NOA Lithium Reports High-Grade Results from its Fifth Hole at Rio Grande With Intercepts Averaging 471 mg/l Lithium over 530 Meters And Provides Financial Update
NOA Lithium Reports High-Grade Results from its Fifth Hole at Rio
Grande With Intercepts Averaging 471 mg/l Lithium over 530 Meters And
Provides Financial Update
April 12, 2024, Buenos Aires, Argentina – NOA Lithium Brines Inc. (TSX-V: NOAL, FSE: N7N)
(“NOA” or the “ Company”) is pleased to report positive lithium results from brine samples from
RG23-005, the fifth hole of the Phase 1 diamond drill program at its Rio Grande project (“Rio
Grande” or the “Project”). The hole, located at the Juana Azul claim within the salar, completed to
a depth of 602 meters (“ m”), intersected a high -grade lithium (“ Li”) brine aquifer of significant
thickness starting from a down-hole depth of only 1 m.
Highlights from the fifth drill hole include:
• Near-Surface: Lithium brine-saturated geological units were encountered starting at only 1
meter below surface, indicating the Project's vast potential.
• Extensive Brine -Bearing Units: Approximately 530 m of lithium brine -bearing units were
identified through 41 packer tests, affirming substantial lithium content within the salar.
• Average concentration of 464 mg/l Li in the upper 350 m, while the remainder of the hole
averaged a high-grade concentration of 474 mg/l Li; and
• Encountered highest-grade concentration of 607 mg/l Li at 203 m.
NOA’s Chief Executive Officer Gabriel Rubacha states: “The results of this 5 th hole reaffirm the
potential of our Rio Grande project. We are now focused on the next stages where we expect to
expand the resource drilling areas not explored yet and start our pumping holes campaign to support
the development of the project. We expect to start this second stage during Q2 this year”.
Hole R G23-005 was executed with diamond drilling (HQ -size), permitting the extraction of core
samples of the salar basin formations and collection of brine samples, where available. Drilling was
carried out by Salta-based Hidrotec S.A., under the supervision of NOA’s geologists.
Diamond drill hole RG23-005 was completed at a depth of 602 m. At a depth of 1 m, the formations
saturated with brine began . The lithology of the well is composed mainly by sand with sulfate
intercalations and a lower proportion of crystalline halite , with contents that are variable along the
depth of the well. Packer test sampling was carried out and almost the entire depth of the +600 m
NEWS RELEASE
well returned brine-saturated units (approximately 530 m of the 602 m drilled), except for one horizon
ranging 40 m in thickness.
Brine packer samples have been sent for laboratory analyses, including multi-element geochemical
analysis for lithium and other relevant elements, and results are expected in the coming weeks.
Selected drill core samples were sent to an accredited laboratory for physical property tests,
including drainable porosity.
Results for Hole RG23-005
The results of the brine analyses and the respective intervals are shown in Table 1 below and drill
collar information is presented in Table 2 below. Hole RG23 -005, drilled at the Juana Azul claim
(shown in Figure 1 below) reached a depth of 602 m.
