Lithium Ionic Announces Maiden Mineral Resource Estimate at its Itinga Project in Minas Gerais, Brazil; Drilling Program Expanded with 13 Rigs Operating; PEA Underway
Lithium Ionic Announces Maiden Mineral Resource Estimate at its Itinga Project
in Minas Gerais, Brazil; Drilling Program Expanded with 13 Rigs Operating; PEA
Underway
TORONTO, ON, June 27, 2023 – Lithium Ionic Corp. (TSXV: LTH; OTCQB: LTHCF; FSE: H3N)
(“Lithium Ionic” or the “Company”) is pleased to announce a maiden National Instrument 43-101
compliant mineral resource estimate (“MRE”) on its Itinga Lithium Project (the “Project”) in Minas
Gerais, Brazil, of 7.57 million tonnes (“Mt”) grading 1.40% lithium oxide (“Li2O”) of Measured and
Indicated (“M&I”) and 11.86Mt grading 1.44% Li2O of Inferred resources.
The Project is located between the towns of Araçuaí and Itinga within Brazil’s “Lithium Valley” - a
hard rock lithium district that is quickly emerging as an important global lithium producer. The
MRE includes the Bandeira and Outro Lado (Galvani) lithium deposits (see Figure 1), on
properties which together cover only 8 72 hectares within its large land package of 14,182
hectares.
Highlights:
▪ M&I Resource estimate of 7.57Mt grading 1.40% Li2O and Inferred of 11.86Mt
grading 1.44% Li2O. The MRE incorporates the Bandeira and Outro Lado (Galvani)
deposits, using a cut-off grade of 0.5% Li2O for Bandeira Open Pit and 0.8% Li2O for
Outro Lado and Bandeira Underground. Approximately 39% of the MRE is classified in
the M&I categories.
▪ Rapid growth in a short timeframe. The MRE is based on 181 diamond drill holes and
28,204 metres of drilling.
▪ Significant expansion potential. Based on drill holes that occurred outside of the MRE,
SGS identified potential for significant additional lithium-bearing mineralization at
Bandeira once tighter drilling is completed in these areas, estimated to be in the range of
1.5 - 3.0Mt at grades of 1.3 - 1.6% Li2O.
▪ Expanded drill program with 13 drills in operation. The drilling program for the
remainder of 2023 has been expanded to 50,000 metres to increase the size of the MRE
and establish an NI 43-101 mineral reserve estimate at Bandeira and Outro Lado, while
defining an NI 43-101 mineral resource estimate at other prospective regional targets,
including the Salinas and Itira targets.
▪ Accelerated project engineering. A Preliminary Economic Assessment (PEA) is
underway and expected to be completed in Q3 2023, with the objective of accelerating a
Definitive Feasibility Study (DFS) targeted for completion by the end of 2023.
▪ Permitting process underway. Environmental Impact Assessment (“EIA”) studies for
both deposits are underway and expected to be complete within H2 2023, at which time
the applications are expected to be submitted for the respective environmental and
social licenses.
Blake Hylands, P.Geo., Chief Executive Officer of Lithium Ionic, commented, “This initial mineral
resource estimate marks the most important milestone to date for our Company, highlighting large
scale and high-grade lithium deposits with significant future growth potential. I commend our
excellent team in Brazil for the speed at which these pegmatites have been delineated; the past
year has been an impressive demonstration of how quickly these deposits can be defined and
expanded. We are very excited to be undertaking one of the largest drill programs in the region
with 13 drills now turning at several regional properties which have exhibited anomalies and
exploration results as strong as Bandeira and Outro Lado. Our execution strategy is to advance
Bandeira and Outro Lado through engineering and permitting as quickly as possibl e, while
expanding and upgrading resources at these, and our various other prospective targets in this
belt. We look forward to delivering resource updates later this year in parallel with the planned
PEA in Q3 and Feasibility Study by year-end.”
Carlos Costa, P.Geo., Lithium Ionic’s VP of Exploration, commented, “This maiden NI 43-101
mineral resource estimate is a major achievement for Lithium Ionic and I am very proud of what
our exploration team has accomplished in such a short period of time. We have established a
strong foundation to build upon, and we are focused on continuing to grow our lithium resources
significantly over the next 6 months. Since the cut-off for this MRE database, we have already
drilled 28 additional holes that have continued to expand mineralization. We are very excited by
the immense upside in the potential resource size as we advance our expanded 50,000 metre
program and accelerate the development of this very special lithium project in Brazil.”
