Lithium Americas Provides Update on the Lithium Nevada Project
October 23, 2017
Lithium Americas Provides Update on the Lithium Nevada Project
Highlights:
Assembled a strong technical team with experience in the lithium industry, project
engineering and geology.
Advancing a scalable process to produce lithium hydroxide from lithium-bearing
claystone.
Conducting an exploration program with the objective of expanding and upgrading
the existing NI 43-101 compliant resource.
Engaged WorleyParsons to complete a NI 43-101 Preliminary Feasibility Study (PFS)
by the end of Q2 2018.
Approved budget of US$10.5 million through to 2018 for the 100%-owned Lithium
Nevada Project.
Examining future strategic partnership/financing alternatives to collaborate and
develop the Lithium Nevada Project.
Vancouver, Canada: Lithium Americas Corp. (TSX: LAC) (OTCQX: LACDF) ("Lithium
Americas" or the "Company") is pleased to provide an update on the Lithium Nevada Project
(the “Lithium Nevada Project”) located in Nevada, USA. The Company is developing the 100%
owned Lithium Nevada Project, a clay-based lithium resource in the McDermitt Caldera, through
its wholly owned subsidiary, Lithium Nevada Corp. (“Lithium Nevada”). Building on years of
exploration and testing, a Preliminary Feasibility Study (the “PFS”) on the Lithium Nevada
Project is expected to be complete by the end of Q2 2018 to demonstrate the economic
potential of producing lithium hydroxide from lithium-bearing claystone.
Technical Team:
Lithium Americas has assembled a technical team that includes engineering alumni from
several major industry participants, in addition to highly trained and experienced mining permit
specialists and exploration and mining geologists.
To manage the Lithium Nevada Project’s development, Lithium Americas has appointed Alexi
Zawadzki as the President of North American Operations who will work alongside Dr. David
Deak, President of Lithium Nevada and Chief Technical Officer of Lithium Americas. Alexi has
over 20 years of experience developing and constructing mining and energy projects across
North and South America, in addition to the management of technical teams and business units.
“Supported by one of the strongest technical teams in the industry, we intend to develop the
Lithium Nevada Project into a globally significant source of lithium,” commented Alexi
Zawadzki. “Following the success of our partnership strategy with the Cauchari-Olaroz project in
Argentina, we will continue to explore additional partnership opportunities for the Lithium
Nevada Project with the goal of accelerating the timeline and lowering the development risk.”
Dr. David Deak added, “with considerable work invested in resource definition and process
technology, we believe the Lithium Nevada Project has the potential to be a leading low-cost
and large-scale source of lithium products in North America.”
Current members of the Reno-based Lithium Nevada Project team include:
Dr. David Deak, DPhil – President of Lithium Nevada and CTO of Lithium Americas – has
built his career on emerging technologies and supply chain development in renewable
energy, energy storage, and electric vehicles. David’s responsibilities include oversight of
the overall development of Lithium Nevada.
Dr. Rene LeBlanc, PhD – Senior Process Development Manager – over 10 years of
experience as a senior process development engineer at FMC Corporation’s lithium division
in Bessemer City, North Carolina and most recently at Tesla, Inc. Rene is focused on
flowsheet development and overall management of the PFS.
Mr. Doug Morgan – Senior Process Engineer - over 30 years of experience in various
chemical engineering roles, including six years as senior engineer at Rockwood Lithium
(now Albemarle Corporation) based in Silver Peak, Nevada. Doug’s focus is on process
technology development, testing, and flowsheet validation.
Ms. Catherine Clark – Environmental Director - over 30 years of experience in project
management and development, and environmental regulatory compliance. Catherine serves
as the Environmental Committee Chairperson at the Nevada Mining Association and is
focused on accelerating the permitting process for the Lithium Nevada Project.
Mr. Randal Burns – Senior Mining Geologist - over 10 years of experience in mining
geology, including resource drilling, metallurgical testing an d ore control for a highly clay -
altered porphyry copper deposit, at Robinson Nevada Mining Co . in Nevada. Randal is
focused on exploration, resource expansion, and block modeling.
