International Lithium And Ganfeng Lithium Announce Maiden Resource Estimate at the Mariana Lithium Brine Project, Argentina
International Lithium And Ganfeng Lithium Announce
Maiden Resource Estimate at the Mariana Lithium Brine
Project, Argentina
Vancouver, B.C. March 8 , 2017: International Lithium Corp. (the “ Company” or “ILC”)
(TSX VENTURE: ILC.V) is pleased to announce , with strategic partner Ganfeng Lithium
Co. Lt d., (“GFL”) and together the “Companies” , a maiden resource estimate for the
Mariana lithium brine project (the “Project”) located in Salta, Argentina.
Summary
ILC requested Geos Mining Minerals C onsultants (“Geos”) based in Sydney, Australia
to prepare an independent lithium brine resource estimate for the Co mpanies’ Mariana
lithium brine deposit in Argentina and compile a report (the “Report”) consisten t with the
standards and guidelines set out by the Canadian Institute of Mining, Metallu rgy and
Petroleum (“CIM”) and to prepare a Technical Report, in accordance with National
Instrument 43 -101 - Standards of Disclosure for Mineral Projects (the “NI 43 -101
Technical Report”), including a resource estimate.
In preparing the R eport, Geos took into account and applied processes which Geos
determined to be appropriate for brine style deposits. The Report also adheres to the
Joint Ore Resources Code JORC (2012) for mineral projects. The NI 43-101 Technical
Report will be available on SEDAR within 45 days. The effective date for the resource
estimation is January 20, 2017, which represents the date of the most re cent data that
supports the brine estimate and this Report.
Report highlights - Mariana lithium brine project in Argentina
The following highlights taken from the Report, and set out below, should be considered
in the context of the detailed information provided.
Indicated resource for Resource Area 1 contains an estimated 747,000 tonnes of
lithium carbonate equivalent (LCE).
The indicated r esource for Resource Area 1 is estimated at 765 billion litres of
brine grading 306 mg/L lithium (“Li”) and 9,457 mg/L potassium (“K”).
1111 Melville Street, Suite 1100
Vancouver, British Columbia
V6E 3V6, Canada
T: 604-700-8912
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Based on drill info rmation, the brines within the p roject area are interpreted t o
cover an area of about 135 square kilometres and extend from depths o f about
0.5 m to at least 329 m.
The preliminary estimates for lithium brine are in the upper end of the Companies’
expectations, very much validating the Companies’ investment policy.
Further details from the Report
Brine deposits are unlike the majority of mineral deposits in that th ey are fluid. Fluids
within a brine deposit can move, and can mix with adjacent fluids when exploitation of a
brine deposit begins. Evaluation of such deposits therefore requires special
considerations that are not, in general, applied to other styles of mineral deposits.
Determination of a brine resource is based on the geometry of the host aquifer or
aquifers, the specific yield, and the grade or concentration of the economically
significant elements dissolved in the brine.
To determine recoverable brine indicated mineral r esources, the permeability of the
aquifer, the specific yield of the aquifer (the unit volume of fluid that will drain under
gravity) and the water balance (the fluid inputs and outputs to the aquifer) must be
considered. At a cons ervative specific yield of 15% (based on the available porosity
data) the indicated m ineral r esource for Resource Area 1 is estimated at 765 billion
litres of brine grading 306 mg/L Li and 9,457 mg/L K, Table 1.
The Companies caution the reader that no ec onomic studies have been carried out on
the Project. Mineral resources are not mineral reserves as defined by the CIM and the
Companies cannot guarantee that the resources reported here will be converted to
mineral reserves.
For the indicated resource, to tal contained lithium amounts to 747,000 tonne s of lithium
carbonate equivalent (“LCE”). The Companies are currently conducting water balance
and natural evaporation bri ne concentration studies to determine a target rate of
production as a goal for the upcoming feasibility studies.
Table 1: Total indicated resource
Indicated
Resource
Volume
Mm3
Volume
G L
Density
g/mL
Li
mg/L
B
mg/L
K
mg/L
SO4
-2
mg/L
Mg
mg/L
HCO3
mg/L
LCE
K t
Resource
Area 1 765 765 1.218 306 599 9,457 15,530 4,291 529 747
Total
Indicated 765 765 1.218 306 599 9,457 15,530 4,291 529 747
The goal of the resource calculation was to verify that sufficient litihium resources are
present in Sala r de Llullaillaco to continue wi th the economic evaluation of the project.
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The results show that there is sufficient resource and Llullaillaco can now be added to
the list of salars in Argentina that are undergoing economic analysis for a possible
mining operation.
