International Lithium and Ganfeng Lithium Approve $17M Budget for Mariana JV, Argentina
NEWS RELEASE
International Lithium and Ganfeng Lithium Approve $17M
Budget for Mariana JV, Argentina
Vancouver, B.C. January 8th, 2018 : International Lithium Corp. (the “ Company” or
“ILC”) (TSX VENTURE: ILC) is pleased to announce , together with joint venture partner
Mariana Lithium Co. Ltd . ((“MLC”), a subsidiary of Jiangxi Ganfeng Lithium Co. Ltd.
(“Ganfeng Lithium”)) the adoption of a 2018 budget for continued work at the Mariana
lithium brine project (“Mariana JV”) in Salta, Argentina, a joint venture between the two
companies. Current ownership of the project is through a joint venture company, Litio
Minera Argentina S. A., a private company registered in Argentina, ownership of which
will be 82.754% by Ganfeng Lithium and 17.246% by ILC. In addition, ILC has an option
to acquire 10% in the Mariana project through a back-in right.
Highlights of the US $17 million budget for 2018 include:
1. continued natural evaporation studies;
2. membrane separation studies;
3. aquifer characterization studies;
4. preliminary economic assessment (“PEA”); and
5. pre-feasibility studies (“PFS”).
On December 27, 2017 , ILC and MLC unanimously approved the budget for the 2018
calendar year for the Mariana JV. The budget calls for US $14,044,000 ( US
$17,343,517 including contingencies and administrative fees) to be invested in ongoing
exploration and evaluation work inclu ding continuing studies that will be used to
formulate a basis for a PEA, which is expected to be completed in the first half of 2018.
The results of the PEA will be used to determine the course of action for pre -feasibility
studies expected to be conducted throughout the remainder of the year.
Membrane Separation Studies
An important component for ILC in the ensuing budget is the allocation of US $400,000
that will be applied to the continuation of membrane separation studies. In a news
release dated September 5, 2017 , the Company reported the results of a proof of
concept study that utilized membrane technology to successfully liberate lithium from
the raw brine without the need for pre-concentration or any other special treatment. The
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study showed that the resultant retentate from the membrane separation could be
directly converted to hydrated lithium hydroxide making for a more refined end product
at the mine site.
The proof of concept study was conducted utilizing (filtered) raw brine from the Salar de
Llullaillaco, the location of the Mariana JV. Results from the study indicate that the
selective recovery of lithium directly from raw (filtered) brine, with the simultaneous
rejection of other cation and anion species, using a proprietary lithium selective
separation process (the “technology”) is possible. Lithium wa s selectively recovered
from the raw brine to produce lithium hydroxide (“LiOH”), an ingredient used directly in
lithium battery manufacturing, as a final product.
Summary of Study Results:
The use of the technology presents a possible alternative to the natural
evaporation process currently proposed at the Mariana JV.
The technology could provide a process route to produce lithium hydroxide
directly from the raw brine without the need to rem ove contaminants like
magnesium by liming, as would be required in the natural evaporation process.
Based on initial estimates, the technology can achieve higher recoveries than
natural evaporation even with relatively low concentrations of lithium.*
Use o f the technology has the potential to enable a considerable increase in
production rate compared to evaporative ponds. Lithium is directly removed from
the brine and the (spent) brine can be returned to the basin with little effect on the
water balance.*
With further refining, the technology could also permit the recovery of potassium
and other cations if desired.
* At present, the Mariana JV partners have not conducted any formal economic
analyses on the project. Statements regarding comparisons of recove ries are based on
initial bench scale tests for the natural evaporation process and for the selective
membrane technology. Additional testing and scaling up of the process is required
before any definitive statements regarding recoveries can be made, and p rojected
capital and operating costs can be effectively modeled and compared. The information
provided herein is to provide a minimum level of confidence that the selective
membrane method presents a possible alternative to the natural evaporation method of
lithium extraction from the brine and further study is warran ted based on these results.
