Lithium Chile Samples up to 555 Mg/Lts Lithium and Obtains a Maiden Lithium Resource Estimate of 1,420,000 Tonnes of Lithium Carbonate Equivalent ON Its First Test Well, Salar de Arizaro Project, Salta Province, Argentina
LITHIUM CHILE SAMPLES UP TO 555 MG/LTS LITHIUM AND OBTAINS A MAIDEN
LITHIUM RESOURCE ESTIMATE OF 1,420,000 TONNES OF LITHIUM CARBONATE
EQUIVALENT ON ITS FIRST TEST WELL, SALAR DE ARIZARO PROJECT, SALTA
PROVINCE, ARGENTINA
TSX Venture Exchange: LITH For Immediate Release
OTC-BB: LTMCF
CALGARY, ALBERTA, February 8, 2022 – Lithium Chile Inc. (“Lithium Chile” or the
“Company”) is pleased to report an initial lithium (“Li”) resource statement for its first test well
in the Arizaro de Salar project. The NI 43-101 resource statement, detailed in Table 3.2 below,
includes 1,420,000 tonnes of lithium carbonate (“Li2CO3”) equivalent in the Indicated and
Inferred Resource categories.
Steve Cochrane, President and CEO of Lithium Chile, commented on the maiden resource for
the Arizaro de Salar Project: “We are very excited to see a strong NI 43-101 resource estimate
from our hydrogeological consultants. The Company has adopted an aggressive plan which
includes a follow up phase 2 drilling program consisting of three, 500-metre-deep exploration
holes aimed at expanding the lithium resource and improving the grade on the Arizaro property.”
Highlights from the Test Well
1,420,000 tonne, NI 43-101 compliant lithium carbonate equivalent resource;
Grades as high as 555 mg/litre, higher than average in the Salar;
21.94 litres per second average pumping rate, higher than average in the Salar;
Resource estimate from only 29% of the main concession block leaving abundant area for
resource expansion;
NI 43-101 report recommends a second program of US $2 million and three holes aimed
at:
o Establishing a measured resource
o Significantly increase the lithium carbonate equivalent resource.
Summary of the Salar de Arizaro Project:
The Project is located in the Arizaro Salar located in the Salta province of northwest
Argentina - about 170 kilometers (km) from Salta. Salta is considered the best
investment district in the Lithium Triangle according to the Fraser Institute.
Lithium Chile controls 23,300 ha of legal concessions located mainly in the central
part of the salar which is strategically located close to the best water supply area.
Arizaro is the largest salar in Argentina and one of the most important in all of
Puna Region - becoming an important new mining area because of the success of
recent lithium projects.
The railway between Salta and the Antofagasta port passes over the Arizaro Salar
very close to Lithium Chile’s concessions.
An initial resource estimate just in a limited portion of concessions totaled
1,420,000 tonnes of lithium carbonate equivalent consisting of 895,000 tonnes of
Indicated Resources together with 535,000 tonnes of Inferred lithium carbonate
equivalent. The resource report suggests that resources in the measured category
will be established by additional drilling which will also increase the indicated and
inferred volumes appreciably.
Pump testing included step-discharge and constant discharge tests which achieved
an average pumping rate of 21.94 litres per second and transmissivity of 100 m 2/d
which is considered very good in comparison with other salars in the region.
Several brine samples were collected from the initial test well, known as Argento-1,
During the drilling of the well, during testing of the overall aquifer, and
subsequently over specific intervals in the reservoir using a Hydra-sleeve and
inflatable packers, permitted Lithium Chile to obtain depth-specific samples.
Hydra-sleeve samples yielded values up to 446 mg/l of Li. Using the inflatable
packer system, lithium samples returned values up to 555 mg/ls.
Based on potential dilutions and grade shown during pump testing, an average of
298 mg/lt of Li was used in resources calculation.
Lithium Chile plans on a follow up phase 2 program of three 500 meter deep
exploration holes aimed at expanding the lithium resource on the Arizaro property.
The program is budgeted at $2,000,000 US and is scheduled to commence
immediately.
Lithium Chile is conducting operations through its Argentinian subsidiary
Argentum Lithium. Argentum Lithium has fostered a good relationship with local
communities within the region through its “Shared Value Philosophy”. It has strong
relationships with Tolar Grande, the closest town which is the last inhabited point in
the province on the frontier with Chile.
Background
The Project is located in the Arizaro “salar” in the Salta province, in northwest Argentina, about
170 kilometers (km) from Salta, and approximately 38 kilometers (km) southwest of the town of
Tolar Grande. The Project is in the Argentinean Puna, at an elevation of approximately 3,475
meters above mean sea level (amsl).
