Lithium X Acquires Arizaro Lithium Brine Project in Argentina and Provides Sal de los Angeles Project Update
- District-scale 33,846 hectares Arizaro project is located in one of the world's largest and least explored salars thought to contain elevated lithium brine values
- Potential to increase and enhance brine processing at Sal de Los Angeles, Lithium X's flagship project, by combining with brine products from Arizaro
- The entire salar is staked with other current land holders in Arizaro including Eramet, Sentient and REMSA (Salta Government)
- Purchase price of 3,500,000 common shares and USD $250,000 for a 100% interest, subject to certain conditions
- In line with Lithium X's growth by acquisition strategy to become the go to pure play lithium company in the world
Sal de los Angeles Highlights:
- Metallurgical testing in on-site evaporation pools has achieved 4% lithium concentration at Sal de los Angeles with 5% expected by the end of Q1 2017
- Salta Exploraciones S.A. Joint Venture has initiated construction of the camp expansion
- Construction equipment and supplies to be dispatched shortly, with a focus on construction of brine capture and pumping systems
- Exploration program to commence in February 2017, focusing on resource expansion and resource category upgrade
VANCOUVER, Jan. 30, 2017 /CNW/ - ("Lithium X", or the "Company")(TSX-V: LIX)(OTCQX: LIXXF) is pleased to announce that the Company has entered into a binding purchase and sale agreement (the "Agreement") to acquire 100% of the Arizaro lithium brine project (the "Project") in Argentina's Salta Province. The Project consists of 33,846 hectares in 11 mining claims covering parts of the western and eastern portions of the Salar de Arizaro, one of the district's largest known salt lakes. (Refer to Figure 1: The Arizaro Project, which can also be found on the Company's website at www.lithium-x.com.)
"Arizaro is an accretive acquisition for Lithium X, well priced under current market conditions, with considerable exploration potential," commented Executive Chairman, Paul Matysek. He continued, "It is one of the largest salars in the world thought to contain elevated lithium brine values and has gone largely unexplored. Preliminary indications of brine geochemistry suggest the possibility of employing Arizaro Project brine products to increase and enhance processing of Sal de los Angeles brine, the Company's flagship asset, also located in Salta, Argentina."
The Arizaro Project benefits from good infrastructure in the Puna region, and is set to benefit from further development of adjacent large-scale mining projects, including First Quantum's Taca-Taca copper project and Fortuna Silver's Lindero gold project. Salar de Arizaro is traversed by a highway and railroad that connect the Project to Chile and Pocitos, where natural gas and an Industrial Park are found. Other property owners in Arizaro include Eramet, Sentient and REMSA (Salta Government). Historical sampling on the western margins of the Salar de Arizaro show elevated lithium values near surface contained within a classic halite dominant salar, much like nearby Rincon, Salar del Hombre Muerto and Atacama projects, all of which host advanced or producing lithium brine operations.
In consideration for the Project, Lithium X will pay USD $250,000 and issue 3,500,000 common shares to the Vendor for a 100% interest in the Project on closing, which is subject to receiving valid title certificates. In connection with the purchase a finder's fee of 5% of the total acquisition price (USD $12,500 and 175,000 shares) shall be payable.
The acquisition of the Project is subject to certain conditions including, but not limited to, receipt of all necessary approvals, including the approval of the TSX Venture Exchange.
The Company is currently planning an exploration program to assess the quantity and quality of the contained brine at Arizaro, as well as beginning to assess the brine for use in mixing with Sal de los Angeles brine.
Sal de los Angeles Project Update
Since Eduardo Morales, Chief Operating Officer and Andres Barrientos, General Manager, joined the Company the Company has been pilot processing Sal de los Angeles brine, testing two flow sheet designs both aimed at producing a 5% lithium brine concentrate. The evaporation and crystallization path of this brine has been within expectations, following a similar crystallization path to the Salar de Atacama brine employed in the current producing facilities at that location. The concentrated brine is currently at 4% lithium by weight and the first batches of product at 5% lithium concentration are expected by March 2017, which will then be shipped to potential end users and for testing of battery grade lithium carbonate at laboratory scale by the Company.