Maiden Mineral Resource Estimate at Itinga
Large Scale, High Grade, Lithium Deposit with Outstanding Exploration Potential
The MRE was prepared by independent consultants, SGS Geological Services (“SGS”) and is
reported in accordance with National Instrument 43-101 (“NI 43-101“) standards.
The maiden MRE includes the Bandeira and Outro Lado deposits and was based on 181 diamond
drill holes comprising 28,204 metres of drilling completed between April 2022 and June 2023, of
which 120 holes (20,509 metres) are from Bandeira and 61 holes (7,659 metres) are from Outro
Lado.
These deposits are estimated to contain M&I resources of 7.57Mt grading 1.40% Li2O, containing
261,187 tonnes of Lithium Carbonate Equivalent (“LCE”), the benchmark equivalent raw material
used in the lithium industry , as well as Inferred resources of 11.86Mt grading 1.44% Li2O in the
Inferred category, or 421,521 tonnes of LCE (see MRE results in Table 1).
SGS collaborated closely with the Company’s geological team to confirm the presence of a series
of North-East trending moderately dipping pegmatite veins extending up to 750 meters along dip,
from surface to a depth of approximately 500 meters.
In addition to the MRE, SGS analyzed results from drill holes that fell outside of the mineral
resource area in the eastern-most extent of the Bandeira property (“Bandeira East”) and identified
the potential for additional lithium -bearing mineralization with estimated volumes of 1.5 - 3.0Mt
and grades ranging from 1.3 - 1.6% Li2O when closer spaced drilling is completed . The current
interpretation suggests that the modelled pegmatites potentially increase with depth, however
additional drilling is required to confirm these observations. The Bandeira East target is located
just 2 kilometres East of the Bandeira deposit.
The potential quantity and grade of the lithium mineralization at the Bandeira East target is
conceptual in nature and there has been insufficient exploration to estimate a Mineral Resource
and it is uncertain if further exploration will confirm the target ranges.
The NI 43-101 technical report for the MRE, will be accessible on SEDAR (www.sedar.com) under
the Company’ issuer profile within 45 days of this news release.
1) The results from the pit optimization are used solely for the purpose of testing the “reasonable prospects for economic extraction” by
an open pit and do not represent an attempt to estimate mineral reserves. There are no mineral reserves on the Project. The
results are used as a guide to assist in the preparation of a Mineral Resource statement and to select an appropriate resource
reporting cut-off grade.
2) Mineral resources which are not mineral reserves do not have demonstrated economic viability. An Inferred Mineral Resources
has a lower level of confidence than that applying to a Measured and Indicated Resources and must not be converted to Mineral
Reserves. It is reasonably expected that most of the Inferred Mineral Resources could be upgraded to Indicated Mineral Resources
with continued exploration.
3) The estimate of Mineral Resources may be m aterially affected by environmental, permitting, legal, title, taxation, socio- political,
marketing or other relevant issues.
4) The effective date of the MRE is June 24, 2023.
5) All figures are rounded to reflect the relative accuracy of the estimate and numbers may not add due to rounding.
Table 1. Mineral Resource Estimate for the Itinga Lithium Project
Deposit /
Cut-Off Grade Category Resource
(tonnes)
Grade
(% Li2O)
Contained
LCE (t)
Bandeira
Open-Pit
(0.5% Li2O)
Measured 1,137,247 1.43 40,162
Indicated 3,105,047 1.33 102,324
Measured + Indicated 4,242,294 1.36 142,486
Inferred 5,914,961 1.40 205,379
Bandeira
Underground
(0.8% Li2O)
Measured 3,445 1.10 94
Indicated 353,363 1.26 11,008
Measured + Indicated 356,808 1.26 11,102
Inferred 5,529,821 1.47 200,974
Outro Lado
(Galvani)
Underground
(0.8% Li2O)
Measured 2,577,915 1.47 93,691
Indicated 393,370 1.43 13,908
Measured + Indicated 2,971,285 1.46 107,599
Inferred 415,767 1.48 15,168
TOTAL
Measured 3,718,607 1.46 133,947
Indicated 3,851,779 1.34 127,240
Measured + Indicated 7,570,387 1.40 261,187
Inferred 11,860,550 1.44 421,521
Figure 1 – Lithium Ionic Properties in “Lithium Valley” Brazil Highlighting MRE Deposits
Expanded Drill Program to Accelerate Mineral Growth and Classification Upgrade
The Company currently has 13 drills operating on select properties within the Itinga and Salinas
projects as part of an expanded 50,000 metre exploration program planned in H2 2023. The drill
program is designed to increase the size of the MRE and upgrade the mineral resource estimate
classification at Bandeira and Outro Lado, w hile also defining NI 43-101 mineral resource
estimates at other regional targets. Currently, six rigs are drilling at Bandeira, four are drilling at
Salinas and three at Itira. Additional regional targets with strong surface anomalies will also be
tested.
