Lithium Chile Announces 300 Mg/L Lithium ON New Arizaro Exploration Well, Commencement of Pre-Feasibility Study and Operational Update
LITHIUM CHILE ANNOUNCES 300 MG/L LITHIUM ON NEW ARIZARO
EXPLORATION WELL, COMMENCEMENT OF PRE-FEASIBILITY STUDY AND
OPERATIONAL UPDATE
TSX Venture Exchange: LITH For Immediate Release
OTC-QB: LTMCF
CALGARY, ALBERTA, October 17, 2023 – Lithium Chile Inc. (“Lithium Chile” or the “Company”) is pleased
to provide an update on its operations in Argentina and Chile.
HIGHLIGHTS
• Two diamond drill holes completed at the Arizaro Project (the “Project”), Argentina.
o Both holes encountered brine rich formations in areas not previously drilled.
o Results from drilling provide for significant resource upside on the Project.
• Prefeasibility Study on the Project to be completed in April 2024.
• Three diamond drill holes completed on the Molle Verde Project, Chile.
o All three holes encountered brine with two holes displaying good porosity.
ARGENTINA OPERATIONS - ARIZARO PROJECT:
1) ARDDH-02-8 has been drilled to 538 metres with a very brine-rich, sandy formation encountered
at 487 metres. Onsite sampling with the field Turbospec analyzer on six samples collected over 51
metres, returned lithium grades between 297 mg/l and 319 mg/l. Samples sent to the laboratory
reported the following grades:
• 505-metres to 506.5-metres 282 mg/l Li
• 524.7-metres to 526.2-metres 300 mg/l Li
• More sample results from the lower section of the well are pending
The results from ARDHH-02-8 represent a significant exploration upside for the northern part of
the Project, see Figure 1 , where the Company currently do es not have any Mineral Resource
Estimate.
2) ARDDH-03-7 has been drilled to 600 metres. A 120-metre brine bearing formation of sands and
gravels was encountered from 480 metres to end of hole at 600 metres . Prior to testing, a clay
band at 170-metres swelled, restricting access of the sampling and logging tools intended to test
the brine formation for lit hium grades. The hole will be re -entered, opening the clay bottle neck
to allow for casing to be installed, followed by sampling.
3) This week a newly contracted rotary rig will begin drilling two additional water production wells
on the Company’s 100% owned, Chascha Sur freshwater concession where Lithium Chiles first
water well was drilled. The intention of these two additional water wells is to collect the necessary
data to apply for further water usage permits and secure water production for the Company’s
proposed Direct Lithium Extraction (“DLE”) production facility.
4) After completion of the two water production wells , the rig will move back to the main Arizaro
property and drill two new production well s, AR-04 and AR -05. The wells are being drilled to
provide additional data for the Pre-feasibility Study (PFS) as well as to provide future production
wells on the salar.
5) The two additional production w ells, along with three new diamond drill holes will provide the
supplementary data analysis required to better understand the reason behind the significantly
improved lithium grades from the resampling program recently announced (Press Release July 10,
2023). Once drilled, data and test results from AR -04, AR-05 and three additional diamond drill
holes will be used by Montgomery and Associates to interpret the impact of these improved
grades on the overall resource calculation of Arizaro. The 43-101 resource update is expected by
late November.
6) Ausenco Engineering was contracted in early September and has commenced work on the
Company’s Pre-feasibility Study (“PFS”) further advancing the economics and engineering on the
Arizaro project. It is anticipated that the PFS will be completed by April 2024.
7) Lithium Chile’s wholly owned Argentinian subsidiary, Argentum Lithium, has been shortlisted on
Block 4, one of five properties on the northern section of the Salar de Arizaro, released for bid by
the Salta Provincial Mining Corporation, REMSA. It is anticipated the final winners of the bids for
the REMSA properties will be announced after the Argentina Federal election on October 22nd ,
2023.
Figure 1 - Salar de Arizaro, Project Locations
CHILE OPERATIONS:
1) Drilling at Molle Verde (Llamara) has just finished with the completion of the third hole. The rig is
now moving to the last pad to drill the fourth hole. The first three wells encountered brine, with
holes one and three exhibiting exceptional porosity, with hole 3 flowing brine up the drill pipe
naturally.
2) Sampling is underway and once completed, samples from all exploration holes will be batched
and sent together for assay. Results will be announced when received.