The Arizaro Project currently consists of seven Exploration and Exploitation Concessions
(minas) and Exploration Permits (cateos) totaling 23,300 hectares.
Main infrastructure in the zone consist in an electrical power line (375 kilovolts (KV)), a natural
gas pipeline (Gasoducto de la Puna) between Salta (Argentina) and Mejillones (Chile) and a
railway between Antofagasta (Chile) and Salta (Argentina).
Salars near the Project area includes: Hombre Muerto, Antofalla, Ratones, Pocitos, Centenario,
and Diablillos and Atacama. The Arizaro Salar occupies one of these endorheic (internally
drained) basins.
Salar de Arizaro is a mature salar, and the largest salars in the Argentinean altiplano. A thick
halite core exists in the basin. Basin margins are interpreted to be fault controlled.
Drilling activities for exploration well Argento-1 started on September 5, 2021, reaching a depth
of 470 meters below land surface (bls) on November 28, 2021. Pumping tests were conducted at
exploration well Argento-1 in December 2021, and included step-discharge and constant
discharge tests.
The ranges of the specific yield values obtained from the BMR survey are reasonable and
consistent with values for similar units defined in other altiplanic salars for different projects.
Samples were taken both during drilling, during the pumping test, and after well construction.
Pumped samples obtained at variable depths during drilling using a downhole sampling pump,
Brine samples obtained during and at the end of the pumping test in exploration well
Argento-1,
Hydrasleeve samples obtained at specific depths after the well was cased, and
Packer samples obtained after the wells was cased.
Although freshwater studies have yet to be conducted, Lithium Chile has a concession (ChasCha
Sur) on the edge of the basin in the southeast part of the salar that is adjacent to a known area of
fresh water. Based on the initial results of exploration to date, additional exploration activities
are justified to better characterize the extent of the observed brine aquifer – especially the clastic
unit underlying the massive halite. Additional drilling and testing will allow for expansion of the
estimated lithium resource and will support estimation of a reserve in the future.
Figure Error! No text of specified style in document.-1. Location Map of the Project Concession Areas
Figure Error! No text of specified style in document.-2. Digital Elevation Model of the Puna Showing Several
Salars
Figure Error! No text of specified style in document.-3. Railroad Line from Mejillones to Salta
Table Error! No text of specified style in document.-1. Summary of Lithologic Descriptions for Drill Cuttings
Samples
From To Summary Log
0 304 Crystalline halite
304 364 Crystalline halite with some
sand interbeds
364 408 Fine sand with volcaniclastics
and interbedded with halite
408 470 Fine brown sand
Pumping tests included step-discharge and constant discharge tests. Pumping test equipment
was provided by drilling and testing contractor Andina Perforaciones, a local drilling
contractor based in Salta, Argentina.
Table Error! No text of specified style in document.-2. Summary of the Step-Discharge Test at Exploration
Well Argento-1
Well Identifier Test Date Step Average Pumping Rate
(L/s)1
Maximum
Drawdown
(meters)
Specific
Capacity
(L/s/m)2
Argento-1 22/12/2021
1 5.6 6.54 0.86
2 10.6 11.38 0.93
3 22.7 26.54 0.86
1 L/s = liters per second
2 L/s/m = liters per second per meter of drawdown
Specific capacity of a well is computed by dividing the average pumping rate by the
maximum water level drawdown at that rate and is expressed as liters per second per meter of
drawdown (L/s/m).
Table Error! No text of specified style in document.-3. Pumping test summary for exploration well Argento-1
Well
Identifier
Date
Pumping
Started
Pumping /
Recovery
Duration
(hours)
Pre-Pumping
Water Level
(meters, bls)1
Average
Pumping
Rate
(L/s)2
Drawdown
After 17 Hours
of Pumping
(meters)
Residual
Drawdown
After 1.09
Hours Of
Recovery
(meters)
Specific
Capacity
(L/s/m)3
Argento-1 20-12-2021 17.40 / 1.09 4.07 21.94 29.96 3.78 0.73
1 meters, bls = meters below land surface
2 L/s = liters per second
3 L/s/m = liters per second per meter of drawdown
Calculated transmissivities for both the drawdown and recovery periods agree.
A summary of computed aquifer parameters is given in Table Error! No text of
specified style in document.-4 showing pumping rates world class for salars in region
Table Error! No text of specified style in document.-4. Summary of Computed Aquifer Parameters at Well
Argento-1
Pumped Well
Identifier
Average
Pumping
Rate
(L/s)1
Cooper-Jacob (1946)
Drawdown Method
Transmissivity
(m2/d)3
Theis (1935) Recovery
Method
Transmissivity (m2d)3