Mr. Chaitanya Sharma, PE – Senior Systems Engineer - energy and mechanical engineer
with experience in battery manufacturing and plant design, including a leadership role in
designing the mechanical and process systems at Tesla, Inc.’s Gigafactory in Nevada.
Chaitanya’s role is to optimize mine site mechanical and energy systems, with a focus on
energy efficiency, reduction, and recovery.
Ms. Melissa Boerst – Exploration Geologist - analytical geochemistry and QA/QC. Melissa
leverages her years of experience in managing analytical laboratories and mine site
exploration to maintain quality on our exploration program.
Dr. Thomas Benson, PhD – Geologist / Volcanologist Advisor - recently joined Lithium
Nevada having been awarded a PhD from Stanford University where he specialized in
lithium-bearing clay exploration from super-volcanoes. Tom brings a highly-specialized skill
set that will assist in potentially expanding the resource at the Lithium Nevada Project and in
identifying new exploration targets.
Processing:
The Lithium Nevada Project is advancing a process technology with the objective to produce
battery-grade lithium hydroxide from claystone. The flowsheet is designed to: (1) use leaching
to liberate lithium from the ore, and (2) apply proven purification technology to produce high-
quality lithium compounds. Leaching is believed to be advantageous when compared to
previously considered processes as it avoids energy-intensive roasting, significantly reduces
tailings volume, and maximizes the recovery of lithium through commercially-viable process
technology.
Test work is underway at a leading lithium manufacturing facility using a combination of
laboratory and existing commercial production equipment. This strategic and cost-effective
approach is targeted to advance the testing process towards final design and provides options
for future strategic partnerships.
Ongoing process test work is currently focused on refinement of the following aspects of the
flowsheet:
the characterization and beneficiation of ore;
optimizing leaching and recovery conditions of lithium from claystone; and
purification and production of high-value lithium compounds.
“The process has been designed by challenging prior assumptions and leveraging commercially
viable technologies. Our efforts are squarely focused on minimizing the cost,” remarked Dr.
Deak. “While proprietary, much of our work relies on the application of commercially available
solutions that could be deployed quickly and reliably. Recognizing market need, our process is
designed to produce lithium hydroxide, the preferred feedstock for high energy density lithium-
ion batteries.”
Drill Program and Resource:
The Lithium Nevada Project’s lithium clay resource is the largest known lithium resource in the
United States, and is unconfined by drilling. An exploration program commenced in 2017 at the
Lithium Nevada Project (the “2017 Exploration Program”) consisting of drilling and seismic
work. The purpose of the 2017 Exploration Program is to: (1) increase the confidence of the
identified resource, (2) potentially expand the size of the resource, and (3) better understand
areas that are unconfined by drilling.
A total of 70 drill targets have been strategically located within, and to the south and to the east,
of the Lithium Nevada Project’s Zone 1 (previously referred to as Stage 1 in the Company’s
June, 2016 technical report entitled “Independent Technical Report for the Lithium Nevada
Property, Nevada, USA”), where some of the most highly-concentrated lithium clays in North
America have been discovered. The 2017 Exploration Program is fully permitted, approximately
65% complete, and is expected to be concluded by early 2018.
Seismic work was completed in 2017 and will be analyzed with the drilling data obtained from
the 2017 Exploration Program to better understand the geological structures in areas
unconfined by drilling to the east of Zone 1 of the Lithium Nevada Project. Additional seismic
exploration is anticipated to be conducted in 2018.
The resource at the Lithium Nevada Project is near-surface and in some areas the overburden
consists of hectorite clay, which has commercial value in other industries. Due to the soft
nature of the claystone, conventional open pit mining using truck and shovel methods is
contemplated with blasting not considered a requirement for day-to-day operations.
Mineral Resource Statement for Zone 1 (as of May 31, 2016)(1)(2)
Category Tonnage
(000 t)
Avg. Li
(ppm)
Avg. Li
(%)
Avg.
