LSC Lithium Appoints Ian Stalker as CEO and Provides Exploration Progress Update

 

Senior Mining Executive Ian Stalker Appointed CEO

Exploration Results on Salar de Pozuelos Maintain Favourable Lithium Brine Values

Drilling Started on Salar de Pastos Grandes

VES Geophysics Results for Salar de Jama Show Deep Brine Basin

Geophysics and Twin Hole Confirmation Program to Commence on Rio Grande

Early Start on Salinas Grande Confirmation Program Expected

TORONTO, Sept. 6, 2017 /CNW/ - LSC Lithium Corporation ("LSC" or the "Company") (TSXV: LSC) is pleased to announce the appointment of Mr. Ian Stalker as President and CEO of the Company. Mr. Stalker is a senior international mining executive with over forty-five years of "hands on" experience in resource development, mine construction, and operations in Europe, Africa, South America, and Australia. He has been responsible for managing development of over twelve major mining projects from initial exploration drilling to start-up including gold, base metal, uranium and industrial minerals. Mr. Stalker is also experienced with developing corporate strategies that have resulted in a range of M&A and company growth options. Mr. Stalker is a graduate in chemical engineering from Strathclyde University, Glasgow, Scotland.

Mr. Stalker completed a site visit to review the current exploration programs on August 27th. He commented as follows: "I am extremely pleased to see the rapid progress and excellent results. The results to date are, in my opinion, outstanding with 6 major projects being explored. Aside from the initial favourable results at Pozuelos and the commencement of drilling at Pastos Grandes, the other salars in LSC's expansive portfolio including Salinas Grandes, Rio Grande, and Jama represent significant potential for the discovery of large lithium resources. LSC is rapidly building up its team to accelerate exploration on its key properties. The Company is committed to being a leader in lithium exploration and development in Argentina and I am confident that LSC has the quality assets to deliver on that commitment. I am also pleased with the continued co-operation of the Local Communities and the Provincial Authorities."

Exploration Update

Over the past several months, LSC has focused on advancing exploration activities on its lithium brine projects in Northern Argentina and is currently undertaking exploration on its Salar de Pozuelos, Salar de Pastos Grandes, and Salar de Jama properties, with planned programs estimated to commence on the Salar de Rio Grande and Salar de Salinas Grandes properties in mid-September, with the intent of developing NI 43-101 Resources in some of these license areas by year end and in understanding the potential resources in others.

Key Highlights:

1) Salar de Pozuelos - Recent 'long-term' pumping tests on W1-35 and W2-90 Wells, supports the consistent favourable chemistry of the lithium brine at Salar de Pozuelos and the productive capability of both the upper highly fractured halite zone and the lower, more compact halite zone.

2) Salar de Pozuelos - LSC has now completed 7 holes of a 15-hole diamond drill program on Salar de Pozuelos. The program is designed to evaluate the lithology and brine chemistry across the full extent of the salar to depths of approximately 200 m, the previously identified limit of porous clastic material (see LSC press release of April 10, 2017 for details). The assays to date show the brine has excellent brine chemistry and that the brine values down hole are consistent with the surface sampling results obtained earlier (see LSC NI 43-101 report filed on LSC's SEDAR profile for details).

3) Salar de Pastos Grandes - LSC commenced a planned 7-hole drill program on Salar de Pastos Grandes in mid-August. LSC anticipates being able to complete an initial NI 43-101 resource report on its Salar de Pastos Grandes property by the end of Q2 2018.

4) Salar de Jama - LSC is highly encouraged by the recent results from its a Vertical Electrical Sounding ("VES") geophysical exploration program that show a deep conductive basin extending over a much greater area and to greater depths than originally expected.

5) Salar de Rio Grande - LSC plans to commence a program 3D seismic and CS-AMT geophysical exploration and twin drilling and pumping tests at its Salar de Rio Grande by mid-September and then releasing an initial NI 43-101 lithium resource report on the Salar de Rio Grande property by the end of 2017.