As part of the MRE calculation, SGS interpreted strong potential for additional lithium -bearing
mineralization at Bandeira East, located 2 kilometres east of the Bandeira deposit. In addition to
expanding and improving the resource classification at Bandeira, the Company will aim to further
define the pegmatites at Bandeira East, which are interpreted to potentially increase with depth.
Six drills are currently operating at Bandeira.
The Salinas Project properties are located approximately 100 kilometres north of the Itinga
Project. Four drills are currently exploring the property directly adjacent to Latin Resources’ Colina
deposit, which was recently expanded to 45.2Mt grading 1.34% Li2O (see press release related
to this JORC MRE HERE ). Lithium Ionic is currently following-up and expanding upon a 4,000-
metre, 24-hole, drill program completed in 2022 which showed strong grades and widths from
well-formed, coarse-grained spodumene in pegmatites, including 1.53% Li2O over 11.36m,
1.22% Li2O over 13.76m and 1.71% Li2O over 9.82m, extending directly northeast from the
Colina deposit.
Three drills are operating on the west side of the Itira property, approximately 3 kilometres
southwest of the Outro Lado deposit, where strong surface anomalies were observed.
PEA and Definitive Feasibility Study Underway
The Company has engaged independent Brazilian consultancy, GE21 Consultoria Mineral Ltda
("GE21"), based in Belo Horizonte, Minas Gerais, to complete a PEA (the “Study”) based on the
MRE at the Bandeira and Outro Lado deposits. The Study is expected to be completed in Q3
2023. In addition, a Definitive Feasibility Study (DFS) commenced in May 2023 by SNC-Lavalin
Brazil and is targeted for completion by the end of 2023. Data from the PEA will support and
accelerate certain aspects of the DFS.
Permitting process underway with EIA completion expected in H2 2023
Lithium Ionic has been working with WSP (formerly Golder) since early 2023 to complete an
Environmental Impact Assessment (“EIA”) study for the Bandeira property, which will contain an
analysis of the projects’ potential environmental and social impacts. Following the completion of
the EIA which is expected in Q4 2023, the Company can apply for the “ Prior License” (“LP” or
Licença Prévia in Portuguese), the first stage of the environmental licensing process for mining
projects in Brazil.
For the Outro Lado deposit (Galvani property), the Company intends to apply for a “Concomitant
Installation License” (“LAC”, or Licença Ambiental Concomitante in Portuguese) , which is a
scenario that is available when the plant and other project infrastructure is expected to cover a
small footprint of approximately 8 hectares that will not require deforestation. The Company has
been working with Neo Agroambiental since March 2023 to complete the required field work and
report for this application, which is expected to be made in Q3 2023.
Details related to the calculation of the MRE
The M RE was estimated by Maxime Dupere, P.Geo., and Faisal Sayeed, P.Geo of SGS
(collectively, the “Authors” or “QPs”) with an effective date of June 24, 2023. This estimate is the
Maiden Mineral Resource Estimate produced by Lithium Ionic since the acquisition of the Project.
The MRE was estimated using the following geological and resource block modeling parameters
which are based on geological interpretations, geostatistical studies, and best practices in mineral
estimation.
The QP is not aware of any factors or issues that materially affect the MRE other than normal
risks faced by mining projects in the province in terms of environmental, permitting, taxati on,
socio-economic, marketing, and political factors, and additional risk factors regarding inferred
resources.