ILC has completed four drilling campaigns on the Project since 2009: 10 rev erse
circulation (RC) holes and 13 cored holes. A total of 2,880 m were drilled on the Project
during the last 10 months. A final campaign hole , MA16-24, was being completed at the
time of this Report. Geophysical surveys were conducted down hole for the completed
drill holes using an electrical probe. Resistivity and spontaneous potential were
measured. As part of a bulk extraction of lithium from brine bulk testwork, conducted by
GFL, undertaken in 2015 a pumping well, MA15 -09-PW, and 2 monitoring wells, MA15-
08-MW, MA15 -10-MW, were drilled and constructed. Drill hole MA12 -07 was
refurbished and used as a third monitoring well. The drilling and hydrogeological data
indicates that the Mariana Project at Salar de Llullaillaco is a brine -bearing sedimentary
filled basin complex with unconfined interconnected aquifer to considerable depth of
328m and possibly deeper. Geos, based on the preliminary drill information, recognised
eight lithological classes that are able to be identified in the drill hole cores, shown in the
west, east and southern extents of the basin. The aquifer volume is still open at depth in
the majority of the salar since only two drill holes (MA16 -23 and MA16-18) potentially
intercepted suspected basement Mesozoic volcanic lithologies.
Sampling and sample handling procedures observed by Geos during site visits were
excellent. Sample containers and sampling equipment were rinsed prior to collecting the
samples; bottles were rinsed with brine, then filled to overflowing before capping to
exclude air, labelled with a unique sample number and sealed for transportation to the
laboratories. Prior to capping and sealing one sample was tested on site by
geotechnician for pH, brine density, temperature, turbidity, Eh, and electrical
conductivity. A ll measurements used appropriate industry standard meters and were
conducted to manufacturer’s specifications and industry accepted practice. Samples
were assayed for, Li, Mg, K, Ba, B, Ca, Fe, SO4 -2, Na, Cl, and Sr using industry
standard trace inductively-coupled plasma (ICP) methods and to the standard operating
procedures. Analytical quality was monitored through the use of blanks (barren
commercial mineral water), duplicate (repeat) field samples, a check sample of local
potable spring water of distinct different chemistry, and standard reference material
(SRM) were inserted into the sample stream as submitted to the analytical laboratory.
The samples were packaged and sent to either the ASA Chemex Group Environmental
Division Laboratory (ASA), or SGS which are independent of the Companies . Both
laboratories are in Argentina and are ISO 9001:2000 -certified. During site visits, Geos
verified the information and data supplied by the Companies and found it to the industry
standard.
The initial br ine resource estimate for the Project is based on limited knowledge of the
geometry of individual aquifer units between broadly spaced drill holes, and the
variation in porosity and brine grade within these aquifers. Specific yield values are
based on poro sity test results from a restricted sample population and compared with
data from analogous salars in the region and technical references. In order to assess
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the recoverable brine resource with a higher level of confidence, further information on
the permeability and flow regime in the aquifer, and watershed basin water balance are
necessary.
Corporate Update
As stated in its news release of February 9th, ILC is continuing its comprehensive review
of all its operations and will focus on the advancement of the Mariana lithium b rine
project in Argentina and the Avalonia lithium p egmatite project in Ireland , together with
strategic partner Ganfeng Lithium Co. Ltd. , in a manner that best suits the interests of
both parties. As these projects progress it has be come important to identify the most
effective structure in which to move these projects forward and this is expected to affect
the individual responsibilities of both parties to the joint ventures. This matter is still
under consideration with increased pr oductivity and efficiency being the object of any
restructure of responsibilities between GFL and ILC.
The restructure of responsibilities may result in the transfer of responsibilities of project
manager of the Mariana joint venture from ILC to GFL but this would only affect its
administrative responsibilities and not its share in the investment. Under this scenario,
ILC would no longer receive management fees for the joint ventures but the effect would
be offset by administrative savings consequent on ILC no longer fulfilling the project
management responsibilities.
Kirill Klip, Executive Chairman of ILC stated, “I am very pleased that as part of our
successful strategic transiti on at Internat ional Lithi um we are announcing a maiden
resource estimation of our main project in Argentina , the Mariana lithium potash b rine
project, together with our strategic partner Ganfeng Lithium. Now we are working on the
clear, transparent and most cost effici ent structure to advance our joint ventures with
Ganfeng in order to ensure the rapid advancement of the projects.”
The following Qualified Person(s) (QP’s) are responsible for preparation of the Report:
• Llyle Sawyer, Senior Consultant, Geos Mining; and
• Oliver Willetts. Senior Resource Geologist, Geos Mining.
Llyle Sawyer is a senior geological consultant with over 20 years of experience in
geology, mineral exploration, mineral resource estimation and mineral project
assessment. He is a Registered Professional and is currently a Member of the Australia
Institute of Geoscientists (member number 3512). Llyle Sawyer is an independent
technical consultant contracted by Geos Mining and has worked on similar lithium brine
salar deposits in Argentina and other brine style deposits within Aust ralia. He has the
required level of experience and expertise to qualify as a Qualified Person (QP) as
defined in the National Instrument 43-101 - Standards of Disclosure for Mineral Projects,
Form 43-101F1 Technical Report and related consequential amendments.