6) Salar de Salinas Grandes - This Salar is over 30,000 hectares in surface area and therefore offers a significant standalone operational opportunity. LSC intends to resample the wells and trenches on the tenements previously held by Orocobre Ltd. in order to verify the historic data associated with the property and thereby adopt the current NI 43-101 resource report (see Technical Report on the Salinas Grandes Lithium Project - April 16, 2012, amended August 12, 2013) on the affected tenements. It is anticipated the work can be completed by the end of 2017. LSC is also pleased to report that the Company has approval from local communities to commence geophysical exploration work on the Jujuy side of Salar de Salinas Grandes, and it is working with the state authorities to formalize these approvals.

Figure 1 illustrates the locations of the various properties.

Salar de Pozuelos

LSC previously announced initial exploration results on the Salar de Pozuelos property in a press release dated April 10, 2017, including results for pumping step tests on pumping wells W1-35 and W2-90 located in the south-central part of the Salar de Pozuelos. Long-term pumping tests have now been completed on the two wells. A 30-day test was run on W1-35 and a 15-day test was run on W2-90. The planned 30-day tests for W2-90 was terminated at 15 days due to weather issues preventing fuel delivery for the generator. Pumping well W1-35 was drilled to a depth of 45 m and completed with a screen interval from 0 m to 35 m. Well W2-90 was drilled to a depth of 95 m with a screen interval from 35 m to 80 m. In addition, piezometric wells were drilled to depths of either 35 m or 90 m at distances of 5 m, 20 m and 50 m from the pumping wells to develop data on well performance.

Short-term stress test results for W1-35 were reported in the April 10, 2017 press release. Results for the short-term stress tests for well W2-90 are reported here. Short-term pumping tests on well W2-90 (see LSC press release dated April 10, 2017 for location) were run to stress the well and develop data on the hydraulic properties of the 35 m - 80 m depth interval of the salar. The tests were run at pump rates of 5.29 m³/hr to 13.14 m³/hr over a 6-hour period. The maximum drawdown was 7.75 m at the maximum pumping rate. Brine samples were taken at periodic intervals throughout the test. The results showed consistent Li assays averaging 545 mg/L lithium and a constant Mg:Li ratio of 5:1. As anticipated, drawdown was higher and recovery slower for the W2-90 compared to W1-35 due to the relatively low porosity and transmissivity of the deeper lying compact halite. Nevertheless, reasonable pumping rates were achieved. Overall, the long-term tests confirmed the consistent favourable chemistry of the lithium brine at Salar de Pozuelos and the productive capability of both the upper highly fractured halite zone and the lower, more compact halite zone.

A 28.3 km line seismic program was completed on Salar de Pozuelos on May 25, 2017. The work was contracted to GEOAR SRL. The seismic work identified a number of key features of the salar basin and, together with the previously completed VES and TM geophysical work (see LSC NI 43-101 report on Salar de Pozuelos filed on LSC's SEDAR profile for details) guided the placement of exploration drill holes.

The 30-day test for W1-35 ran from March 29 through April 29 at a constant pumping rate of 34 m³/hr. Brine samples were initially collected every 6 hours and then every 12 hours after running for 3 days. The results of the sample assays showed very consistent lithium, potassium and magnesium values, with lithium averaging 591 mg/L and a constant Mg:Li ratio of 4:1. The test for well W2-90 ran for 15 days from May 23 through June 7 at a constant pumping rate of 15.6 m³/hr. Brine samples were collected initially at 6-hour intervals and then 12-hour intervals. The brine assay results showed consistent lithium, potassium and magnesium values, with an average lithium assay of 548 mg/L and a Mg:Li ratio of 5:1. Overall, the long-term tests confirmed the consistent favourable chemistry of the lithium brine at Salar de Pozuelos and the productive capability of both the upper highly fractured halite zone and the lower, more compact halite zone.

