Lithium Ionic: 2023 Year in Review and Outlook for 2024
Lithium Ionic: 2023 Year in Review and Outlook for 2024
TORONTO, ON, January 4, 2024 – Lithium Ionic Corp. (TSXV: LTH; OTCQX: LTHCF; FSE: H3N)
("Lithium Ionic" or the "Company") is pleased to present a summary of its key accomplishments
in 2023, as well as upcoming milestones and objectives for ongoing success in 2024, as it
continues to explore its extensive land package and accelerate its flagship Bandeira Lithium
Project (“Bandeira”) towards a near-term production decision in northern Minas Gerais State,
Brazil.
Blake Hylands, P.Geo., Chief Executive Officer of Lithium Ionic, commented, "I would like to thank
our dedicated team members as well as our shareholders for their ongoing support as we reflect
on a transformative 2023, which saw us evolve from an early exploration stage company to a
feasibility level, permitting-stage project by year-end. We successfully executed on all the plans
we had set out for the year and demonstrated to the market not only the quality and scale of the
lithium deposits in this region but also the speed at which they can advance. Notably, we delivered
a robust PEA showing the strong economic potential for Bandeira to become among the lowest-
cost spodumene concentrate producers globally. We were pleased to see our consistent progress
result in strong market support and the initiation of coverage by five equity research analysts
throughout the year. This strong momentum is expected to continue into 2024 with an upcoming
Feasibility Study and anticipated construction permits in mid -2024, as we execute on our core
focus and strategy of becoming a lithium producer in the shortest possible timeframe and laying
the groundwork for a highly scalable project that we believe will significantly contribute to the
global lithium supply chain."
Exploration Success & Resource Growth
Lithium Ionic’s extensive exploration work conducted in 2023, including over 85,000 meters drilled
across four targets, significantly improved its understanding of the lithium -bearing pegmatites in
the region and demonstrated both the large scale and future discovery potential of lithium deposits
in this district . With the completion of two NI 43 -101 mineral resource estimates ("MRE") , the
Company demonstrated substantial resource growth, particularly at the Bandeira deposit,
considered to be its Phase 1 project. The mineral resource estimates established on Lithium
Ionic’s properties in 2023 are as follows:
BANDEIRA:
M&I: 13.72Mt grading 1.40% Li2O (474,892 LCE)
Inferred: 15.79Mt grading 1.34% Li2O (523,118 LCE)
*Drill data cut-off of August 30, 2023. See details and notes related to this MRE in the October 19, 2023 press release.
OUTRO LADO:
M&I: 2.97Mt at 1.46% Li2O (107,599 LCE)
Inferred: 0.42Mt at 1.48% Li2O (15,168 LCE)
* Drill data cut-off of June 30, 2023. See details and notes related to this MRE in the June 27, 2023 press release.
An updated mineral resource estimate for Bandeira, which will capture drill data beyond the
August 2023 cut-off, is currently underway as part of the Feasibility Study, which will include many
of the widest and highest-grade lithium drill intercepts returned to date (see press releases dated
November 2, 2023, November 6, 2023, November 15, 2023, December 12, 2023).
Exploration efforts will continue in 2024 with a 50,000-metre drill program planned for the year,
aiming to further expand existing deposits and establish new NI 43 -101 mineral resource
estimates on other regional targets, including Salinas.
Robust Initial Technical Study, Feasibility Study Underway
The Preliminary Economic Assessment ("PEA") completed in October 2023 position ed the
Bandeira Lithium Project as a globally competitive, low -cost spodumene concentrate producer.
The study outlined a technically simple and highly economical mining project with a small footprint
and a significant production profile over two decades. Highlights of the PEA, included:
- Average annual production of ~218 kt of high-quality spodumene concentrate
- 20-year mine life
- Post-tax Net Present Value ("NPV") 8% of US$1.6 billion (~C$2.2 billion)
- Internal Rate of Return ("IRR") of 121%
*see press release dated October 19, 2023, or Technical Report HERE for further detail.
This study represents a snapshot in time based on drill data up to the end of August 2023, and
an ongoing Feasibility Study , including an updated MRE , will integrate the latest high-grade
results obtained in the second half of the year, which is expected to further expand and enhance
the project’s economic potential . The Company intends to progress with detailed engineering
following the completion of the Feasibility Study this quarter.
