2.7 | 2.5 | 3.2 |
SO4/Li | 26.2 | 39.7 | 88.7 | 44.3 | 38.1 | 38.4 |
Resource Estimation Methodology
The updated lithium resource estimate for the Cauchari Project is based on the results of 26 diamond holes and five rotary holes drilled between 2011 and the end of 2018. Figure 1 shows a location map of the drill holes completed during the 2011 and 2017/8 drilling campaigns and Figure 2 shows a cut-away diagram of the resource area and concentrations. Brine sample collection consisted of bailed and packer samples in the diamond holes, and packer and pumped samples in the rotary holes. More than 2,000 brine samples (including more than 300 QA/QC samples) were analyzed by Norlabs (Jujuy, Argentina) as the primary laboratory and by Alex Steward Assayers (Mendoza, Argentina) and the University of Antofagasta (Chile) as secondary QA/QC laboratories. Brine was also extracted from diamond cores (centrifuge methodology) in an independent laboratory in the USA and analysed in the Norlabs laboratory to further verify and validate brine chemistry results.
HQ core was retrieved during the diamond core drilling from which more than 300 primary undisturbed samples were prepared for laboratory drainable porosity and other physical parameter determinations by Geo Systems Analysis (GSA) in Tucson, AZ. Laboratory QA/QC porosity analyses were undertaken by the DBS&A Laboratory, Core Laboratories and the British Geological Survey.
The lithium resource was estimated using SGEMs software applying ordinary kriging. The resource estimate was prepared in accordance with the guidelines of National Instrument 43-101 and uses best practice methods specific to brine resources, including a reliance on core drilling and sampling methods that yield depth-specific chemistry and drainable porosity measurements. The resource estimation was completed by independent qualified person Mr. Frits Reidel of Santiago based hydrogeology firm FloSolutions with extensive experience in the estimation of lithium brine resources in Argentina.
The technical information in this news release has been reviewed and approved on behalf of the Company by Mr Frits Reidel, a “Qualified Person” as defined in NI 43-101. Full details of the drilling results, resource estimation methodology and quality assurance/quality control will be provided in the associated NI 43-101 technical report.
ADVANTAGE LITHIUM CORP.
Per: “David Sidoo”
David Sidoo, President
Tel: 604.423.3760 | Fax: 604.683.1585
Email: info@advantagelithium.com
About Advantage Lithium Corp.
Advantage Lithium Corp is focused on developing its 75% owned Cauchari lithium project, located in Jujuy, Argentina. The Company also owns 100% interest in three additional lithium exploration properties in Argentina: Antofalla, Incahuasi, and Guayatayoc. The Company is headquartered in Vancouver, British Columbia and trades on the TSX Venture Exchange (TSX-V:AAL) OTCQX Best Market in the U.S. (OTCQX: AVLIF).
Further information about the Company can be found at www.advantagelithium.com.
Cautionary Statement:
Certain information contained in this press release constitutes “forward-looking information”, within the meaning of Canadian legislation. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as “is expected”,”intends”, or “has the potential to”. Forward looking statements contained in this press release may include statements regarding the future operating or financial performance of Advantage that involve known and unknown risks and uncertainties which may not prove to be accurate. Actual results and outcomes may differ materially from what is expressed or forecasted in these forward-looking statements. Such statements are qualified in their entirety by the inherent risks and uncertainties surrounding future expectations. The forward-looking statements included in this press release are made as of the date of this press release and the Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by applicable securities legislation.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE Advantage Lithium Corp
For further information: David Sidoo, President, Tel: 604.423.3760 | Fax: 604.683.1585, Email: info@advantagelithium.com