Advantage Lithium announces an updated resource estimate of 3.0 Mt LCE at Cauchari

 

TSX Venture Exchange Symbol:  AAL

VANCOUVER, May 23, 2018 /CNW/ - Advantage Lithium Corp. (the "Company" or "Advantage Lithium") (TSX Venture: AAL) (OTCQX: AVLIF) is pleased to announce an updated resource estimate for the Company's flagship Cauchari Project in Jujuy, Argentina based on the Phase II drilling results. The update, prepared by FloSolutions S.A.C., has increased the inferred resource to a volume of approximately 1,200 million cubic metres of brine at average grades of 450 mg/l lithium and 4,028 mg/l potassium for 3.0 Mt of Lithium Carbonate Equivalent (LCE) and will be the basis for our Preliminary Economic Assessment (PEA) scheduled for completion in Q2 2018.

David Sidoo, the Founder and CEO of Advantage Lithium, commented on the significant resource upgrade for the Cauchari Project: "In the span of just over a year, we have delivered a +600% increase to the lithium resource at our Cauchari Project. This achievement reflects both the world-class nature of our project as well as the expertise and focus of the project development team in Argentina. We are confident that our Phase III program, already underway, will continue to deliver strong results and expand the resource further. In parallel with our Phase III program, Advantage will be aiming to complete a PEA in Q2 and then progress immediately to a definitive Feasibility Study for a potential 20,000 tonnes per annum (ktpa) of Lithium Carbonate."

• +6-fold increase of the inferred resource to 3.0 Mt LCE at Cauchari at 450 mg/l Lithium
• The updated resources cover a significantly larger area and extend to greater depths in the NW and SE Sectors
• Significant potential for additional resource expansion at depth
• The brine has excellent chemistry for processing and the Mg/Li ratio averages 2.5, very similar to Orocobre's Olaroz project
• Phase III drilling is underway to upgrade this inferred resource and underlying brine to measured and indicated resources for the DFS scheduled for completion in Q2 2019

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 2017/2018 drilling program has expanded the resource at Cauchari to 3.0 Mt Lithium Carbonate Equivalent (LCE) of inferred resource across both the NW and SE Sectors in ~1.2 km³ of brine at 450 mg/l lithium and 4,028 mg/l potassium (based on 5.32 tonnes of lithium carbonate is equivalent to 1 tonne of lithium) with 9.5 Mt of potassium chloride (based on 1 tonne potassium chloride is equivalent to 1.91 or potassium).  This is an expansion of 6 times the historical resource of 0.47 Mt of Lithium Carbonate Equivalent, which was limited to the northern area of the SE Sector (refer to AAL announcement of December 22, 2016). The average grade of the entire resource has increased  to 450 mg/l Li and 4,028 mg/l K. Locally  higher grades were encountered in the NW Sector in areas such as production hole CAU07 (601 mg/l during  48 hr pumping test) and in the Deep Sand unit in CAU11 (515 mg/l during 48 hr pumping test). The results of the estimation are summarized in Table 1 below.

Andy Robb, VP Project Development commented: "This is an excellent result which we believe will continue to improve in terms of both grade and size as we move through our Phase III drill program targeting the extent of the Salar at depth".

The brine resource is calculated over the NW and SE Sectors of the Cauchari project and covers an area of 92.6 km². The brine resource in the NW Sector extends from the brine level below the Archibarca fan to a depth of up to 300 m. The brine resources in the SE Sector extend from the phreatic brine level to a constant depth of 300 m and continue locally as a separate resource volume in the Deep Sand unit between approximately 400 m and 480 m depth (as defined by Deep Sand drilling intercepts in holes CAU11, CAU12 and CAU13). None of the boreholes completed to date have intercepted bedrock (basement) and the resource remains open at depth.  A significant exploration target has been defined below the current inferred resources as further discussed below (Table 3).