Construction Permit for Bandeira Expected in 2024
In November 2023, the Company initiated the permitting process for Bandeira with the submission
of the application for the Concomitant Environmental and Installation License . Approval is
anticipated in mid-2024, resulting in the environmental and social license and authorization to
begin construction.
In preparation for the project's construction phase, Lithium Ionic appointed Brazilian mining
veteran Paulo Misk as Chief Operating Officer in December 2023, enhancing the Company's
technical expertise and providing it with the operational capabilities to take the project through to
production.
In October 2023, the Company secured a contract for low-cost hydroelectric power to meet the
long-term requirements of the Bandeira project with the largest electricity distributor in Brazil,
Cemig Distribuição S.A., to facilitate the construction and electrification of essential power
infrastructure between the existing power grid and the future Bandeira lithium operation
("Bandeira"), located approximately 3 kilometres from existing power lines . This project, jointly
managed by Cemig and Lithium Ionic, will be ongoing in 2024 and is expected to be completed
by Q4 2025, aligning with the projected start of operations.
Strategic Land Acquisitions
Throughout 2023, the Company prioritized the acquisition and consolidation of prospective
properties in the lithium -rich Araçuaí Pegmatite District, increasing its landholdings 4 -fold from
3,600 hectares to 14,182 hectares, making it the second largest mineral claims holder in Brazil's
prospective "Lithium Valley". The lithium deposits it has established to date lie on ground covering
less than 2% of its total land holdings, pointing to the excellent long -term growth potential of its
resource base and of the Company itself.
Additionally, the Company has acquired all the surface rights for its flagship Bandeira project, a
critical path milestone towards its goal of developing this asset.
The Company intends to continue monitoring opportunities and strategically acquiring properties
in this prospective lithium belt in 2024, underscoring its commitment to long-term resource growth
and reinforcing its status as a dominant lithium player in the region.
Corporate Milestones: Expanding Traction & Building Shareholder Value
Lithium Ionic's share price appreciated nearly 14% in 2023, from $1.52 to $1.75, hitting a daily
high of $3.05 in May, performing exceptionally well compared to the majority of its peers or
benchmarked against one of the leading ETF's in the space, Sprott's Lithium Miners ETF, which
ended the year down ~36% since its inception in February. The Company raised $25 mi llion in
July 2023, supported by existing and new global institutional shareholders, and ended the year
with a solid financial position of ~$10 million. The Company continued to prioritize consistent
marketing efforts to expand its investor audience in Nor th/South Americas and Europe, which
positively impacted its roster of shareholders as well as its liquidity, averaging ~650,000 shares
traded daily.
The Company's major development milestones in 2023 resulted in strong capital markets support
as it engaged with leading Canadian and US brokerages. Over the year, five equity research
analysts initiated coverage on Lithium Ionic, providing a significant e ndorsement for the quality
and potential of its projects and further expanding its shareholder reach.
The Company will continue to build upon its marketing strategies in 2024 to expand its market
presence and attract new investors as it progresses through the pivotal milestones planned for
the year.
Priority on ESG & Safety
In 2023, Lithium Ionic took essential steps in formalizing its ESG and Safety framework. In Q2
2023, it implemented ONYEN's ESG reporting software to capture, monitor, manage and report
ESG risks and opportunities and ensure that its reporting meets the cr iteria of governments and
international sustainability agencies. The Company expects to publish its inaugural Sustainability
Report for 2023 this quarter. In Q4 2023, the Company also implemented IRMA's (Initiative for
Responsible Mining Assurance) Mine Me asure self-assessment for its projects to help guide its
future ESG programming and ensure that its operations align with IRMA's Responsible Mining
Standards and practices. The Company is committed to developing and operating its project
responsibly and will continue to prioritize environmental stewardship, stakeholder engagement,
transparency and safety in every facet of its operation.
“Lithium Valley” Initiative further Enhances Excellent Mining Jurisdiction
In May 2023, the state government of Minas Gerais, along with various state and municipal
government agencies, launched the "Lithium Valley" initiative, which aims to streamline and
facilitate lithium development and production in the Northeast and North r egions of the state to
position it as a key global player in the lithium supply chain. Lithium Ionic's entire landholdings lie
within the Lithium Valley, and in July 2023, all of its properties and projects were granted "priority
status" by the state government (see July 19, 2023, press release). This recognition, along with
the state's prioritization of the battery material sector, is expected to accelerate the licensing
processes, enhancing Lithium Ionic's operational readiness in a leading mining jurisdiction.