Li2O
(%)
LCE
(000 tonnes)
Measured 50,753 3,120 0.312 0.67 843
Indicated 164,046 2,850 0.285 0.61 2,489
Measured and
Indicated
214,799 2,910 0.291 0.624 3,332
Inferred 124,890 2,940 0.294 0.63 1,954
Notes:
1. Mineral resources are not mineral reserves and do not have demonstrated economic viability. There is no certainty that all or any
part of the mineral resource will be converted into mineral reserves.
2. Resources presented at a Li% 0.20 [0.431 % Li2O] cut-off grade which was determined using the following economic
assumptions: US$3.36 Li carbonate/lb; 87.2% metallurgical recovery; US$66/tonne ore processed; US$2.75/tonne material moved
Preliminary Feasibility Study:
Lithium Nevada is in the process of completing a PFS compliant with National Instrument 43-
101 – Standards of Disclosure for Mineral Projects (“NI 43-101”) to demonstrate the economic
potential of extracting lithium hydroxide from claystone. The PFS is expected to be completed
by the end of Q2 2018.
The Advisian WorleyParsons Group (“WorleyParsons”) has been appointed to lead the PFS
and project design. WorleyParsons is a global full-service engineering firm with extensive
experience in lithium project design, construction, and preparing NI 43-101 compliant reports.
WorleyParsons will focus on project infrastructure, mineral processing and metallurgical testing,
capital and operating costs and project economics. Mining Plus Pty Ltd., a sub-contractor to
WorleyParsons, will focus on potential mineral reserve estimates and mining methods. Mining
Plus is a fully integrated global mining consultancy that has experience in open pit mining,
including the development and operation of large-scale lithium mining projects in Australia.
Permitting and Conservation:
Lithium Nevada is fully-permitted to complete the 2017 Exploration Program. Additional baseline
environmental surveys are expected to begin in early 2018 with the major mine plan permit
application expected to be initiated in H2 2018.
Lithium Nevada has existing fully-certificated water rights within the Quinn River Valley (located
25 km east of the proposed mine site at the Lithium Nevada Project) totalling approximately
1,000 acre-feet annually, which is expected to be sufficient for a large-scale lithium mine and
processing facility.
Consistent with Lithium Americas’ focus on environmental sustainability, Lithium Nevada and
the University of Nevada, Reno (“UNR”) have founded the Rangeland Rehabilitation Research
Fund (the “Fund”). The Fund’s mission is to improve sagebrush habitat through effective habitat
rehabilitation methods. The Fund will be administered by UNR. Lithium Nevada is providing the
seed financing to kick-start the long-term initiative and is entitled to one nominee on Fund's
board of directors. It is expected that other industry partners will participate and expand the
research program. More details can be found at https://www.unr.edu/cabnr/gbsr-fund.
Anticipated Work Program and Timeline:
Q4 2017 / Q1 2018 – complete 2017 Exploration Program.
Q1 2018 – finalize process testing.
Q1 2018 – advance additional baseline environmental surveys.
Q2 2018 – complete PFS, including updated resource and reserve estimates.
H2 2018 – initiate major mine plan permitting.
H2 2018 – commence detailed engineering.
Lithium Americas’ Board of Directors have approved a budget of US$10.5 million to fund the
Lithium Nevada Project through to 2018. In addition, the Company is examining future strategic
partnership/financing alternatives to collaborate and develop the Lithium Nevada Project.
Qualified Person:
The scientific and technical information in this news release has been reviewed and approved
by Dr. Rene LeBlanc, a Qualified Person for purposes of NI 43-101. Dr. LeBlanc is Lithium
Nevada’s Senior Process Development Manager. Information on the Zone 1 Mineral Resource
Estimate (MRE) has been reviewed and approved by Mr. Tim Carew, P.Geo., a qualified person
for purposes of NI 43-10. Information on data verification performed on the mineral properties
mentioned in this news release that are considered to be material mineral properties to the
Company, as well as on known risks that could affect the potential development of such
properties, is contained in Lithium Americas’ most recently filed annual information form and the
current technical report for each of those properties, all available at www.sedar.com.