The “Study” is not a preliminary economic assessment, preliminary feasibility study or
feasibility study. Any economic analysis would have to be supported by a preliminary
economic assessment, preliminary feasibility study or f easibility study. The reader is
cautioned that the Mariana project is still at an exploration stage and there is no
guarantee that an economic mining scenario will result and no mineral reserves have
yet to be defined as per the standards of disclosure def ined in National Instrument 43 -
101 Standards of Disclosure for Mineral Projects.
Ganfeng Lithium have agreed to investigate this membrane process and through its
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majority interest in the project , have indicated that they will carry out the next stage of
membrane tests at their facilities in China. ILC is confident that the membrane process
will be a key technological advent to create additional value for the Mariana JV, as the
original plan to use natural evaporation to create a brine concentrate for expor t is
expected to require further time and resources to achieve definitive test results that will
be necessary for the anticipated upcoming preliminary feasibility studies.
Ongoing Activities
Crews are currently on site and preparing for the continuation of activities such as
exploratory geophysics for freshwater resources and high-volume, long -term pumping
tests to quantify the aquifer’s specific yield capacity.
“We welcome very positive developments at the Mariana JV with our partner Ganfeng
Lithium,” commented Kirill Klip, Executive Chairman of ILC . “This comprehensive
budget for 2018 is expected to bring the Mariana JV to important valuation milestones
for the Company; preliminary economic assessment and pre-feasibility studies. We are
looking forward to the confirmation that membrane technology provided by Ganfeng
Lithium will allow our joint venture operation to produce lithium hydroxide in Argentina.”
Afzaal Pirzada, P.Geo., a “Qualified Person” for the purposes of National Instrument 43-
101 - Standards of Disclosure for Mineral Projects , ha s reviewed and approved the
scientific and technical information contained in this news release.
About International Lithium Corp.
International Lithium Corp. has a significant portfolio of projects, strong management,
robust financial support, and a strategic partner and keystone investor, Jiangxi Ganfeng
Lithium Co. Ltd., (“Ganfeng Lithium”) a leading China -based lithium product
manufacturer.
The Company’s primary focus is the strategic stake in the Mariana lithium -potash brine
project located 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 evaporite basin, totaling 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 Argentina, owne rship of which will be
revised to 82.754% by Ganfeng Lithium and 17.246% by ILC in early 2018. In addition,
ILC has an option to acquire 10% in the Mariana project through a back-in right.
Complementing the Company’s lithium brine project are three rare metals pegmatite
properties in Cana da known as the Mavis, Raleigh, and Forgan projects, and the
Avalonia project in Ireland, which encompasses an exte nsive 50km-long pegmatite belt.
The Avalonia project is under option to strategic partner Ganfeng Lithium that currently
owns 55% of the proj ect. The Mavis and Raleigh projects are under option to strategic
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partner Pioneer Resources Limited (ASX : PIO) pursuant to which Pioneer can acquire
up to a 51% interest in the projects.
The Mavis, Raleigh and Forgan projects together form the basis of th e Company’s
Upper Canada Lithium Pool designated to focus on acquiring numerous prospects with
previously reported high concentrations of lithium in close proximity to existing
infrastructure.
With the increasing demand for high tech rechargeable batterie s 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
Executive Chairman
www.internationallithium.com
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 contains certain “forward -
looking information” within the meaning of applicable securities law. Forward -looking
information or forward -looking statements in this news release include: the timing a nd
anticipated results of environmental impact studies and pump tests, timing of
preliminary economic studies on the Mariana project, the expectation of feasibility
studies, lithium recoveries, modeling of capital and operating costs, results of studies
utilizing membrane technology , and continued agreement between the Company and
Jiangxi Ganfeng Lithium Co. Ltd. regarding the Company’s percentage interest in the
Mariana project. Such forward-looking information is based on a number of assumptions
and su bject to a variety of risks and uncertainties, including but not limited to those
discussed in the sections entitled “Risks” and “Forward -Looking Statements” in the
interim and annual Management’s Discussion and Analysis which are available at
www.sedar.com. While management believes that the assumptions made are
reasonable, there can be no assurance that forward -looking statements will prove to be
accurate. Should one or more of the risks, uncertainties or other factors materialize, or
should underlying as sumptions prove incorrect, actual results may vary materially from
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those described in forward-looking information. Forward-looking information herein, and
all subsequent written and oral forward -looking information are based on expectations,
estimates and opinions of management on the dates they are made that, while
considered reasonable by the Company as of the time of such statements, are subject
to significant business, economic and competitive uncertainties and contingencies.
These estimates and assumptions may prove to be incorrect and are expressly qualified
in their entirety by this cautionary statement. Except as required by law, the Company
assumes no obligation to update forward -looking information should circumstances or
management’s estimates or opinions change.