LSC has now completed 7 holes of a 15-hole diamond drill program on Salar de Pozuelos. The program is designed to evaluate the lithology and brine chemistry across the full extent of the salar to depths of approximately 200 m, the previously identified limit of porous clastic material (see LSC press release of April 10, 2017 for details). Results to date are confirming the seismic, VES and TM data with respect to basin structure. Table 1 provides information on the holes completed to date for the current 15-hole program.

Table 1: Diamond Drill Program Summary - Salar de Pozuelos
(Results to date)

Drill core recovery was high, with recoveries typically in excess of 90%. The drill core logs confirm the lithology of the new holes corresponds to that previously observed, with highly fractured to moderately fractured halite down to approximately 35 m. Halite progressively becomes more massive to depths of approximately 50 m to 90 m depth depending on location, where the lithology transitions to a mix of clay/halite and then to a sand/gravel zone of variable depth. All drill core is photographed and logged prior to sampling for porosity.

Brine samples are recovered from the diamond holes using a packer system to isolate specific levels in the holes. The results to date show consistent lithium brine grades down hole, as detailed in Table 2. Assay data for Holes SP-2017-06 and SP-2017-07 are expected within the next two weeks. The assays show the brine has excellent brine chemistry and that the brine values down hole are consistent with the surface sampling results obtained earlier (see LSC NI 43-101 report filed on LSC's SEDAR profile for details).

Table 2: Brine Packer Sample Results¹
Salar de Pozuelos 2017 Diamond Drill Program
(Results as of Sept. 1, 2017)

LSC anticipates completing the drilling and sampling program on Salar de Pozuelos by the end of September. A program to explore and assess the water-brine interface at the salar margins and develop data for a water balance and enhance understanding of the salar hydrology and hydrogeology for sustainable development of the salar is planned to commence in early October. LSC anticipates completing an initial NI 43-101 resource report by the end of Q4 2017.

Salar de Pastos Grandes

LSC commenced a planned 7-hole drill program on Salar de Pastos Grandes in mid-August. The hole locations for the drill program were based on the results of a VES geophysical survey completed by LSC in late 2016. The first hole reached 110 m and was stopped due to issues with artesian pressure in the well. The hole was relocated to a more favourable location and reached 152 m as of September 2nd. The remaining holes are planned for completion prior to commencement of the wet season in mid-December, with all holes to be drilled and completed to minimize technical issues related to zones of artesian pressure. All planned drill holes have target depths of 400 m. Packer samples and porosity samples (RBRC samples) are being collected as part of the drill program. Results will be released as data becomes available. The exploration program includes planned drilling of 4 pumping wells for long-term (30 day) pumping tests, scheduled for Q1 2018. Geophysical work including CS-AMT (closed source audio magneto-telluric) and additional VES work is planned to commence in late October to better define the salar boundary conditions and develop data for the hydrology/hydrogeology models. LSC anticipates being able to complete an initial NI 43-101 resource report on its Salar de Pastos Grandes property by the end of Q2 2018.

Salar de Jama

The results of a VES geophysical exploration program on Salar de Jama have been received. The results show a deep conductive basin extending over a much greater area and to greater depths than originally expected. LSC is highly encouraged by the results and is developing a program of additional geophysical work (3D seismic and CS-AMT) and diamond drilling to better establish the potential of the Salar de Jama. Community engagement programs are well advanced and it is anticipated LSC will be able to commence the additional geophysical work and a program of shallow drilling later this year, followed by a program of deep drilling in the first quarter of 2018. LSC anticipates being able to complete an initial NI 43-101 resource report on Salar de Jama by the end of Q2 2018.