3) While sampling is being completed at Molle Verde, Lithium Chile will commence exploration
work at its Aguilar property. This work will include sampling grid and TEM geophysics to define
the position of three exploratory holes. Drilling on Aguilar to commence before year end.
4) Interest continues to build amongst the major mining companies in Chile’s lithium potential. The
National Lithium Strategy introduced by the Chilean Government earlier this year has stimulated
new interest in Chilean partnerships. Lithium Chile continues to explore various opportunities
and potential joint ventures.
Steve Cochrane, President & CEO comments, “We are very pleased with the speed of the advancement of
our Arizaro project to the pre-feasibility stage. The results from the two new diamond drill holes drilled in
previously unexplored areas of our Arizaro property point to the potentiality of a significantly larger
resource. We are also extremely encouraged with the increased interest seen recently in our Chilean
properties by major mining companies. The latest proposed changes to the lithium mining regulations in
Chile provide a stable regulatory environment and are encouraging new investment.”
The Company is also pleased to announce that it intends to extend the expiry date of an aggregate of
6,922,817 outstanding common share purchase warrants ("Warrants") issued by the Company as part of
a unit of the Company in connection with a non -brokered private placement announced on October 25,
2021, and further amended on October 26, 2021, and October 29, 2021. The Company proposes to extend
the expiry date of the Warrants to June 30, 2024 (the "Extension").
The Extension is subject to approval by the TSX Venture Exchange (the "TSXV"). The Company intends to
issue an updated news release upon receipt, if any, of the Warrant Extension Approval.
The securities being offered have not been, nor will they be, registered under the United States Securities
Act of 1933, as amended, and may not be offered or sold in the United States or to, or for th e account or
benefit of, U.S. persons absent registration or an applicable exemption from the registration
requirements. This news release will not constitute an offer to sell or the solicitation of an offer to buy
nor will there be any sale of the securit ies in any state in which such offer, solicitation or sale would be
unlawful.
Lithium Chile also announces, subject to regulatory approval, it has granted 300,000 stock options to
consultants of the Company. The stock options are issued with an exercise pr ice of $0.65 and will expire
October 16, 2024.
ABOUT LITHIUM CHILE:
Lithium Chile is an exploration and lithium resource company with a property portfolio consisting of
111,978 hectares in Chile and 2 0,800 hectares in Argentina. The Company has filed its NI 43 -101 Report
and Preliminary Economic Assessment, which can be viewed on the Company’s profile at SedarPlus.ca
Lithium Chile also owns 4 properties, totaling 21,329 hectares , that are prospective for gold, silver and
copper. Exploration efforts are continuing on Lithium Chile’s Carmona gold/silver/copper property which
lies in the heart of the Chilean mega porphyry gold/ silver/copper belt.
Lithium Chile’s common shares are listed on the TSX-V under the symbol “LITH” and on the OTC-QB under
the symbol “LTMCF”.
To find out more about Lithium Chile, please contact Steven Cochrane, President and CEO via email:
[email protected] or Michelle DeCecco, Vice President and COO, via email [email protected].
NEITHER THE 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.
FORWARD LOOKING STATEMENTS:
This news release may contain certain forward-looking information and forward-looking statements
within the meaning of applicable securities legislation (collectively "forward-looking statements").
Generally, forward-looking statements can be identified by the use of forward-looking terminology such
as "expected", "anticipated", "aims to", "plans to" or "intends to" or variations of such words and
phrases or statements that certain actions, events or results "will" occur. Such forward-looking
statements are based on various assumptions and factors that may prove to be incorrect, including, but
not limited to, factors and assumptions with respect to: the general stability of the economic and
political environment in which the Company operates and the timely receipt of required regulatory
approvals. You are cautioned that the foregoing list of material factors and assumptions is not
exhaustive. Although Lithium Chile believes that the assumptions and factors on which such forward-
looking statements are based upon reasonable assumptions, undue reliance should not be placed on the
forward-looking statements because Lithium Chile can give no assurance that they will prove to be
correct or that any of the events anticipated by such forward-looking statements will transpire or occur,
or if any of them do, what benefits Lithium Chile will derive therefrom. Lithium Chile does not
undertake to update any forward-looking statements herein, except as required by applicable securities
laws. All forward-looking statements contained in this news release are expressly qualified by this
cautionary statement.