• The Project geology comprises Neoproterozoic age sedimentary rocks of Araçuaí Orogen
intruded by fertile Li -bearing pegmatites originated by fr actionation of magmatic fluids from
the peraluminous S-type post-tectonic granitoids of Araçuaí Orogen. Lithium mineralization is
related to concordant and discordant swarms of spodumene-bearing tabular pegmatites
hosted by cordierite-biotite-quartz schists.
• Drilling conducted by Lithium Ionic included diamond core drilling of NTW (64.2mm diameter).
• Diamond core has been sampled in intervals of ~ 1 m where possible, otherwise intervals less
than 1 m have been selected based on geological boundaries. Geological boundaries have
not been crossed by sample intervals. ½ core samples have been collected and submitted for
analysis, with regular field duplicate samples collected and submitted for QA/QC analysis.
• Drill core samples were submitted to SGS Geosol laboratories in Brazil where they were
analyzed for a 31-element suite via ICP90A (fusion by sodium peroxide and finish with ICP-
MS/ICP-OES). Assay data were composited to 1 m.
• The MRE was estimated from the diamond drill holes completed by Lithium Ionic since April
2022. A total of 181 drill holes comprising 4,674 assays were used for the mineral resources
model.
• The 3D modelling of lithium Mineral Resources was conducted using a minimum cut-off grade
of 0.3% Li2O within a preliminary lithological model. The initial mineralized solids were
developed using SGS’s proprietary modelling software Genesis©.
• The interpolation was conducted using Inverse Distance Squared (ID2) methodology with three
interpolation passes.
• The block model was defined by a block size of 5 m long by 5 m wide by 5 m thick and covers
a strike length of approximately 1,100 m to a maximal vertical depth of 550 m below surface.
• The MRE was classified as Measured, Indicated and Inferred Mineral Resource based on data
quality, sample spacing, and pegmatite continuity. The Measured Mineral Resource was
defined using a search ellipsoid of 55 m by 5 5 m by 35 m , and where the continuity and
predictability of the mineralized units was reasonable. The Indicated Mineral Resource was
defined using a search ellipsoid 110 m by 110 m by 55 m. The Inferred Mineral Resource was
assigned to areas where drill hole spacing was greater than 11 0 m by 110 m by 55 m for all
remaining blocks.
• Classification focused on spatial relation using a minimum of five composites in at least three
different drill holes for the Measured and Indicated resources.
• Validation has proven that the block model fairly reflects the underlying data inputs. Variability
over distance is relatively moderate to low for this deposit type therefore the maximum
classification level is Indicated.
• Mineralization at the deposits extends to surface and is expected to be suitable for open cut
mining; no minimum mining width was applied; internal mining dilution is limited to internal
barren pegmatite and/or host rock intervals within the mineralized pegmatite intervals; based
on these assumptions, it is considered that there are no mining factors which are likely to affect
the assumption that the deposit has reasonable prospects for eventual economic extraction.
• It is the QP’s opinion that the current classification used is adequate and reliable for this type
of mineralization and mineral resource estimate.
• Initial Metallurgical tests were available at this stage of project advancement. An assumed
concentrate (DMS) recovery of 65% has been applied in determining reasonable prospects of
eventual economic extraction.
• Mineral Resources were constrained within the boundaries of an optimized pit shell using the
following constraints: Concentrate price: USD$1,500; mining costs: USD$2.5/t ROM;
Processing costs: USD$13/t ROM, General/Admin: USD$4.0/t ROM, Lithium Recovery: 65%,
Mining Recovery: 95% and Pit slope: 60°.
• The MRE reported is a global estimate with reasonable prospects of eventual economic
extraction.
About Lithium Ionic Corp.
Lithium Ionic is a Canadian mining company exploring and developing its lithium properties in
Brazil. Its flagship Itinga and Sal inas projects 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. The Itinga 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
Faisal Sayeed, P.Geo of SGS is a Qualified Person as defined by NI 43-101 and has reviewed
and approved the technical information and data regarding the MRE included in this news release.
Mr. Sayeed is independent of Lithium Ionic. All other scientific and 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, and both are “qualified persons” as defined in
NI 43-101.
Investor and Media Inquiries:
+1 647.316.2500
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