Salar de Rio Grande

LSC plans to commence a program 3D seismic and CS-AMT geophysical exploration and twin drilling and pumping tests at its Salar de Rio Grande by mid-September. The purpose of the program is to better define the basin structure and aquifer system and to confirm historic drilling, assay and pumping data for the Rio Grande property, which was previously operated by ADY Resources Ltd. ("ADY") for sodium sulphate production. LSC obtained the Rio Grande tenements from ADY as part of the investment by Enirgi Group Corporation ("Enirgi Group"), parent company of ADY, in LSC (see LSC NI 43-101 report filed on LSC's SEDAR profile for details). LSC intends to twin selected drill holes to conform the historical assay and porosity data and to rehabilitate one of the existing pumping wells and run pumping tests to confirm the historic data. Once the historic data is confirmed, LSC anticipates releasing an initial NI 43-101 lithium resource report on the Salar de Rio Grande property by the end of 2017.

Salar de Salinas Grandes

LSC is making substantial progress on securing community approval to commence initial exploration work on the Salta side of Salar de Salinas Grandes. As part of this work, LSC is proposing to rehabilitate drill and trench sites remaining from work undertaken by Orocobre Ltd. in 2011 and 2012 on tenements now owned by LSC (see LSC press releases dated March 29, 2017 and June 5, 2017). As part of the rehabilitation process, LSC intends to resample the wells and trenches in order to verify the historic Orocobre data and thereby adopt the current Orocobre NI 43-101 resource report (see Technical Report on the Salinas Grandes Lithium Project - April 16, 2012, amended August 12, 2013 under Orocobre's SEDAR profile) on the affected tenements. It is anticipated the work can be completed by the end of 2017.

LSC is also pleased to report that the Company has approval from local communities to commence geophysical exploration work on the Jujuy side of Salar de Salinas Grandes and it is working with the state authorities to formalize these approvals. This work is planned to commence with a program of gravity, VES and CS-AMT/TEM work to define basin dimensions and structure and aquifer zones. Receipt of the work permit will demonstrate LSC's commitment to effective community relations and sound exploration program design and execution.

Sampling and QA/QC

Brine sampling for packer tests involved collection of brine from the sample interval in a 20-litre container, which was flushed with fresh brine several times prior to collection of the sample. Brine was poured into 1-litre sample bottles which had been previously flushed with fresh brine from the 20-litre container several times. Sample bottles were filled to the top to eliminate the inclusion of air and sealed with a leak proof lid. Samples were labelled and labels covered in clear tape to prevent erasure of sample information. All samples remained in the possession of the site geologist until delivery to an Alex Stewart Argentina ("ASA") laboratory in either Mendoza or Jujuy, Argentina by courier. Brine sampling for the pump stress test involved collection of samples from a valve attached to the pump outlet. Brine was allowed to flush and then fresh brine was used to wash the sample bottle several times before collecting the sample. Sample bottles were 1-litre in size and were filled to the top to prevent entrance of air. The samples were sealed with a leak proof lid, labelled and the label covered by clear tape. Samples remained in the possession of the site until delivery by courier to the assay laboratory.

LSC has a well-developed QA/QC program. Brine assays are undertaken at ASA at laboratories in Mendoza or Jujuy. ASA is independent of LSC and has significant experience in assaying lithium brines and is certified to ISO17025 standards. Brine assays are undertaken using the methods shown in Table 3.

Table 3: Methods for Brine Assays

ASA runs internal duplicates at a rate of 1 in 20. LSC inserts duplicates at a rate of 1 in 10. LSC inserts blanks and standards in sample batches at a rate of 1 in 20. Standards are internal standards developed by LSC that have been independently certified by round robin testing. LSC uses distilled water as blanks. Check samples are assayed at approved and certified laboratories in Argentina or Chile.