Mr. Sawyer is independent of Litio Minera Argentina S.A. (and International Lithium
Corp.) as independence is described by Section 1.4 of NI 43 –101. He has visited the
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Mariana Project on 4 occasions during drilling operations since May 2016. Mr. Sawyer
has been involved with the Project since August 2010 in the form of ongoing advice
upon request, discussion of exploration programs and during preparation of the brine
resource estimate and the Report.
Geos Mining is a n independent consulting firm recognized for providing expertise in
geological, mineral exploration, resource modelling, and mining advice; as specialists in
the fields of geology, exploration, mineral resource and mineral reserve estimation and
classification, and project valuation. Litio Minera Argentina S. A. (the joint venture
company formed by the Companies to advance the Mariana project in Argentina, “LMA”)
have continued to engage Geos Mining to prepare this independent preliminary
resource report for the Project.
Oliver Willetts is a senior resource geologist with over 9 years of experience in geology,
mineral exploration, mineral resource estimation and mineral project assessment. He is
a Registered Professional and is currently a Member of the Australasian Insti tute of
Mining and Metallurgy (member number 312940). Mr. Willetts is an independent
technical consultant contracted by Geos Mining and has worked on resource estimation
for a variety of minerals (phosphate, potash (from brines), gold, coal, base metals)
within Australia, Africa and South America.
Afzaal Pirzada, Geological Consultant of the Company, and a “Qualified Person” for the
purposes of National Instrument 43 -101-Standards of Disclosure for Mineral Projects of
the Canadian Securities Administrato rs, has reviewed and approved the scientific and
technical information contained in this news release.
About International Lithium Corp.
International Lithium Corp. is an exploration company with an outstanding portfolio of
projects, strong management, robust financial support, and a strategic partner and
keystone investor Ganfeng Lithium Co. Ltd., a leading China based lithium product
manufacturer.
The Company’s primary focus is the strate gic stake in the Mariana lithium -potash brine
project, a joint venture with Ganfeng Lithium Co. Ltd. within the renowned South
American “Lithium Belt” that is the host to the vast majority of global lithium resources,
reserves and production. The Mariana project strategically encompasses an entire
mineral rich evapora te basin, totalling 160 square kilometres, that ranks as one of the
more prospective salars or ‘salt lakes’ in the region. Current ownership of the project is
through a joint venture company, Litio Minera Argentina S. A. , a private company
registered in Ar gentina, owned 80% by GFL and 20% by ILC. In addition, ILC has an
option to acquire 10% in the project through a back-in right.
Complementing the Company’s lithium brine project are three rare metals pegmatite
properties in Canada known as the Mavis, Raleigh, and Forgan projects, and the
Avalonia project in Ireland, which encompasses an extensive 50km -long pegmatite
belt. The Avalonia project is under option to strategic partner GFL that currently owns
55% of the project. T he Mavis and Raleigh projects are under option to strategic
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partner, Pioneer Resources Limited (ASX:PIO) pursuant to which Pioneer is in the
process of acquiring a 51% interest in the projects.
The Mavis, Raleigh and Forgan projects together form the basis of the Company’s
newly created Upper Canada Lithium Pool designated to focus on acquiring numerous
prospects with previously reported high concentrations of li thium in close proximity to
existing infrastructure.
With the increasing demand for high tech rechargeable batteries used in vehicle
propulsion technologies and portable electronics, lithium is paramount to tomorrow’s
“green-tech”, sustainable economy. By positioning itself with solid strategic partners and
acquiring high quality assets for the Energy rEVolution supply chain, ILC aims to be the
partner of choice for investors in green -tech and to continue to build value for its
shareholders.
On behalf of the Board of Directors,
Kirill Klip
Chairman, President and CEO, International Lithium Corp.
For further information concerning this news release please contact +1 604-700-8912
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.
Cautionary Statement Regarding Forward-Looking Information
Except for statements of historical fact, this news release conta ins certain “forward -
looking information” within the meaning of applicable securities law. Forward -looking
information is frequently characterized by words such as “plan”, “expect”, “project”,
“intend”, “believe”, “anticipate”, “estimate”, “will”, “could” and other similar words, or
statements that certain events or conditions “may” or “could” occur. Such forward -
looking information is based on a number of assumptions and subject to a variety of
risks and uncertainties, including but not limited to those di scussed in the sections
entitled “Forward -Looking Statements” in the interim and annual Management’s
Discussion and Analysis which are available at www.sedar.com. While our management
believes that the assumptions made are reasonable, should one or more of the risks,
uncertainties or other factors materialize, or should underlying assumptions prove
incorrect, actual results may vary materially from those described in forward -looking
information. Forward -looking information herein, and all subsequent written and oral
forward-looking information are based on estimates and opinions of management on the
dates they are made and are expressly qualified in their entirety by this cautionary
statement. Except as required by law, the Company assumes no obligation to u pdate
forward-looking information should circumstances or management’s estimates or
opinions change.