About Lithium Ionic Corp.
Lithium Ionic is a Canadian mining company exploring and developing its lithium properties in
Brazil. Its Itinga and Salinas group of properties cover 14,182 hectares in the northeastern part of
Minas Gerais state, a mining-friendly jurisdiction that is quickly emerging as a world -class hard-
rock lithium district. Its Feasibility-stage Bandeira Project is situated in the same region as CBL’s
Cachoeira lithium mine, which has produced lithium for +30 years, as well as Sigma Lithium
Corp.’s Grota do Cirilo project, which hosts the largest hard-rock lithium deposit in the Americas.
Qualified Persons
The technical information in this news release has been prepared by Carlos Costa, Vice President
Exploration of Lithium Ionic and Blake Hylands, CEO and director of Lithium Ionic, who are both
“qualified person s” as defined in NI 43 -101. Mr. Costa and Mr. Hylands have both read and
approved the content in this news release.
Investor and Media Inquiries:
+1 647.316.2500
Cautionary Note Regarding Forward-Looking Statements
The PEA is considered preliminary in nature and includes Inferred Mineral Resources that are
considered too speculative, geologically, to have the economic considerations applied that would
enable classification as Mineral Reserves. There is no certainty t hat the conclusions within the
PEA will be realized. The PEA is based on the material assumptions outlined in the Technical
Report. These include assumptions about the availability of funding. While the Company
considers all of the material assumptions to be based on reasonable grounds, there is no certainty
that they will prove to be correct or that the range of outcomes indicated by the PEA can be
achieved. No mineral reserves have been estimated for the Bandeira Project. Mineral Resources
are not Mineral Reserves and do not have demonstrated economic viability.
This press release contains statements that constitute “forward -statements.” Such forward
looking statements involve known and unknown risks, uncertainties and other factors that may
cause the Company’s actual results, performance or achievements, or developments to differ
materially from the anticipated result s, performance or achievements expressed or implied by
such forward-looking statements. Although the Company believes, in light of the experience of its
officers and directors, current conditions and expected future developments and other factors that
have been considered appropriate that the expectations reflected in this forward -looking
information are reasonable, undue reliance should not be placed on them because the Company
can give no assurance that they will prove to be correct. When used in this press release, the
words “estimate”, “project”, “belief”, “anticipate”, “intend”, “expect”, “plan”, “predict”, “may” or
“should” and the negative of these w ords or such variations thereon or comparable terminology
are intended to identify forward -looking statements and information. The forward -looking
statements and information in this press release include information relating to the prospectivity
of the Company’s mineral properties, the economic viability of the Bandeira, the mineralization
and development of the Company’s mineral properties, the Company’s exploration program and
other mining projects and prospects thereof, the Company’s ability to complete a Feasibility Study,
the Company’s ability to complete an environmental impact assessment and obtain the requisite
permitting and approvals , the impact of managerial appointments, the Company’s ability to
acquire additional mining rights, the impact of shareholder and investor outreach, the price of the
Company’s shares, and the Company’s future plans. Such statements and information reflect the
current view of the Company. Risks and uncertainties that may cause actual results to differ
materially from those contemplated in those forward-looking statements and information. By their
nature, forward-looking statements involve known and unknown risks, uncertainties and other
factors which may cause our actual results, performance or achievements, or other future events,
to be materially different from any future results, perfor mance or achievements expressed or
implied by such forward -looking statements. The forward -looking information contained in this
news release represents the expectations of the Company as of the date of this news release
and, accordingly, is subject to change after such date. Readers should not place undue
importance on forward -looking information and should not rely upon this information as of any
other date. The Company undertakes no obl igation to update these forward -looking statements
in the event that management’s beliefs, estimates or opinions, or other factors, should change.
Information and links in this press release relating to other mineral resource companies are from
their sources believed to be reliable, but that have not been independently verified by the
Company.
Neither the TSXV nor its Regulation Services Provider (as that term is defined in the
policies of the TSXV) accepts responsibility for the adequacy or accuracy of this press
release.