JV Article: Plateau Uranium Drills Unique and Large Lithium Target in Peru

Plateau Uranium Inc. (TSXV: PLU) is pursuing a drill campaign to define what it sees as potentially one of the world's largest non-brine lithium deposits in the Falchani target on its 100% owned Macusani lithium-uranium property in Puno, southern Peru.

The Toronto-based company commenced drilling its +2 sq. km Falchani target in October 2017, shortly after signing a first access agreement with the Chaccaconiza Community. By November it had some initial results.

The assays showed uranium down to 50 metres below surface level with twice the average grade of the company's preliminary economic assessment (PEA). However, the company says it was even more encouraged by a lithium intersection roughly 80 metres to depth and open for expansion at widths up to 60 metres, grading an average 3,500 parts per million (ppm) lithium.

"We then stepped out to a vertical hole about 350 metres away," Plateau Chairman Ian Stalker explains. "And we had one hallelujah intersection which we really think is the 'discovery hole' of 107 metres true width running at an average 3,500 ppm lithium."

As a result, Plateau's focus for the first half of 2018 is to continue drilling and have an updated National Instrument 43-101 compliant lithium resource estimate by May 2018. Drilling so far has focused on less than 15% of the company's total land package of 910 sq. km.

"It's one heck of a lithium deposit with a real cherry on the top of a very nice uranium project, quite separate from the lithium," Stalker says. "It's not intermingled. It's two separate deposits with both metals able to be mined separately."

Location map of Plateau Uranium Inc.’s Macusani uranium-lithium project in Peru. Map Credit: Plateau Uranium Inc.

The company currently has three drill rigs mobilized at Falchani and will drill from 12 platforms. The holes will be 200-250 metres deep. Ted O'Connor, Plateau CEO, says because the ellipsoid for the lithium rocks is so large, Plateau doesn't have to space its drill holes less than 150 to 200 metres apart.

"Once we establish that footprint through drilling, which won't happen overnight, our resource will be one of the largest non-brine lithium resources on the planet - and it's in unique rocks," O'Connor says.

Unlike most lithium deposits which are found in brine or pegmatite, Plateau's lithium is in volcanic rocks. As a result, the company says the lithium is easy to extract. It's working with ANSTO, the Australian Nuclear Science and Technology Organisation, to further optimize lithium extraction and remains hopeful the test work will demonstrate even better economics.

"All the indicators show that it shouldn't be a problem," Plateau President and COO Laurence Stefan says.

In 12 hours of continuous leaching, Plateau was able to extract up to 82% lithium in an open circuit sulphuric acid leach operating at 85 degrees Celsius.

In terms of infrastructure the company says it has a very positive starting point. The Trans-American highway is only 3 km from the project and a hydropower station lies 25 km away. It also has a power line that runs across its site with excess capacity that it could use.

Plateau Uranium was formed at the end of 2014 when Macusani Yellowcake and Azincourt Uranium merged after Azincourt sold its Peruvian portfolio to Macusani. Macusani then renamed itself Plateau Uranium in 2015.

Two years later the company tabled a strong PEA for the Macusani uranium project with initial capital expenditure pegged at less than US$300 million and an after tax net present value of US$603 million at an 8% discount rate.

The PEA includes a resource estimate of 95.2 million measured and indicated tonnes grading 0.546 lbs per tonne uranium for 51.9 million lbs uranium.

Outcrop at Plateau Uranium Inc.'s Falchani lithium target on its 100% owned Macusani uranium-lithium property in Puno, southern Peru. Photo Credit: Plateau Uranium Inc.

"We were happy, at that stage and had a very good uranium project on our hands , however, the fundamentals of the uranium market remained very negative after Fukashima," says Chairman Stalker. "We went looking internally and found an indication of lithium in some assays that had been taken by the two companies previously."

Plateau would go on to put out a NI 43-101 compliant lithium resource in 2016 of 52 million indicated tonnes grading 0.13% lithium for 67,000 tonnes lithium oxide and 88 million inferred tonnes grading 0.12% lithium for 109,000 tonnes lithium oxide contained entirely within the uranium deposits considered in the PEA.

But, Stalker says, Plateau "still wasn't a very exciting company" until it got access to Chaccaconiza and discovered Falchani.

While Plateau still envisions itself as a future uranium producer, it sees lithium as the more important element at this moment.

"We have to adapt to the market and the market today loves lithium," says Stefan. "I'm convinced the same market will love uranium in the near future."

Shares of Plateau Uranium are currently valued at 91 ? with a 52-week range of 90 ? to 96 ?. The company has a market capitalization of $59 million.

- The preceding Joint Venture Article is promoted content sponsored by Plateau Uranium Inc. and written in conjunction with The Northern Miner. Visit www.plateauuranium.com to learn more.