"Half way through our first summer season, we are extremely pleased with the evaporation rates and crystallization path of our brine," commented Chief Operating Officer, Eduardo Morales. He continued "upon Andres Barrientos and my incorporation into the Lithium X team, we designed a ponding flow sheet that would enable the production of a 5% lithium brine that is both potentially a commercial product and feed for a battery grade lithium carbonate plant. The Sal de los Angeles brine is now at 4% lithium concentration, having followed the crystallization path at our on-site pilot pools within expectations, reaffirming my conviction as to the high processing quality of this brine. With current evaporation rates we expect to reach our target concentration before the end of March, 2017 demonstrating in this way a full cycle is achievable within a single summer season."
Following the completion of the upgraded brine resource at SDLA in August 2016, follow-up exploration and resource definition was planned and is set to commence in February 2017. Work will focus on expanding the resource and upgrading the existing resource further. Resource expansion will consist of additional seismic surveys and drilling to basement depths to the north of the existing resource boundary. The northern portion of the basin contains the higher grade brines hosted in predominantly sand and gravel layers, with approximately 9 square kilometres of this area yet untested by drilling. Resource upgrading will consist of additional long and short term pump tests as well as collection of additional samples for relative brine release capacity testing.
The Salta Exploraciones S.A. ("SESA") and Potasio y Litio de Argentina S.A. ("PLASA") Joint Venture "SESA JV") has initiated construction of the camp expansion required to commence construction of the pumping, piping and ponding facilities. The camp shall be increased from 17 people to 40 people, accommodating the additional work force to be employed during the upcoming construction. Equipment and supplies for construction of the brine collection, pumping and piping facilities are to be dispatched shortly followed by construction of these facilities once all necessary permits have been received. A detailed construction schedule will be released when such permits have been received.
The scientific and technical content and interpretations contained in this news release have been reviewed and approved by VP of Project Development William Randall, a Qualified Person as defined by NI 43-101, Standards of Disclosure for Mineral Projects.
About Lithium X Energy Corp
Lithium X Energy Corp. is a lithium exploration and development company with a goal of becoming a low-cost supplier for the burgeoning lithium battery industry. Lithium X owns 50%, and has the option to acquire up to 80%, of the Sal de los Angeles lithium brine project in the prolific "Lithium Triangle" in mining friendly Salta province, Argentina, a well-known salar with a large resource and high concentrations of lithium. Lithium X's Arizaro project consists of 33,846 hectares located in one of the world's largest salars thought to contain elevated lithium brine values. Lithium X is also exploring a large land package in Nevada's Clayton Valley, contiguous to the only producing lithium operation in North America – Silver Peak, owned and operated by Albemarle, the world's largest lithium producer. Lithium X is listed on the TSXV under the trading symbol LIX.
For additional information about Lithium X Energy Corp., please visit the Company's website at www.lithium-x.com or review the Company's documents filed on www.sedar.com. Join the Company's email list at http://lithium-x.com/subscribe.
ON BEHALF OF THE BOARD OF DIRECTORS
References to "production" or "pilot production" herein should not be construed to imply that the Company's Sal de Los Angeles Project is in commercial production or that it contains mineral reserves. Further technical studies will be required to assess the project's viability. There is no certainty that a potential mine will be realized or that a production decision will be made.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.
This news release contains certain forward-looking information and forward-looking statements within the meaning of applicable securities legislation (collectively "forward-looking statements"). Certain information contained herein constitutes "forward-looking information" under Canadian securities legislation. Generally, forward-looking information can be identified by the use of forward-looking terminology such as "expects", "believes", "aims to", "plans to" or "intends to" or variations of such words and phrases or statements that certain actions, events or results "will" occur. Forward-looking statements are based on the opinions and estimates of management as of the date such statements are made and they are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed by such forward-looking statements or forward-looking information, including the business of the Company and the commencement of trading in the Company's shares. Although management of the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements or forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements and forward looking information. The Company does not undertake to update any forward-looking statements or forward-looking information that are incorporated by reference herein, except as required by applicable securities laws.
SOURCE Lithium X Energy Corp.
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