Qualified Person/Data Verification

The scientific and technical information included in this press release is based upon information prepared and approved by Donald H. Hains, P.Geo. Mr. Hains is a qualified person, as defined in NI 43-101 and is independent of LSC and Enirgi Group. Mr. Hains has verified all sampling, analytical and test data underlying the information contained in this press release by on-site inspection during drilling, brine sampling, and selection of RBRC samples; review of drill core photographs to verify lithology; review of certified assay certificates against the assay data base; review of pump test data; and review of RBRC results received from DBSA. There are no drilling, sampling, recovery or other factors that could materially affect the accuracy and reliability of the data.

ABOUT LSC LITHIUM CORPORATION:

LSC has amassed a large portfolio of prospective lithium rich salars in Northern Argentina. LSC's six flagship properties of Pozuelos, Pastos Grandes, Salinas Grandes (Salta), Salinas Grandes (Jujuy), Rio Grande and Jama are located in the "Lithium Triangle", an area at the intersection of Argentina, Bolivia and Chile where the world's most abundant lithium brine deposits are found. LSC holds a land package portfolio totaling approximately 300,000 hectares, which represents extensive lithium prospective salar holdings in Argentina.

Forward-Looking Statements

Certain statements contained in this news release constitute forward-looking information. These statements relate to future events or future performance, including statements as to the following: the timing and ability to complete further exploration work on Salar de Pozuelos, the timing of receiving assay data on the Salar de Pozuelos, completion of remaining drill holes on Salar de Pastos Grandes, the timing and ability to complete a NI 43-101 on Salar de Pastos Grandes, Salar de Rio Grande and Salar de Pozuelos, ability and timing to commence additional geophysical work on Salar de Jama, ability to twin selected drill holes on Salar de Rio Grande, ability and timing to rehabilitate drill and trench sites and resample wells and trenches on Salar de Salinas Grandes, ability and timing to adopt the current Orocobre NI 43-101 resource report on the Salar de Salinas Grandes, the timing for testing brines at Enirgi Group's Salar del Rinc??n demonstration plant, the definition of any mineral resources or mineral reserve estimates pursuant to NI 43-101 on our properties, the timing for potential future production at our properties, the use and application of Enirgi Group's Direct Xtraction Process Technology at our properties, completion of work programs on our properties, and the ongoing strategic relationship with Enirgi Group. The use of any of the words "could", "intend", "expect", "believe", "will", "projected", "estimated" and similar expressions and statements relating to matters that are not historical facts are intended to identify forward-looking information and are based on LSC's current belief or assumptions as to the outcome and timing of such future events. Whether actual results and developments will conform with LSC's expectations is subject to a number of risks and uncertainties including factors underlying management's assumptions, such as risks related to exploration and the establishment of resources and reserves on LSC properties; the application and future licensing of new technologies; the risksaround timing, permitting, funding and construction of a regional processing facility at the Salar del Rinc??n by Enirgi Group and the ability of LSC to fast-track production from its own properties by supplying brine to such a facility; risks relating to proposed acquisitions; volatility in lithium prices and the market for lithium; exchange rate fluctuations; volatility in LSC's share price; the requirement for significant additional funds for development that may not be available; changes in national and local government legislation, including permitting and licensing regimes and taxation policies and the enforcement thereof; regulatory, political or economic developments in Argentina or elsewhere; litigation; title, permit or license disputes related to interests on any of the properties in which the Company holds an interest; excessive cost escalation as well as development, permitting, infrastructure, operating or technical difficulties on any of the Company's properties; risks and hazards associated with the business of development and mining on any of the Company's properties.Actual future results may differ materially. The forward-looking information contained in this release is made as of the date hereof and LSC is not obligated to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by applicable securities laws. Because of the risks, uncertainties and assumptions contained herein, investors should not place undue reliance on forward-looking information. The foregoing statements expressly qualify any forward-looking information contained herein. For more information see the Company's filing statement on SEDAR at www.sedar.com.

Neither the TSX Venture Exchange Inc. 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.

The TSX Venture Exchange Inc. has neither approved nor disapproved the contents of this press release.

SOURCELSC Lithium Corporation

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