Table 1: Interval Data & Li Assays (double packer sampling) For Drillhole DDH-RG23-5
Hole id From To Li ( mg/l )
Average per interva -
Li ( mg/l )
DDH-RG23-005 22.6 24.1 355
DDH-RG23-005 34.6 36.1 391
DDH-RG23-005 46.6 48.1 384
DDH-RG23-005 70.6 72.1 375
DDH-RG23-005 94.6 96.1 401
DDH-RG23-005 118.6 123.6 373
DDH-RG23-005 130.6 132.1 435
DDH-RG23-005 142.6 144.1 465
DDH-RG23-005 154.6 156.1 493
DDH-RG23-005 166.6 168.1 471
DDH-RG23-005 178.6 180.1 504
DDH-RG23-005 190.6 192.1 468
DDH-RG23-005 202.6 204.1 607
DDH-RG23-005 214.6 216.1 433
DDH-RG23-005 226.6 228.1 416
DDH-RG23-005 253.6 255.1 546
DDH-RG23-005 265.6 267.1 547
DDH-RG23-005 277.6 279.1 549
DDH-RG23-005 289.6 291.1 551
DDH-RG23-005 337.6 339.1 494
DDH-RG23-005 361.6 363.1 496
DDH-RG23-005 397.6 402.6 500
DDH-RG23-005 414 415.5 486
DDH-RG23-005 426 427.5 486
DDH-RG23-005 438 439.5 482
DDH-RG23-005 450 451.5 487
DDH-RG23-005 462 463.5 489
DDH-RG23-005 474 475.5 487
DDH-RG23-005 486 487.5 452
DDH-RG23-005 498 503 467
DDH-RG23-005 510 511.5 466
DDH-RG23-005 534 535.5 479
DDH-RG23-005 546 551 462
DDH-RG23-005 561 562.5 459
DDH-RG23-005 573 574.5 463
Avg Hole mg/l 471
474
464
Figure 1: Plan Map Showing Well RG23-005 And Previous Completed Wells
Table 1: RG23-005 - Drill collar information
Hole #: RG23-005 Azimuth: 0 deg.
Claim name: Juana Azul Inclination: -90 deg.
Coordinates (UTM
19J South):
E: 588494 m
N: 7233176 m,
Z: 3669 m
Contractor: Hidrotec S.A.
Machine type: HT07 LF-90
Drill type: Diamond
Hole diameter: HQ
Bridge Loan Financing
The Company also announces that it has entered into a short-term unsecured loan agreement (the
“Agreement”) with Mr. Gabriel Rubacha (the “Lender”), the Company’s Chief Executive Officer and
a Director. Under the Agreement and on or about April 8, 2024 (“Disbursement Date”), the Lender
will advance the Company a US D $1 million (the “ Loan Amount ”) term loan (the “ Bridge
Financing”) with repayment terms as disclosed below. The Bridge Financing is expected to be
repaid to the Lender in 60-90 days from the date hereof, as the Company is in advanced discussions
with strategic investors regarding longer term capital financing for the Company. The Company plans
to use the proceeds from the Bridge Financing to pay incurred capital expenditures and for general
corporate working capital.
The Bridge Financing will have a maturity date of December 31, 2024 (“Maturity Date”) and may be
repaid by the Company with interest, if any (“ Repayment Amount ”) in whole or in part with no
penalty at any time before the Maturity Date (the “ Repayment Date”). The Repayment Amount will
be determined by using the value of 142,000 common shares of Lithium Americas Corp. (“LAC”), as
traded on the New York Stock Exchange (“NYSE”) under the symbol “LAC”, multiplied by the closing
price of the LAC common shares on the NYSE on the Disbursement Date , which equals the Loan
Amount; and the exact Repayment Amount to be paid on the Repayment Date will be the aggregate
value of the 142,000 LAC common shares multiplied by the closing price of the LAC common shares
on the NYSE on the Repayment Date.
The Lender has also agreed to share in any such depreciation that may occur of the LAC common
shares between the Disbursement Date and the Repayment Date and for clarity only the same
number of LAC common shares as of the Disbursement Date will be required to be repaid by the
Company to the Lender on the Repayment Date.
Further and pursuant to the Agreement, b eginning on the date that is 150 days from the
Disbursement Date and until the Maturity Date, t he Repayment Amount may be converted into
common shares of the Company at a price per security that is the maximum allowable discount
permitted by the TSX Venture Exchange at the time the conversion is made and the accrued interest,
if any, becomes payable, and such convertible terms shall comply with the Policies of the TSX
Venture Exchange and be subject to approval by the TSX Venture Exchange.
NOA’s Executive Director, Hernan Zaballa, states regarding the Bridge Loan : “This financial
commitment provided by Mr. Rubacha continues to show the support and confidence of
management in the vast potential of the Rio Grande project.”