About Lithium Americas
Lithium Americas, together with its joint venture partner, Sociedad Quimica y Minera de Chile
S.A., is developing the Cauchari-Olaroz lithium project, located in Jujuy, Argentina, through its
50% interest in Minera Exar S.A. In addition, Lithium Americas owns 100% of the Lithium
Nevada Project, and 100% of RheoMinerals Inc., a supplier of rheology modifiers for oil-based
drilling fluids, coatings, and specialty chemicals.
For further information contact:
Lithium Americas Corp.
Investor Relations
Suite 1100 – 355 Burrard Street
Vancouver, BC, V6C 2G8
Telephone: 778-656-5820
Email: [email protected]
Website: www.lithiumamericas.com
Forward-looking information
This press release contains “forward-looking information” under the provisions of applicable
Canadian securities legislation, concerning the business, operations and financial performance
and condition of Lithium Americas. Such forward-looking information is subject to various risks
and uncertainties concerning the specific factors disclosed here and elsewhere in the
Company's periodic filings with Canadian securities regulators. Forward-looking information in
this news release includes, but is not limited to, statements with respect to: the timing and
results of the 2017 Exploration Program, including the drilling program on Zone 1, the timing
and results of updated mineral resource and reserve estimates, the timing and amount of future
production and exploration, success of exploration and drilling programs, permitting timelines,
results of analysis on an updated flow-sheet for the Lithium Nevada Project, timing and results
of the new exploration targets or expansion of resources at the Lithium Nevada Project, targeted
cost minimization plans, timing and results of the Company’s seismic exploration activities, the
Company’s proposed mining methods, timing and results of the PFS and any baseline
environmental surveys, the potential to raise additional financing or secure a strategic partner
for the Lithium Nevada Project. Generally, this forward-looking information can be identified by
the use of forward-looking terminology such as “intends”, “targets”, “expects”, “estimates”,
“schedules”, “potential”, “plans”, “anticipates”, “believes”, “objectives”, “goals”, “contemplates”,
or variations or comparable language of such words and phrases, or statements that certain
actions, events or results “may”, “could”, “would”, “should”, “might” or “will be taken”, “occur” or
“be achieved” or the negative connotation thereof. Information provided in this document is
necessarily summarized and may not contain all available material information.
All such forward-looking information and statements are based on certain assumptions and
analyses made by Lithium Americas management in light of its experience and perception of
historical trends, current conditions and expected future developments, as well as other factors
management believes are appropriate in the circumstances that, if untrue, could cause the
actual results, performances or achievements of Lithium Americas to be materially different from
future results, performances or achievements expressed or implied by such statements.
Forward looking information is subject to a variety of risks and uncertainties and other factors
that could cause actual events or results to differ materially from those projected in the forward-
looking information or statements, including, but not limited to: risks related to international
operations, including economic and political instability in foreign jurisdictions in which Lithium
Americas operates; risks related to current global financial conditions; risks related to joint
venture operations; actual results of current exploration activities; environmental risks;
conclusions of economic evaluations; changes in project parameters as plans continue to be
refined; future prices of lithium; failure of plant, equipment or processes to operate as
anticipated; mine development and operating risks; accidents, labour disputes and other risks of
the mining industry; delays in obtaining government approvals or financing, as well as those
factors discussed in the section entitled "Risks Factors" in Lithium Americas’ most recently filed
Annual Information Form and other continuous disclosure filings available on SEDAR at
www.sedar.com. Although Lithium Americas has attempted to identify important factors that
could cause actual results to differ materially from those contained in forward-looking
statements, there may be other factors that cause results not to be as anticipated, estimated or
intended. There can be no assurance that such statements will prove to be accurate, as actual
results and future events could differ materially from those anticipated in such statements
Forward-looking statements are made as of the date hereof and the Company does not intend,
and expressly disclaims any obligation to, update or revise the forward-looking information
contained in this news release, except as required by law. Accordingly, readers are cautioned
not to place undue reliance on forward-looking information or statements.