Table 1: Cauchari Project Lithium and Potassium Resource Estimate; May 23, 2018

 

Results of the brine chemistry analysis carried out to date indicate that 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.   The lower average lithium concentration of the total inferred resource compared to that of drill holes such as CAU07, CAU11 (and other results released during the Phase II drilling program) reflects the presence of lower concentration brine near surface in the SE Sector such as around holes CAU12, 13 and 14. The brine characteristics and hydraulic characteristics in the upper SE Sector are distinct from those in the NW Sector and the Deep Sand unit. Pumping tests from the NW Sector and Deep Sand have produced excellent flows with lithium concentration >500 mg/l lithium, as reported by the company on the 6^th of February and 5^th of March 2018. There is a reasonable prospect that the Cauchari brine from these areas could be successfully processed using similar technology to the Olaroz plant.

Table 2: Cauchari brine chemistry characteristics

 

Resource Estimation Methodology

The updated lithium resource estimate for the Cauchari Project is based on the results of seven diamond holes and five rotary holes drilled during the Phase II campaign in 2017/8 and results of four diamond drill holes of the Phase I campaign in 2011. Figure 1 shows a location map of the boreholes completed during the 2011 and 2017/8 drilling campaigns.  Brine sample collection during the 2017/8 program consisted of bailed and packer samples in the diamond holes, and packer and pumped samples in the rotary holes.  A total of 449 brine samples (including 164 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.  Additional brine QA/QC analyses were carried out on centrifuged samples collected by Corelabs in Houston, TX.

HQ core was retrieved during the diamond core drilling from which some 172 primary undisturbed samples were prepared for laboratory drainable porosity and other physical parameter determinations by Geo Systems Analaysis (GSA) in Tucson, AZ.  Laboratory QA/QC porosity analyses are being undertaken by Corelabs.

The lithium resource was estimated using SGEMs software with ordinary kriging and applying a 300 mg/l lithium concentration cut-off. 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.

Geological Exploration Target

The geological exploration target is estimated to range between 1,430,000 and 3,000,000 t LCE, primarily in the SE Sector beneath the current inferred resource area in the Deep Sand unit to a depth of 600 m. Table 3 provides the details of the geological exploration potential.  The upper and lower ranges of the geological potential were bounded by two times the standard deviation around the calculated average lithium concentration of the overlying inferred resources.   The Deep Sand unit in the SE Sector was intersected below 360 m in CAU11, CAU12 and CAU13.  A preliminary 48 hr pumping test in CAU11 at a pumping rate of 19 l/s indicated that the Deep Sand unit has excellent hydraulic characteristics. The geology of the Cauchari basin suggests there is good potential to convert brine within the exploration target to resources. Similar sand units have been intersected in the neighboring Olaroz project.

Table 3: Cauchari Project – Geological Potential

 

 

It must be stressed that an exploration target is not a mineral resource. The potential quantity and grade of the exploration target is conceptual in nature, and there has been insufficient exploration to define a Mineral Resource in the volume where the Exploration Target is outlined. It is uncertain if further exploration drilling will result in the determination of a Mineral Resource in this volume. The exploration target is where, based on the available geological evidence, there is the possibility of defining a mineral resource. Importantly the exploration target is not to be considered a resource or reserve. It must be stressed the exploration target is based on a series of assumptions and future drilling is required to determine the brine grade and formation drainable porosity values to establish whether a resource can be defined.

Phase III Drilling and Further Resource Expansion

The Phase III resource definition drilling program is currently underway at the Cauchari project site.  The Phase III program will include additional diamond holes in the NW and SE Sectors to upgrade the resource classification by Q2 2019 to support the Project's Definitive Feasibility Study. The Phase III drilling program is designed to provide a combined borehole density sufficient to upgrade the current inferred resources to the Indicated and Measured categories. The Phase III drilling is also aimed at further defining resources in the Deep Sand unit.

The technical information in this news release has 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 are provided in the NI-43-101 technical report.

ADVANTAGE LITHIUM CORP.

 

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

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