The Bridge Financing obtained from the Company's Chief Executive Officer and Director constitutes
a “related party transaction” under Multilateral Instrument 61 -101 - Protection of Minority Security
Holders in Special Transactions ("MI 61-101"). This transaction is exempt from the formal valuation
and minority shareholder approval requirements of MI 61 -101 pursuant to sections 5.5(a) and
5.7(1)(a) of MI 61-101 as neither the fair market value of the transaction, nor the consideration paid
to the lender of the Bridge Financing, who is a related party of the Company, would exceed 25% of
the Company's market capitalization. The Company will file a material change report with respect to
the Bridge Financing, however, the material change report will be filed less than 21 days prior to the
advancement of proceeds under the Bridge Financing.
The entering into of the Bridge Financing was considered and approved by the disinterested
Directors of the Company. The disinterested Directors voted unanimously to approve the Bridge
Financing and Mr. Rubacha declared a conflict and abstained from voting on the Bridge Financing.
The Bridge Financing remains subject to requisite approvals by the TSX Venture Exchange.
About NOA Lithium Brines Inc.
NOA is a lithium exploration and development company formed to acquire assets with significant
resource potential. All NOA’s projects are located in the heart of the prolific Lithium Triangle, in the
mining-friendly province of Salta, Argentina, near a multitude of projects and operations owned by
some of the largest players in the lithium industry. NOA has rapidly consolidated one of the largest
lithium brine claim portfolios in this region that is not owned by a producing company, with key
positions on three prospective salars, being Rio Grande, Arizaro, Salinas Grandes, and totalling over
140,000 hectares.
On Behalf of the Board of Directors,
Gabriel Rubacha
Chief Executive Officer and Director
For Further Information On The Company
Website: www.noalithium.com
Email: [email protected]
Telephone: +54-9-11-5060-4709
Alternative Telephone: +1-403-571-8013
Sample Analysis & QA/QC Program
The Company has a robust QA/QC and sample management program. Brine samples were collected
by a single / double packer system (in-hole inflatable) to isolate specific intervals down the drillhole.
The packer sampling method allows the collection of brine samples at specific depths while sealing
the hole at the top and bottom of the interval. The packer system was run several times to flus h the
hole after drilling to clear / clean the hole prior to sampling and four samples for each interval were
collected (main sample, duplicate sample, check sample, reserve sample). The drillhole of the
current release was inclined vertically (90 degrees) and the salar strata are believed to be flat -lying
resulting in reported intervals approximating true thickness.
Samples of brine were submitted by courier for analysis to Alex Stewart NOA, subsidiary of Alex
Stewart International Argentina, member of the Alex Stewart International group, an accredited
laboratory for the analysis of lithium and other elements. Alex Stewart employed Inductively Coupled
Plasma Optical Emission Spectrometry as the analytical technique for the primary constituents of
interest, including: boron, calcium, potassium, lithium, and magnesium. Measurements in the field
included pH, conductivity, temp erature and density. The quality of sample analytical results was
controlled and assessed with a protocol of blank, duplicate and standard samples included within
the sample sequence. Differences between original and duplicate samples and results for standards
and blanks are considered within the acceptable range for lithium.
Qualified Person
David O’Connor P.Geo., is the Qualified Person as defined by National Instrument 43 -101 –
Standards of Disclosure for Mineral Projects , and he has reviewed and approved the scientific and
technical information in this news release.
Cautionary Note Regarding Forward-Looking Statements
This news release may include forward -looking statements that are subject to inherent risks and
uncertainties. All statements within this news release, other than statements of historical fact, are to
be considered forward looking statements. Forward -looking statements including, but not limited to
NOA’s future plans and objectives regarding its projects, which constitute forward looking information
that involve various risks and uncertainties. Although NOA believes the expectations expressed in
such forward-looking statements are based on reasonable assumptions, such statements are not
guarantees of future performance and actual results or developments may differ materially from
those described in forward -looking statements. Factors that could cause actual results to differ
materially from those described in forward-looking statements include fluctuations in market prices,
including lithium prices, continued availability of capital and financing , Loan Repayment Amounts
and timing of such repayment, and general economic, market or business conditions. There can be
no assurances that such statements will prove accurate and, therefore, readers are advised to rely
on their own evaluation of such uncertainties. NOA does not assume any obligation to update any
forward-looking statements except as required under applicable laws.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined
in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy
of this release.