Lithium Ionic intersects 1.45% Li2O over 45.9m at the Galvani target, Minas Gerais, Brazil
Lithium Ionic intersects 1.45% Li2O over 45.9m at the Galvani target, Minas
Gerais, Brazil
May 29, 2023, Toronto, Ontario – Lithium Ionic Corp. (TSXV: LTH; OTCQB: LTHCF; FSE: H3N)
(“Lithium Ionic” or the “Company”) reports additional assay results from the Galvani target as part
of a near-complete 30,000 metre delineation drill program that is expected to culminate in an initial
NI 43-101 compliant mineral resource estimate for the Bandeira and Galvani targets, expected in
Q2 2023.
The Company has to date completed 28,400 metres of drilling at the Bandeira and Galvani
properties and is currently drilling the last few holes before the cut-off of data for inclusion in the
mineral resource estimate.
The Galvani claims are located approximately 5 kilometres northwest of its Bandeira property and
Companhia Brasileira de Lítio’s (CBL) Cachoeira lithium mine, and approximately 4 kilometres
West of Sigma Lithium’s large Xuxa lithium deposit (see Figure 1).
Lithium Ionic is currently the second largest mineral rights holder in the region, controlling 14,182
hectares in this emerging hard rock lithium -producing district. The Galvani and Bandeira
properties, which will be the subject of the initial mineral resource estimate, covers only 872
hectares of its large land package.
Galvani Drill Intercept Highlights (See complete results in Table 1)
▪ 1.45% Li2O over 45.9m intersected at surface, 28 to 74 metres down-hole,
represents one of the best holes drilled at Galvani (hole ARDD-23-56)
o Confirms 50 metre down-dip extension from previously reported hole
ARDD-23-45, which intersected 1.23% Li2O over 17m
o Interpreted to form part of a large pegmatite dyke, which was also
intersected in hole ARDD-23-048 with 1.87% Li2O over 45m, 100 metres
away, and only 20m from surface
Blake Hylands, P.Geo., CEO of Lithium Ionic, commented, “ These latest results further confirm
the scale and continuity of the large spodumene- bearing pegmatite dykes at this target. The
results from the initial drilling program at Galvani and Bandeira have been tremendously
successful, and our team is confident that the upcoming mineral resource estimate will deliver
scale and high-grade, that will form the basis for significant future growth.”
The Company has engaged SGS Canada (“SGS”), internationally recognized for the estimation
and modelling of mineral deposits , to complete the initial NI 43- 101 mineral resource estimate.
SGS has direct experience with lithium deposits in the region, including Sigma Lithium Corp’s
nearby deposits.
Figure 1: Galvani Property, Forming Part of the Itinga Project
Figure 2: Galvani Plan Map with Latest Drill Results
Figure 3: Core photo of holes ARDD-23-056
Table 1. Galvani Drill Results
Hole ID Az Dip From To Metres Li2O (%)
ARDD-23-52 210 -45 54.14 66.14 12.00 1.15
ARDD-23-54 210 -60 113.10 115.10 2.00 1.57
ARDD-23-55 210 -65 97.18 100.18 3.00 1.06
ARDD-23-56 210 -60 28.07 74.00 45.93 1.45
ARDD-23-61 205 -55 99.88 103.49 3.61 1.72
*Assays pending for ARDD-23-58 to ARDD-23-60;
No significant values in holes ARDD-23-53 and ARDD-23-57
Lithium Ionic Forms SPV to Acquire Surface Rights
The Company also reports that it has formed Valitar Participacoes S.A. (“Valitar”), a special
purpose vehicle (“SPV”). Through Valitar, Lithium Ionic proposes to acquire surface rights over
its mining claims it believes have the potential to be mined. Under Brazilian law, the owner of
surface rights on a mining claim is entitled to 1% of the mineral net revenue from the mining of
lithium on such mining claim.
Valitar is a Brazilian company and Lithium Ionic, through its wholly -owned subsidiary, MGLIT
Empreendimentos Ltda. (“MGLIT”), owns 100% of the preferred shares of Valitar (the “Preferred
Shares”). The Preferred Shares entitle MGLIT to the economic benefits derived by Valitar.
MGLIT has entered into a loan agreement with Valitar to provide Valitar with up to a R$10 million
(approximately USD$2 million) (the “Loan”) to acquire the requisite surface rights over Lithium
Ionic’s mining claims. The Loan has a three-year term, is unsecured and accrues interest at 1%
per annum. Under Brazilian law, rural land in Brazil must be owned by a Brazilian resident and,
therefore, the common shares of Valitar are beneficially owned by an officer of Lithium Ionic who
is a resident in Brazil. As a result, the Loan is a "related party transaction” within the meaning of
Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions
(“MI 61-101”). The Company is relying on exemptions from the formal valuation requirements of
MI 61-101 pursuant to section 5.5(a) and the minority shareholder approval requirements of MI
61-101 pursuant to section 5.7(1)(a) in respect of the Loan as the fair market value of the Loan
does not exceed 25% of the Company’s market capitalization.
About Lithium Ionic Corp.
Lithium Ionic is a Canadian mining company exploring and developing its lithium properties in
Brazil. Its flagship Itinga and Salinas 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.
Quality Assurance and Control
During the drill program, assay samples were taken from NQ core and sawed in half. One- half
was sent for assaying at SGS Laboratory, a certified independent commercial laboratory, and the
other half was retained for results, cross checks, and future reference. A strict QA/QC program
was applied to all samples. Every sample was processed with Drying, crushing from 75% to 3
mm, homogenization, quartering in Jones, spraying 250 to 300 g of sample in steel mill 95% to
150. SGS laboratory carried out multi-element analysis for ICP90A analysis.
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, and both are
“qualified persons” as defined in NI 43-101.
Investor and Media Inquiries:
+1 647.316.2500
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